We’re excited to share Part II of our conversation with Tom VanWestrienen of Eliezer Consulting. In follow up to last week’s conversation, we wanted Tom’s perspective on how to handle these USPS updates. For example, are there any opportunities that these changes could present? How can brands adjust to these changes in a positive way? Here’s Tom’s take:
Q: Since it will affect the above formats, how can brands prepare / update their DM strategies accordingly?
Consider changing to a different format. Updating the physical make-up of a piece can move it to another, less expensive rate class. At this juncture, creative thinking while partnering with your vendors on strategy would provide the best overall outcome (we’re talking response rate and cost-efficiency!).
Q: What are some other opportunities that these increases present?
Are you fully utilizing opportunities offered by your printer? Processes such as co-mail or co-bind can reduce postage by improving sortation levels and increasing discounts. Additionally, the USPS offers several promotional discounts which can reduce postage by 2-4%/piece (See 2022 promotional calendar here). The USPS is also continuing the promotional discounts in 2023 with discounts up to 5%.
Q: What are some tips for preparing for the all-important holiday season?
Make sure that every customer is using cooperative mailing programs to minimize postage costs. Co-mailing for flats & periodicals and commingling for letters are cooperative mailing programs that should be used whenever possible. Also, the USPS offers mailing incentives that are too good to pass up. Today, the USPS offers a 4% immediate postal reduction if a direct mailer is using their Informed Delivery program. This program started August 1st and runs through December 31st. The USPS offers other incentives throughout the year and for minimal effort, these savings really add up. We can help you utilize and manage this!
Q: Do you think that we expect any leniency / decreases in early 2023?
Unfortunately, we do not anticipate postage reductions in the future. Postmaster General Louis DeJoy is operating the USPS as a business, and as outlined in the Delivering for America plan, he is focused on achieving financial stability and service excellence at the USPS.
Q: Tom, can you describe today’s catalog and direct mail market in one word?
Challenging – but there are solutions that help navigate increased postal costs! Let’s have a conversation. Don’t hesitate to reach out!
We hope you enjoyed the first of our quarterly USPS updates from Tom! Each quarter, he’s going to describe the catalog and direct mail market in one word… we’ll see where we net out around this time next year! We’re excited about what the future holds for offline marketing and look forward to partnering with you. For now, that’s what Tom has to say!
