Postal Rate Increase: The Role of Data Analytics in Optimizing Direct Mail Campaigns

Posted on by Bryan.Formhals

 

USPS postal rates are continuing to climb, with the latest increase set to take effect on July 9th, 2023. As a result, direct mail marketers are becoming progressively concerned with the rising costs of campaigns. However, increased postal costs do not mean that your direct marketing budget needs to go out the window.  

The Current State of Postal Rates 

The proposed postal rates were approved by the Postal Regulatory Commission on May 31st, 2023. This rate increase is the fourth of its kind since the post office moved to the twice per year cadence, and the Postmaster General has been clear that increases will continue to occur twice per year at least through 2025. 

As a company deeply invested in postal ongoings, two of our very own, Brandon Jacklin, Postal and Logistics Manager, and Kelly Marthaler, Sales Representative, went to Washington D.C. to collaborate with the ACMA (American Catalog Mailers Association) and Vogel Group to bring awareness around the impact of rising postal costs and tax laws to the Postmaster General Louis DeJoy. 

Direct Mail Optimization Amidst Postal Increases 

What can you do about rising postal rates? Optimize, optimize, optimize! By being wise about your data, you can be strategic in mailing less, but to highly responsive consumers, lowering your postage costs.  

Audience Segmentation 

The more people you mail to, the more postage you must spend, plain and simple. To save on postage, marketers should perform an audience audit. Who is your responsive audience? What is your key demographic and what is their past behavior?  Understanding better who your audience is will help you narrow the net you mail to. Less mail to a more responsive audience equals a higher ROI. 

Predictive Modeling

Data analytics allows marketers to leverage predictive modeling techniques to identify those most likely to respond. By analyzing historical promotional data and customer files, companies can build models that predict customer behavior, response rates and conversion rates. Predictive models optimize various aspects of direct mail campaigns, such as selecting the most responsive target audience, and determining the optimal timing for mailings.  By using data-driven insights, marketers can make informed decisions that maximize the impact of their direct mail campaigns and minimize the costs associated with postage. 

Testing

Data analytics enables marketing to conduct testing and optimization of their direct mail campaigns. By testing different variables such as messaging, design, offers, and call-to-action, companies can measure the effectiveness of each element and make data-driven decisions to improve their campaigns. Through continuous testing and optimization, businesses can identify the most impactful strategies, refine their mailings, and achieve better results while mitigating the impact of rising postal rates. 

Integration with Digital Marketing

Data analytics also plays a crucial role in integrating direct mail campaigns with digital marketing efforts. By leveraging customer data from various sources, such as online interactions, social media, and previous email campaigns, businesses can create a comprehensive view of their customers’ preferences and behaviors. This integrated approach allows for a cohesive and consistent customer experience across different marketing channels. Data analytics helps in identifying the most effective touchpoints, enabling businesses to create a seamless and personalized omnichannel experience that maximizes engagement and conversion rates. 

Don’t let rising postal rates get you down. Instead, focus on ways to optimize your direct mail campaigns to ensure a high ROI. Being smart about your data is one of the necessary tools marketers can use to achieve this optimization.  

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! 

 

Insights from the 2022 National Postal Forum

Posted on by Bryan.Formhals

 

Author: Brandon Jacklin, Manager of Logistics and Postal Affairs

 

Two weeks ago, I had the privilege of attending the 2022 National Postal Forum in Phoenix, Arizona. This annual conference always serves as a great opportunity to learn about the new happenings in the print and mailing industry, as well as connect with others in the field. This year’s theme was Facing the Future Together – a homage to overcoming the challenges remaining after the peak of the COVID-19 pandemic, as well as to the transformation taking place with the USPS’s Delivering for America initiative. Postmaster General, Louis DeJoy, outlined several key initiatives the USPS is implementing, all of which are of interest for those in the print and mailing industry, as they will affect postal rates, delivery, and efficiency.

Increasing Service Standard Times

The USPS is implementing several improvements behind the scenes to drive better delivery performance while reducing costs. They are planning major capital investments into its processing network, facilities, retail locations and fleet.  This includes maximizing existing routes to ensure that trucks and planes are being sent at full capacity, and consolidating facility operations from multiple locations into one larger one, where possible, to increase efficiency.

Improving Employee Retention

Another focus of the USPS is improving employee amenities to help with workforce retention and morale. With employee shortages nation-wide, the USPS realizes it needs to increase the desire to stay for current employees who in many cases are facing higher demands. Some of these changes include improving the onboarding and training process, workplace safety, and updating equipment and vehicles. The USPS is seeking to electrify it’s entire fleet by no later than 2035.

Looking Towards the Future

Postmaster General, Louis Dejoy, acknowledged that the USPS has faced several industry headwinds in recent decades (not the least of which being the Covid-19 pandemic). However, he stressed that it is the postal service’s responsibility to rise up, remain competitive, and achieve its mandate of being a self-sustaining enterprise regardless of whatever challenges may exist. Under the Delivering for America plan, the post office anticipates operating with a positive net income beginning in fiscal year 2023 or 2024 and predicts reversing a projected $160 billion in losses over the next ten years.