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How to make the most of a direct mail budget
As the United States Postal Service comes up with innovative ways to improve its financial performance, the agency will shift a greater amount of focus to small parcel delivery. While first-class mail has experienced a decline in volumes, shipping has been on the rise, according to Spend Matters.
In fact, USPS is making moves that will level the competitive playing field with FedEx and UPS. Citing data from a recent study conducted by Stamps.com, the article said USPS has actually lowered some of its rates for parcels as FedEx and UPS have increased theirs, depending on the package weight. In addition, Priority Mail packages arrived sooner than UPS Ground and FedEx Home Delivery. The agency may have a shot at boosting revenues through expanded shipping services. USPS has also added free package tracking capabilities for customers.
However, the costs of first-class mail have increased, which has left companies that rely on direct mail wondering how to mitigate the hike. In January, the cost of stamps rose to 49 cents, The Milwaukee Journal-Sentinel reported. Traditionally, stamps were below the rate of inflation, but this move is expected to help USPS recoup some of its losses.
"Given the recent exigent postal rate increase, marketers are more pressured than ever to find solutions to offset their total cost of production and distribution without having to cut into important sales and revenue generation activities such as prospecting," Steve Jaeger, president of direct marketing at Milwaukee-based printer Quad/Graphics, told the Journal Sentinel.
How marketers can offset increased postal costs
Direct mail is still a highly visible, effective marketing channel, and postal rate increases don't need to be a barrier for these campaigns. Crain's Cleveland Business offered several tips to work through the higher rates for companies that use direct mail:
- Add a QR code: The post office is currently offering 2 percent savings on postage for mailers that have QR codes. This has the added benefit of boosting multichannel integration between campaigns because it will increase website traffic.
- Use a postage meter: If your company sends a large amount of mail, you can pay $0.48 for first-class postage. While this may seem like a small savings, it can add up over time, especially for businesses that frequently utilize direct mail.
- Make minor design adjustments: Size and shape of mailers play a role in how much postage will cost. A small tweak on the size of a postcard could generate significant savings for a campaign, and it won't detract from the message.
- Utilize address correction: Citing a report from Accudata, the article said as much as 20 percent of the contents of a company's database are unusable. These lists contain a large amount of incorrect data, and it would be a waste of your budget to send mail that won't be delivered. Using address verification can help you avoid this significant challenge in direct mail. The more accurate your list is, the better results you can have with your campaigns.
