Expert insights: Preparing your direct mail strategy for what's next.

By Zachary Bowden, Director of Postal Logistics & Data Processing
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Since United States Postal Service rates increased on July 12, many businesses moved quickly to reevaluate their direct mail budgets. But smart marketers have remained calm as they rethink how their campaigns can work harder to deliver better results. Are you still pondering the implications, or wondering what, if anything, should change?

DMS Director of Postal Logistics and Data Processing Zachary A. Bowden, Ph.D. shows you how to get more from every mailpiece as postage costs rise.

Key takeaways

  • Rising postage costs make postal optimization more important than ever.
  • USPS promotions can help mailers recover meaningful savings throughout the year.
  • Clean, deliverable address data is one of the most important ways to protect mail performance.
  • Direct mail ROI should be viewed as part of a broader multichannel marketing strategy.
  • Campaign format and frequency should be guided by audience, offer, data freshness, and strategy.
  • Trusted postal and logistics partners can help brands manage steady rate increases without sacrificing results.

Where in the production and logistics process can brands find meaningful cost efficiencies?

Postage optimization, USPS Promotions, and leveraging partner relationships are the most meaningful ways for mailers to gain efficiency and maximize ROI. The postage optimization process looks at more than just the postage of a particular piece and truly analyzes which method of induction and transportation will net the lowest overall rate per piece. By making sure all mail is participating in applicable USPS Promotions, we can also make sure our clients are getting their lowest possible postage.

What are the most underutilized data points that could help improve mail performance right now?

One of the often-overlooked data points, especially in a world of rising postage, is address quality and deliverability. Making sure that every record mailed will reach its intended recipient is imperative. On the back end, tracking the delivery of every mail piece ensures that those pieces that have been mailed are being delivered on time, and within the desired delivery window.

How should brands adjust their expectations for ROI as postage increases?

As postage continues to rise, It’s important to set expectations around ROI for a given mailing campaign. That being said, DMS offers multichannel marketing opportunities, so ROI may not be specifically linked to a single mailing but rather analyzed holistically across all of the client’s marketing efforts (digital, as well as physical).

I would also remind mailers that direct mail continues to be one of the most effective forms of marketing, and that the role of mail, and the power of direct mail marketing, will only increase as consumers continue to suffer from digital fatigue. A mail recipient knows that the piece of mail they are holding is real. It’s tangible, you can hold it and smell it, whereas digital marketing (that isn’t done in conjunction with direct mail) is easily ignored, oftentimes annoying and sometimes seems suspect or comes across as being AI junk.

Are there specific formats, frequencies, or campaign types that make more sense right now?

This is highly dependent on the client’s marketing strategy and target audience. For some mailings, it makes sense to mail multiple times per week, using the freshest data possible (think credit offers based on Bureau data). Whereas for others, a weekly or monthly cadence may make more sense. It’s of paramount importance to be strategic in whatever frequency or format you’re using. Our marketing experts here at DMS help drive strategies for our highly successful clients every day.

What advice would you give businesses who are reacting emotionally to the rate increase?

Nobody wants to see postage rise, but I would remind clients that there are many ways to optimize postal spend even as prices rise. DMS always finds the most cost-effective way to induce mail into the mail stream by leveraging not only our industry-leading team, but also our compelling partnerships and our commitment to helping every client participate in USPS promotions to make sure they’re gaining their 5–7% discounts on postage throughout the year.

What’s one move brands can make today that will have an immediate impact on efficiency?

Make sure their mailings are taking advantage of USPS promotions and postal optimization.

Looking ahead, do you expect rate pressure to continue shaping how direct mail is managed?

The USPS has signaled that it will continue to raise postage rates for the foreseeable future. Currently, they have been limited by the Postal Regulatory Commission to once-yearly postage increases, and the amount of each increase is subject to regulatory approval. So, I don’t think that in the near future we’ll see massive postage increases (absent any regulatory or legislative changes). But we will see a steady increase in rates. It's of paramount importance that marketers find trusted, turnkey partners, such as DMS, to help them navigate this ever-changing postal environment to maximize their ROI through strategy, analysis, postal expertise, and creative solutions so that no matter how high postage rates go, their marketing will still hit home.

USPS/LOGISTICSINDUSTRY NEWS
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About the author:

Zachary Bowden serves as DMS' Director of Postal Logistics & Data Processing. A direct mail professional with a strong passion for workflow automation, mailing operations, and strategic leadership, Zachary is dedicated to contributing to team and organizational success while fostering a positive and supportive environment for those around them. Through passion, dedication, hard work, and a commitment to excellence, Zachary has played a key role in the growth and success of both the team and the company.

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