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Why It’s Important to Test Different Direct Mail Formats Part II

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

Two weeks ago, we shared a couple of reasons why it is so important to test direct mail formats. Guess what? There are even more reasons! Continuing onwards… 

Reason #3: You can achieve different marketing goals.  

Recently, we discussed how various formats resonate with different consumers. It’s also important to be mindful of your marketing goals. Direct mail helps facilitate customer acquisition, retention, market research, and increases response rates. If your marketing goal is… 

Customer acquisition:

POSTCARDS are a cost-effective way to reach a vast audience quickly. They are attention grabbing due to their size and ideal for promotions and offers.  

PERSONALIZED LETTERS facilitate a more personal connection. You will not only connect with the customer, but these are an effective way to show / explain complex offers (products or services) in more detail.  

CATALOGS showcase a wide range of products and services while personalizing and targeting your audience. Essentially, catalogs hit what postcards and letters do, and more!  

Customer retention:

SPECIAL OFFERS make a difference. Whether you use a postcard or a letter, it is important to create exclusivity with special discounts, early access (sneak peek or VIP access), limited-time promotions, and milestone celebrations.  

NEWSLETTERS serve as consistent touch points; they will help you to stay top-of-mind with customers.  

PACKAGE INSERTS pique interest. Whether you include a ‘thank you’ from your CEO or Founder, or offer a small gift or discount, this will show your customer you value their business.  

EXCLUSIVE LOYALTY PROGRAM MAILERS highlight the benefits of your loyalty program and encourage participation (Guess what? We can help you with this! Reach out here).  

Market research:

SELF-MAILERS can help. Combine a brochure / leaflet format with mailing information.  

EVERY DOOR DIRECT MAIL (EDDM) is an efficient option that delivers mail to every address on the carrier route, without requiring individual addresses. (Plus, there is a reduction in postage!). 

PERSONALIZED LETTERS allow you to connect with customers via a unique letter, and drive to your website – facilitating a multi-channel connection – with an incentive to complete a customer satisfaction survey.    

Increased response rates:

LETTERS IN ENVELOPES drive interest. The curiosity or perceived importance of a letter in an envelope can lead to a higher engagement and response rate.  

POSTCARDS are useful for grabbing attention and are an excellent format to test out different creative and offers.  

Reason #4: You can make branding (or re-branding!) a priority. 

Direct mail can increase recognition and visibility of the brand to a specific audience.  

From tangibility to creative messaging and personalization, this is a powerful channel for branding. With direct mail, you can offer consistent messaging that reinforces brand identity and helps to establish trust with consumers.  

Reason #5: You can optimize your multi-channel approach.  

Direct mail can complement digital marketing efforts, creating a cohesive and seamless brand experience across platforms. For example, sending a direct mail piece can encourage recipients to visit a website or engage on social media. Up for going one step further? Change up your formats to test performance – whether it’s different physical formats or new digital platforms, testing is always recommended.  

In fact, testing different formats – for both digital and offline marketing – can lead to cost-savings, further reach, new customers and more.  

If you’re not sold on why direct mail is worth testing, reach out and let’s have a conversation! If you are sold, what are you going to send?  

Source: OpenAI. (2025). ChatGPT (March 7 version) [Large language model] http://chat.openai.com/ch

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Why It’s Important to Test Different Direct Mail Formats Part I

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

Over the years, “direct mail” has become an umbrella term for any piece that’s in the mail. Did you know that there are endless possibilities of formats? That said, there are specific formats most effective for achieving different goals.  

With consumer behavior constantly changing; new audiences on the horizon; and the hot topic of attribution, there are so many reasons it’s important to test different direct mail formats. We promise (yes, promise!) that it’ll be worth it… and will ultimately help your bottom line.  

Here’s why you should test different formats…. 

Reason #1: You can reach different types of consumers & connect with them more effectively. 

___

Baby Boomers: Prefer Catalogs, Self Mailers, Shared Mail, Insert Media / Package Inserts 

Creative Tips:

  • Legibility: Use large, clear fonts and high contrast (e.g., dark text on light backgrounds). 
  • Simplicity: Organize information logically. While this generation likes information, you do not want it to be overwhelming.
  • Trust: Include testimonials, reviews, certifications or badges that build credibility. 
  • Call to Action (CTA): Firstly, make sure you have one! Secondly, make it prominent, clear, and actionable (e.g., “Call now!” or “Visit us online for more details”). 

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Gen X: Prefer Personalized letters, brochures and newsletters featuring loyalty programs, interactive mail (QR codes / personalized links), mini catalogs. 

Creative Tips:

  • Straightforward & Direct Messaging: This generation values efficiency and transparency. Avoid unnecessary fluff or overcomplicated language. 
  • BeProfessional but Approachable: Gen X responds well to brands that appear reliable and trustworthy, yet personable and genuine. 
  • Clear and Actionable CTAs: Include a call to action that makes it easy to take the next step (e.g., “Call to schedule,” “Visit us online,” or “Shop now”). 
  • Tech-Friendly: Include digital components, like QR codes or personalized URLs, but make sure they’re easy to use and provide clear value. 

___

Millennials: Prefer Postcards with Social Proof or User-Generated Content, interactive mail (QR codes / personalized links), mini catalogs or look books, event invitations (experience-focused), newsletters featuring content and offers. 

Creative Tips:

  • Minimalistic Design: Focus on clean lines, only delivering necessary information, imagery and creative elements for necessity with ample white space, and modern typography. 
  • Visual Appeal: Drawn to eye-catching, high-quality imagery that feel authentic. 
  • Mobile-Friendliness: If incorporating QR codes or personalized links, ensure the digital experience is mobile-optimized. 
  • Sustainability: Highlight any eco-conscious initiatives your brand is involved in, as Millennials often prefer brands that are environmentally responsible. 

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Gen Z: Prefer Interactive Mail (QR Codes, Augmented Reality, Personalized URLs), Eco-Friendly and Sustainable Direct Mail, postcards, event invitations (exclusive experiences and collaborations), Gamified Direct Mail (Scratch-Offs, Contests), Personalized Merchandise Offers (Customized Products), Limited Time Off and flash sales, User-Generated Content or Social Media Integration. 

Creative Tips:

  • Authenticity: Gen Z values honesty and authenticity in brands. Avoid overly polished or “salesy” language, and focus on being real. 
  • Visuals Matter: Use bold, high-quality visuals, and make sure the design is on-trend and aesthetically appealing.  
  • Mobile Optimization: Since Gen Z is heavily mobile-first, ensure any digital component (QR code, URL, AR experience) works smoothly on smartphones. 
  • Short & Sweet: Gen Z has a shorter attention span, so keep your messaging concise and impactful. A powerful message will resonate.   

Reason #2… You can capture consumers’ attention that are suffering from digital fatigue.  

From a lack of variety; to repetitive messaging; to disjointed creative; to poor targeting, digital fatigue is real! We don’t want you to be wasting any marketing dollars on ineffective campaigns. More than 60% of individuals are reportedly overwhelmed by digital marketing tactics.  

Mitigate digital fatigue with personalized content, variety in formats, a thoughtful contact strategy, audience segmentation, and opt-in capabilities.  

Forty-two percent of consumers recently reported an increased interest in direct mail and because of that, 75% of marketers have reallocated their marketing budget into direct mail.  

Switching up your mediums and formats (along with creative!) within channels is extremely important. Direct mail drives response because it’s different; because it’s personal; because it’s tangible… among many other reasons.  

In fact, we’ll take you through even more reasons next week about why it’s important to test different formats, especially in direct mail!

Source: Agility PR, OpenAI. (2025). ChatGPT (February 25 version) [Large language model] http://chat.openai.com/chat

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Who engages with Direct Mail today?

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

We recently came across an article from Forbes and this quote stood out to us: “As technology becomes more important, the more consumers will crave genuine human experiences.”

 

Enter: Direct Mail. A genuine, human experience.

 

Traditionally, direct mail has resonated with older demographics such as Baby Boomers and Gen X because they prefer tangible, physical forms of communication that they can hold and refer to whenever they want.

 

This channel also resonates with new movers or homeowners focused on home improvement, insurance offers or local services; it speaks to affluent audiences – it’s a medium that reflects a high level of quality, professionalism and exclusivity; consumers in rural areas also respond to direct mail. They may not be connected digitally in the way urban consumers are; they are more likely to engage with physical mail.

 

This is why direct mail is an effective channel, and necessary spoke in your omnichannel wheel. We could go on and on with the benefits of direct mail – reach loyal customers or target niche audiences – but what it comes down to is direct mail works now.

 

But, will it work for the future, and for whom?

 

Our answer is yes and you’ll never guess for whom. You may be surprised (hopefully excited!) to learn that Gen Z (typically born 1997-2012) will engage with direct mail. They are digital natives who are tech-savvy and therefore, interested in something different. That’s right, direct mail is new, fresh and different in the eyes of these consumers. As this generation enters the workforce, their purchasing power is growing rapidly, making them a key audience for direct marketers.

 

Additionally, it’s time to start thinking about Gen Alpha (born 2013 onwards). Known as “the first fully digital generation” they are highly connected and the most tech-integrated. Most important to them? Sustainability and climate change. As they come of age, they are bound to realize that doing things digitally is not always more sustainable, especially from a direct marketing perspective.

 

For direct mail best practices and how to optimize your direct marketing program, connect with us!

 

Source: Forbes, Media Tool, Chat GPT (Personal communication, January 2025)

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How to Kickstart Your Marketing Success in 2025

by DataDigital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

It’s incredible to think 2025 is ‘here.’ Looking back on this past year, it’s been a whirlwind! From many changes in the digital landscape such as AI, SEO opportunities, new video content and the further rise of influencer marketing to happenings on the print front – such as the USPS not increasing rates in January, the EUDR delaying one year and uncoated freesheet mills across the country increasing prices, our omnichannel landscape continues to transform by the day. 


Looking ahead to 2025, we’re excited to tackle the challenges that print and digital bring us – and we want you to feel that thrill as well. With budgets and priorities constantly changing, we understand that there are many marketing obstacles out there. To jump start the New Year, we thought it would be helpful to share our recommendations for next year.


Continue to Integrate Your Online & Offline Marketing Strategy

You must continue to prioritize the synergy of your media channels. Whether you’re in the mail, solely executing digital campaigns, or doing both (highly recommend!), it’s essential that your channels are speaking to each other… and your internal teams are as well! Messaging to the customer must be consistent. Additionally, stay on top of results so you can more easily shift spend and budget to different channels as performance adjusts and shopping behavior changes.


Prioritize High-Quality Content

It’s more important than ever to produce authentic and valuable content. In fact, it’s essential for capturing and retaining your customers’ attention. This will not only impact conversion but build loyalty as well. Keep content relatable and real, always, but especially in 2025!

 

Customer Experience (UX) is Key

“Seventy-five percent of consumers will spend more with brands that prioritize customer experience;” 50%+ consumers report switching to a competing brand after just one negative experience, or if the shopping experience doesn’t feel personal. Here’s how to keep experience positive: consistent messaging and offers across channels, creative that complements each other (channel-to-channel), loyalty programs, personalized direct mail and email, and more.


Spotlight is on First-Party Data

Since 2023, brands have been re-evaluating their reliance on cookies. In 2024, Google updated its Privacy Sandbox Strategy, which has greatly impacted marketers trying to track customer journeys and buying behavior. Therefore, marketers are forced to rely on first-party data collection, making it the most reputable and accurate source of information for their businesses. By focusing on the value of first-party data, brands are seeing improved customer insights; they’re privacy compliant; and they’re setting themselves up for future success in the digital landscape.


Gen Z Buying Power Continues to Increase

Gen Zers are tech-savvy, opinionated, value-focused and highly influential. We recommend incorporating social causes in marketing strategies; point to sustainability initiatives; and leverage influencers. By appealing to Gen Zers, brands will grow their business.  

 

We’re always interested in discussing our content! Please don’t hesitate to reach out to chat about your print marketing strategy (and how it’s working with your digital strategy) In the meantime, we’ll see you in 2025!

 

Sources: Media Tool, Chat GPT (Personal communication, December 2024)

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Hot Take: Direct Mail is Just as Sustainable as Digital Marketing

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

With our focus being print marketing, brands can be hesitant to test into direct mail. Why, might you ask? Sometimes it’s perceived to be less efficient and environmentally friendly than digital marketing. However, we’re here to debunk that myth.

It’s commonly perceived that digital marketing is sustainable because there is less labor involved in marketing online than the manual labor of creating paper and print to launch a campaign. However, both channels have their benefits and drawbacks – with print having just a few less drawbacks when it comes to the environment.

Key Stats about Paper & Print:

  • – Paper can be recycled up to seven times.
  • – The paper, pulp and print sector is one of the lowest industrial emitters of greenhouse gases, accounting for 0.9% of European emissions in 2021
  • – Since the 1990s, the average water intake per ton of paper produced has decreased by 42%.
  • In 2021, around 90% of the water used in the European paper industry was returned to its source.

 Key Stats about Digital:

  • – The world generates more than 68MM tons of e-waste every year (source: UN via Bloomberg) and of that, only 22% is collected and recycled.
  • – Businesses and individuals are increasingly using ‘cloud’ services. These mega data centers store almost everything we do online, including our web searches, our social media posts and our online statements.
  • – The ICT industry accounted for 4-6% of global electricity use in 2020, which is more than 2% of global greenhouse gas emissions.
    • The electronic waste problem is also colossal and growing. In 2019, the industry was responsible for a gigantic 53.6 million metric tons of e-waste across the world.
      • That’s equivalent to the weight of 350 cruise ships.
      • E-waste is expected to increase to 74.7 Mt by 2030 and reach as much as 110 Mt by 2050, unless we change our practices.[2]
  • – In 2019, just 17% of global e-waste was collected for recycling. In fact, recycling activities are not keeping pace with the global growth of e-waste. Non-environmentally sound disposal and treatment of this waste stream poses significant risks to the environment and to human health.

Often, marketers think digital is a better investment from a sustainability perspective. However, this is a common misconception. In fact, the channels are pretty similar when it comes to environmental friendliness – with Print arguably being more sustainable. There are an abundance of factors that impact the carbon footprint for digital – energy consumption of Data Centers, end-user devices, internet infrastructure, lifetime of digital devices, email server efficiency, transmission networks, and more. In turn, the carbon footprint of a printed piece consists of paper production, printing process, distribution, end-of-life (how a piece is recycled), design, and size. Good news: there are solutions and best practices in place for all of these.

So, what should you do?

We wholeheartedly believe in the power of an omnichannel strategy – but it does begin with Print. Last month, we talked about complementing your Direct Mail touch points with Digital. It’s a must in today’s digital age! This month, we are recommending you complement your digital with direct mail while making the world a better place.

Sources: Twosides.info, Device42, Chat GPT (Personal communication, January 2024)

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Second Half of 2024 Will Give Marketers A Run for Their Money! (Conclusion)

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Key Event #2: Shortened Holiday Season 2024

Thanks for following along in our series of key events in the second half of 2024. It’s hard to believe it’s already mid-October! Today, we’re going to discuss the impacts of the shortened holiday season, how to combat them, and what you may do afterwards to kick 2025 off on a good note.

As you know, the holiday season is the most important time of year for most marketers. However, did you know there will only be 27 days between Thanksgiving and Christmas this year? This is the fewest possible number of shopping days for the traditional holiday season. Therefore, marketers need to be extra prepared for the shortened shopping season to ensure you get the sales you need.  

This summer, we talked about the election. It’s important to note that consumers will be fresh off the election (which, as a reminder, they are preoccupied about the economy, macro effects, and more).   

So What? 

This shortened season really will have an impact on both consumers, and you as marketers. However, history is on your side! 2019 was the last time consumers had a 27-day holiday shopping season, which was also pre-Covid. By having a pre-Covid time to look back, it’s likely that shoppers will follow similar shopping trends as they did then.

What You Need to Know:

When there is less time to shop, consumers have historically started their holiday shopping earlier. In fact, Epsilon reported that higher revenue was generated two to three weeks leading up to Thanksgiving and the two weeks afterwards (when comparing 2019 to 2023).

Our Recommendations: 

Be strategic with this shortened shopping time frame. Manage shipping deadlines; stay vigilant about inventory; execute campaign launch dates; and optimize circulation plans.

Begin marketing communications earlier than usual. This will be key to sustaining and/ or growing revenue. Aim to get customer shopping with your post-election and pre-Thanksgiving.

Be prepared for evolving shopping behavior. Recognize that younger consumers tend to wait longer to shop during the shortened holiday season while older generations plan ahead. Personalize your marketing efforts accordingly.  

Focus on the weeks leading up to Thanksgiving and immediately afterwards. As noted above, this was a key period in 2019.

Leverage postage offers. This will help with spend and add efficiency to your direct marketing efforts (we can help sort through this with you!).

Complement your Direct Mail touch points with Digital. Enhance conversion rates with increased frequency of messaging and the speed of digital. Perhaps go deeper in your models, both house and prospect, with digital-only communications that include countdown messaging. Offer free priority shipping with a purchase over a specific value to capture share from those last minutes shoppers, create gift guides and bundles for the holiday shopping challenged…increase the value of that basket or order size! 

As fellow marketers, we are your partners. Please reach out to discuss your direct marketing strategy for the next few months. 

As always, we’re wishing you all the success this holiday season.

Source: Epsilon

 

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Second Half of 2024 Will Give Marketers A Run for Their Money! (Continued)

by Digital MarketingDirect MailMarketing StrategyMarketing TrendsNewsOffline Strategy

Key Event #2: Presidential Election 2024

Thanks for following along in our series of key events in the second half of 2024! Today, we’re going to discuss how to market during the 2024 Presidential Election, which is right around the corner on November 5th. While there are large political and worldwide implications, there are also huge impacts to marketers.  

So What?  

Historically, consumer behavior is highly influenced by presidential elections. Several factors influence consumers during this time such as political events, economic conditions, and social issues.

There is a shift in consumer spending and the way in which people are consuming media both offline and online changes. For example, while Connected TV may be a usual channel that drives conversion for a brand throughout the calendar year, it may not be during an election year; if you’re a mailer, you may think about testing different formats and in-home dates. 

Most notably, presidential elections fall at the beginning of the all-important holiday shopping season (more on holiday later!). Therefore, it is important to be aware of when and how to spend your valuable marketing dollars.

 Our Recommendation: 

  • Stay top of mind. Get in front of your best customers and prospects with relevant messaging in the channels, where they’re most engaged. 
  • Get prepared for the short holiday season. Launch holiday campaigns earlier than usual to capture consumer attention. Reinforce with holiday offers after the election hype subsides but before shoppers gear up for their holiday shopping. 
  • Create a post-election marketing plan. Reinforce your campaigns prior to the election with holiday offers to hype up customers for the upcoming season. Create motivation and urgency for shopping early.
  • Remain positive. While consumer spending may dip during the election, it typically rebounds quickly afterward. 

Insider Tip for Catalogers / DM:

If you are planning to be in the mail around the election, get in touch with one of our experts to analyze your circulation plan: info@mediahorizons.com. Based on our position in the marketplace, we have specific recommendations with timing as it relates to your brand and product assortment.

Stay tuned for our recommendations for marketing for the shortened holiday season! We’re here to help drive your omnichannel strategy forward.  

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The difference between multi-channel and omnichannel (omni media)

by Content MarketingDataDigital MarketingDirect MailMarketing StrategyMarketing TrendsOffline Strategy

In our industry, we often find that “multi-channel” and “omnichannel” are not only used interchangeably but are perceived to be the same concept. From our perspective, that’s inaccurate. Yes, we said it!

What is multi-channel marketing?

This is when a brand is utilizing multiple independent channels to interact with its customers. Each channel operates independently. With multi-channel marketing, the brand is focused on providing customers with several different ways to engage with them.

What is omnichannel marketing?

This strategy takes a more integrated approach, aiming to provide customers with a seamless, consistent, and unified brand experience across all channels. With this strategy, customers can transition between digital and offline channels effortlessly – with their interactions and preferences being recognized and remembered. With a successful omnichannel strategy, channels are interconnected and share data and insights to deliver more personalized experiences. Think in terms of integrating online intent with offline channels such as direct mail.

Why omnichannel works:

While multi-channel marketing focuses on providing multiple independent channels for customer engagement, the actual customer experience may not be seamless or consistent across these channels. In fact, they’re often treated as entirely different campaigns or initiatives.

In contrast, an omnichannel strategy facilitates a fully integrated experience. The customer experiences all touch points in a cohesive manner – both offline and online – the creative format and content all flow together.

For example, a customer may begin their shopping journey by receiving a postcard in the mail, continue browsing on the website, and make a purchase in-store, with the brand maintaining a cohesive understanding of their preferences and history throughout. Because of this, a successful omnichannel strategy helps with attribution and thus, more effective marketing techniques to ultimately grow the brand.

How can you be more omnichannel-focused?

Align company goals

Talk to each other internally! Offline, digital, sales, and operations should all be working together. For example, the offline team is reading results from their campaigns while the digital team is doing the same – and they’re not syncing up external efforts (or even internal communications for reading results). Don’t fall into this habit!

Be aware of changing consumer behavior, and get more familiar with your audience

Consumer behavior is consistently changing – make sure you’re staying top-of-mind with your top spenders in terms of brand benefits (loyalty programs, offers) and mission.

Identify key channels and be strategic with them

Ensure you’re being consistent yet innovative across channels. This doesn’t mean serving all the same content – it means presenting cohesive messaging that is complimentary to the branding.

Did you know that “direct mail” is a channel? Make sure you’re not excluding offline channels. The more each channel “talks to each other,” the more successful your campaigns will be.

Integrate your tech stack

Remember that integrations are not one-size-fits-all. Take time to determine the most important tools for your brand and integrate them strategically.

This includes offline! The power of print is real; integrate online intent with direct mail.

Optimize social media

Don’t forget that social media can support your broader business goals such as attracting new customers, building brand loyalty, and promoting brand awareness.

We recommend thinking of an omnichannel approach as customer centric. An omnichannel strategy starts with the customer and ends with a purchase. In fact, it can start offline and end online; or vice-versa. It ensures a smooth, convenient, and unique shopping experience.

Omnichannel is a powerful strategy; in fact, we think it’s THE most powerful. Not only does it help provide a seamless and personalized experience across all channels (both offline and digital), but it can help brands differentiate themselves. Whether it’s building stronger relationships with its audience, figuring out a more effective way to spend your marketing dollars, or testing a new channel (offline or digital!), it will ultimately drive growth and profitability for a brand. Not convinced? Let’s discuss in more detail why omnichannel is the way forward! 

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Tom Says… Here’s What You Need to Know About the July USPS Increase

by Direct MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

Thanks for bearing with us this month with this two-part post! We thought it would be helpful to refresh everyone about how postage rates are charged. Now, we can get to the super important details: this month’s USPS rate increase.

Effective July 9, 2023, the USPS has put into place the following increases in their postal categories. Keep in mind that while these percentages are overall changes, specific sortation increases will be larger in some areas than others creating fluctuations from these announced increases.

– First Class mail has increased on average of 5.38%

– Flats (catalog) mail is increasing 7.38%

– High Density / Saturation Flats is increasing 3.07%

– Carrier-Route mail is increasing 7.39%

– Letters is increasing 5.20%

– High Density / Saturation Letters is increasing 5.06%

– Periodicals (Magazines) is increasing 8.12%

– EDDM (Every Door Direct Mail) is increasing 4.76%

Letter Mail

Most letters mail optimally at a 5-Digit/SCF entry mail. The 5D/SCF for-profit rate has increased 5.82% to $0.291/pc. With non-profit rates increasing 6.25% to $.136/pc. Saturation & high-density mail offers lower rate possibilities, but they are very difficult to achieve in national demographic programs.  Commingling offers cooperative solutions to help minimize postage costs and should always be considered for pieces that do not qualify for 5-Digit/SCF entered rates.

Drop Ship SCF discounts for letters is increasing to $0.035/pc vs $0.030/pc & NDC discounts are now $0.027/pc vs $0.023/pc. Non-profit rates are increasing at a higher percentage than for-profit rates.

NEW: Effective with the July changes, the USPS is now offering a SCF entry Discount for 5-Digit & 3-Digit sorted mail. A similar discount was introduced for Flat Mail in July 2022, and it will offer some postage relieve for SCF pallets. Each qualified piece can earn $0.003/pc discount.

Flats – Four Ounces & Under

Basic Carrier Route mail will see average increases (6.82% at the SCF entry level), and High Density Plus and Saturation entry mail will see below average increases. High Density/SCF mail will see no increase after seeing much larger than average increases in the last several postal changes. Origin entered mail will see larger increases. 

As with letter mail, drop ship discounts are growing, $0.091/pc for SCF entry and $0.071/pc, over all sortation levels.

Non-profit rates four ounces and under will also see larger increases that for-profit mail. We have seen this common occurrence with non-profit rates happen over the past several postal changes as they are trying to narrow the gap difference.

The USPS is also increasing their 5-Digit Scheme Pallet and SCF Pallet Discounts to help minimize increases. The discounts are the same regardless of for-profit or non-profit qualified mail.

Flats – Over Four Ounces

There are significant changes taking place with flats mail over four ounces. Previously, postage for pieces in this rate category received a piece postage charge PLUS a pound postage charge applied on each fraction of a pound mailed. The new rates continue to apply a piece rate, but the pound rate will only be applied for each fraction of a pound over 4 ounces (0.25#). Comparing rates from January 2023 to July 2023 will look odd (see chart below) because the new rate structure is pushing more postage in the piece portion and less in the pound portion, it is comparing apples to oranges. Drop ship discounts for pieces over 4 ounces used to be discounted from the pound portion of postage, but it will now be discounted from the piece portion of postage. You can see the differences in the chart below.

To better understand the comparison of before and after rates, here are a few for-profit sortation scenarios calculated at different piece weights:

There are three scenarios above, High Density, Basic Carrier Route & 5-Digit flat postage. As the piece weight grows, the impact of the increase also grows at a substantial rate.  Heavier pieces are seeing much higher than average postal increases.

The same Pallet Discounts as outlined for Flats four ounces and under apply to pieces over four ounces giving some relief.

First Class Mail

– A stamped 1-ounce letter has increased to $0.66/pc from $0.63/pc (4.76% increase)

– First class flats have increased 7.15%

– First class postcards have increased to $0.355/pc from $0.352/pc (<1% increase)

USPS Promotions

As a general best practice, we advocate that all direct mail customers take advantage of the discount promotions that the USPS offers. The USPS has made the approval process much easier and more responsive with the addition of the Mailing Promotions Portal (MPP) on the USPS Gateway. The USPS is managing all inquiries and approvals through the portal, so it is imperative to sign up for the service.

2024 USPS Promotions

– Tactile, Sensory & Interactive – 5% USPS incentive for Marketing Mail & First-Class Mail – 2/1/2024 – 7/31/2024

– Personalized Color Transpromo – 3% or 4% USPS incentive for First Class Mail – February 1st – July 31st

– Emerging & Advanced Technology – 3% to 4% USPS incentive for Marketing Mail & First-Class Mail

*NEW – Direct Mailer can pick the 6-month window they would like to use this promotion

– Reply Mail IMbA – 3% USPS incentive for First Class Mail – July 1st – December 31st

– Informed Delivery – 4% USPS incentive for Marketing Mail & First-Class Mail – August 1st – December 31st. The mail preparer also receives a 0.5% incentive from the USPS

– Retargeting Mail – 5% USPS incentive for First-Class Mail – September 1st – November 30th

Not only can we help you take advantage of these USPS promotions, but together we can add strategy and innovation to your print marketing efforts. Additionally, with our network of printers & suppliers, we’re bound to solve challenges together that you may not have known you even had! We look forward to helping you navigate these updates and most importantly, use them strategically to ultimately grow your brand. 

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Tom Says… Here’s How Postage Rates Are Charged

by Direct MailMarketing StrategyMarketing TrendsNewsOffline StrategyUSPS

We know you’ve been waiting for Tom’s latest update! So much has happened with the USPS in the last 1+ years, but we’re here to help you navigate this unchartered territory. Before we get into the actual updates that occurred this month, Tom wanted to be sure you understand the structure on how postage rates are charged.

A basic knowledge of sortation and destination entry will help with an understanding of the current rate structure.

Postal Sortation Qualification Requirements

The USPS offers discounted pricing for brands to sort the mail rather than having the USPS manage the sortation process. The higher the sortation level achieved by the brand, the lower the overall postage costs that are charged.  Achieving sortation levels to minimize postage costs are totally reliant upon where pieces are going and what volumes are going to those destinations. Common sortation qualifications include:

From top to bottom, the deeper sortation requires less USPS processing results in lower postal rates to the customer. For mailers to achieve high density & saturation postal rates, there either must be a significant volume of mail, or it must be a very regional mailing. 

Letter mail is sorted to the 5-Digit scheme rather than to the Basic Carrier Route level. The reason for this is because the USPS automation equipment will sort mail at the 5-Digit level, and they do not want mail in carrier-route bundles. The higher postage costs for Carrier-Route Letters discourage Carrier Route mail. There is an advantage for letter mail to sort to the HD, HD Plus or Saturation levels. However, it is very difficult to achieve without significant volumes. Sortation to more efficient levels is why cooperative mailing programs such as co-mail (flats & periodicals) or commingle (letters) exist and should be part of every mailing program.

Destination Entry

The USPS also offers discounts from the base rates if the mailer coordinates dropping the mail into the USPS at the destination rather than dropping at the mailer’s location. This is called destination or drop ship entry.  For this to make sense, the mailer will determine where pieces are mailing to and calculating if the USPS postal discounts exceed the additional freight costs, that the customers will be responsible for paying, in transporting and dropping to USPS facilities at the destination.

From top to bottom entry levels, origin mail is simple, but offers no discounts because the USPS must take responsibility to ship pieces to their destination while progressively larger discounts are offered for NDC, CSF & DDU entry.  DDU entry is difficult unless there is significant mail going into a specific (regional) area.  Most larger mailers will enter mail at the SCF level.

This is just a quick snapshot of how postage rates are charged. However, we felt it was important to reiterate some of these details. We all read headlines about “rate increases” and industry-wide postage changes, so we thought it would be helpful to set the stage. Stay tuned for part two highlighting the actual increases from the USPS this month!

Next up: The July 2023 USPS Increase – what it is and how you can combat it.