As the July USPS postage increases loom on the horizon, retailers are faced with unique challenges due to these rising costs.

The impact on their operations can be significant, affecting everything from budget allocation to overall campaign effectiveness. At Nahan, we understand the challenges faced by catalogers and are committed to providing expert guidance to help mitigate these impacts.

Building on our recent article about strategic recommendations for direct mailers, this follow-up article zeroes in on strategies specifically tailored for catalogers.

By optimizing catalog formats, leveraging USPS promotions, and strategically using co-mail options, catalogers can navigate these postal increases more effectively. Nahan’s team of experts is here to offer the insights and support needed to develop robust strategies that keep your catalog program both cost-effective and impactful.

Optimize Catalog Formats

Trim the Size and Weight of Your Catalogs

One of the most effective strategies to mitigate the impact of the upcoming USPS postage increases is to optimize the size and weight of your catalogs.

Here are some specific strategies:

• Reducing Page Count or Trimming Book Size: One practical approach is to reduce the page count or trim the size of the catalog. This not only decreases weight but also results in cost savings. As Mark Groff, VP of Eastern Sales, advises, “For large page count books, reducing page count or trimming book size can bring down the piece weight to stay under 4 ounces.”
• Saving on Paper Costs: Even minor adjustments can lead to significant savings. For instance, “For every ¼” you shave off the width of the catalog, you can save 3.5% on paper costs,” Groff notes.

Switch to Letter Rate Formats

One effective strategy to mitigate rising postal costs is to switch the format of your catalogs to mail at the letter rate instead of the flat rate. This change can result in substantial postage savings. As Groff explains, “If you change the format from a standard catalog to a 6×9” or 6×10.5” catalog to mail at the letter rate, you can save $0.10 to $0.15 per piece in postage.”

Here’s a comparison to highlight the benefits:

• Letter Rate Catalogs: These typically mail at approximately $0.35 per piece.
• Standard Catalogs: In contrast, an upright standard mailing catalog averages around $0.50 per piece.

Consider Alternative Mailing Formats

In addition to switching to letter rate formats, catalogers can explore other cost-effective mailing formats such as self-mailers and postcards. These formats offer versatility and can significantly reduce mailing costs.

Mike Dietz, Nahan’s Creative Director, suggests: “Consider converting flat rate size catalogs to letter rate size to take advantage of lower postage rates.”

Here are some practical steps:

• Integrate Self-Mailers and Postcards: These are cost-effective alternatives that can complement your catalog strategy. They provide a versatile format for promoting specific products or offers and reaching lower-performing audience segments without incurring the higher costs associated with larger catalogs.
• Adopt Mini-Catalogs: Mini-catalogs are gaining popularity as a cost-effective option. These smaller formats can deliver impactful content while keeping postage costs low. They are particularly useful for targeting specific customer segments with tailored messages.

By adopting these format optimizations and integrating alternative mailing formats, catalogers can effectively reduce their mailing costs while maintaining the impact and reach of their direct mail campaigns. Nahan’s expertise in logistics and postal affairs ensures that we can guide you through these adjustments seamlessly, helping you to maximize your cost savings amidst rising postal rates.

Leverage USPS Promotions and Discounts

One of the most effective ways to counteract rising postage costs is to take full advantage of USPS promotions and discounts. These promotions are designed to help mailers save on postage while encouraging innovative and engaging mail pieces.

Maximize Postal Promotions

Starting early and leveraging expert guidance can streamline the process of registering for USPS promotions and maximizing their benefits.

Brandon Jacklin, Nahan’s VP of Postal Affairs, highlights the importance of early preparation: “Registering for USPS promotions can seem daunting, but with the right approach, it can be streamlined and highly beneficial. The key is to start early and allow experts like us at Nahan to guide you through the process.”

Here are some tips to effectively leverage these promotions:

• Understanding the Promotions: Familiarize yourself with the various USPS promotions available, such as Tactile Sensory and Interactive (TSI), Emerging and Advanced Technology (EAT), and Informed Delivery. Each of these promotions offers unique benefits that can significantly reduce postage costs.
• Eligibility and Activation: Ensure that your mail pieces meet the eligibility criteria for these promotions. For example, including a QR code or interactive elements can qualify your piece for the Emerging and Advanced Technology promotion.

Cost Avoidance Tools

Postal promotions not only help in reducing immediate costs but also serve as valuable tools for long-term cost avoidance. Jacklin emphasizes the value of these tools amidst future changes: “Postal promotions remain a good cost avoidance tool, though the proposed changes for 2025 would reduce the discounts for all promotions across the board.”

Here are some key points to keep in mind:

• Stay Informed on Future Changes: Be aware of upcoming changes in USPS strategies and promotions. For instance, the proposed reductions in discounts for 2025 underscore the need to maximize current promotions.
• Strategic Planning: Incorporate postal promotions into your strategic planning from the onset. This ensures that you can capitalize on the available discounts and avoid higher costs as rates increase.

By leveraging USPS promotions and discounts, catalogers can significantly mitigate the impact of rising postal rates.

Strategic Use of Co-Mail Options

To effectively manage the rising postage costs, catalogers should also focus on the strategic use of data and co-mail options. These approaches can enhance the efficiency and cost-effectiveness of direct mail campaigns.

Utilize Co-Mail Programs

Co-mailing is a powerful tool for achieving the best postage discounts. By combining mail pieces from different clients into a single mail stream, co-mailing enhances the sortation process and secures the best carrier route discounts. Groff emphasizes the benefits of this approach: “Co-mailing drives up the carrier route qualification for your mail stream and achieves the best postage discounts.”

Here’s how to maximize the benefits of co-mailing:

• Understand and Leverage Co-Mail Pools: By participating in co-mail pools, you take advantage of aggregated volume discounts by combining your mailing with hundreds of others. This approach requires all participants to adhere to the same production and in-home schedule, but reduces postage costs and optimizes delivery for all participants.
• Optimize Mail Streams: In many cases, mail that already qualifies at the carrier route level can be split off from the rest of the mailing to bypass co-mail and deliver directly to the post office. This two-pronged approach ensures that postage savings are captured for pieces that will benefit from co-mail, and production savings are captured for pieces that will not.

Conclusion

Navigating the upcoming USPS postage increases requires a strategic approach tailored to the unique challenges faced by catalogers. By optimizing catalog formats, leveraging USPS promotions and discounts, and utilizing advanced targeting, creative, and co-mail options, you can significantly reduce mailing costs and enhance the effectiveness of your direct mail campaigns.

At Nahan, we are committed to helping our customers adapt to these changes with expert guidance and innovative solutions. Our team of seasoned professionals, including sales experts, data optimization specialists, and creative directors, is dedicated to providing you with the tools and strategies needed to thrive in this evolving landscape.

Let’s connect! We’d love to learn more about your catalog campaign goals.

For most financial and insurance marketers, credit bureau data is the single most important component of direct mail success. When you are partnering with a credit bureau, it’s likely not apparent that an even better data targeting solution exists.

Nahan delivers a higher-performing alternative to single source credit bureau data. Our multi-sourced data solution leverages real-time credit bureau data and enhances performance via the use of additional data sources and a unique and unmatched approach to analytics. Response rates and other metrics typically see improvement of 20-50% over traditional results.

The Challenges with Single Bureau Data

A single bureau relationship covers just 80% of those with a credit history. If a predictive model is used, it frequently uses credit data only. Challenges include older credit data and longer processing times, meaning data is not as fresh and accurate as it could be. There are concerns over data accuracy and quality – up to 15% of bureau files contain invalid data. A single bureau is usually limited in credit inquiry coverage for trigger processing.

Benefits of Nahan’s Real-Time Credit Bureau and Multi-Source Data

We can leverage data from all three major credit bureaus as well as over 20 alt-credit, demographic and specialty files, dramatically increasing coverage and offering over 30,000 data attributes for our META Models. We provide significantly more predictive data with the fastest turnaround from request to delivery. Credit bureau data pulls can be bureaucratic and take some time, whereas our resources contain real-time credit bureau data, received and updated nightly. We can deliver data faster than a bureau – faster means fresher and more accurate. This broadens the scope of lead generation and data analysis, offering a much wider and deeper pool of predictive data attributes.

We feature superior META Models designed to take advantage of diverse credit and ITA data sources and deliver superior results. A multi-model solution delivers better model discrimination, greater predictive accuracy, and a continual updating process. Rather than building traditional predictive models that often grow “stale” and need to be rebuilt over time as business and market conditions change and evolve, our models are continually fed with response data to remain current. These models have the ability to adjust to current business goals, focusing on factors like response, conversion, loan amount, cost of acquisition, quote rate, premium amount and more.

Many of our clients have long-term credit bureau relationships and are reluctant to switch from bureau data they are familiar with. This is not a problem – they can maintain the relationship and the data – we build models that use the data but improve upon it with the inclusion of additional non-bureau data sources.

As part of our services, we include proprietary data linkage and hygiene methods that substantially improve upon USPS NCOA and standard hygiene processing. USPS move forms are typically filled out by only 50% of the population. We use the sheer amount of data that we manage to determine the best addresses for delivery. This increases the precision of targeting and reaches potential customers more effectively. A recent prospect mailing file analysis identified 11% of their mail file was sub-par in quality with an associated 33% drop in response vs. the rest of file. Nahan fixed their future files for superior results.

Discover the power of multi-sourced credit and ITA data in transforming your financial or insurance marketing strategies.

Unlock the Power of Precision Data with Nahan!

Transform your direct marketing with Nahan’s proven, data-driven strategies. Leverage our advanced data capabilities and personalized, results-oriented services to enhance your campaign performance. At Nahan, we prioritize real connections and actionable insights, offering solutions based on proof, not promises. To explore how we can achieve big wins for your direct mail efforts, fill out the form below to speak to one of our dedicated Client Solutions Representatives.

Let’s start a conversation today about your direct mail programs!

Here at Nahan, our Strategy and Account Services Teams know just how vital a meticulously crafted direct mail plan is to the success of any campaign. Trust us, it’s not just about sending mail, it’s a delicate balance of art and data science. A well-thought-out plan guides your campaign from start to finish, providing the flexibility for real-time adjustments and mitigating unexpected challenges.

To help you navigate this journey, we’ve developed a comprehensive checklist. Think of it as your roadmap to a successful direct mail campaign, ensuring each dollar spent translates into real, meaningful engagement.

Determining Your Target Audience

The first and perhaps most crucial step in building a successful direct mail campaign is recognizing your target audience. By identifying and sizing your audience initially, you set the stage for a campaign aligned with your specific goals – be it maximizing lead quantity, focusing on high-quality conversions, or even building brand awareness.

In our experience, assumptions can be risky. You may think you know your customer demographics, but reality often tells a different story. It’s worth taking the time to understand who your most loyal and profitable customers are. We believe in letting the data do the “talking.”

Are they the same as your broader audience?

The attributes of your loyal customer base can serve as a blueprint for identifying your acquisition audience.

Leveraging modern predictive modeling techniques provides deep insights into which data attributes within a prospect or customer universe are indicative of response. These insights can inform you which messaging, creative and offers may resonate with your audience. Models rank the target audience, enabling marketers to target just those deemed likely to respond, thus enabling a more efficient budget allocation and minimizing unnecessary expenditures.

Nowadays, with the cost of marketing continuing to rise, predictive analytics are a must for targeting.

Checklist

• Clarify Campaign Objectives: Before you dive into audience identification, be clear about your campaign’s goals. Are you looking to generate a large number of leads, focus on high-quality conversions, or increase brand awareness? Your objectives will influence the rest of your planning steps.
• Identify Your Audience: Through comprehensive market research, understand who you’re targeting. Go beyond assumptions and investigate whether your perceived audience matches your actual customer base. It may be useful to build a customer profile by appending demographic data to your customer file to gain customer insights.
• Recognize Your Most Loyal Customers: Identify your most loyal and profitable customers and see how they align with your broader audience. Use this information to prioritize your audience.
• Size Your Audience: Based on your clarified objectives, budget, modeling results, and audience insights, evaluate the size and scope of your target audience. Assess the feasibility of reaching them within your budget constraints.
• Apply Predictive Modeling: Make use of predictive analytics to rank your audience to determine those most likely to engage with your campaign. This focused approach allows for a more effective and efficient budget allocation.

Setting Budget and Audience Size

Whether your budget is modest or extensive, aligning it strategically with your audience size and campaign goals is vital.

Sometimes, achieving your goals might mean considering more economical creative formats. While high-response formats are often tempting, they aren’t always necessary depending on your campaign objectives.

For example, if your primary goal is brand awareness and product trial, a postcard may suffice. However, if conversions are what you’re after, investing in a #10 envelope with a reply card could yield a better ROI. We have also found that certain formats may be best for certain industries.

Running a proforma analysis of projected results is an excellent way to gauge ROI and assess how different mail formats align with your objectives. This can inform whether your budget is optimally allocated for achieving your campaign goals.

Checklist

• Evaluate Budget: Take stock of your financial resources to determine a feasible budget that aligns with your campaign objectives.
• Consider Format Options: Depending on your goals, weigh the costs and potential ROI of various mail formats. If brand awareness is the goal, a more economical format may be sufficient. For higher conversions, consider investing in more engaging formats.
• Run a Proforma Analysis: Conduct a proforma to evaluate the potential ROI for different mailing formats and target audiences. This will help align your budgeting decisions with your campaign goals.
• Balance Budget with Audience Size: Once you’ve considered all the variables, strategically allocate resources to maximize the reach and impact of your campaign within your budget.
• Optimize for Response: Use modeling insights to focus resources on those more likely to engage, but always in alignment with your overarching campaign goals.

The Roadmap: Understanding Direct Mail Plans and Pricing Charts

The landscape of direct mail can be both broad and intricate. One of the first steps is understanding what each line in your pricing chart means. Whether you’re looking at formats, postage types, the number of touches, mail types, or cost considerations, these components all feed into your overall direct mail strategy. Understanding these can provide not only cost savings but also contribute to a more targeted and effective campaign.

Sometimes, particularly when budgets are tight, it’s worth considering alternative, more economical formats. While the highest response rates are always appealing, they often come at a higher cost.

Testing needs to be part of every plan wherever possible. This is how we learn and apply that learning to improve results

Collaboration is key. Working with expert agency partners ensures you’re making data-informed decisions, better positioning your brand for success. And hey, we’re always here to help!

Checklist:

• Consult the Roadmap: Keep your mail plan and pricing chart within arm’s reach. It’s your guiding star.
• Break Down the Chart: Make sure you understand all elements in your pricing chart; formats, postage type, number of touches, mail types, and associated costs.
• Evaluate Alternative Formats: Don’t blindly chase higher response rates. Weigh the pros and cons of different mail formats in the context of your campaign goals.
• Test different creative and formats. Include a certain amount of risk in your planning to allow for testing. This is how you learn and improve performance.
• Run a Proforma: This financial statement can provide insights into potential ROI and help you make more informed decisions.
• Seek Expert Guidance: Don’t go it alone. Partnering with a seasoned agency can provide invaluable expertise and strategic direction.

Understanding the Customer Lifecycle and Crafting Tailored Campaigns for Each Stage

The customer lifecycle isn’t a straight path; it’s a complex journey with twists and turns. Knowing how to navigate these intricacies is crucial.

At Nahan, we often emphasize that to create the most impactful direct mail plans, you need to understand and adapt to your customer’s lifecycle.

Direct mail can be highly effective on its own, but its potency increases exponentially when integrated with other channels like digital advertising or social media, all carrying a cohesive message. Omnichannel works particularly well when we target digital campaigns to the very same people we are reaching via direct mail, taking advantage of the original predictive analytics used to target them.

Remember, a good mail plan is as fluid as it is solid.

Sure, planning is key, but agility in execution can be your differentiator. You can’t always predict how your customers will react, which is why your plan should be adjustable. If new insights arise during the campaign, be prepared to pivot for more desirable outcomes.

Don’t overlook post-campaign analysis. Knowing what succeeded, what didn’t, and why is indispensable for refining future mail plans. This is a continuous learning process that sets the stage for your next campaign.

Let’s talk metrics. The last touchpoint might get all the glory, but we know that DM plays a vital role in customer conversion, even if it’s not the final interaction. So dig deeper. Analyze how many people who received a DM piece actually engage and whether they are likely to become more valuable customers in the long run.

Checklist:

• Acknowledge Lifecycle Complexity: Understand that the customer lifecycle is multi-dimensional, requiring a nuanced approach.
• Integrate Across Channels: Consider all touchpoints in your customer’s journey. Ensure your DM campaign complements other channels for a unified brand message. Same offer and messaging.
• Stay Agile: Be prepared to adjust your campaign strategy as you gather more data and insights during its execution.
• Post-Campaign Analysis: Don’t move on to the next campaign without evaluating what worked and what didn’t in the last one.
• Re-Examine Metrics: Challenge the “last touch attribution” model. Dig deeper into how DM contributes to customer engagement and long-term value.
• Partner with Experts: Collaborate with specialized agencies that can bring expertise in direct mail and integrated marketing strategies.

The Power of Persistence: Advantages of Ongoing Multi-Mailing Campaigns

Within our team, we often find ourselves echoing a vital principle:

An ongoing direct mail campaign allows you the freedom to experiment, refine, and most importantly, learn about your audience. Think of it as a long-term relationship rather than a one-off encounter. You wouldn’t propose on the first date, would you? In the same vein, ongoing touchpoints afford you multiple opportunities to build credibility and foster trust.

Don’t forget, data is your best ally here. Frequent interactions with your customers offer more data points, allowing for nuanced insights that can be used for continuous refinement. This is particularly important when considering other channels your customers may encounter. A multi-mailing strategy can seamlessly integrate with your other marketing channels to deliver a cohesive and impactful message. This synergy often leads to a snowball effect, enhancing the impact of each channel and making your marketing spend more efficient.

Remember, the insights you gain from one campaign can (and should) be used to fine-tune your next one. Always be analyzing and adapting. The lifecycle of your customer base isn’t static, and neither should your approach be.

Checklist:

• Understand the Customer Journey: Map out key touchpoints and opportunities to make a meaningful connection.
• Tailor the Message: Different stages of the customer lifecycle warrant different messaging. Make each touchpoint relevant.
• Test and Optimize: Don’t rest on your laurels. Regularly revisit your performance metrics and adapt based on real-world feedback.
• Integrate with Other Channels: Make your direct mail campaigns part of a larger, unified marketing strategy. Cohesion amplifies impact.
• Continuous Learning: View each campaign as a learning opportunity for the next. Capitalize on what works and learn from what doesn’t.

Final Thoughts

Direct mail campaigns that are executed thoughtfully and iteratively can offer unparalleled ROI and engagement.

Our team of experts at Nahan is committed to guiding you through this labyrinth, ensuring that your messaging resonates deeply with your targeted audience.

 Contact us today to craft a strategy tailored to your audience, optimizing your ROI for sustainable success.

With the costs of direct mail postage going up, it is essential that targeting must be as precise as possible. This accuracy is essential for industries like insurance, financial services, and telecom, where direct mail is an important marketing channel.

Predictive modeling has long been indispensable for these and other industries leveraging direct mail, but the question is, can we get any better with predictive analytics? We can – anywhere from 20-40% improvement in response over traditional predictive modeling.

Meta Modeling is Superior to Traditional Predictive Modeling

“Meta modeling is a game-changer in predictive analytics,” says Alan Sherman, VP of Strategy at Nahan. “We’ve moved beyond relying solely on single data provider sourced models. The era of meta-modeling is upon us, and it’s transforming how we identify our best customers.”

In our Meta models, we have access to over 20 data provider files to consider over 25,000 data attributes across credit, alt-credit, demographic, and specialty data files. Credit bureau data use is usually restricted to the financial and insurance industries, but in certain cases can be applied elsewhere where credit is being extended. But even without credit data, our Meta models are superior to models built by one data provider or analytic firms with access to one data provider’s compiled file.

Quantity, Quality, and Approach

The breadth of multi-sourced data means that there are exponentially more predictive data points that can be identified and taken advantage of. With access to multiple data sources there are also more net leads.

Multi-sourced data also means higher quality. A typical compiled file may contain up to 15-20% outdated or inaccurate data. Here, all data is linked across sources; we run independent and linked data hygiene to validate “good” data and suppress “bad” data, providing higher deliverability and thus better results.

With this method, sub-models are developed independently on the selected data sources. These sub-models roll-up to an overarching Meta model, which produces the final predictions. This approach delivers inherent advantages over typical single-source models – superior discrimination, greater predictive accuracy, more flexibility, and a faster updating process based on the feeding of most recent campaign results. Unlike most models, these never grow stale, as they are continuously updated at no additional cost. In addition, several Meta models can be built that focus on different goals, such as response, conversion, lifetime value, and then are combined for precise targeting that incorporates all three.

Backed by thousands of performance evaluations, tests, and simulations, meta-modeling provides marketers with accurate and predictable outcomes.

In addition, this approach is applied by a team of award-winning and machine-learning analytic professionals backed by a powerful infrastructure that easily processes millions of records.

The Analysis

Meta modeling begins with an analysis of client customer and promotional files. It results in the building of a Meta model with documentation, projected results and universe sizing. Strategy and target universe recommendations are made. All at no cost, with the expectation of a test to prove performance.

Conclusion

In conclusion, meta-modeling offers a powerful tool for optimizing direct mail campaigns. Its ability to integrate multiple predictive models and harness multi-sourced data provides unprecedented precision in identifying the best prospects.

“In this rapidly evolving industry,” says Sherman, “embracing advancements like meta-modeling is not just about staying competitive. It’s about shaping the future of marketing.” Businesses that adopt these sophisticated approaches can expect improved marketing outcomes and superior results.

In this white paper, we provide an insiders guide to effective direct mail testing for programs of all sizes and across industries. It doesn’t matter if you’re just getting started with testing or a seasoned pro, our guide will provide you with actionable insights you can implement today.

Learn how the four phases of the testing process work together to drive optimization.

• Research
• Pre-Testing
• Testing
• Post-Campaign Assessment

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

Direct mail campaigns are only as effective as the data that informs them. With the right data, businesses can target the right audience and achieve a higher ROI.

However, understanding the different types of direct mail data available can be overwhelming. In this post, we’ll break down the key types of direct mail data to help you unlock the power of your campaigns.

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today! 

By now, personalization in direct mail is nothing new to seasoned marketers. Still, there’s a facet to it that continues to evolve and improve, often catching many by surprise: data-driven variable printing. The technology shines brightest when it comes to envelope personalization, the first point of interaction between your mailer and the recipient.

The Rise of 4C Variable Printing

4C variable production is a tool that direct marketers can leverage to create outer envelopes teeming with personalized information. Thanks to technological advancements, it now provides the option to feature elements like business vertical images, local graphics, representative photos, and relevant data attributes. The result? A connection with the customer that feels more personal than ever.

Advancements in Digital Printing

Historically, the adoption of this technology may have been hindered due to concerns about quality. However, as digital printing continues to astound us with its progress, those concerns are becoming obsolete. “Today, digital printing reliably churns out vibrant, crisp images that meet the high standards marketers have come to expect from professional print services,” Mike Dietz, Executive Creative Director at Nahan.

The Power of Personalization

“Personalization has been, and continues to be, a significant driver in today’s marketing strategies,” Dietz continues. “Innovations in digital printing have made personalized packages a reality, paving the way for new engagement opportunities in direct mail campaigns.”

Variable production leverages data to create a unique experience for each recipient. The customization extends beyond the name and address; it’s about aligning the content with the recipient’s interests and preferences.

Everything from letters to inserts and envelopes, even catalog covers can now include tailored features like business vertical images, local maps and images, representative photos, and other data attributes – each one adding a layer of personal connection with the customer.

The Evolution of Direct Mail

Digital printing and data analytics aren’t new to the industry, but their potential for transforming direct mail continues to grow. They have become an integral part of the evolution of direct mail, with 4C variable production at the forefront, offering improved personalization and quality. The resulting engagement opportunities are beneficial to marketers and customers alike.

In conclusion, personalizing your direct mail campaign with relevant content isn’t just a trend – it’s an evolving strategy that delivers tangible results. So, if you haven’t recently revisited the capabilities of digital printing, there’s no better time than now. With variable printing, and the high quality of digital printing, there are endless opportunities for the type of personalization that can give your campaign an edge.

Curious to learn more? Drop us a line and we’ll answer any questions!

When executed properly, direct mail is a highly effective way to reach target audiences and generate leads. What’s the secret sauce? Careful planning and execution. A successful direct mail campaign is not completed by flying blind, but instead by taking a deep dive into your objectives, data, and creative. 

An effective direct mail plan incorporates thoughtful strategy, data tests, creative tests, and more. To help break down what you need to know, we’ve enlisted the help of some industry experts and have compiled the insights below.  

Step 1: Build a Sustainable Campaign Platform

Today, successful direct mail plans are built on a sustainable campaign platform that allows for measurable results.  Alan Sherman, VP of Marketing Strategy at Nahan, once said “Direct mail is changing. If you still think of direct mail campaigns as a “throw spaghetti at the wall” mass-mailing approach, you’re greatly mistaken.” 

Marketers must also define their goals and objectives. Determine what you want to achieve with your campaign, whether it’s generating leads, boosting sales, or increasing brand awareness. Then, develop a plan that includes projected metrics for success and a process for measuring and analyzing your results. 

Key Points:

1. Define Objectives Clearly
   • Identify whether your goal is lead generation, sales growth, or brand awareness.
2. Set Measurable Metrics
   • Establish clear benchmarks for success, such as response rates or ROI.
3. Monitor and Analyze Performance
   • Develop a process for ongoing measurement and insights.

Key Strategic Takeaway: Build a foundation that prioritizes measurable results to ensure your direct mail campaign delivers long-term value.

Step 2: Align Your Creative with Your Audience

A creative audit can help you identify areas where you can improve your mail package format, messaging, offer, personalized copy and images, and integrated digital/direct mail campaign. This audit can provide valuable insights that will help you optimize your mail plan and improve its performance. Use this information to inform your creative tests, such as testing different formats, messaging, and offers. 

Key Points:

1. Conduct a Creative Audit
   • Assess mail formats, messaging, and offers to identify improvement areas.
2. Test Creative Variations
   • Experiment with different designs, copy, and personalization techniques.
3. Integrate Digital Elements
   • Seamlessly combine direct mail with digital channels for a unified message.

Key Strategic Takeaway: Invest in creative testing to ensure your message resonates with your audience and drives action.

Step 3: Use Data to Build Predictive Models

One of the most effective ways to target your direct mail campaign is by building models and profiles based on your current customer list. 

“Analyzing your customer data allows you to identify the most likely prospects to respond to your mail campaign,” Sherman says. “This can help you build a more targeted and efficient campaign that delivers better results.” 

To do this, data analysts must analyze your customer data to identify common traits and behaviors indicative of response, such as age, income, and purchase history. Depending on the industry, this could include analysis of credit data. Use this information to create targeted models and profiles that can guide your mailing list selection and messaging. 

Key Points:

1. Analyze Customer Data
   • Study traits like age, income, and purchasing behavior to identify trends.
2. Create Targeting Profiles
   • Use data insights to design models for targeting high-response prospects.
3. Optimize List Selection
   • Focus resources on mailing lists with the highest potential ROI.

Key Strategic Takeaway: Leverage data-driven targeting to maximize efficiency and effectiveness in your campaign.

Step 4: Commit to Continual Improvement

Regular testing is an investment that puts the long-term odds in your favor. Every test is an opportunity to learn and improve. 

“We really cannot stress enough how vital direct mail testing is to the health of a direct mail campaign, said Sherman. “It really is the lifeblood of it. While some marketers have a fear of testing for a “if it ain’t broke, don’t fix it” mentality, failing to test is more risky. Every package will eventually face a decline. Testing must be a regular ongoing process. Ideally, that means part of every campaign or at least testing quarterly.”

Key Points:

1. Test Regularly
   • Incorporate testing into every campaign or conduct tests quarterly.
2. Learn from Results
   • Use test insights to refine creative, targeting, and offers.
3. Adapt to Trends
   • Stay ahead by responding to changing customer behaviors and market conditions.

Key Strategic Takeaway: Testing is an investment in long-term success. Continuously refine your campaigns to stay competitive and effective.

If you’re ready to test smarter and drive ROI for your program, fill out the form below for the full guide to direct mail testing today!