What to Do If Postage Goes Up Again

Brace yourself for more bad postal news. The U.S. Postal Service Board of Governors has announced a $5.4 billion loss, and this means direct marketers may face a 2008 rate hike of 20% or more. Here are five easy-to-implement tactics for dealing with this threat.

  1. Test Alternative Merge Priority Methods: Changes to the merge process can often lead to incremental revenue and a reduction in waste by consolidating demand to your highest-performing lists. You’ll also have better insight into lower-performing files that can be removed from future mailings.
  2. Reduce Overall Campaign CPM: Lower your overall cost per thousand by taking names from fewer rental and exchange sources.
  3. Optimize Mailings with Housefile Modeling: Move beyond RFM by leveraging a cooperative database to evaluate your customers’ buying behavior against the entire population. The result can be lifts of as much as 40% in sales per piece over normal selection methods
  4. Add-A-Name: More is less with this strategy where a mailer can receive a better postal rate per unit by mailing deeper into particular zip code regions. The increased response typically more-than-offsets the additional postage cost.
  5. DPV Validation: Take advantage of postal automation rates by reducing the number of non-codeable records in your mailings and mailing to only Zip +4 codeable records.
  6. Diane Lucero is vice president, multichannel merchant group, Abacus Data Services, Epsilon

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.