The USPS increased the cost of postage today (August 29, 2021) based on approval from the Postal Regulatory Commission (PRC). Postage increases are usually announced in November and take effect in January. This is the second price increase this year. There is usually only one increase per year that is designed not to exceed the rate of inflation.

This is the latest action taken by the USPS executing against the 10-year plan called Delivering for America. The USPS has announced that these changes are essential for building a sustainable service in the years to come. This plan has been widely reported in the media, as leading to slower delivery times, higher prices, and in some cases, more limited hours of retail service at post offices. The timing of these changes, just prior to the recent presidential election, which was more dependent on mail-in ballets due to COVID restrictions, has drawn the ire of some lawmakers as well.

Separately, the USPS announced last week (August 26, 2021), that service delivery performance for the fourth quarter was the best in over five years. Here are the highlights on that announcement:

● First-Class Mail: Delivered 88.8 percent of First-Class Mail on time against the USPS service performance standard, an improvement of 1.3 percentage points from the third quarter.

● Marketing Mail: Delivered 92.7 percent of Marketing Mail on time against the USPS service performance standard, an improvement of 1.7 percentage points from the third quarter. This metric reached 93.9% for the week of August 14 – 20.

● Periodicals: Delivered 82.1 percent of Periodicals on time against the USPS service standard, an improvement of 2.9 percentage points from the third quarter.

Here is a summary of the most recent changes in postal rates. A complete list of the postage increases can be found at USPS August price increase.

• Full Rate First Class Forever stamps increase $.03 from $.55 to $.58 each
• Presorted First Class Commercial Letters increase $.03 – $.035 each
• First Class Postcards (now up to 6×9) increase about $.04 each
• EDDM Flats increase about $.01 each
• Standard Rate Marketing Mail Commercial Letters increase $.015 – $.026 each

The good news for clients of Zairmail is that postage rates and prices will not change until Labor Day (September 6, 2021). The price of a 6 x 9 postcard will reflect the lower postcard rate. If you have a campaign planned, submit it this week, and lock in lower pricing, before postage increases.

Zairmail is the fastest, easiest, and most cost effective way to send (postal) direct mail.

We would appreciate the opportunity to assist with your direct marketing needs.

Zairmail (www.zairmail.com) is the fastest and easiest way to send (real) postal mail. Give us a call anytime at 888.898.0066, we would be happy to help with your direct mail needs.

2020 was a good reminder that strategists should never be too rigid in the planning or execution of mail campaigns, always leaving some room for experimentation. In this conversation from C&E’s recent Creative Summit Conference, hear from direct mail strategists Alicia Sisneros of Sisneros Strategies, Aaron Evans of WRS, Erica Prosser of BerlinRosen, and Chris D’Aniello of Axiom Strategies.

Coming out of the pandemic, business owners and entrepreneurs across all facets of the human experience must put on their thinking caps and come up with some clever ideas on how to keep their businesses afloat while also building momentum to propel them to success in the months ahead.

Considering the impact that COVID-19 has had on businesses’ finance, marketers must be mindful of the cost of marketing and business promotion. At this time, the primary goal of any marketing strategy is to reconnect with customers, reassure them that you are committed to their success, and bring them back to jump-start business after so many months of lockdown.

One marketing strategy that businesses should consider is direct mail marketing. The benefits of using direct mail marketing are endless and you are sure to yield positive results without breaking the bank.

To give you a sneak-peek of what direct mail marketing can do for your business, it has the potential of increasing ROI up to 20% with a response rate that is estimated to be 30X higher than some other digital marketing channels such as email campaigns.

But that’s not all.

Having mentioned email campaigns, it may interest you to know that direct mail enjoys up to 90% open rate compared to email. In addition to such a jaw-dropping open rate, recent statistics by Fundera found that at least 62% of people who respond to direct mail end up making a purchase. As such, a higher response rate from direct mail can lead directly to higher conversation rates.

At this point, how about we step on the brakes to ensure that we are all on the same page? Suppose you are the new kid on the “marketing block” and are not sure what direct mail marketing is, or nature of the benefits it can offer your business. We will shine a little more light on that and offer some tips on how to leverage direct mail.

What is direct mail marketing?

Just as the name implies, this type of marketing strategy involves engaging potential customers (prospects) and existing customers offline by sending targeted mail (e.g., postcards, letters, snap-packs…). While some may argue that this form of marketing is archaic/outdated, it has proven itself to be powerful in today’s marketing landscape.

Interestingly, virtually every class of marketer, including demand generation teams, growth teams, inbound and outbound sales teams, promotional marketing teams, and many others, can leverage direct mail to connect with existing clients, qualified leads, and new prospects.

Yes, we are in the digital age, and more businesses are going online and learning how to include digital marketing tools in the “mix”. Digital marketing tools can definitely offer some unique benefits to business. However, the deafening “noise” and wealth of distractions in the digital environment, makes is harder and harder to break-through the clutter and get noticed. If your message cannot break through, then it cannot effectively connect with customers and prospects.

Because of the massive wave of information in the digital marketing space, marketers are seeking alternative means of connecting with their target audience; in part, by sending messages where they have greater chance of being seen — the tried and true (physical) mailbox. 

Does direct mail marketing work?

A straightforward answer is yes, but that simple response is not nearly rich enough. Here are just a few of the reasons a direct marketing strategy can give your business the boost it requires to push through the COVID-19 pandemic.

• Direct mail is universal

Direct mail can reach every household and business in America. Unlike email, you won’t have to guess which address/(e)mailbox to target.

• Direct mail is targeted

Only pay to reach the customers or prospects that are the most likely to do business with your company. The demographics for direct mail lists are very well developed. If you want to reach dentists, in New Jersey, with a family of three, and an income of more than $300,000, that type of list is available. Just let your targeting creativity run wild…

• Direct mail is trusted

Consumers and businesses diligently open their mail on a daily basis. The “mail moment” is an important ritual that is built into the American psyche.

• Direct mail has a better response rate

Because of the human touch and the tactile engagement that direct mail offers, it can offer a higher response rate compared to digital tools (such as email) and can ratchet up ROI by at least 20%.

How to run an effective direct mail marketing strategy

To run an effective direct mail marketing campaign, marketers must pay attention to some important factors.

Start by clearly defining your audience. We know that if we send the right offer, to the right audience, then good things happen. It all starts with understanding the target audience for your product or service and the benefits that will appeal to them most.

Have a clear and powerful offer and call to action (CTA). The customer needs to effortlessly understand exactly what benefit(s) you are offering and how to take advantage of them. Don’t just offer them a way to respond, ask them to respond (now!).

Test your strategy. Don’t start by sending out 50,000 pieces and risk completely whiffing. Send out much smaller batches (postal discounts start at 500 pieces), with different approaches (e.g., art, copy, offers…) and see what resonates with each target audience. Once you have a winning formula, then you can step on the gas.

Embrace continuous improvement. Once you have a formula that works, don’t stop there – keep tuning. Products change, audiences change, needs change; so embrace change and continue to look for ways to refine and improve your campaigns.

Peter Drucker, one of the masters of modern business thinking, once said, “if you can’t measure it, you can’t manage it.”  Determine which metrics are critical for predicting the success of your programs and then collect and analyze them continuously. Critical metrics like this, are often referred to as key performance indicators (KPI’s).

You may want to track elements such as return on investment (factoring in lifetime customer value), brand awareness, repeat purchases, customer referrals, or others. One simple trick to measuring different campaigns is using different toll free numbers, or landing pages, for different campaigns, and then tracking the response for each.

Looking to put together a winning direct mail strategy? We are here to help. Zairmail can help you design campaigns that help you build relationships and sales.

Zairmail (www.zairmail.com) is the fastest and easiest way to send (real) postal mail. Give us a call anytime at 888.898.0066, we would be happy to help with your direct mail needs.