Smart List, Mail Design Cut Postage Costs

Maximizing direct mail ROI requires cost efficiency, especially in the postage realm. Good list selection and hygiene are key to avoiding mailing waste. Another important factor in controlling postage costs is mail package design. If you are sending mailings to the wrong people, people unlikely to be interested in your offer, lower response rate and cost inefficiency will be reflected in poor ROI. Using tools from predictive modeling to customer profiling to segmentation can improve list choices and targeting parameters. Plus, AccuList USA's proprietary list research can help clients find the top-performing lists for their specific vertical market. But no matter how data is targeted, dirty data with duplicates, errors, invalid addresses, and old demographic or purchase history information will create costly delivery failures and misdirected waste. That's why AccuList USA goes beyond list brokerage to provide expert merge-purge services that combine and standardize data in order to eliminate duplicates, identify and correct old or undeliverable addresses, verify zip codes, and maximize postal discounts. In fact, by comparing names and addresses to real-time information on multiple public and private databases, AccuList USA offers an advanced hygiene regimen that is able to identify and correct twice as many addresses as standard USPS FASTforward and NCOALink use, which only represent a portion of U.S. movers and undeliverables. USPS offers postage discounts to mail pieces that are not only addressed correctly but also designed for processing on automated equipment. For mail to qualify for the lowest postage rates, the mail piece needs to be at a letter size, which is a minimum of 3 ½" high by 5" long and a maximum of 6" high by 10½" long. Larger mail pieces fall into the flat category, which can cost more than twice as much per piece as a letter. Plus, to take advantage of automation, the piece must by rectangular, with an aspect ratio (length divided by height) of 1.3 to 2.5, or risk costing twice as much in postage. The addressing and barcode block on letter size mail also must fit into the USPS OCR read area to avoid additional postage. Naturally, weight matters. Keep the weight of a folded self-mailer under 1 ounce; if the piece weighs over 3 ounces, it must go in an envelope. Thickness counts, too.  If a mail piece is less than 0.009" thick, it costs more in postage. On the other hand, the maximum thickness for letter size mail is ¼" and for flat size is ¾". For more, see http://www.acculistusa.com/smart-list-mail-design-choices-help-save-on-postage/

Costly Bad-Address Returns Still Plague Mailers

With advances in data technology and systems offered by the U.S. Postal Service, such as National Change of Address, direct mailers should have seen a decline in "return to sender" address glitches in recent years. Not so, points out Direct Marketing News magazine Senior Editor Al Urbanski in a recent article. In fact, according to USPS figures, 3.7% of first-class mail was returned to senders in 2014, up from the 3.4% in 2004. That small percentage adds up to big costs for direct mailers. Urbanski cites estimates by Novitex, a mail management company, that each piece of returned mail costs marketers between $3 and $50 a piece, with the higher hit on transactional mailers receiving payments for insurance premiums, merchandise purchases, credit card payments, and loan payments. But all mailers are burdened by wasted printing, prep, postage and data processing spends, as well as customer churn and lost opportunities. What to do? The fundamental problem is bad mailing-list data, despite all the systems available to keep lists clean and updated. So Novitex urges using automated services for address updating, including NCOA; centralized returned mail operations to improve reaction and cut risk of postal service audits and lost discounts; and implementation of data technology to track mail behavior to the root causes of returns. For the complete article: http://www.dmnews.com/direct-line-blog/return-to-sender-is-still-high-on-mailers-playlists/article/421022/