What the USPS® Postage Increase Means for Brands Using Direct Mail Marketing
The USPS® recently implemented another round of postage increases, taking the price of First Class Mail from $0.68 to $0.73 – other classes of mail are also affected by the increase, including domestic postcards, which increased from $0.53 to $0.56. This rate increase will continue to support the Delivering for America plan, which is a decade-long initiative aimed at improving and modernizing the Postal Service’s infrastructure and technology.
But even with this increase in postage, marketers can still bet on direct mail marketing to generate the kind of response rates and ROI that have helped fuel direct mail’s resurgence in recent years — a recent marketing survey found that 94% of brands plan on boosting their marketing spend in 2024, and 60% of brands say they plan to use direct mail as an integral part of their overall marketing plan.
Here, we’ll briefly look at why postage rates are going up, and what marketers can do to help ensure this kind of print communication still provides the best bang for the buck.
Why are USPS postage rates continuing to rise?
The Delivering for America plan was launched in 2021 with the goal of helping the Postal Service achieve “financial sustainability and service excellence.” Changes in the way life and business are conducted in the U.S. have led to declining mail volume, and this 10-year plan aims to turn those losses around through, in part, new postage rates and a more rational pricing approach.
It’s important to note that even with the recent postage rate increases, USPS prices remain among the world’s most affordable, with some of the lowest letter-mail postage rates in the industrialized world. The USPS handles nearly half of global mail volume, delivering to more than 160 million addresses across the country. And that number is growing; the service is actually adding close to 1,000,000 new delivery points every year.
How can marketers create cost-effective direct mail campaigns?
Since you can likely expect additional postage rates in the future, it’s critical that you optimize your direct mail campaigns to still achieve high results at a lower cost. From variable data printing to taking advantage of USPS promotions and incentives, here are a couple of ways to create more cost-effective mailers that deliver results.
Use personalization and variable data printing
Accurate data provides the insights you need to reach the right customer at the right time in the right way, and that starts with variable data printing (VDP) and personalization, the latter of which can increase direct mail response rates by 500%.
This not only saves you money on postage costs since you’re using a highly targeted list, but it also increases customer loyalty and the odds of them converting, as the high-value offer is specific to their interests and connects to them on a deeper level. In fact, 80% of consumers say they’re more likely to purchase from brands that send a personalized offer.
Incorporate digital integrations
It’s one thing to send a targeted direct mail piece, but it’s next level when you can integrate digital integrations, as consumers today want to instantly be able to find out more or take action in the blink of an eye.
More than 100 million quick response (QR) code scans are expected annually by 2025, and the use of QR codes, personalized URLs (PURLs), augmented reality (AR) and near-field communication (NFC) are effective ways to link direct mail to digital.
By simply scanning the code or link, users can be transported to a personalized landing page, a downloadable coupon, e-commerce store, video, or any other digital integration that aligns with the goals of your campaign. This is a win-win, as the user is provided with additional value, and you can use the analytics tools already implemented on your website to better track the ROI of direct mailers.
Make it an omni-channel campaign
The most effective campaigns are those that are multi-dimensional, meaning it’s not just a postcard or not just a Facebook ad. Direct mailers are a great way to bridge the print and digital space, creating an omni-channel approach that provides multiple touchpoints for each user.
For example, a QR code on a postcard sent using VDP might bring a user to a landing page that provides more information about the offer — and cross-selling opportunities — that supplements the messages on the postcard. From there, you can target those users with ads on other social platforms like LinkedIn or Facebook, helping your brand to stay relevant and top of mind to users in various ways, but in ways that are relevant to each user.
Consider the design
An obvious way to cut down postage costs is to cut down the size of the mailer and change the format, but another consideration is to ensure that your message and design are creating the greatest impact — regardless of the format or size.
Consider things like a compelling image to catch their attention, including unique features and finishes like die-cuts and embossing, and displaying your call-to-action (CTA) in a more creative way that’s concise, compelling, but yet conveys a sense of urgency to act. This is where the use of digital integrations is invaluable, as it allows you to draw in their interest with minimal space on the mailer, but provide additional information and offers to them on whatever digital platform you drive them to when they scan.
Take advantage of the USPS Promotions and Incentives Programs
The 2024 USPS Promotions and Incentive Programs were created by the USPS as a way to “encourage marketers, printers, and mailers to utilize new technology and print techniques that enhance the traditional benefits of a physical mailpiece” and “to increase the value of direct mail and retain the volumes of transactional mail, thereby ensuring long-term product growth.”
Not only can these programs help you save money on postage, they can also help you think in a more outside-the-box way about the form, content, and technology you can leverage for a more dynamic, existing mailer.
Varispark has decades of experience in helping brands across a range of industries harness the power and value of direct mail, and we can help you create and execute a cost-effective, highly-targeted direct mail marketing campaign that helps you achieve your marketing goals.
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