The following is an article
prepared by PostCom President Gene Del Polito for Circulation
Management magazine
It most definitely wasn't the best of
times; it may not be the worst of times, but anytime postal rates rise
more than the rate of inflation, it still qualifies as the pits. Even
though the "average" percentage rate increase recommended for Standard
Mail (formerly known as Standard Mail A) is less than what the Postal
Service had proposed, many who use mail for advertising and marketing
purposes will find that on January 7, 2001 their postal rates will rise
more than the cumulative rate of inflation since the last postal rate
increase.
Those who typically mail flat-size mail pieces--even those who mail
at automation-discounted rates--will be among those that will be
particularly hard-pressed. The rate charged for barcoded three- and
five-digit catalogs, for instance, will rise by 16% and more. For mail
that is supposed to be reduced cost, automation-compatible mail, there's
no excuse for this outcome. Clearly, the Postal Service has done a
horrible job in capturing the savings that should be coming from the
flats automation program.
While it would be possible for me to write volumes on the "why" of
this outcome, doing so wouldn't change the fact that these rates
will be implemented on January 7, and those who use the mail for
the distribution of their printed catalogs will have to figure out ways
to accommodate themselves to this reality. In a nutshell, this means
that catalog merchants will have to make smarter and more judicious use
of mail for their marketing messages, in conjunction with their use of
other marketing media (such as the Internet, periodicals space ads, and
other broadcast media). So what's a smart mailer to do?
The principles governing "smart mailing" are not novel--in fact,
Harte-Hanks just recently reminded mailers of a few simple principles
that could pay dividends. These sorts of things have been discussed for
years. Unfortunately, not everyone has taken these recommendations
seriously. When postal increases climb to more than two times the rate
of inflation, however, it's time to pay attention. Here are just some of
the principles mailers should keep in mind.
Clean your mailing lists. Keep your address records up to
date. Maintain USPS postal standard addresses using postal geocodes, ZIP
Codes, Zip+4s, Carrier Routes, Line of Travel data, and Delivery Point
data. Incorporate change-of-address data on customers for recent moves.
If customer databases are decentralized, set up internal procedures to
share move data promptly with all departments. Employ the USPS Delivery
Sequence File (DSF) service to confirm the existence of a delivery
address.
Redesign your mail to take best advantage of all rate
changes. Evaluate to ensure your mail piece designs will allow
you to take maximum advantage of the most cost-efficient rates. Pay
attention to the shape of your mail piece, its dimensions, and its
weight. Be sure you can apply your knowledge of postal rates and mail
preparation requirement to maximize your postal savings.
The principles of sound direct marketing still apply. Be sure
to use sound database technology and methodology to take advantage of
both past customer transaction data and response analysis. Match your
prospects to the demographics and psychographics of current best
customers. Consider using "Or Current Resident" to targeted
addresses--if a customer has moved, the new resident may fit the current
best customer profile. Personalize your mailings as much as possible,
and be sure to test, test, test.
Check to see whether you can take advantages of any opportunities to
"drop ship" or "commingle" mail with other mailers. This could save you
a bundle.
Make sure your mail pieces are compatible with mail processing
equipment. There's a real cost to using mail. Design your mail
pieces to facilitate postal processing. Use font faces that are easy for
postal machinery to read, and don't position your return address in a
way that is likely to be misread as your intended delivery destination.
When you use windowed envelopes, make sure the windows are of sufficient
size to ensure that a delivery address is always visible.
"Partner" with your Postal Service counterparts. Don't keep
your mailing plans a secret. Communicate your intentions as early as
possible to your mail acceptance officials. Let them know about your
upcoming mailing events, the nature of your mail pieces, your expected
mail "drop" dates, any requirements you might have for a "delivery
window," and other pertinent mail delivery needs.
Track your mailings. Keep a record of you mailing and
drop-ship entry dates. When you can, use postal PLANET CODES in
conjuction with the Postal Service's Destination Confirm service, WEB
ADVANCE and other USPS or privately offered mail monitoring
services.
These are just a few of the practices any smart mailer will be sure
to employ to ensure that his or her use of mail as a vehicle for
business development and commerce will produce a maximum return on any
postal investment.