I came across the marketing power of newsletters when I ran a bicycle store. As store manager, a percentage of my income was based on a simple profit system. When the store made more money, I made more money. So I did some research on how to increase profit.
What I discovered was that of all the items sold in the store, the specialty cycle clothing had the highest gross profit margin. I’m specifically talking about the helmets and the fancy jerseys, shorts, gloves, and shoes. The only problem was the lack of demand.
As an avid fan of cycling and with real world practical experience, I found that when I explained the advantages of cycle clothing to customers in the store, they quickly saw the benefits and purchased the clothing.
So, seeing how well we sold clothing with face to face conversations, I knew that if I could simply educate a lot of people about the advantages of wearing cycle clothing, we would sell much more, which would increase the store’s profits, and ultimately my pay cheque.
The best way I thought of communicating was to write a friendly newsletter and send it to our entire list of customers. I also decided to use the newsletter as a prospecting tool and distributed it to the members of the various cycle clubs.
Did it work? Within a couple of years our turnover increased by an amazing tenfold. It absolutely convinced me that newsletters can be a highly effective marketing tool.By Brad Collison