How do you create successful direct mail in 2013?

The United States Postal Service postmaster general, Patrick Donahoe, recently told The New York Times that the postal service is in a financial crisis today because of an inflexible business model.  Many legislatures believe that there are options to cut costs and increase revenue while still preserving the postal service.  Reports on the current state of the United States Postal Service are a bit chaotic.  It is predicted that in 2013, the United States Postal Service will undergo changes that it has never previously experienced.  This includes postage rate increases, new piece specifications, and a reduction of the network that delivers the mail.  It is hoped that these shifts will create significant savings for the United States Postal Service.  If direct mail continues to be a profitable medium for marketing, brands must find the most cost effective solutions in light of the USPS transformation.

Postage rates for folded self mailers

The rate increase percentage is based upon produce and service.  The overall average rate increase across all classes of mail is capped at 2.1 percent.  There are a variety of common mail formats that are considered folded self mailers that currently mail at standard letter rates.  The 2013 changes now categorize these letters into a higher postage rate.  Paper modifications can also offset the impact of postage rate changes on folded self mailers and unenveloped mail pieces.  If marketers begin to understand all of the new specification changes, they can then modify and test formats that comply with new regulations without losing any impact.

File optimization

Analytics can identify a variety of items.  Two of the most important being prospects and response.  By understanding these categories of an audience through analytics, marketers will experience gains in responses and improved campaign results.  These file optimizations are another way of testing your campaigns.  Putting your database into a third-party system will help define postage rate and shipping methods to get your mail to the intended recipients on time and budget.  

Production and logistics

Marketers must execute their mail campaigns on time and on budget once their format is designed and their data files are set up.  To enable marketers to determine the in facility dates, they should work backward from desired in-home dates.  These dates also assist in driving production scheduling, from manufacturing dates to artwork and data file due dates and even material ordering dates.      

There are several options to move mail pieces in the USPS delivery system  

• Presorting - arranges the mail file according to delivery scheme by zip code  
• Benefit: determines campaign postage rates and cost

• Co-palletization - combining trays of mail going to the same entry points on the same pallets
• Benefit: similiar to destination entry, "co-pal" offers discounts for moving the mail further downstream in the USPS network

• Comingling - Groups together pieces of mail from multiple clients/customers or one client's multiple mailers.  
• Benefit: affords businesses and organizations even lower postage rates through deeper penetration of high volume mail into the delivery system.

• Destination Entry - Often referred to as drop ship, this involves shipping pallets of prepared mail directly to the USPS sectional center facility
• Benefit: provides discounts for moving the mail further downstream in the USPS network

• Logistics planning - determines the best load and delivery patterns
• Benefit: optimizes transportation costs

Facility closures

Through 2015, roughly fifty percent of United States Postal Service facilities face closure.  This is due to an effort to cut more than $22 billion in costs.  Ten years ago, letter carriers delivered 202.8 billion pieces of mail.  In 2011, only 168 billion pieces were mailed.  If a marketer routes a direct mail campaign to the wrong location, it will result in major delivery delays.  As the USPS moves forward with their plans to close hundreds of mail distribution centers and post offices, it is crucial that marketers understand the timing and impact of individual facility closures.  

Direct marketers must stay focused on finding postage, processing and logistics savings to maximize mail delivery.  By understanding the "new" USPS, along with optimized mail piece design and processing, this is achievable. 

Ready to kick off 2013 with a great direct mail campaign?

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