Tips to Manage Postage Rate Increase
Now that the Postal Service has raised rates again (this is the largest rate hike in the past 11 years), it seems like a good time to review steps you can take to help manage your postage costs.
- Take advantage of a local mailhouse or presort vendor. Presorting your mail lets you take advantage of reduced postage rates. There are many ways you can work with a vendor; they can manage your data, print your mailpiece and mail it for you or perhaps all you need is a daily pick up of your already prepared mail. Either way, savings are there for you.
- Keep a clean, healthy database. Make sure all of your addresses are complete, correct and updated. When you receive Undeliverable As Addressed mail back from USPS make sure you update your data accordingly. No sense in mailing people who have moved or are deceased.
- Dedupe your data. If your data includes multiple contacts with similar sounding titles within a company, can you mail to just one of those people? Are you seeing duplicates such as John Sample and John Q Sample at the same address? Check for duplicates both by name and address.
- Personalize and target your mailing. Studies have shown that the more personalized and targeted your offer is, the greater response you will receive. Build and manage data such as last purchase, date of last service or purchase, geographic area or household income. The list of ways to segment and create relevant messages/offers is endless.
- Use multi–channel marketing. Follow up your mailed promotion with email. Try to keep the same look and feel of your mailpiece. Include a link to your website, other marketing page or survey if appropriate. You can use a QR code or pURL on your mailpiece to drive recipients to your website.
Postage rate increases are uncomfortable for mailers. The USPS points out that the increases over the past few years have kept pace with inflation. The change is intended to generate $2 billion in annual revenue for the Postal Service.
As a reminder, below are the new full pay, retail rates.
- 1 ounce First Class letter – $0.49
- Each additional ounce $0.21
- Postcards $0.34
- 1 ounce letters to all International destinations $1.15