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Inspiration
-- How a Neighborhood Retailer Created a Newsletter
Customers Adore
SUMMARY
Memorial
Day Weekend used to be one of the slowest periods of
the year for Washington, DC's gourmet retailer Pearson's
Wine & Spirits.
But this year, Proprietor Steve Silver
confidently says it will be a weekend only second to
the Christmas season. Why? His twice-weekly (!) email
newsletter -- sent to 10,000 local consumers -- brings
in foot traffic other retailers only dream of.
"We were at one time one of the
biggest Washington Post paper advertisers in the market,"
notes Steve Silver, Proprietor Pearson's Wine &
Spirits -- a brick-and-mortar store with one location
that does not sell online or ship anywhere.
"Sometime in 1999 someone suggested
I start collecting emails. I had no idea anything like
that would work. My kids convinced me to buy a computer.
We put a sign-up sheet on a clipboard near the register
asking for email addresses. I eventually got about 50
addresses, so I sent out my first email."
"We wound up selling about 50
cases of wine from the first email, 'so I said I think
we've got something here.'"
The problem, of course, was how does
a busy retail store proprietor create email newsletter
content that local customers will find fascinating on
an ongoing basis? Once the novelty of email wears off,
how do you keep the romance going between you and the
customer?
And, how often should you send issues
anyway?
CAMPAIGN
Over the next year, Silver began to
set the five rules by which is email newsletter program
would be run:
Rule #1. Strictly limit sales
announcements
As a gourmet wine seller, Silver had
never relied on sales announcements in advertising to
bring in foot traffic except for
a few key times of year. He didn't
want to be caught in that trap for email content.
Instead, he decided to limit emailed
sales announcements to a handful of times per year --
mainly the traditionally slowest sales times in his
niche such as Memorial Day weekend.
Rule #2. Write as a "reporter"
not a "marketer"
Aside from the extremely infrequent
sales announcements, Silver says, "I see myself
as a reporter. I'm always looking for angles for stories."
Each issue of the newsletter would
focus on one story -- generally about four paragraphs
long. Stories ranged from (see link below for sample
issues):
o The "back story" of a
particular brand
o Little-known vintages or years that
were unexpectedly good
o Recommended wines for particular
meals (such as what goes best with spare ribs)
o Invitations to join wine tastings
and in-store classes
How does a busy proprietor come up
with so many good stories? "I talk to all the wine
supplier sales people. When they come in the store I
don't let them tell me how much it costs, I ask them
for a good story angle. Then I spend my time researching
and writing it."
Example, one winery owner was a former
TV actor who portrayed Davy Crockett on TV in the 1950s
and '60s. With help from the supplier rep, Silver landed
an exclusive interview. "I spent about half an
hour on the phone, he told me highlights of his acting
career and how he got interested in wine."
Rule #3. Keep the subject line
ultra short
"I try to cut it down to two-three
words. I want people to see it and decide whether to
read it. Otherwise, I'm afraid it's going to run off
the page."
Rule #4. Include highly relevant images
Every issue includes a photo of the
wine, food, location or celebrity being profiled. Silver
used to rely on stock and supplier photos, but recently
invested in a digital camera.
Since then, he's tried to include
more photos of store staff, including himself wearing
a hat purchased during a recent wine-buying tour of
France. (No, it's not a beret. Link to photo below.)
Rule #5. Test frequency
At first Silver sent once a week,
on Thursday afternoons when he figured customers would
be considering what wines to buy for the weekend. But
then he heard from a wine store owner in St. Louis that
twice weekly worked better.
So, Silver tested doubling frequency,
adding a Monday edition, despite fears that it might
upset people or just be too much work.
RESULTS
"We don't do a cent worth of
print advertising anymore. I stopped cold turkey,"
says Silver triumphantly.
"I look at our sales figures
-- it *all* comes from email. I don't market any other
way because people walk in the door all day long with
print-outs of the newsletters in their hand, asking
for the product in the email. There's no mistaking where
the business comes from."
Silver cleans and maintains his list
constantly and has had a fairly consistent 10,000 opt-in
subscribership for the past three years. (Worth noting:
Washington, DC, has unusually transient white-collar
population, so holding an email list at this level is
quite an achievement for a local store.)
The newsletters get a consistent 30%
open rate -- but interestingly it can take up to two
weeks or more to achieve. The 24-hour open rate is generally
only at 18-20%.
This shows recipients value the content
highly and probably are sorting it into a special folder
or email pile to read at their leisure. The fact that
they don't forget to return and open issues, especially
at a twice-weekly frequency, is a high compliment to
the content.
The extra frequency upset a handful
of complainers. But Silver decided to keep the effort
up because it meant so much to sales volumes. Plus,
he's discovered by asking, "A lot of people don't
realize how often it comes. They'll tell me, 'I get
your weekly email' or 'Good god you send me email every
day.' They come to the store either way."
Aside from direct sales and open rates,
Silver has also been tracking the relationship-building
aspect of the newsletter program.
"In the days when we were advertising,
we really didn't know our customers very well. Now we
talk to everyone who comes in and know most everyone's
name -- it's like a Cheers kind of place
when they come into the store. Now we have the greatest
group of customers who are loyal to us. It's really
cool the way it's worked."
This Case Study was done by Marketing
Sherpa.
Creative samples from Pearsons:
http://www.marketingsherpa.com/cs/pearsons/study.html
Pearson's Wine & Spirits: http://www.pearsonswine.com

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