This blog has been updated to include information regarding the recent 2024 USPS postal rate increases.
On January 21st, 2024, the USPS implemented a price increase that impacts mailers across the board. These increases affect products such as Forever stamps, domestic postcards, and international letters and postcards. This is the fifth time that the Forever Stamp’s price has been raised in the last three years. Since 2021, the cost has increased by 23%.
The USPS has cited “inflationary pressures on operating expenses,” previously defective price modeling, and their 10-year plan for financial sustainability as factors that led to this price increase. Despite these changes, there are promotions for large mailers that businesses can take advantage of.
While you may have heard about the 2024 USPS postal promotion offering large mailers up to a 30% discount, cost savings are just one benefit. While this is one of several promotions, this potential 30% credit unlocks new ideation, experimentation, and opportunities to further refine your multichannel marketing strategy.
Brands with direct mail heavily embedded in their customer journey can easily reap the benefits of this update. However, businesses newer to direct mail or interested in expanding reach and loyalty also have an opportunity at their feet, as direct mail can increase responses by an average of 20%.
See if you’re eligible for this promotion and how to maximize it within your 2024 multichannel strategy.
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What are USPS’s 2024 First Class Mail Growth and Marketing Mail Growth Incentives?
With the upcoming USPS postal promotion, businesses can receive up to a 30% credit on the incremental growth of eligible mail volumes in 2024. In short, the more you send, the more you save.
- For First-Class Mail: Qualifying growth is measured against commercial letters and flats, excluding parcels and single-piece mail
- For Marketing Mail: The incentive covers letters, flats, and parcels
Which businesses are eligible for this promotion?
To be part of these promotion programs, businesses need to:
- Register for the program
- Mail at least one million qualifying pieces in 2024
- Exceed their mail volumes from 2023
The incentive is calculated using mail volumes from Fiscal Year 2023. For those who surpass 1 million mailings in 2024 but didn’t achieve the same in 2023, the starting volume is set at 1 million pieces. The incentive amount is proposed at 30% of the average postage rate paid on qualifying pieces mailed in calendar year 2024 that exceed the FY23 baseline.
Mail owners can participate in either or both incentives, but the programs cannot be combined to meet minimum volume thresholds. What does this opportunity mean for marketers who rely on or are new to direct mail?
What are the key benefits of these 2024 promotions?
It’s easy to scan through the details and wonder: What does this truly mean for my marketing strategy and bottom line? This promotion can help you:
Gain incredible savings: Imagine this scenario: Last year, you mailed one million pieces, costing you roughly $300k in postage. With the USPS promotion this year, you can double that volume but only spend around $200k. Just think of the potential with an extra $100k in your budget.
Stand out from the crowd: Overall, mail volume decreased this past year. Fewer competitors in the mailbox mean a higher chance for your message to shine.
Speak to a younger generation: A common misconception is that digital channels exclusively attract younger demographics. In reality, these age groups are responsive to direct mail.
Enhance your multichannel strategy: Despite misconceptions, direct mail isn’t dead. It’s a medium ripe for innovation and growth.
Whether you’re just getting started with direct mail, interested in exploring new channels or have been connecting with customers through this 1:1 medium for decades, many different kinds of businesses can benefit from this update.
New opportunities for large direct mailers
According to the latest Winterberry Group report, in 2023, U.S. marketers will invest $39.36 billion in their direct mail efforts. With this investment, the role of direct mail is changing, with 39% of organizations surveyed in the report saying they’re taking steps to integrate direct mail with other channels and are seeing the benefits of doing so.
Amid the buzz of the USPS 2024 postal promotion, brands are presented with a unique window to heighten their multichannel and direct mail marketing strategies through experimentation. This period offers a prime opportunity to expand and innovate.
Build a sustainably smarter strategy by evaluating your current frameworks for:
- Segmentation
- Testing
- Remailing
- Retargeting
Adding an additional segment can tailor campaigns more precisely while introducing a new test might provide insights into campaign resonance. Moreover, with the postal promotion in play, scheduling a remail becomes a cost-effective method to reinforce a brand’s message. Simultaneously, running retargeting campaigns can seamlessly integrate both digital and direct mail efforts, making the most of this postal incentive. Embracing these strategies not only deepens understanding of customer behavior but also optimizes the potential savings and reach offered by the promotion.
In this evolving marketing climate, leveraging this postal promotion through experimental tactics can be a game-changer for brands.
How to add direct mail to your multichannel strategy
Consumer-based brands that aren’t yet utilizing direct mail within their multichannel strategy could be missing out. In today’s competitive marketing landscape, direct mail stands out as a potent tactic for businesses that are defining their strategies around specific offerings or services. If your enterprise is promoting products or services with a compelling call to action, direct mail can significantly enhance your campaign’s impact.
Moreover, for businesses catering to high-value products and services—like financial services, healthcare, education, and other specialized sectors—the tangible aspect of direct mail can heighten engagement and conversion rates. Incorporating this medium into your strategy can yield transformative results, converting potential leads into loyal customers.
Integrating direct mail into a multichannel strategy can be incredibly effective, but it requires careful consideration to ensure that all channels work cohesively. When you’re thinking of adding direct mail to your mix, it’s crucial to consider how it complements your existing channels, how it can be personalized for your target audience, and how you’ll measure its effectiveness.
Also, the timing and coordination between direct mail and other channels, such as email or social media, should be meticulously planned so that your audience receives a consistent and complementary message across all touchpoints. Here’s an overview of top considerations when integrating direct mail into a multichannel campaign.
Channel Cohesiveness: Ensure that the messaging and design of your direct mail align with your other marketing channels.
Audience Segmentation: Consider segmenting your audience based on behaviors, preferences, or previous interactions to send the most relevant mail content.
Personalization: Tailor your direct mail content to cater to the specific preferences and needs of your target audience.
Timing and Coordination: Schedule your direct mail campaigns to coincide or follow up with other channel campaigns, creating a seamless brand experience.
Clear Calls to Action (CTAs): Every piece of direct mail should have a clear and compelling CTA, directing the recipient to the next step.
Integration with Digital: Consider using QR codes, personalized URLs, or AR features to bridge the gap between your direct mail and digital channels.
Measurement and Tracking: Establish methods to track the response rates, engagement, and ROI of your direct mail campaigns.
Think bigger with direct mail in 2024
A significant decrease in costs, such as a 30% reduction in postage, doesn’t merely translate into direct savings. It’s a game-changer that can refine your marketing approach.
Efficiently Scale with Savings
Direct mail optimization is ongoing, from refining mailing lists to enhancing campaign design. A 30% savings in postage offers a safety net, enabling businesses to expand their campaigns confidently. The reduced costs permit more frequent mailing, potentially boosting response rates by around 20%.
Revive + Revisit Campaign Idea
The notable postage discount lets brands resurrect previously sidelined ideas due to budget constraints. This flexibility fosters creativity, paving the way for standout direct mail campaigns in a competitive space.
Integrate Direct Mail with Digital Channels
Merging direct mail’s tangibility with digital’s reach can be transformative. The postage savings can fund this blend. Features like QR codes or AR link the physical mail to a digital experience, such as leading users to personalized landing pages. The additional budget can support better tracking tools for both direct mail and digital, refining customer insights and strategy. Saved funds also enhance retargeting efforts on platforms like social media, emphasizing consistent messaging across channels.
Whether you’re a veteran mailer or considering direct mail for the first time, the potential savings and amplified results are well worth the investment. Don’t miss out on this opportunity to elevate your direct mail marketing.
Optimizing your direct mail strategy is only one part of a data-centric, performance-driven strategy, giving you the power to know and do more. Discover how to integrate emerging technologies into direct mail campaigns, or let’s talk about how to achieve more for your marketing – and your business.
