The #1 Way to Save Money on Postage After the Jan. 21 Postal Rate Increase

The United States Postal Service (USPS) rolled out an increase in postal rates this weekend, taking First Class letters and First Class Stamps from $0.46 to $0.47 and $0.49 to $0.50, respectively.

Here is a quick look at everything that has changed:

Postage Rates Postage Rates

Source: USPS

Postage accounts for 40-60% of a campaign, which can add up quickly. Fortunately, there are still ways to save money on postage even after pricing for postage many of the mailing formats has increased.

The number one way is to ensure that you are working from a “clean” mailing list (house and prospect alike). You don’t want to risk wasting money mailing to people that will never receive – or response to – your message.

First, you’ll want to make sure that your house list is in order. This can encompass everything from de-duplicating your records and running your list through NCOA to eliminate redundant and outdated information, to segmenting your mailing list into categories that allow you to better personalize the types of message you are sending them.

Related: Spring Cleaning Checklist: Database Marketing Edition

The de-duplication and NCOA processes save you money by cutting down on the number of records that need to be mailed and ensure the highest deliverability rates by catching any contacts that may have changed addresses without updating their information with you.

The segmentation process saves you money on postage by filtering out recipients that have a lower propensity to act so you can concentrate on the highest deciles. It also dictates how often a customer should be mailed to. Depending on the type of customer they are, it may not take as many marketing messages as you are sending them to move them to act. The money you save by doing this can be re-allocated toward postage.

Then, you’ll want to use your house list to guide the development of your prospect list. We recommend using a process called “Look-A-Like” modeling that takes an even deeper look at your customer segments to determine who your best customers are, and then helps you locate prospective customers that “look” like them in terms of preferences and spending habits.

Similar to the basic segmentation process, this more targeted approach allows you to save money by filtering out irrelevant prospects that will never purchase from you, so you can again re-allocate your marketing spend toward postage. You can also re-allocate this money to customers that will ultimately be more profitable anyway.

The Bottom Line

Postal rates have increased, but there are still ways to save money on postage or re-allocate other parts of your budget toward it.

About Compu-Mail

Compu-Mail (www.compu-mail.com) provides end-to-end direct marketing and business printing services to companies across the U.S. and Canada. Headquartered in Grand Island, NY, Compu-Mail services include direct mail, email marketing, data driven marketing with database management, statement rendering, and variable imaging. Compu-Mail can be reached at 800.255.0670 or marketing@compu-mail.com.
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