DIRECT MAIL ROI
Ways to Boost Your Direct Mail ROI When Postal Rates Constantly Increase
Direct mail is a powerful marketing tool that can help businesses of all sizes reach their target audience and drive results. However, the recent spate of constant rate surges by the United States Postal Service (USPS) is making it increasingly difficult for businesses to afford direct mail. These rising costs are forcing businesses to re-evaluate their direct mail strategies and explore alternative marketing channels. As a result, some businesses are shifting their focus to onmichannel marketing, while others are experimenting with more targeted and personalized direct mail campaigns to justify the higher costs.
What are the consequences of relentless rate surges for businesses that use direct mail?
INCREASED COSTS
Rate surges can significantly increase the cost of direct mail campaigns. This can make it difficult for businesses to maintain their marketing budgets, and it can also force them to reduce the size or scope of their direct mail campaigns.
REDUCED ROI
The increased costs associated with rate surges can also reduce ROI for direct mail campaigns. This is because businesses will be spending more on postage, but they may not see a corresponding increase in sales or leads.
LOSS OF COMPETITIVENESS
Businesses that rely on direct mail to reach their target audience may lose their competitive edge if they are unable to afford to keep up with the rising costs of postage. This is especially true for small businesses that have tight marketing budgets.
DIFFICULTY GROWING THEIR BUYER FILE
Rate surges can make it more difficult for businesses to justify prospecting with direct mail if they feel it is no longer worth the cost. This can lead to declining sales and leads for businesses in the long run.
There are several things that businesses can do to mitigate the challenges of incessant rate surges:
- Use postal presort and other mailing discounts: The USPS offers a variety of discounts for businesses that use postal presort and other mailing services. Businesses can use these discounts to reduce the cost of their direct mail campaigns.
- Use targeted direct mail lists: Businesses can target their direct mail campaigns to specific audiences to increase the chances of response. This can help to offset the increased costs of postage.
- Use personalized direct mail: Businesses can personalize their direct mail campaigns to make them more relevant and engaging to customers. This can also help to increase the chances of response.
- Use digital marketing channels: Businesses can also use digital marketing channels, such as email marketing and social media marketing, to reach their target audience. This can help to reduce their reliance on direct mail and make their marketing more cost-effective.
What can you do to help defend direct mail as a viable channel for your marketing campaigns?
Incessant rate surges are a significant challenge for businesses that use direct mail. However, there are several things that businesses can do to mitigate the challenges of rate surges, such as using postal presort and other mailing discounts, targeted direct mail lists, personalized direct mail, and coordinating use of digital marketing channels.
- Tap into USPS promotions such as QR codes and Informed Delivery. Visit their portal here: https://postalpro.usps.com/promotions/portal
- Support the direct mail community through investing via membership and/or support in the ACMA (www.catalogmailers.org) to keep your voice heard at top levels of government regarding postal rates. Consider donating to the Postal Action fund https://www.hvdma.org/post/acma-s-efforts-to-combat-damaging-postal-rate-increases-your-support-is-essential
- Continue to mail smarter. Direct mail remains one of the top conversion drivers to retail and websites. https://www.uspsdelivers.com/10-reasons-why-catalogs-are-a-marketing-powerhouse/
- There are more! Visit - The Alliance of Nonprofit Mailers
