By Jennifer Spitzer
Even if you’re not in the direct marketing industry, by now you’ve probably heard that the USPS plans to submit a formal request to the Postal Regulatory Commission (PRC) to reduce mail delivery from six to five days a week, eliminating Saturdays. I believe this change will eventually happen… after all, they’ve been hemorrhaging money for years so they have to do something, and they can’t keep cutting retiree benefits. But, keep in mind that it will take an act of Congress to make this happen so I encourage all of you to not hold your breath while we wait.
I had to laugh today as I read an article suggesting that marketers may see a reduction in postal costs as a result of this major change. Given that the elimination of Saturdays is expected to save about $2 billion annually and the USPS lost more than $3.8 billion* last year, I think we’ll be lucky if we can maintain both standard and first class rates through the end of 2011 before they request another increase from the PRC.
Companies that utilize direct mail to generate sales from both new and existing customers will need to adjust, and marketing agencies will need to help. If you use a mail specific or “in-home” postal endorsement date (which, by the way, the USPS is not required by law to honor), you will need to take that into consideration when you plan your mail date.
As a direct mail marketing agency, I’m not as concerned about adjusting to the change as I am in regard to the impact it may have on response rates for those who don’t adjust.
Each year the USPS conducts a consumer Household Diary Study (HDS), which surveys over 5,200 households each year. A portion of the study reports consumer attitude toward direct mail. (Go to www.usps.com/householddiary/welcome.htm to download a PDF of the most recent HDS report). In a nutshell, households with higher incomes receive more advertising mail than lower income homes and the more they receive, the less likely they are to look at everything.
Here’s what I think could happen as a result of the elimination of Saturday delivery. First, for marketers normally targeting Saturday as an in-home date, there will be a push to reach mailboxes earlier. Consumers may notice an increase in the amount of advertising mail they receive just prior to the weekend. Everything that isn’t delivered by Friday will wait until the beginning of the following week, thus loading up mailboxes on Monday and Tuesday.
If you’re in-home on the same day as everyone else, your mail piece is going to have to work harder to get attention and this could have a negative impact on response rates. Keep a close eye on this when Saturdays are eliminated and think about adjusting your mail schedule so you can be in-home on days when mail volume is light.
*In November 2009, the USPS filed its 2009 year-end financial results and reported a net loss of $3.8 billion. Several blogs I’ve read quote the loss as $2.8 billion. So, there’s a discrepancy floating around out there but hey, it’s just a billion.
Make sure your direct mail is targeted! Visit www.targetmailmarketing.com
Friday, March 5, 2010
Friday, February 19, 2010
New Homeowners Buy Furniture
By Jennifer Spitzer
Earlier this week I found an online thread between several business owners who were discussing marketing strategy. I had to jump in because the topic was new homeowner marketing and its relevance to the furniture industry. The conversation was initiated by Randy*, who has been thinking about developing a campaign to target the audience but wanted to know how often the move event triggers spending in the furniture category.
David* jumped in to say “There is probably some connection between the move event and the decision to buy furniture”.
Probably? I’ll get to that in a moment.
Clint* joined in to say people may want furniture when they move into a new home but their budget has been blown on the house, so you may be better off targeting homeowners who have lived in their primary residence longer.
Joe’s* opinion is that new homeowners are broke and you would be better off targeting college students immediately upon graduation because they have more disposable income. (I'm going to save that one for another day).
I get excited when I read these types of comments because I know these are business people who need help. The fact of the matter is, if you are in the furniture business and you’re not targeting new movers – you are missing out on an incredible opportunity. New homeowners are THE single most predictable audience for purchasing furniture. Over the last ten years, research has proven time and time again that over 75% of new homeowners will make a furniture purchase as a result of the move event. Many of those consumers will make their purchase within the first three months. We also know for a fact that this audience will spend more than a non-moving consumer and they’re likely to make multiple purchases for the next 12-18 months. All of this is backed up by a combination of survey data, industry research and analysis of long-term direct mail marketing campaigns.
If you operate a furniture business, no matter how big or small, talk to someone who knows how to put you in front of this audience at the right time with the right message and offer. Even if you find that there isn’t a significant amount of new mover activity in your trade area, it’s better to reach 1,000 highly targeted consumers who you KNOW are in the market for your product, than to reach 100,000 people who aren’t ready to buy.
*Names have been changed to protect those who may have given marketing advice to others without having quantifiable results of said marketing strategy.
www.targetmailmarketing.com
For marketing tips and advice for everything related to direct mail, look us up on Facebook and become a fan of TargetMail Marketing.
Earlier this week I found an online thread between several business owners who were discussing marketing strategy. I had to jump in because the topic was new homeowner marketing and its relevance to the furniture industry. The conversation was initiated by Randy*, who has been thinking about developing a campaign to target the audience but wanted to know how often the move event triggers spending in the furniture category.
David* jumped in to say “There is probably some connection between the move event and the decision to buy furniture”.
Probably? I’ll get to that in a moment.
Clint* joined in to say people may want furniture when they move into a new home but their budget has been blown on the house, so you may be better off targeting homeowners who have lived in their primary residence longer.
Joe’s* opinion is that new homeowners are broke and you would be better off targeting college students immediately upon graduation because they have more disposable income. (I'm going to save that one for another day).
I get excited when I read these types of comments because I know these are business people who need help. The fact of the matter is, if you are in the furniture business and you’re not targeting new movers – you are missing out on an incredible opportunity. New homeowners are THE single most predictable audience for purchasing furniture. Over the last ten years, research has proven time and time again that over 75% of new homeowners will make a furniture purchase as a result of the move event. Many of those consumers will make their purchase within the first three months. We also know for a fact that this audience will spend more than a non-moving consumer and they’re likely to make multiple purchases for the next 12-18 months. All of this is backed up by a combination of survey data, industry research and analysis of long-term direct mail marketing campaigns.
If you operate a furniture business, no matter how big or small, talk to someone who knows how to put you in front of this audience at the right time with the right message and offer. Even if you find that there isn’t a significant amount of new mover activity in your trade area, it’s better to reach 1,000 highly targeted consumers who you KNOW are in the market for your product, than to reach 100,000 people who aren’t ready to buy.
*Names have been changed to protect those who may have given marketing advice to others without having quantifiable results of said marketing strategy.
www.targetmailmarketing.com
For marketing tips and advice for everything related to direct mail, look us up on Facebook and become a fan of TargetMail Marketing.
Thursday, February 4, 2010
Push or Pull... What's Your Marketing Plan?
By Jennifer Spitzer
I had a discussion with a client earlier today about his lead generation strategy for the coming year. After finalizing plans for the targeted direct mail campaigns, I told him the programs would bring in a steady stream of good prospects during the year but the small mailings alone won’t be enough to sustain the business. “How are you going to kick-off your selling season to the larger audience of prospects in your market?” I asked. We went on to discuss co-op mailings, B2B efforts, magazine and email – all of which are great traditional “push” strategies.
If you’re a push marketer, you’re not sitting around waiting for prospects to come to you. Push marketing is about being aggressive in your pursuit of new business and more often than not, you’re going to attract more prospects this way. Pull marketing, like social media and pay-per-click advertising, means you’re going to attract prospects that are already looking for what you have to offer. This is important too because if someone wants or needs what you sell, you want them to either think of you first or find you before they find your competition.
Push or pull… what should you do? A fellow marketing pro talking to a group of executives was encouraging the group to move toward the pull model and then went on to say it’s up to you as the business owner to decide which is better and adjust your strategy accordingly. The point I’m about to make brings me back to the original discussion I had with my client.
After finalizing the budget for the Push Tools, he asked, “Since I’m doing all this, do I really need to invest in the internet and my original pay-per-click plan?” If we had been in the same room together, rather than on the phone, I would have been shaking him by the shoulders as I yelled “Yes! Yes! Yes!”.
The thought of deciding between a push or pull strategy and then adjusting your plan accordingly is absurd to me. You must do both, especially in this current market. When potential new customers look for your product or service, you need to pull them in. At the same time, you need to aggressively push your business out to good prospects with unrelenting perseverance.
Rather than try to decide if you should push or pull, take a look at your strategy for the coming year and ask yourself if there’s a healthy mix of both in your plan. If there isn’t, you still have some work to do.
I had a discussion with a client earlier today about his lead generation strategy for the coming year. After finalizing plans for the targeted direct mail campaigns, I told him the programs would bring in a steady stream of good prospects during the year but the small mailings alone won’t be enough to sustain the business. “How are you going to kick-off your selling season to the larger audience of prospects in your market?” I asked. We went on to discuss co-op mailings, B2B efforts, magazine and email – all of which are great traditional “push” strategies.
If you’re a push marketer, you’re not sitting around waiting for prospects to come to you. Push marketing is about being aggressive in your pursuit of new business and more often than not, you’re going to attract more prospects this way. Pull marketing, like social media and pay-per-click advertising, means you’re going to attract prospects that are already looking for what you have to offer. This is important too because if someone wants or needs what you sell, you want them to either think of you first or find you before they find your competition.
Push or pull… what should you do? A fellow marketing pro talking to a group of executives was encouraging the group to move toward the pull model and then went on to say it’s up to you as the business owner to decide which is better and adjust your strategy accordingly. The point I’m about to make brings me back to the original discussion I had with my client.
After finalizing the budget for the Push Tools, he asked, “Since I’m doing all this, do I really need to invest in the internet and my original pay-per-click plan?” If we had been in the same room together, rather than on the phone, I would have been shaking him by the shoulders as I yelled “Yes! Yes! Yes!”.
The thought of deciding between a push or pull strategy and then adjusting your plan accordingly is absurd to me. You must do both, especially in this current market. When potential new customers look for your product or service, you need to pull them in. At the same time, you need to aggressively push your business out to good prospects with unrelenting perseverance.
Rather than try to decide if you should push or pull, take a look at your strategy for the coming year and ask yourself if there’s a healthy mix of both in your plan. If there isn’t, you still have some work to do.
Friday, January 22, 2010
Social media is not The Magic Bullet
By Jennifer Spitzer
If you own a business, especially a small one, and you decide to sink all of your marketing funds into social media, your business is going to fail. There… I said it.
As a marketer, I always find it interesting when I work with small business owners who are searching for what they call the “magic bullet” of marketing. What they’re looking for is a single tool or strategy they can invest in, knowing it will drive revenue for their business consistently over time. I can see the wheels turning in the heads of business owners who have experienced some success with social media. “This is it. It’s fun, and easy, and doesn’t cost anything. Think of the money I’ll save by cancelling my direct mail program or skipping the next trade show”.
The fundamental truth about growing a successful business is There Is No Magic Bullet. Marketing strategies are like financial portfolios – you need to have a combination of short and long term investments and you need to be well diversified. In today’s world, that means a healthy mix of traditional media, like direct mail, magazine and television as well as new media like social networking and email. Heck, even Google uses direct mail to promote their pay-per-click advertising. The notion that this sexy new media is going to replace traditional marketing strategy is crazy.
What’s even crazier to me is that some social media “experts” are suggesting it will. First of all, social media hasn’t been around long enough for there to be any real experts. To me, there are simply people who know a lot more than others on the topic. They understand the tools and know exactly how to use them. The answers to the real important questions like, “How long is it going to take before I see new customers and start generating revenue?” and “What kind of ROI can I expect?” remain to be seen.
You have to put your business where the customers are, and that’s why a diversified marketing mix is so important. Some of your customers will find you online while others will call you because they saw you doing work in their neighborhood. Others still will respond because they received a direct mail piece or simply because their friends said you do good work. Now you have social media to help you connect to consumers in new ways. Over time, you will gain trust within these networks and business will grow.
There’s no doubt that social media is here to stay. If your business hasn’t embraced the tools yet, it’s time to get on board. Just don’t expect your phone to ring off the hook with new customers simply because you start tweeting a few times a week. Instead, think of it as a powerful new opportunity to add to the overall marketing arsenal. Reaping the rewards of social media is going to take time, effort and a strong strategy… and it will be worth it.
If you own a business, especially a small one, and you decide to sink all of your marketing funds into social media, your business is going to fail. There… I said it.
As a marketer, I always find it interesting when I work with small business owners who are searching for what they call the “magic bullet” of marketing. What they’re looking for is a single tool or strategy they can invest in, knowing it will drive revenue for their business consistently over time. I can see the wheels turning in the heads of business owners who have experienced some success with social media. “This is it. It’s fun, and easy, and doesn’t cost anything. Think of the money I’ll save by cancelling my direct mail program or skipping the next trade show”.
The fundamental truth about growing a successful business is There Is No Magic Bullet. Marketing strategies are like financial portfolios – you need to have a combination of short and long term investments and you need to be well diversified. In today’s world, that means a healthy mix of traditional media, like direct mail, magazine and television as well as new media like social networking and email. Heck, even Google uses direct mail to promote their pay-per-click advertising. The notion that this sexy new media is going to replace traditional marketing strategy is crazy.
What’s even crazier to me is that some social media “experts” are suggesting it will. First of all, social media hasn’t been around long enough for there to be any real experts. To me, there are simply people who know a lot more than others on the topic. They understand the tools and know exactly how to use them. The answers to the real important questions like, “How long is it going to take before I see new customers and start generating revenue?” and “What kind of ROI can I expect?” remain to be seen.
You have to put your business where the customers are, and that’s why a diversified marketing mix is so important. Some of your customers will find you online while others will call you because they saw you doing work in their neighborhood. Others still will respond because they received a direct mail piece or simply because their friends said you do good work. Now you have social media to help you connect to consumers in new ways. Over time, you will gain trust within these networks and business will grow.
There’s no doubt that social media is here to stay. If your business hasn’t embraced the tools yet, it’s time to get on board. Just don’t expect your phone to ring off the hook with new customers simply because you start tweeting a few times a week. Instead, think of it as a powerful new opportunity to add to the overall marketing arsenal. Reaping the rewards of social media is going to take time, effort and a strong strategy… and it will be worth it.
Friday, January 8, 2010
The old adage "The customer is always right", is sometimes wrong
By Jennifer Spitzer
Every now and then I have to work with a client through their advertising agency. Most of the time, the collaboration is a good experience because sharing new ideas makes the campaign more successful. I’m reflecting on a recent experience where this wasn’t the case and I find that it’s a lot like what happens when two adult siblings disagree about how to care for a child.
If you and your siblings have children, you can probably think of at least one time when you said to yourself, “I cannot believe he’s going to let that child do that”. I usually say these thoughts out loud, which almost always causes trouble. I’m learning that there are times when it’s absolutely necessary to step up and call out what has the potential to be a mistake, and times when you just keep your mouth shut and walk away.
I think a different approach is necessary in business. As marketers, we’re responsible for helping our clients make the right choices in regard to how they invest their budgets. Now more than ever, campaigns must generate measurable results. To me, this means sometimes I have to tell a client they’re wasting their money, or that the strategy doesn’t make sense, or the creative is too weak to use for the program.
In the case of my recent agency collaboration, our opinions about the importance of response analysis couldn’t have been further apart. To me, regardless of whether a campaign is successful or performed poorly, there’s always a benefit to measuring exactly what happened. When you analyze the results of a campaign, you learn what worked or didn’t and you capture the information you need to refine the strategy. When you don’t analyze, you’re doomed to either repeat the same mistakes over again or, even worse, miss out on a great opportunity to increase sales in your business. This usually happens when programs with a smart strategy aren’t refined properly, which can leave response rates stagnant over time.
Despite my best effort, at the end of the day it wasn’t my child and the parent had made his decision.
Educate clients. Be willing to step up and influence your customer when you think they’re about to make a bad decision. It’s hard to tell customers things they don’t want to hear, but in the end they’ll know you’re more interested in their long-term success as opposed to this month’s billing. When you create that kind of trust in a relationship, you keep a customer for life.
Every now and then I have to work with a client through their advertising agency. Most of the time, the collaboration is a good experience because sharing new ideas makes the campaign more successful. I’m reflecting on a recent experience where this wasn’t the case and I find that it’s a lot like what happens when two adult siblings disagree about how to care for a child.
If you and your siblings have children, you can probably think of at least one time when you said to yourself, “I cannot believe he’s going to let that child do that”. I usually say these thoughts out loud, which almost always causes trouble. I’m learning that there are times when it’s absolutely necessary to step up and call out what has the potential to be a mistake, and times when you just keep your mouth shut and walk away.
I think a different approach is necessary in business. As marketers, we’re responsible for helping our clients make the right choices in regard to how they invest their budgets. Now more than ever, campaigns must generate measurable results. To me, this means sometimes I have to tell a client they’re wasting their money, or that the strategy doesn’t make sense, or the creative is too weak to use for the program.
In the case of my recent agency collaboration, our opinions about the importance of response analysis couldn’t have been further apart. To me, regardless of whether a campaign is successful or performed poorly, there’s always a benefit to measuring exactly what happened. When you analyze the results of a campaign, you learn what worked or didn’t and you capture the information you need to refine the strategy. When you don’t analyze, you’re doomed to either repeat the same mistakes over again or, even worse, miss out on a great opportunity to increase sales in your business. This usually happens when programs with a smart strategy aren’t refined properly, which can leave response rates stagnant over time.
Despite my best effort, at the end of the day it wasn’t my child and the parent had made his decision.
Educate clients. Be willing to step up and influence your customer when you think they’re about to make a bad decision. It’s hard to tell customers things they don’t want to hear, but in the end they’ll know you’re more interested in their long-term success as opposed to this month’s billing. When you create that kind of trust in a relationship, you keep a customer for life.
Friday, December 18, 2009
Marketers: Take Environmental Responsibility
By Jennifer Spitzer
This morning I listened as President Obama addressed the world about the responsibility we have to each other and our planet to do a better job protecting our environment. Building up to the Climate Change Conference in Copenhagen, I was appalled by statements from politicians here at home who suggest climate change isn’t a critical issue, and I breathe a sigh of relief knowing the current administration is committed to working with nations around the world to protect the environment.
Corporations, industries and individuals need to take responsibility too. As direct marketers, we have an opportunity to make a significant impact. A few years ago, none of the printers in my vendor mix were FSC Certified. Today I find that printers are taking the initiative on their own, rather than as a client requirement, to join the Forest Stewardship Council.
Paper mills and printers aren’t the only ones who can make a difference. Agencies responsible for developing and managing those print materials in the form of direct mail marketing can also take steps to protect our natural resources.
The Direct Marketing Association (DMA) has a volunteer program called the “Green 15 Marketer Pledge”. The program asks marketing organizations to pledge that they are taking certain steps throughout the direct marketing process to improve their environmental footprint. While some suggestions on the list could be somewhat difficult for a small business to adhere to, there are others I consider “no-brainers” for anyone in our industry.
1. Maintain a Do-Not-Mail file for prospects and customers who do not want direct mail – and actually use it as part of standardized data processing procedures. There’s no sense in mailing to consumers who don’t want the extra paper in their mailbox.
2. Maintain a clean mailing list. While this may seem like such a simple thing, you would be surprised by how many businesses out there are mailing to addresses that have NO chance of being delivered. I once reviewed a client’s mail file and actually found an address field that read “brick house behind the gas station”. Running that through any address standardization software will bump that record off the list. Unfortunately, not everyone processes their mail file properly and guess what… the postal carrier probably doesn’t know which gas station you’re talking about.
3. You can reduce your waste by reducing print order overruns. Talk to your printers and mailshops about making changes that minimize setups and only print what you REALLY need.
There’s more to the pledge than data hygiene. As I read through the list to formalize my company’s commitment, I’m pleased to find that we’re already doing our part in many ways. But, I also see suggestions on the Green 15 I never considered. Starting today we will do even more. No matter what industry you’re in, I hope you will make a voluntary pledge to make a difference too.
*To check out the DMA’s Green 15 Marketer Pledge, go to www.dmaresponsibility.org
**To find out more about the great work of the Forest Stewardship Council, go to www.fscus.org
This morning I listened as President Obama addressed the world about the responsibility we have to each other and our planet to do a better job protecting our environment. Building up to the Climate Change Conference in Copenhagen, I was appalled by statements from politicians here at home who suggest climate change isn’t a critical issue, and I breathe a sigh of relief knowing the current administration is committed to working with nations around the world to protect the environment.
Corporations, industries and individuals need to take responsibility too. As direct marketers, we have an opportunity to make a significant impact. A few years ago, none of the printers in my vendor mix were FSC Certified. Today I find that printers are taking the initiative on their own, rather than as a client requirement, to join the Forest Stewardship Council.
Paper mills and printers aren’t the only ones who can make a difference. Agencies responsible for developing and managing those print materials in the form of direct mail marketing can also take steps to protect our natural resources.
The Direct Marketing Association (DMA) has a volunteer program called the “Green 15 Marketer Pledge”. The program asks marketing organizations to pledge that they are taking certain steps throughout the direct marketing process to improve their environmental footprint. While some suggestions on the list could be somewhat difficult for a small business to adhere to, there are others I consider “no-brainers” for anyone in our industry.
1. Maintain a Do-Not-Mail file for prospects and customers who do not want direct mail – and actually use it as part of standardized data processing procedures. There’s no sense in mailing to consumers who don’t want the extra paper in their mailbox.
2. Maintain a clean mailing list. While this may seem like such a simple thing, you would be surprised by how many businesses out there are mailing to addresses that have NO chance of being delivered. I once reviewed a client’s mail file and actually found an address field that read “brick house behind the gas station”. Running that through any address standardization software will bump that record off the list. Unfortunately, not everyone processes their mail file properly and guess what… the postal carrier probably doesn’t know which gas station you’re talking about.
3. You can reduce your waste by reducing print order overruns. Talk to your printers and mailshops about making changes that minimize setups and only print what you REALLY need.
There’s more to the pledge than data hygiene. As I read through the list to formalize my company’s commitment, I’m pleased to find that we’re already doing our part in many ways. But, I also see suggestions on the Green 15 I never considered. Starting today we will do even more. No matter what industry you’re in, I hope you will make a voluntary pledge to make a difference too.
*To check out the DMA’s Green 15 Marketer Pledge, go to www.dmaresponsibility.org
**To find out more about the great work of the Forest Stewardship Council, go to www.fscus.org
Friday, December 11, 2009
No Surprise to See USPS Starting FY in the Red
By Jennifer Spitzer
Fall is typically a busy time of year for mail delivery, yet mail volume for October seems to support a grim projection for 2010. According to a report today from the Direct Marketing Association, total volume for October was down 17.3% compared to the same period last year and the net operating loss for the month was $221 million. The two primary categories that account for 90% of mail volume, Standard Class and First Class, were both down as well - 11.5% and 22.2% respectively.
Last month the USPS filed its 2009 year-end financial results. Despite $10 billion in cost savings efforts which included a $4 billion reduction in required payments for retiree health benefits, the USPS still posted a net loss of $3.8 billion for the year. I find it interesting that the reduction of retiree benefits was passed into law in fiscal 2009 to “allow the USPS to maintain fiscal solvency while continuing to provide affordable service”. If this is solvency, I’d hate to see what it would look like if they really took a hit.
Unfortunately for the USPS and the direct marketing industry, attempts to fix the financial problems are making matters worse. Current economic conditions have forced advertisers to work within very tight budgets. When you add back-to-back increases in postage rates over the last two years, what ends up happening is a reduction in what big mailers are able (or willing) to spend, driving overall mail volume and USPS revenue down even more.
Postmaster General John Potter said the USPS will not raise prices on Standard Class or First Class mail in the coming year. That’s the good news. The bad news is that the Postal Service is going into their new fiscal year already expecting a $7.8 billion net loss. And what’s worse is that the Postal Service will face the same financial woes year after year.
As direct mail marketers, we depend on the USPS to provide an affordable way to reach customers and prospects. We need good delivery service to help maintain good response rates. Afterall, direct mail still holds bragging rights for one of the best performing marketing tools available. Without immediate reform, there’s no financial light at the end of the tunnel for the Postal Service and marketers are going to suffer along with them.
Fall is typically a busy time of year for mail delivery, yet mail volume for October seems to support a grim projection for 2010. According to a report today from the Direct Marketing Association, total volume for October was down 17.3% compared to the same period last year and the net operating loss for the month was $221 million. The two primary categories that account for 90% of mail volume, Standard Class and First Class, were both down as well - 11.5% and 22.2% respectively.
Last month the USPS filed its 2009 year-end financial results. Despite $10 billion in cost savings efforts which included a $4 billion reduction in required payments for retiree health benefits, the USPS still posted a net loss of $3.8 billion for the year. I find it interesting that the reduction of retiree benefits was passed into law in fiscal 2009 to “allow the USPS to maintain fiscal solvency while continuing to provide affordable service”. If this is solvency, I’d hate to see what it would look like if they really took a hit.
Unfortunately for the USPS and the direct marketing industry, attempts to fix the financial problems are making matters worse. Current economic conditions have forced advertisers to work within very tight budgets. When you add back-to-back increases in postage rates over the last two years, what ends up happening is a reduction in what big mailers are able (or willing) to spend, driving overall mail volume and USPS revenue down even more.
Postmaster General John Potter said the USPS will not raise prices on Standard Class or First Class mail in the coming year. That’s the good news. The bad news is that the Postal Service is going into their new fiscal year already expecting a $7.8 billion net loss. And what’s worse is that the Postal Service will face the same financial woes year after year.
As direct mail marketers, we depend on the USPS to provide an affordable way to reach customers and prospects. We need good delivery service to help maintain good response rates. Afterall, direct mail still holds bragging rights for one of the best performing marketing tools available. Without immediate reform, there’s no financial light at the end of the tunnel for the Postal Service and marketers are going to suffer along with them.
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