Direct mail industry projected to grow as Postal Service keeps rates steady

By: Mark Haslan
November 3rd, 2009

Direct mail campaigns remain an attractive option for many businesses, especially as the Postal Service has decided to hold mailing rates steadySmall businesses concerned about the impact of rising mailing prices on their direct mail marketing campaigns can breathe a sigh of relief, as the U.S. Postal Service has announced that it will not be increasing mailing rates to boost revenue during this difficult economic time.

Responding to concerns that 2010 mailing costs will increase – some speculated that costs could rise by as much as 10 percent – USPS postmaster general John Potter wrote a memo to customers reassuring them that "there will not be a price increase for market dominant products including first-class mail, standard mail, periodicals and single-piece parcel post."

He added that pricing for priority mail, express mail, parcel select and most international products are still under consideration.

"We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace," he wrote.

As a result, direct mailing remains a valuable and cost-effective strategy for businesses of all sizes.

Despite the recession, businesses seem to remain convinced of the strategy’s effectiveness and importance – a recent study from Bernhart Associates found that 30 percent of direct marketers plan to hire in the fourth quarter, up from 20 percent in the third quarter.

Specifically, business-to-business direct marketing is expected to fare slightly better than business-to-consumer direct marketing, with 41 percent of B2B direct marketers reporting hiring plans compared to 24 percent of B2C marketers.

Business interested in direct marketing are advised to consider postcard, brochure or rack card campaigns that feature consistent branding, compelling call-to-action lines, and high-quality graphics.

For example, a postcard advertising an upcoming sale should feature uncluttered graphics and information, printed on quality card stock and featuring high-impact graphics.

In addition, marketers may want to take advantage of the recessionary focus on cost-saving behavior by including coupons in their direct mail marketing campaigns.

Whatever the direction of the campaign, marketers are encouraged not to cut their spending on direct mail marketing, as it remains a valuable marketing strategy.

As Potter reminded customers in the recent Postal Service memo, "[m]ail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future."

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