Direct Mail
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.
Latest info on Postage Rate Increase
Thursday, the Postal Regulatory Commission (PRC) agreed the U.S. Postal Service would be allowed to raise rates on the Postal Service’s competitive shipping products. This means new prices (not lower) for Priority Mail, Express Mail and other Shipping Services. The new rates will be implemented on Jan. 2, 2011.
The decision on price increases for standard and non profit mail as well as other services is still pending.
A complete listing of 2011 prices at www.usps.com/prices.
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!
Feeling Is Believing – Direct Mail Out Emotions Digital
Seems as if the operative word in my last post Once more with feeling, Direct Mail is here to stay!
… was the word “feeling”…
As reported on neurosciencemarketing.com…
A study was done by branding agency Millward Brown called “Using Neuroscience to Understand the Role of Direct Mail.”
The research project used fMRI brain scans to show that our brains process paper-based and digital marketing in different ways, and in particular that paper ads caused more emotional processing.
As per the study itself…
Some of our key findings were:
- Tangible materials leave a deeper footprint in the brain Note: This is not just because the physical materials stimulate both sight and touch; the subtraction of brain signals from the scrambled ma
terials accounts for this. - Material shown on cards generated more activity within the area of the brain associated with the integration
of visual and spatial information (the left and right parietal). - This suggests that physical material is more “real” to the brain. It has a meaning, and a place. It is better connected to memory because it engages with its spatial memory networks.
- Physical materials produced more brain responses connected with internal feelings, suggesting greater “internalization” of the ads
- The brain’s “default network” appeared to remain more active when viewing direct mail. Activity in this brain network has been associated with a greater focus on a person’s internal emotional response to outside stimuli. This suggests that the individuals were relating information to their own thoughts and feelings.
Here’s the full article which also includes a link to the study itself which is available in PDF form.
My take on all of this…
First off, I don’t think it’s very surprising to hear of these findings. I have always held the belief that direct mail will always play a key role in ANY advertising/marketing campaign. People will always want to hold something in their hands when it comes to advertising.
It’s akin to a newspaper – which I don’t think will ever go away, either.
That being said, it would be wrong for those in the direct mail world to shout “See, I told you! Direct Mail rocks and it’s all you need!”
Um, no…
Be it 20 years ago, 10 years ago or in today’s Social Media/Digitally crazed world, the smart marketer/advertiser will know it’s best to mix things up, to never rely on just one medium to get your message across.
So what do you think?
Do you think it best to mix things up, to use multiple mediums to reach your target audience INCLUDING direct mail?
Do you think direct mail is dead? It’s ok if you do, you’re not alone.
Do you think it best to ONLY use direct mail? It’s ok if you do, you’re not alone.
Sources:
neurosciencemarketing.com
Millward Brown Case Study – “Using Neuroscience to Understand the Role of Direct Mail”
Direct Mail More Effective Than Email In Online Giving
You probably already know about the survey conducted by ICOM, a division of Epsilon Targeting which revealed that North American consumers in the 18-34 year-old demographic prefer to learn about marketing offers via postal mail and newspapers rather than online sources such as social media platforms.
But did you also know that Direct Mail is more effective than email in online giving, particularly among the same age demographic? 
Research firm Campbell Rinker revealed that 1 in 3 donors (37 percent) who give online say that when they receive a direct mail appeal from a charity they use the charity’s website to give their donation and the younger the donor, the more likely they are to use a charity’s website to respond to a direct mail appeal.
In fact 50% of all Gen X or Y donors said they gave online as a result of receiving a direct mail piece vs. just 25% of baby boomers. Not surprisingly 75% of folks over age 65 prefer to give by mail vs. online.
Overall 14 percent said that a direct mail letter prompted them to give online versus only 6 percent who said an email prompted their online gift.
It was a fascinating study which also revealed…
- The higher the household income, the more likely the direct mail recipient was to donate online
- 15% of respondents overall said their online gift was prompted by being asked to give by someone through a social media site.
- The number skewed higher for this under for 40 as 24% said social media prompted them to give
- Compared to just 9% over 40 who were prompted by social media
- 20% of respondents say that their online giving was prompted via word of mouth
For his part, Rick Dunham, president and CEO of Dunham+Company. was quite taken aback by the findings:
“The purpose of this study was to try and understand what is driving online giving and how important offline communication is the source of increasing income to charity. What we found was quite surprising,” said Dunham. “Not only is offline communication important to driving online giving, it is actually much more important a catalyst to generating online gifts than we had anticipated.”
“It is remarkable to think that as much as one-third of the response to any given direct mail appeal could come via a charity’s website,” Dunham added.
Have you had any similar experience re: direct mail vs. email and online giving?
What were the results?
Are you planning any such campaigns and if so, will these findings sway your thinking at all?
Why Direct Mail Will Always Be In Style
In this very space I’ve written all about the demise of direct mail and how it’s grossly exaggerated…
Here’s some additional proof and reasons why direct mail will ALWAYS be in style:
#1. It’s more popular with the “younger generation” than you think… Research from ICOM’s 2010 study of North American consumers’ marketing communication channel preferences showed that the always coveted and desirable 18-34 year-old demographic prefers to learn about marketing offers via direct mail and newspapers rather than social media platforms.
#2. It’s the De Facto you… Neither rain, nor sleet and… well, you know the rest. But it’s all true. Direct Mail lets you put on your proverbial best face even when you can’t be face to face with your prospects and customers. 
#3. You can hit the moving target (Part 1)… Are your prospects and customers on Facebook? Twitter? YouTube? All or none of the above? The point is while social media is here to stay and should be a vital role in any campaign, the one place you can ALWAYS find your prospects and customers is their home.
#4. You can hit the moving target (Part 2)… With Direct Mail you can zero in on whom it is you want to be zeroed in on… say that 3 times fast. The point is you can target specifically by a psychographic, demographic, and geographic profile so that your message can go to who’s likely to be buy your product, service or ware
#5. Let’s get physical… Direct Mail allows the recipient to get all touchy and feely, if they want to of course… all kidding aside, nothing will EVER replace the feeling being able to hold something in your hands and refer back to it time and again without having to enter a user name and password each time.
I could go on… but want to hear from you.
Tell me why YOU think direct mail will ALWAYS be in style…
Examples of Great Direct Mail…
Yes, I said Direct Mail…
You remember Direct Mail, don’t you? Poll 10 people “What is Direct Mail?” and I will bet you a cup of coffee… Starbucks Coffee that at LEAST 6 will respond with something along the lines of “Isn’t that the junk mail I get in my mailbox every day?”
For those in the know, we realize that Direct Mail remains a viable marketing tool, especially when used in conjunction with other tools such as email, social media, mobile ads and on and on and on…
So with that being said, I wanted to share some examples of what I think are truly great uses of Direct Mail. I already shared one with you last week about ADT and their agency’s phenomenal idea to use what some consider “scare tactics.”
Here’s a few more for your viewing and reading pleasure…
MAKING SPIRITS BRIGHT…
(Christmas card based on a cash register receipt)
THE SOUNDS OF CREATIVITY…
(A very unique record player)
THERE’S NO PLACE LIKE HOME…
(A different way to offer home equity loans…)
DOCTOR, DOCTOR…
(Alumni weekend invitation)
As a point of full disclosure, the last example is one we created ourselves. It’s something we are very proud of because we took an otherwise staid and common occurrence – Alumni Weekend – and “personalized” it by addressing each doctor by (last) name on the front of the over sized postcard/invitation.
The results spoke for themselves as our client had the biggest turnout for Alumni Weekend in 10 years.
What do you think of the above examples?
Do you have any to share? Please do!
Do you think Direct Mail has and will always have a role in marketing/advertising?
Direct Mail Scare Tactics…
For those that know me know that I always… ALWAYS appreciate and admire anything that is different from the status quo when it comes to advertising and marketing.
It’s with that I tell you about a recent campaign from ADT (think alarm company) that was executed by Chilean add agency DDB.
The intent was to promote and highlight the fact that Santiago condo and apartment owners were not as safe as they perhaps thought.
Here’s how the direct mail works… first a series of still images followed by a brief video…
I’ve read reviews of this campaign that range from “sheer briliance” to “terrifying brief moment of horror.”
You can probably guess which side of the aisle I fall on…
I think this was absolutely brilliant. Think about it… you’re out and about and you come to discover a box INSIDE your home with the words “Breaking into your apartment is easier than you think” next to the ADT logo…
You tell me that wouldn’t make you sit up and take notice and reevaluate your current security? I know it would get me thinking…always a dangerous proposition for sure but it would absolutely make me sit and take notice.
So what do you think?
Did ADT and its agency go too far?
Does fear advertising/marketing work or does it have the exact opposite effect meaning if you received this type of piece you would never do business with that company?
Chime in, share your thoughts…
Thanks!
Direct mail blogs…
As a public service to the millions and millions of people who read this here very blog on a daily basis, I want to share some of my favorite direct mail marketing blogs & sites... (it’s not really millions but a guy can dream, right?)
[[in no specific order]] 
Deliver
As per their website, they are “the companion Web site to the award-winning Deliver magazine, is the leading online information resource for marketing professionals.”
The magazine, which is very well laid out - is put out by the USPS and while I have on occasion taken some umbrage with what I’ve read on the site, it is overall a very valuable resource for marketers.
DM News
A veritable potpourri of information when it comes to direct mail and direct marketing. Whitepapers, Buyer’s Guides, Postal info, and much, much more.
Very could be the granddaddy of direct marketing sites…
PreSort.com
Much like DM News, this site is a fabulous repository of articles, news, event info, and much, much more. Also provides links to lettershops, printer and vendors.
Marketing Profs
No, it’s not just for direct marketers but it provides a wealth of information ALL marketers and advertisers can and should utilize on a daily basis.
The Gilbert Direct Marketing Blog
A a former Adjunct Professor, teaching Direct Marketing at Miami International University, Jim Gilbert has lots of insights to share and is more than happy to do so.
Joy of Direct Marketing
Lois Geller and crew offer some fantastic articles and blog posts and are not afraid to push the envelope… literally. A big plus in my book.
Guts of a Burglar
The title alone instantly drew me in and once there, I was not disappointed. A simply fantastic blog… hell a recent post was entitled “Why Direct Marketers should run the country.” Now if that doesn’t make you want to read, I don’t know what will.
Direct Magazine
Part of the Chief Marketer Network, this site covers everything from traditional direct mail to email to mobile marketing to lists and on and on…
As I mentioned initially, this is a list of “some” of my favorite DM sites and blogs. There are plenty more of course but I want to hear from you.
What are some of your favorites? Where do you like to go for News You Can Use re: Direct Mail Marketing? Could be your own blog… that’s fine. Just share it with the rest of us!
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