With the rising cost of postage and paper, the accountability of direct mail as a primary tool for acquiring subscriptions and customers is under pressure. Consumer marketers, however, say that its relevance is as strong as ever. The USPS reported a 3% drop in mail volume for the first quarter of the fiscal year of 2008. This decrease indicated that marketers are reducing mail quantities or eliminating campaigns all together due to the weak economy, shrinking budgets, rising production costs and most importantly, the increased postal rates which at times, can make up the majority percentage of a campaign’s total cost. While the U.S. Postal Service has offered a reprieve to mailers by vowing not to increase rates in 2010, many mailers are still struggling with their expenses. Rates have increased earlier this year, and these increases, combined with the struggling economy, are making it a very difficult year for direct mailers.
Direct mail providers are scrambling for new and more efficient ways to keep their direct mail costs down. One way for direct marketers to do this is that they should consult with their mailer to see if their mail pieces qualify for automation or non-automation rates which are based on the mailing class, dimension and weight of the pieces. Mail pieces that qualify for automation require less manual handling by the USPS, and therefore means a reduction in postage costs.
Reducing mail quantities to achieve budget or eliminating once successful direct mail campaigns should not be the answer or response to the rise in postage rate and costs. Successful marketers have implemented better practices specifically in the area of postal optimization. Despite rising postage costs, it is possible to create successful, cost effective direct mail campaigns by aggressively analyzing mail piece design, mail logistics, data hygiene processes, mail tracking and deliverability. Utilizing effective strategies and best practices combined with technology can enhance conversion rates and the overall economic value of a direct mail campaign. For more information or for a direct mail quote, please contact Avalon Communications in Los Angeles at (310)644-7777, or visit http://www.avalon-communications.com. We offer high quality direct mail services at affordable prices.
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One common mistake for many direct marketers new to direct mail is not knowing what the Long Term Value of a new customer is, and what is an acceptable cost to acquire these new customers.
ReplyDeleteSome people new to direct marketing use direct mail one time and say it didn't work for them because the amount of initial sales from new customers didn't pay for the mailing. Yet if they figured in how much a new customer would spend over the next year or years, they may find out that the effort was hugely successful.
If you are looking for direct mail marketing resources for helping plan a successful direct mail campaign, there a few some good ones available from the National Mail Order Association, NMOA.
Inside Direct Mail: http://www.nmoa.org/catalog/insidedirectmail.htm
Who’s Mailing What: http://www.nmoa.org/catalog/whosmailingwhat.htm
It so hard to find such good articles. This was really informative and satisfying. Thank you, please do keep writing such great articles.
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Keep metrics on which emails are sent, received and opened. Pay attention to direct marketing pieces that have particularly high conversion or click through rates. These vehicles have some quality that your audience found particularly useful or enjoyable and had the desired effect of getting their attention.
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