Direct Mail Lead Gen Doesn’t Have to Bust the Budget

Many direct marketing articles tout digital tactics for generating sales leads. But at AccuList USA, we can attest to the continued lead-gen effectiveness of traditional direct mail for a range of our clients, including online retail and publications. Direct mail has higher response rates while avoiding some of the challenges of SEO, social media and e-mail, such as rapidly changing rules, deliverability/visibility issues and a crowded competitive space. But what about the cost of direct mail?  As a recent MarketingProfs post highlighted, there are direct mail options that can effectively deliver leads without busting the marketing budget!

Sales Letters Are Proven Workhorses

A No. 10 envelope that includes a one- or two-page letter and a reply card is an expensive, simple and effective way to reach prospects with something likely to be opened and read (unlike many e-mails). Of course, response depends on the proper targeting of the prospect lists and the personalized content of the letter. The letter should identify a problem, present a solution and offer a “freebie” of value, such as a brochure, sample, demo, evaluation, information kit or anything else that will get a response so that salespeople can follow up with qualified prospects.

Postcards and Flyers Are Lower Cost Options

A postcard is an inexpensive alternative to a letter, with low print costs and lower postage rates, as long as you stay within the minimum size of 3.5″ x 5″ and the maximum of 4.25″ x 6″. Because there is less room for the sales message, offer copy needs to be simple with a clear call to action. And because there is no additional response device, postcards need to stress a website address or a phone number. To drive traffic to a retail store, make room for directions or a map. Similarly, flyers are cheap and great options for local small businesses or businesses that want to appear small (read less expensive). Printed on ordinary paper, folded in thirds with a tab to hold it closed, and addressed with a mailing label and stamp, the result doesn’t have to be beautiful to be effective. Put the main message on the inside and teasers and mailing information on the outside so that, when you read the address, the folded side is on the bottom and the tab is on the top.

Court Attention With Invitations and Special Delivery

An invitation doesn’t have to be printed in formal lettering on cream card stock in a fancy hand-addressed envelope. You can draw people to an event or offer in a way that seems more personal and important just by using the words “You are invited…” An invitation can use a letter, a postcard or a flyer for an open house, special sale, product demonstration, etc. The key is to make the event seem exclusive and the invitees special in some way. Another way to make a mailing seem special is to use FedEx or other quick delivery service. The package content can range from a simple personal letter to a video or product sample. A special delivery package is a guaranteed open, but, because the delivery method is more expensive, it is usually limited to a smaller group of select targets.

For the complete article, see http://www.marketingprofs.com/8/cheap-direct-mail-tools-generate-sales-leads-fast-rieck.asp

Smart List, Mail Design Choices Help Save on Postage

Direct mail has higher average response rates than digital choices, but maximizing mail ROI requires cost efficiency, especially in the postage realm. Good list selection and hygiene are key to avoiding mailing waste, and this is one area where AccuList USA’s expertise in targeted mailing lists selection and data services can certainly aid clients. Another important factor in controlling postage costs is mail package design. An article by Target Marketing magazine’s Summer Gould offers a great summary of how smart choices in lists and design can add up to savings.

Targeted, Clean Lists Cut Postage Waste

If you are sending mailings to the wrong people, people unlikely to be interested in your offer, lower response rate and cost inefficiency will be reflected in poor ROI. Using tools from predictive modeling to customer profiling to segmentation can improve list choices and targeting parameters. Plus, AccuList USA’s proprietary list research can help clients find the top-performing lists for their specific vertical market. But no matter how data is targeted, dirty data with duplicates, errors, invalid addresses, and old demographic or purchase history information will create costly delivery failures and misdirected waste. That’s why AccuList USA goes beyond list brokerage to provide expert merge-purge services that combine and standardize data in order to eliminate duplicates, identify and correct old or undeliverable addresses, verify zip codes, and maximize postal discounts. In fact, by comparing names and addresses to real-time information on multiple public and private databases, AccuList USA offers an advanced hygiene regimen that is able to identify and correct twice as many addresses as standard USPS FASTforward and NCOALink use, which only represent a portion of U.S. movers and undeliverables.

Careful Design Wins Postage Discounts

USPS offers postage discounts to mail pieces that are not only addressed correctly but also designed for processing on automated equipment. For mail to qualify for the lowest postage rates, the mail piece needs to be at a letter size, which is a minimum of 3 ½” high by 5″ long and a maximum of 6″ high by 10½” long. Larger mail pieces fall into the flat category, which can cost more than twice as much per piece as a letter. Plus, to take advantage of automation, the piece must by rectangular, with an aspect ratio (length divided by height) of 1.3 to 2.5. Mail pieces outside those ratios could cost twice as much in postage. Then the addressing and barcode block on letter size mail must fit into the USPS OCR read area to avoid additional postage. For tri-folded self-mailers, the address must be on the center panel to qualify for discounted automation postage. Naturally, weight matters.  Keep the weight of a folded self-mailer under 1 ounce; if the piece weighs over 3 ounces, it must go in an envelope. Thickness counts, too  If a mail piece is less than 0.009″ thick, it costs more in postage. On the other hand, the  maximum thickness for letter size mail is ¼” and for flat size is ¾”. The best advice is to consult with your mailing service provider about any new design in advance. For more, see https://www.targetmarketingmag.com/post/save-money-postage/

 

2018 USPS Rate Hikes Challenge Direct Marketers

On January 21, the U.S. Postal Service bumped up its rates for almost all mailings by direct marketers and publishers: Marketing Mail (formerly Standard Mail), First Class Mail Retail, First Class Mail Discount and Periodicals. Most of the increases are small, but volume mailers among Acculist USA’s direct marketing clients could feel the pinch. What are some of the strategies to offset the effect on marketing budgets?

Look for Savings Opportunities!

Before panicking, mail marketers need to check out the whole USPS rate change grid. A 1% to 2% overall increase will be higher or lower depending on the class, weight, zone, density and special services required, and there are actually some savings to be had. For example, while the First Class stamp is going from $0.49 to $0.50 for a 1-ounce letter, a 2% bump, the USPS did not increase the additional ounce rate, so the percentage change gets smaller as items get larger. Meanwhile, metered letters are increasing from $.46 to $.47 in postage, which offers a significant savings of $0.03 per piece for those using a postage meter or PC postage, points out a recent Mailing Systems Technology post. Although most USPS discounts are tied to doing more work, such as barcoding or sorting, this metered rate savings is automatic for just using a system to print postage that costs as little as $20 per month, the article notes.

Even More Value for Presorting, Package Changes

There are other savings to be had via presorting, adds the Mailing Systems Technology article. For example, last year the USPS increased the weight limit for letter rates from 2 ounces to 3.5 ounces. Now, with the rate for a 3-ounce metered letter at $0.89 and a commercial rate of $0.378, there’s a potential 58% savings from using presort services. Package changes can help the budget, too. Folding a flat (9×12 or 10×13) package into a 6×9 envelope could mean significant savings with the new rates. A three-ounce flat at $1.42 now could cost as little as $0.378 if it can be put in an envelope and automated through in-house software or presort services. Plus, mailers sending Priority Mail items at retail rates using Click-N-Ship or a postage meter can switch to a PC Postage solution using commercial rates to save 10% overall, or 2% to 40% less based on weight and zone.

Importance of Targeted, Quality Data Underscored

As data brokers, AccuList USA stresses that these postal cost changes also should push marketers to use data-driven direct mail in more strategic and creative multi-channel campaigns. To maximize mailing ROI, marketers should cut wasted mail by improving targeting, mailing list selection, and data/address quality, as well as apply response-boosting creative tactics, such as personalization and special printing effects.

 

For rate tables and more advice on the USPS rate hikes, see the Mailing Systems Technology post.