If you want to make the most of your marketing budget, direct mail should be part of your strategy. This tried-and-true marketing channel is shown to have an impressive return on investment (ROI). You can maximize your ROI even more by finding ways to lower postage costs. Here are five cost-saving tips to enhance your direct mail strategy!
1. Optimize Your Mail Format
Postage pricing depends on mail meeting certain parameters for size and weight, so one easy way to keep costs down is to ensure you’re not needlessly bumping your mailers into a higher price bracket. Consider whether a smaller or more standard size or lighter weight would work equally well. For example, postcards are considerably cheaper than letter-sized mailers, so it’s worth considering if your mailer would work well as a postcard.
Remember: If you choose a less-impactful format simply because it’s cheaper, you could end up with lower ROI, so you must carefully determine what makes the most sense for each direct mail campaign. A direct mail partner can help you make that determination to maximize your impact and minimize your postage costs.
2. Opt for Standard Commercial Service
First-class mail is a more expensive option, so you can automatically save money by sticking to standard commercial service. If that’s the case, why do some marketers pay extra for first-class? Mainly because they want to guarantee their mailers will arrive within a tight window.
In some instances, timing is everything. Maybe you need to inform consumers about an upcoming sale or provide a coupon at the right time. If a customer receives the mailer too late, they already missed part of the promotion. If they get it too early, they may forget about it by the time the promotion begins.
The right partner will create a custom drop plan for your mail so you can pay the lower price for standard commercial service and still meet your in-home goals. Baesman can get mailers into recipients' hands within a few days—no first-class needed.
3. Take Advantage of Discounts from the USPS
The U.S. Postal Service (USPS) offers discounts that can help you shave down your postage costs if you know how to qualify for them.
Commingling
When you save the post office time and money spent moving mail from one destination to the next, they pass those savings on to you—but only if it’s a large enough quantity of mail to make a difference. You can meet that quantity requirement by commingling your mail with mail from other companies going to the same area. Commingling mail can save up to $.02 per piece, which can add up! By grouping mail going to the same zip code, you can not only save money, but also speed up delivery time.
Drop Shipping Discounts
Depending on the size and concentration of your direct mail campaign, you may qualify for drop shipping discounts. This involves cutting out waypoints mail normally goes through before getting to its destination by entering it into the system closer to its destination, at a Network Distribution Center (NDC), Sectional Center Facility (SCF), or the Destination Delivery Unit (DDU). This strategy can save you up to $.03 per piece.
Nonprofit Rates
Nonprofit organizations should ensure they take advantage of nonprofit postage rates. These rates are considerably cheaper than standard rates. Remember that this pricing is only available for certain types of organizations, so the USPS recommends checking with your local Business Mail Entry Unit to see whether you qualify.
Special Promotions and Incentives
The USPS offers promotions to encourage best practices and innovations in direct mail. For example, companies can currently earn a 5 percent discount by making their mailpieces look and feel more interesting through innovative choices in materials and finishings. These promotions and incentives change periodically, so check to see what discounts you may qualify for.
4. Clean Up Your Campaigns
Maximizing your budget isn’t just about cutting costs—it’s about boosting ROI. Ensure your strategy is solid from the beginning so you make every dollar count in every campaign. Start by targeting the right consumers. Make sure you work with a great list so you don't waste money on mailers sent to recipients who will see them as irrelevant.
One of the best ways to make your mailers more impactful is through personalization. Adding recipients’ names or other personal details—along with tailored product recommendations or segmented messaging—can make your mailer speak directly to the consumer and boost your response rates.
Learn more about personalizing direct mail in our eBook, The Customer Experience Just Got More Personal.
5. Partner with a Direct Mail Expert
The right partner can make all the difference in maximizing your direct mail budget. They can help you qualify for the best postal pricing and make every mailer count to optimize your ROI.
Baesman is a direct mail partner you can count on for every aspect of your direct mail campaigns, including:
- Strategy
- Printing
- Personalization
- Postage and logistics planning
- Mailing services
We do the heavy lifting so you can sit back and watch your direct mail marketing have an impressive impact, no matter your budget.
Want to take a few minutes to learn how you’re doing with direct mail and where you have room to grow? Take our interactive direct mail assessment!
