With Careful Thought and Planning, It's Possible to Live With These Rates

The following is an article prepared by PostCom President Gene Del Polito for Circulation Management magazine

It most definitely wasn't the best of times; it may not be the worst of times, but anytime postal rates rise more than the rate of inflation, it still qualifies as the pits. Even though the "average" percentage rate increase recommended for Standard Mail (formerly known as Standard Mail A) is less than what the Postal Service had proposed, many who use mail for advertising and marketing purposes will find that on January 7, 2001 their postal rates will rise more than the cumulative rate of inflation since the last postal rate increase.

Those who typically mail flat-size mail pieces--even those who mail at automation-discounted rates--will be among those that will be particularly hard-pressed. The rate charged for barcoded three- and five-digit catalogs, for instance, will rise by 16% and more. For mail that is supposed to be reduced cost, automation-compatible mail, there's no excuse for this outcome. Clearly, the Postal Service has done a horrible job in capturing the savings that should be coming from the flats automation program.

While it would be possible for me to write volumes on the "why" of this outcome, doing so wouldn't change the fact that these rates will be implemented on January 7, and those who use the mail for the distribution of their printed catalogs will have to figure out ways to accommodate themselves to this reality. In a nutshell, this means that catalog merchants will have to make smarter and more judicious use of mail for their marketing messages, in conjunction with their use of other marketing media (such as the Internet, periodicals space ads, and other broadcast media). So what's a smart mailer to do?

The principles governing "smart mailing" are not novel--in fact, Harte-Hanks just recently reminded mailers of a few simple principles that could pay dividends. These sorts of things have been discussed for years. Unfortunately, not everyone has taken these recommendations seriously. When postal increases climb to more than two times the rate of inflation, however, it's time to pay attention. Here are just some of the principles mailers should keep in mind.

Clean your mailing lists. Keep your address records up to date. Maintain USPS postal standard addresses using postal geocodes, ZIP Codes, Zip+4s, Carrier Routes, Line of Travel data, and Delivery Point data. Incorporate change-of-address data on customers for recent moves. If customer databases are decentralized, set up internal procedures to share move data promptly with all departments. Employ the USPS Delivery Sequence File (DSF) service to confirm the existence of a delivery address.

Redesign your mail to take best advantage of all rate changes. Evaluate to ensure your mail piece designs will allow you to take maximum advantage of the most cost-efficient rates. Pay attention to the shape of your mail piece, its dimensions, and its weight. Be sure you can apply your knowledge of postal rates and mail preparation requirement to maximize your postal savings.

The principles of sound direct marketing still apply. Be sure to use sound database technology and methodology to take advantage of both past customer transaction data and response analysis. Match your prospects to the demographics and psychographics of current best customers. Consider using "Or Current Resident" to targeted addresses--if a customer has moved, the new resident may fit the current best customer profile. Personalize your mailings as much as possible, and be sure to test, test, test.

Check to see whether you can take advantages of any opportunities to "drop ship" or "commingle" mail with other mailers. This could save you a bundle.

Make sure your mail pieces are compatible with mail processing equipment. There's a real cost to using mail. Design your mail pieces to facilitate postal processing. Use font faces that are easy for postal machinery to read, and don't position your return address in a way that is likely to be misread as your intended delivery destination. When you use windowed envelopes, make sure the windows are of sufficient size to ensure that a delivery address is always visible.

"Partner" with your Postal Service counterparts. Don't keep your mailing plans a secret. Communicate your intentions as early as possible to your mail acceptance officials. Let them know about your upcoming mailing events, the nature of your mail pieces, your expected mail "drop" dates, any requirements you might have for a "delivery window," and other pertinent mail delivery needs.

Track your mailings. Keep a record of you mailing and drop-ship entry dates. When you can, use postal PLANET CODES in conjuction with the Postal Service's Destination Confirm service, WEB ADVANCE and other USPS or privately offered mail monitoring services.

These are just a few of the practices any smart mailer will be sure to employ to ensure that his or her use of mail as a vehicle for business development and commerce will produce a maximum return on any postal investment.