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How will USPS facility closures affect direct mailers?
For many business owners with a strong direct mail emphasis, it can sometimes seem as though the U.S. Postal Service is working against their best efforts. For instance, a recent blog post for the National Postal Federation highlighted the steps the USPS is taking to consolidate its network of mailing facilities. According to the blog post, there will be a large number of processing centers that will be closed in order to create a more streamlined operation.
Companies should start planning now
What this means for businesses that look to use direct mail as a viable option to deliver marketing materials is they need address verification software to ensure it gets to the correct recipient the first time. If there are address errors, mail can get caught up in the USPS system for extended periods of time, which can render a time-sensitive mailing ineffective. Despite decreased mail use among consumers, the U.S. mail network continues to be extremely active.
High volumes with fewer processing centers
For instance, the USPS website indicated there are roughly 523 million mail​ pieces processed and delivered on a daily basis. Roughly half of that number comes from advertising mailers. Meanwhile, more than 40 million people change their addresses on an annual basis, making it imperative for businesses to keep up-to-date records.
The USPS facility closures began in 2012, when 48 centers shut down, the NPF wrote. This process has been briefly interrupted during high-volume periods, such as the fall holiday seasons. However, the second part of the plan will begin in January 2015, when more than 80 additional facilities will be closed. Fortunately for USPS workers, there haven't been any job losses stemming from the consolidation, while the federal body has been able to save roughly $865 million since the project began. With the second part of the campaign scheduled for next year, there's a good chance that the USPS will save additional costs. This may provide the Postal Service with a stronger financial foundation heading into the fourth quarter of 2014.
In the meantime, businesses carrying out direct mail campaigns should anticipate the changes and make mailing software a key component of their strategies. Returned mail can present a company with exorbitant and avoidable overhead costs. The fewer obstacles companies face in reaching out to their customers, the better chance they have of earning a strong return on investment.
