Navigating the planned USPS Rate Increase and 10 Year Strategic Plan

The USPS has unveiled their new 10 year strategic plan:  “Delivering for America”

You can read the full plan here: https://about.usps.com/what/strategic-plans/delivering-for-america/assets/USPS_Delivering-For-America.pdf

While the strategy includes elements of much needed restructuring and reform, direct marketers are rightly concerned about rising postage costs and changes in delivery service standards.

The mailing industry is responding through direct and indirect channels in an attempt to influence decision making and implementation where these negative impacts are perceived.

The rate increase also comes at a time of rising costs throughout our supply chains.

Let’s assume for now… that it’s full steam ahead and the proposed USPS rates will be implemented August 29th.

Salem One Can Help You Plan Ahead!

Salem One has developed a comprehensive suite of tools and skillsets to help our clients navigate and thrive during these times of unprecedented change.  While discussions on allocation have always challenged marketing efforts, it has never been more critical to get specific with understanding response rates and return on your marketing investments.

How should direct marketers respond?

Check Out Our Proven Steps for Success:

Step 1:  Optimize Execution and Mitigate Cost Increases:  Marketers often believe they have no control over rising postage costs and no way to gain piece level visibility for when mail is delivered.  Salem One has delivered millions of dollars in postage savings to our clients as a result of our Optimum CPA (Complimentary Program Analysis).  Our exclusive tactics have produced substantial savings during the discovery phase of 90% of new engagements and the results of our analysis are delivered with no cost or obligation.  We look at all aspects of your program and provide an executive summary and documentation to support identified savings.  A partial list of elements we analyze includes:

  • Structural (Format) and Creative Design for optimum USPS discounts and consumer response indicators using decades of case study history across a broad industry spectrum.
  • Audience and address quality including missing address elements and enhancements that could produce substantial postage savings.
  • Logistics for leveraging destination discounts and monitoring in-home delivery
  • “Listen” to your data and optimize for the highest ROI within your CRM list segmentation strategy.

Applying Salem One’s framework will yield improved bottom line results regardless of whether the USPS proceed with planned changes, so why wait?

Step 2:  Evaluate Everything:  As if the last year wasn’t enough of a wake-up call, what comes after will also challenge the status quo in everything we do.  Our need for relevant and personalized presence with consumers creates opportunities and a need to closely examine all campaigns and tactics.  We also have to remove the silos within our marketing departments and leverage all channels through synchronized strategy.  What are we learning (and capturing) through our digital investments that can enhance our mail campaigns and vice versa?

Step 3:  “Connect” Physical and Digital:  Our customer journey maps illustrate opportunities for channel agnostic touchpoints that drive action.  How are we leveraging the available data, identity resolution tools and advances in timely deployment to our advantage?   Ask us about Retargeting, Informed Delivery, Click to Connect mobile codes, Synchronized messaging and other options to lift campaign performance.

Step 4:  REMEMBER DIRECT MAIL WORKS!:  Numerous studies point to a dramatic decline in digital engagement in the past year.  A reaction to move away from the best performing channel in a direct marketer’s tool chest would be detrimental to the bottom line.  Direct mail conversion rates remain highest among all available channel options and unmatched when used as part of a coordinated strategy with digital.  This is a time to optimize DM programs and focus on market share acquisition and incremental sales!

About Salem One

Salem One is one of the fastest growing print based communications companies in the U.S. and recognized as an award winning innovations leader in national direct mail marketing by the USPS.

About the Author

Tracy Brooks is Senior Vice President at Salem One.  He is a USPS Certified Direct Mail Professional working with top national brand clients and a frequent speaker at regional and national direct marketing conferences.

To contact Tracy, please email tbrooks@salem-one.com