USPS
Pay your taxes, then get ready to pay more postage
Get out the erasers and prepare to rewrite that marketing budget because the USPS made it official today that the rates for their market dominant services will be increasing as of April 17, 2011. Perfect timing, everyone will already be upset over the amount of money they or their company have to fork over to Uncle Sam and then BAM!, a little salt in the wound courtesy of the USPS. Do not be too alarmed however, the average of the increase is a mere 1.741%. We have broken down the new rates by First Class Mail (1 oz pieces) and Standard Mail (under 3.3 ounces) and have come to some interesting conclusions.
First was that the USPS either has gained quite a bit of efficiency regarding Flat processing or they realized they came down a little heavy with the increases last go around. In either case the current increase for Flats averaged only .38% across First Class, Standard, and Nonprofit. The average increase for First Flats was actually -.12% or better put the average cost is less than it was 2 years ago. It appears that the increases is minimal across all of the automation categories, which leaves the non-auto categories bearing the brunt of the price hikes. This is good news for mailers who currently are preparing their mail as automation compatible. The worst part of the rates is that the discount for mail prepared for the NDC will decrease by $.01 or $1 per thousand. This one does not make sense since mailers are taking on the financial burden of preparing and shipping this mail to the specified facility, which saves the USPS processing and transportation expense. Again it is only $.001, but it goes against the concept rewarding work-share by the mailer. The discount for SCF mail will remain the same as before.
The following links will give you my breakdown of the old rates vs. the new rates and the various increase by percentage. The complete table of new rates is available on the Postal Explorer website.
Please weigh in with your thoughts regarding the increase and as always fmi is here to help assist mailers take on this increase with the least possible damage to your marketing budget.
The Intelligent Mail Barcode For Dummies
This is a sad day for me in some ways as it will be my last blog post for Going Postal and fmi as I am leaving the company having accepted a position at another.
I wanted this last post to be somewhat of a handoff as I pass the proverbial baton to Erik Formica, who will be posting here (along with others) going forward.
For my last post I wanted to do some educational and I know a very hot topic right now in the direct mail marketing world is the Intelligent Mail Barcode (IMB), something I know very little about, yes I would be the dummy in question.
So I thought what better way to transition to Erik than by interviewing him on this very topic. See, Erik not only works for fmi, he is also on the Board of the Postal Customer Council and is a certified mail piece design professional. He also sits on the board of the Philadelphia Direct Marketing Association (PDMA). 
SO: Help someone who is clueless, like me, understand just what the IMB is and why it’s important.
EF: First off, the IMB should not be feared, it’s just a barcode like any other barcode. It contains additional information that the current barcode does not. This additional information is what makes the IMB important. It gives mailers the ability to encode specific services such as address change service, and Confirm service which allows mailers to track every single mail piece down to the local post office.
The other reason it’s important is it’s the only barcode accepted for mailers to receive automation discounts come May, 2011.
SO: So a mailer can continue to use the current barcode after May, 2001 if they so choose?
EF: Yes. But they will not be able to receive any of the automation discounts they could previously. There is no really advantage to keep using the current barcode after May, 2011.
SO: So what’s a mailer’s first step in implementing the IMB?
EF: One place to find everything you need to know about the IMB is the Rapid Information Bulletin Board service (RIBBs) provided by the USPS. You’ll find information on Intelligent Mail Barcode Specifications, Online Encoder and Decoder information, Encoder Software and Fonts and much more.
SO: Ok, so from a mailer’s perspective the IMB makes complete sense. How about from a marketing perspective?
EF: There are two distinct advantages. Number 1, the IMB will free up what we call “mail piece real estate” which in layman’s terms means you can add more design elements to your direct mail piece than in the past.
The second advantage comes in the form of tracking and having the mail talk back to you. What I mean by that is you will be able to track every individual piece as it arrives at the post office nearest to the intended recipient.
SO: Under the current barcode, that’s not available?
EF: It is but right now you also have to add various codes to go along with the address in order to track to that level. These additional codes take up that valuable real estate I mentioned previously. The IMB leaves you with a much cleaner looking piece from an aesthetic standpoint while maintaining the functionality of the piece itself.
SO: Are there any other advantages from a marketing standpoint?
EF: Yes. Using the IMB will allow marketers to set up automated triggered events. For example, once a mail piece is scanned for actual delivery, that can trigger an event such as an automated email to arrive in the recipient’s in-box. That email can be nothing more than a “be on the lookout” type message which will allow marketers another opportunity to communicate with their audience.
SO: Thanks Erik. Even a dolt like me could understand that. Where else can people get help when it comes to the IMB?
EF: I’d be glad to help anyone who needs help understanding the IMB. People can call me directly at 215-464-011 or via email at eformica@fmidm.com.
An appreciation of mail boxes
By now you know we at fmi marketing solutions believe in the power of Direct Mail….
Our blog post titles alone will tell you that:
- Feeling Is Believing – Direct Mail Out Emotions Digital
- Once more with feeling, Direct Mail is here to stay!
- Why Direct Mail Will Always Be In Style
So, you KNOW we are big proponents of Direct Mail.
But we thought why not show our appreciation for those spaces, those areas which are used as weigh-stations in matter of speaking to house the mail until it’s ready to be picked up by intended’s recipient, AKA the mailbox.
There are some truly creative and fascinating mailboxes adorning our city streets and country roads and we figured it was high time to show some love to the old standby, the mailbox…
Some folks like to keep it simple and enhance the classic look…
Others like to get a little creative…
These are just a few of the odd, crazy and bizarre mailboxes out there… we KNOW there’s more and we want to see them.
Send us a picture of your wild and crazy mailbox and we’ll post them right here in a future blog post.
Thank you!
Once more with feeling, Direct Mail is here to stay!
You know the old expression, “talk til your blue in the face?”
Well this is how I feel right now…
I’ve written in this very forum the following posts..
Direct Mail Alive And Kicking…
Why Direct Mail Will Always Be In Style
Apparently shock waves are again abounding as according to a recent presentation for the Direct Marketing Association, Winterberry Group said that:
- From 2007 through 2009, spending on several categories of digital marketing grew at compound annual growth rates that exceeded 10%
- Over the same period, spending on direct mail fell at an annual rate of 10.7%, and spending on print advertising declined by almost 20% per year
- For 2011, Winterberry Group expects spending on digital marketing to increase about 21% compared to 2010, while spending on direct mail might be up 1-4%
Then there’s this from a Forrester Research survey…
- 60% of marketers said they would fund increases in their digital marketing budget by taking money from traditional marketing programs
- 40% of the survey respondents said they expect to cut direct mail spending
Many believe that the move away from direct mail reflects a growing belief that digital marketing methods are essential to creating engagement with today’s Internet-savvy prospects. It is also based on the perception that direct mail has somehow become a less effective and efficient marketing tool.
Hogwash!
Go back and read the two aforementioned posts and then come back and tell me you still think Direct Mail will go away completely.
It won’t!
They key will be integration… a mix of traditional media and digital media.
So, please for once and for all… can we stop with the “Direct Mail is Dead!” cries…
USPS Helps To Protect Against Fraud
A lot of us are quick to come down on the United States Postal Service – multi billion dollar losses from one quarter to the next will cause some to (myself included) to call them on the proverbial carpet.
Today I want to share something good the USPS is doing. The U.S. Postal Inspection Service is mailing brochures to every household in the country with information on the warning signs of fraud. 
Every day, con artists try to victimize millions of American consumers. That’s why postal inspectors — also working with the Federal Trade Commission — want to educate the public.
- Keep a record of all financial offers including ALL direct mail and envelopes. And always get guarantees in writing before acting on any offer
- Never give out your credit card information or bank account information unless you are absolutely sure of who you are dealing with and what exactly you will be receiving
- Never act impulsively to high pressure sales tactics. Take time to think everything over; get advice from trusted family members & friends. If the person on the other end won’t allow you sufficient time to think things over, walk away…
- Ask for call-back numbers and names. Any respectable company will provide this information to you to allow you to think things over and call back with any questions; if they don’t, walk away
If you believe you’ve been targeted by mail fraud, report it online to Postal Inspectors using the Mail Fraud Complaint form, or call Postal Inspectors at 1-877-876-2455. In addition you can report a foreign lottery scam to the Federal Trade Commission by calling 1-877-382-4357 or going to www.ftc.gov.
Here are some more helpful links to help you protect yourself against mail identity theft and mail fraud:
Mail Fraud And How To Protect Yourself
7 Tips to Protect Yourself Against Mail Identity Theft & Fraud
USPS among brands Americans most attached to… and your point?
Did you hear the great news?!?!?!
The United States Postal Service, the USPS to you and me, ranked in the Top 15 of brands consumers are most attached to…
The survey, conducted by NewMediaMetrics, asked 3,500 Americans ages 13-54 with annual income of at least $35,000 earlier this year what brands they are most attracted to… not sure how many Americans aged 13 make at least $35,000 but, let’s not get bogged down on facts now shall we?
The fact remains that the USPS outranked, outscored, whatever the following brands…
- BMW & Toyota (not really surprised they beat out Toyota are we?)
- Walmart
- Target
- Southwest Airlines
- Nike
- Microsoft
- And so on…
Here”s the Top 15…
And of course the folks at the USPS were all giddy over the results…
“The most interesting aspect of this survey is it names brands that consumers say they are the least willing to give up,” said Kent Smith, manager, USPS Strategic Business Planning. “Considering that this was an online survey that included people as young as 13, we may still have opportunities to strengthen our connections with these market segments.”
Now I’m sure Mr. Smith is well intended in his remarks and he is, rightfully so, excited about the findings but let’s keep things in perspective please…
“…it names brands that consumers say they are the least willing to give up.”
Yes, that is true BUT of course they are least willing to give up the USPS because what’s the alternative?!?!?!?
UPS?
No and no…
If you want to mail a letter – you do remember how to send a letter yes? Not a text. Not an IM. Not an email. But a letter or a greeting card, who you gonna call?
The United States Postal Service because there is no other option!
Company X wants to do a mass direct mail campaign to hundreds of thousands of people… who they gonna call?
The United States Postal Service because there is no other option!
So, if you ask us what we’re “least likely to give up” what do you think we’re going to say?!?!?!
Revel in your glory Mr. and Mrs. USPS… but the rest of us know the real truth.
In the past three years, the USPS has lost $12 billion and is expected to lose about $7 billion this year.
The USPS is a monopoly, plain and simple…
Are you attached to the USPS, emotionally or otherwise?
Positively or negatively?
USPS Files for QR Code Discounts
If you are on the fence regarding the use of QR Codes on your mailings, the USPS is trying to give you that last push to try them. On Tuesday, the USPS filed a proposal with the Postal Regulatory Council (PRC), which allow customers to receive a 3% discount on any First Class or Standard mailing containing a QR Code within or on the mail piece. This program would run from July 1, 2011 through August 31, 2011. Nonprofit Mail unfortunately will be excluded from this program, and this discount cannot be used in conjunction with any other incentive program.
The use of QR codes is yet another way to link your physical mail to the digital world and when used correctly can have great a impact on the success of a campaign. The QR code can be either a static text message, link to a landing page or a PURL (personalized URL).
The PRC should have a decision on this by the end May, so stay tuned form information about this exciting program. Read the official request here. If you have any questions regarding the use of QR codes; please contact us to get more information.
I am very interested to hear your thoughts as to whether or not this incentive program will actually push marketers to use QR codes more.
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