How will the postage increase impact your bottom line?
Updated: Jan 23, 2020
Postage rates will increase Sunday, January 27th 2020.
Consumers, not marketers, are the ones more likely to be impacted by the upcoming postage increase. The cost of a first-class stamp is going up ten percent to 55 cents each. It's getting pretty darn expensive to send out greeting cards these days.
For those of us in the direct mail world, the increase of Marketing Mail, a.k.a. Standard Class, isn't likely to have a significant impact on overall return on investment because we're only talking about half a penny per piece, in most cases. Even if you're mailing high volumes, this increase may not have a negative impact on ROI as long as you're diligent about making sure your lists are clean and deliverable. And if you're mailing a relevant offer at a relevant time to a targeted audience, you'll likely see an increase in your return.
Of all the Marketing Mail categories, one of the largest rate hikes is with Every Door Direct Mail (EDDM), which is increasing by nearly a full penny per piece. Given the level of mail preparation required with EDDM, I'm surprised it's going up that much. Marketers will be willing to pay this increase though. For anyone wanting to target consumers by saturating a carrier route, this product is still the least expensive way to go.
Some say direct mail is dead and would argue that these postage increases hurt will put the final nail in the coffin. But direct mail is very alive and well. Your mailbox isn't nearly as cluttered as your email inbox or your online experience. Internet-only retailers are even catching on to the power of direct mail. Over the last year I've seen more and more online retailers embracing this traditional marketing tool including well known companies like Wayfair and Amazon. For more on that topic, click here for this Forbes article: https://www.forbes.com/sites/forbescommunicationscouncil/2017/08/30/why-direct-mail-marketing-is-far-from-dead/#5caefee2311d
The bottom line: a 2.5% increase in postage isn't going to hurt your campaign. Here's what really hurts your campaign: undeliverable addresses, duplicates, bad offers, poor timing and irrelevant messaging.
Contact TMM Direct today to talk about how to target a consumer at a time when we know they're in the market for your product! Call 803-831-5310.