Plan Properly and the 2011 Postal Increase Won't Be So Painful

By Jennifer Spitzer

This morning I’m reading an article in MailPro, the USPS’s newsletter for mailing professionals, about the postal service’s 10-year plan to avoid a cumulative $238 billion shortfall over the next decade. Some of the changes are already well-publicized, like the proposed adjustment of delivery days which will eliminate Saturday delivery. The USPS will also restructure retiree health benefit payments and work toward providing consumers more modernized access. Before you know it, you’ll be able to buy a cup of joe at Starbucks, eat a burger and mail a package – all while you’re shopping at Target.

As I’m reading, I see the second-to-last bullet point of the plan, “A modest exigent price increase will be proposed, effective in 2011.” Apparently my vocabulary is too limited for me to know exactly what this means, so I looked up the word “exigent”.

Ex-i-gent [ek-si-juhnt]- adjective. 1. Requiring immediate action or aid; urgent; pressing. 2. Requiring a great deal, or more than is reasonable.

To me, using “modest exigent” to describe an imminent postage increase is a contradiction of terms. To achieve an immediate increase for 2011, the USPS will have to propose new pricing to the Postal Regulatory Commission (PRC) before the end of the year. I’m willing to bet what the USPS defines as a reasonable increase and what marketers are able to bear are two different things. So the question is will it truly be modest or are we looking at something a little more exigent?

It’s not all gloom-and-doom for businesses that use direct mail as a means of increasing business from new and existing customers. You just need to plan properly. Here are a few tips to help you prepare.

1. Once it’s announced, pay attention to when the increase is going to take effect and plan your mailings accordingly. If you’re planning a large mailing, mail before the increase and you’ll save a lot of money.

2. Challenge your marketing agency to review their delivery logistics. You may be eligible for additional postal discounts just by adjusting where you enter your mail.

3. Keep a clean database! Make sure you’re not wasting postage by mailing to addresses that have no chance of being delivered.

4. Finally, and most importantly… be targeted.

Now more than ever, your direct mail needs to move away from mass distribution and toward more targeted solutions. You’ll mail less, but enjoy a better return on your investment. Find consumers who want or need your product at the exact moment your message hits their mailbox and you’ll find that a modest exigent postal increase isn’t so painful after all.

Invest Time in Your Customer List and You'll Find Yourself a Goldmine

By Jennifer Spitzer

Regardless of the size of your business, you probably have a customer database. I use the term ‘database’ loosely though, because some of my clients have a professionally managed, relational database and others still use paper files and post-it notes to track their customers. If you fall in the category of “scrap paper customer management”, get it together and put that information in electronic format because this precious data will be a goldmine once you have it organized.

Here are ten triggers that make consumer spending more predictable, and each of these can be tracked, even in something as simple as an Excel spreadsheet.

1. A birthday. Offer your customer a special discount on her birthday. I love receiving my Victoria’s Secret gift card in the mail just before my birthday. They send it every year and I use it every time.

2. A moving household. Even a small business can afford to regularly run National Change of Address (NCOA) on their customer file. A move event triggers spending on furniture, home improvement, households accessories… the list goes on and on.

3. “Birds of a feather flock together." Neighborhoods generally share similar lifestyles and demographics. If you want new customers, take a look at where your existing customers are and go after neighboring households.

4. A specific product purchase. If someone buys a new bed, send an offer for the matching dresser.

5. Anniversary of the purchase. I have a beautiful outdoor lighting system installed in my front yard. It’s been over a year since the installation and the system needs some service. When you contact your customer to service a product, sell something new while you’re at it.

6. Arrival of a new baby. The expenditures and changes that occur in a household with a new baby are too long to list here. This is a great consumer group to target because spending occurs from both emotional (perceived) needs as well as actual necessity.

7. The start of a project. If your customer is building a new deck, she’s probably already looking for the items she’s going to put on that deck, like new furniture, a grill or other accessories.

8. An accomplishment. We all have customers who share personal information. Your customer’s accomplishment may not be an opportunity for you to sell something, but it’s certainly an appropriate time for you to stay top of mind with something as simple as a note of congratulations.

9. Age of your customer. Needs change as a person ages. As an example, now that my parents are retired, they’re travelling more.

10. The Wish List Trigger. The next time you talk to a customer, focus on listening to what she’s going to need from you down the road. Then, capture the information so that you can followup at the appropriate time. As an example, over the winter I had some curtains made for a bedroom window and I mentioned how nice it would be to have new covers for my deck furniture this summer. Fast forward six months… she just called to help me place the order so that my deck will be ready in time for the season.

Effective marketing, whether it be through direct mail, email, social networks or even a phone call, is all about timing. Robust customer data will help you identify ‘triggers’ that enable you to put the right offer in front of your customer at the exact time they’re ready to buy.

I would love to hear your success stories. Post a comment here or send me a note at: jennifer@targetmailmarketing.com.