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The Postal Service has introduced new pricing strategies that deliver a big bang for First-Class mailers’ bucks. Are you fully utilizing all the options? Come to this session where we’ll discuss the promotional calendar, favorable second ounce pricing, and automation discounts. Find out how mailers are leveraging USPS pricing to their advantage while engaging with their customers via the most powerful medium.
Citation preview
2013 National Postal ForumSan Francisco, California
Christine J. Erna
» Go Transpromo˃ 2nd Ounce Free˃ Transform Non‐Marketing Mail Into a Powerful New Marketing Channel
˃ Converting from flat to letter size envelopes» Promotional Opportunities
˃ Earned value BRM/CRM˃ Direct Mail Mobile Coupon and Click‐To‐Call
» Address Quality» Qualified Business Reply Mail » Commingling
Transform Non‐Marketing Mail Into a Powerful
New Marketing Channel
2nd Ounce Free
Converting from flat to letter size envelopes
Go Transpromo
Taking advantage of Transpromo marketing can greatly reduce production, mailing and overall marketing expenses in two major ways:
Transpromo Marketing Saves Money
» Transpromo messages can take the place of separate mail campaigns, allowing communication with customers in already existing mailings while saving thousands of dollars on production and postage costs.
» Print a QR code linked to a web page or video cross‐selling a product
» Mailing fewer direct mail campaigns and reducing production costs with in‐house printing allow you to maintain and even increase your messaging opportunities with customers on a much smaller marketing budget.
» Reference other communications, for example, “visit us on Facebook for special discounts”Try It!
Openability» Statements and invoices are expected—More than 95%
of transaction documents are opened and read each month – far more than any other type of direct response effort.
Engagement» Bills and statements receive more attention than any
other form of communication including television ads. As a result, marketing included in these types of documents has a higher click rate and conversion rate.
Cost efficient» Transactional mail messaging eliminates the need for
separate marketing mail project which eliminates the cost of envelopes, data processing, mailing services and more importantly ‐ $ Postage costs.
Advantages of Adding promotion
Reporting» Billers can accurately track detailed promotion activity. This type
of detailed tracking and reporting facilitates intelligent, revenue‐based marketing decisions, derived from measurable customer behavior.
Returns» Statement‐based marketing is effective because it targets current
customers. A five percent increase in current customer business can translate into as much as a 50 percent increase in bottom‐line profits.
Customized offers» It can be personalized according to customer demographics,
business drivers and marketing criteria
Advantages of Adding promotion
A considerable savings can be realized by converting from a flat size envelope to a letter size envelopeConsider the following:
» Duplex pages when possible» Narrow margins on each page» Decrease the size of your font
Save up to 60% in postage by redesigning flats to letters and taking advantage of the FREE 2nd ounce.
Second ounce is FREE
Remember the maximum thickness is .25 inch.
0.360 0.384 0.384 0.4051 Ounce Rates
2 Ounce Rates
0.606 0.794 0.840 0.940
Stuff those letter size envelopes!
Second ounce is FREE
A coupon on the bottom of a customer statement or invoiceA product cross‐sell message, often with a discountA sale or promotion announcementPoint totals on a rewards or loyalty programOnline URLs and related online promotions“Coming soon” informationCustomer “thank you” or appreciation messages
Today, many businesses use Transpromo technology to print:
Additional $.02 CENTS
Reply Mail Savings by participating
The 2013 Earned Value Reply Mail Promotion provides mailers with an earned postage credit based on qualifying First‐Class Mail® BRM and CRM cards and letters with an Intelligent Mail barcode.
PROGRAM PARAMETERS
Registration Period January 15 through March 31, 2013 Program Period April 1 through June 30, 2013 Discount Amount $0.02 per scanned CRM or BRM mailpiece Eligible Mail Classes BRM/CRM mailpieces can be distributed in any outgoing mailing Credit Application Earned rebate credits can be applied to First‐Class Mail
Presort and Automation letters and Standard Mail letters.
Upfront 2% Savings
by participating
The 2013 The Direct Mail Mobile Coupon and Click to Call Promotion provides business mailers with an upfront two percent postage discount on Standard Mail®, Nonprofit Standard Mail® and First‐Class Mail® letters, flats and cards (presort and automation).
PROGRAM PARAMETERS
Registration Period: January 15 through April 30, 2013 Program Period: March 1 through April 30, 2013 Discount Amount: 2% of eligible postage. The discount is calculated in PostalOne!® and applied to the postage statement at the time of mailing. Eligible Mail: Standard Mail® letters and flats, Nonprofit Standard Mail letters and flats First‐Class Mail® presort and automation letters, cards and flats Ineligible Mail: First‐Class Mail Residual Pieces, Periodicals (includes Pending Periodicals mail), Bound Printed Matter, Media Mail, First‐Class Mailand Standard Mail parcels.
Keeping an updated and accurate list can reduce expenses, as money is not wasted on postage to invalid addresses.
Maintaining good list hygiene can also make it easier to comply with privacy regulations, as a consumer's confidential information won’t end up at the wrong address. This lowers the cost of expensive audits and helps to avoid fines for non‐compliance.
Address Quality
“The Mailpiece is Only As Good As the Address”
» Wasted costs˃ Industry estimate $3 per piece in operational costs (Postage, Print, Handling, Research, Re‐Mailing)
» Lost / Delayed Revenue» Impact to Clients
˃ Reduced Customer Satisfaction ˃ Lost Marketing Opportunities˃ Lost Customers
Get It Clean
» Correct and Standardize addresses» Clean up undeliverable / suppressed addresses
Keep It Clean
» Continually Maintain Addresses» Develop and maintain Best‐In‐Class Addressing/Return Mail
Process
Keep It Current
» Establish a confidence level for the delivery of each address» Enable the mailer to determine if the mail piece will get delivered
and decide if the mail piece should be printed» Perform address quality functions to maintain postal discounts» Improve mail delivery
100,000 addressesIn just 90 days…
» 4.5% (4,500) will move and need COA processing» 2% (2,000) will likely be UAA due to a foreign or “no
forwarding” moves» Total: 6,500 pieces may never reach their intended
audience» On average, a mailing list will deteriorate 3%
Address Quality ROIEXAMPLE
Mail Volume 100,000
% of Errors 16%
Number of Affected pieces 16,000
Response Ratio .01%
Number of Affected Returns 160
Closing Ratio 50%
Number of Lost Sales 80
Value of Sale $50,000
Sales Loss $4,000,000
Mailing 4 Times per year $16,000,000
Commission on Sale 10%
5 Year Plan $80,000,000
Impact ofPoor Address
Quality
Address Quality ROI
Direct Mail Costs
Postage $.28Creative $.10Art & Prep $.09Printing $.25Mailing List $ .11Data Processing $.02Lettershop Production $.10Allocated Fees $.05
To participate in QBRM» The mailer must submit Form 6805, Qualified Business
Reply Mail (QBRM) Application with samples» The mailer must have a valid BRM permit and pay the
annual accounting fee to participate in QBRM. » The USPS reviews preproduction samples for compliance
with relevant standards. If the mailer’s request is approved, the USPS issues the mailer an authorization on the approved Form 6805.
Qualified Business Return mail allows you to receive discounted rates based upon the
automation capability of your mailpiece design
Service Best Use Features FeesBasic Qualified BRM ‐QBRM
More than 834 responses annually with automation compatible mailpieces
Advanced Deposit Account prepays postage – Pay for only responses receivedDiscounted Postage Rate
Annual Perm Fee $200.00 + Annual Account Maintenance Fee $635.00
High Volume Qualified BRM ‐QBRM
More than 42,160 responses quarterly ‐with automation compatible mailpieces
Advanced Deposit Account prepays postage – Pay for only responses receivedDiscounted Postage Rate
Annual Perm Fee $200.00 + Annual Account Maintenance Fee $635.00+ Quarterly Fee $2125.00
Service Postage Processing Fee Total Per PieceBasic Qualified BRM –QBRM
1 Oz Letter $.443Postcard $.313
$.06$.06
Total = $.503Total = $.373
High Volume Qualified BRM –QBRM
1 Oz Letter $.443Postcard $.313
$.009$.009
Total = $.452Total = $.322
1 ounce QBRM Letter $.088 cents SAVINGS over High Volume
BRM service
1 ounce QBRM Letter $.747cents SAVINGS over Basic
BRM service
Commingling Creates Greater Postal Savings
Commingle your First Class & Standard mail with others and distribute it through the postal network, allowing you to take advantage of the best possible rates.
Mail is inducted into the USPS mailstream. In some cases, a service provider may bypass the local USPS center and truck mail directly to a USPS Network Distribution Center or and Sectional Centers Facility that is closer to the final destination.
Commingling Creates Greater Postal SavingsDifferent companies approach commingling in different ways. Best practices include:
» Prepare mail like today – except you pay less postage.» Mailers do not need to sort, tray or tag their mail. Simply set your postage meter for a lower amount.
» Your mail gets picked up right from your office. » Representatives come to your office to pick up your mail. » Your mail is combined with mail from other companies. » All of the mail is sorted in ZIP Code order and packaged for the fastest mail delivery.
» Your mail is inducted to the Post Office and delivered like usual.
Low hanging fruit: Commingled mail Companies earn workshare discounts—without doing the work
How much can I save this year?
It is not unusual for organizations to save thousands (or tens of thousands) of dollars each year. When you consider that this is “found money” for doing little or no work, it definitely qualifies as low‐hanging fruit.
Is commingling right for everyone?
Any organization interested in saving money should consider commingling their mail. That said, most service providers have guidelines and eligibility requirements based on mail volume and frequency of mailings.
The easiest way to find out if your mail qualifies for these no‐work, no‐hassle savings is to simply ask.
» Go Transpromo» Promotional Opportunities» Address Quality» Qualified Business Reply Mail » Commingling
Many Options and Opportunities to Save on Postage and processing
Questions and Answers
Christine J. Erna MDP, AQSEngagement Manager Enterprise Postal ConsultingPitney Bowes Management [email protected]