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USPS enters a mail revolution
A recent announcement by the U.S. Postal Service has some in direct marketing and mailing industry wondering if a mail revolution is quickly approaching. During the keynote address at the National Postal Forum in Anaheim, May 18, 2015, first-year Postmaster General Megan Brennan announced her goal to transform the USPS into a data-driven marketing channel by embracing digitalization, according to Direct Marketing News.
"Our industry has a big role to play in the digital future," said Brennan.
She further elaborated how digital mediums can make mail more compelling, sophisticated and interactive. Currently, a pilot program is being tested in Northern Virginia, eCommerceBytes reported. The program is called real mail notification and essentially, customers use their smartphones or connected devices to see what mail is arriving in the physical mailbox. Direct Mail News said a test of the program found 9 in 10 clicked on the digital mail, potentially showing the program to be a game-changer.
Technical aspect
During her keynote, Brennan detailed a plan, consisting of three points, to help spur the future of mail. According to her plan, she wants to bridge the gap between physical and digital methods, enhance tracking capabilities to increase transparency and utilize customer data to hyper-personalize mail. This plan is already being implemented with the Northern Virginia pilot program, with plans to to expand to New York City later in 2015.
"We've become a device-oriented culture, with laptops, tablets, smartphones and now even watches providing digital and mobile experiences in every aspect of our lives," said Brennan.
Direct marketing effects
Brennan's goal will seemingly have a profound effect on how direct marketers and those utilizing direct mail software will operate. It should be stressed that despite the push to implement digital technologies, direct marketing will not be going away.
In fact, USPS Vice President of sales Cliff Rucker illustrated statistics to back up that thought. He said 45 percent of consumers read catalogs before deciding to purchase items online. Furthermore, 38 percent of buyers had catalogs open when purchasing item, according to Direct Marketing News.
Direct marketers have already been implementing technology to better connect with customers. For example, direct marketers will include QR codes for users to scan with smartphones. In other instances, a customer may be mailed a USB drive if marketers notice the customer has been researching a certain product lately. The flash drive would contain important, helpful information the customer can use.
Marketers would not be the only group to benefit from USPS's massive goal. For instance, eCommerceBytes said customers may get an email containing an offer from a favorite retailer. By clicking for more information, the customer will be more inclined to open the physical piece of mail later on.
"Our industry has a big role to play in the digital future," said Postmaster General Megan Brennan
Potential challenges
Of course, with the implementation of any new plan, there are bound to be some sort of challenges. However, the Omaha World-Herald reported only 63 percent of nonlocal mail arrives on time, despite the postal agency's pledge to deliver a letter within three days. According to the World-Herald, the biggest delays have stemmed from single-piece first-class letters, small parcels and cards bound for nonlocal destinations within the continental U.S. Postal officials have repeatedly said the problems do not represent a new normal.
An embrace of digitalization by the USPS could prove to be huge and well worth the gamble. Direct marketing shows no signs of slowing down. In fact, direct marketers are projected to spend $45.7 billion on materials, up from $44.5 billion in 2014. The use of data analytics can help the USPS and marketers continually adjust to new consumer habits, according to the DMA.
Of course, the changes do not lessen the need of mailing software. Marketers will always need to use address verification software to ensure mail is being sent to the right location while also serving as a cost-effective solution.
