RSS
Effectively this is a way to syndicate your content, allowing other websites to publish your content and thus creating many links back to your site, which is good for SEO. It also acts as a reminder system to alert users to changes in interested page content or new content. It is best to make the feed discoverable on the home page itself rather than interior pages although a Blog will provide a good place for this to sit.
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I saw this blog on SEO Essex at http://www.isvirtual.co.uk/blog/t/essex which seems to use RSS as you say here. It was interesting to see that this company were not even ranked for anything Essex until they started blogging then suddenly they are ranked for;
Google Essex
internet marketing Essex
SEO company Essex
SEO Essex
SEO services Essex
I guess it is as simple as adding a blog post and RSS?