Rising postal rates pose a significant challenge for industries that rely heavily on direct mail. However, increased costs don’t have to spell the end of your direct mail strategy. With a few strategic adjustments and considerations, brands can offset these higher rates while continuing to achieve their marketing goals. Here are some strategies to consider:
- Optimize Mail Specifications Postal rates often vary based on the size, weight, and format of your mail. By designing your mail pieces to fit cost-effective dimensions, you can reduce postage expenses. Use lower basis weights, lower grades, streamline page counts, and consider smaller formats, particularly for targeted customer segments. Such adjustments can lower your mailing costs by 10% to 15% without cutting your circulation. Given shrinking customer files, it’s crucial to maintain an acquisition focus, especially during peak seasons.
- Purchase Paper Directly from Midland Paper costs can make up a significant portion of your direct mail budget. One effective way to manage these costs is by purchasing paper directly from Midland. Our parent company’s strong mill relationships and bulk purchasing allows us to negotiate better prices than what you might get through your printer. By buying paper through a broker, you leverage these cost savings and lower your per-unit expense. And, as a side benefit, you take control of the quality and consistency of your brand.
- Utilize Postal Discounts and Programs Take advantage of postal discounts and incentive programs offered by postal services. For example, USPS often has promotions that can help reduce costs. Consult with your printer representative to explore available discounts and save on postage. Every percentage saved can translate to additional pieces in the mail!
- Test and Analyze Campaigns Regularly test various aspects of your direct mail campaigns—such as design, copy, offers, and targeting criteria. Use the results from these tests to refine and optimize future campaigns. By understanding what works best, you can enhance the efficiency of your mailings and achieve better results even with higher postal rates.
- Invest in High-Quality Creative Eye-catching, high-quality designs can significantly boost response rates. Unlike website or email designs, direct mail benefits from professional, compelling visuals and copy. Engaging designs can elevate the perceived value of your mail, encouraging recipients to interact with your content. This can offset higher costs by generating a better return on investment. For top-notch design, consider working with J.Schmid—they’re fantastic!
- Focus on Retention and Reactivation Retaining existing customers is typically more cost-effective than acquiring new ones. Use direct mail to engage with active customers who may be less engaged through digital channels, and target inactive customers who are most likely to return. By enhancing customer retention and reactivation, you can boost customer lifetime value and counterbalance higher postal rates with increased repeat business.
- Implement Incrementality and Cadence Testing Not all customer segments require frequent contact. By conducting disciplined cadence and incrementality tests, you can reduce mailings to certain groups and allocate those savings towards acquiring new customers.
- Enhance Data Quality and Targeting Improving your mailing list quality can reduce costs by ensuring your mail reaches the right audience. Invest in data cleansing to eliminate duplicates, update addresses, and refine targeting criteria.
While rising postal rates present a challenge, they also offer an opportunity to refine your marketing strategies. By focusing on data quality, optimizing mail design, leveraging discounts, and personalizing your approach, you can manage increased costs and continue to meet your marketing objectives. Remember, the key is not just to send more mail but to send better, more targeted, and more engaging mail.