Inflation is pushing postage costs higher for the 2nd time this year. First-class stamps go up to 66 cents.
Are Higher Costs a Challenge or an Opportunity?
The United States Postal Service (USPS) is implementing the second price increase of the year for First-Class postage on July 9, 2023, from 63 to 66 cents. This increase comes at a time when many businesses are looking for ways to save money due to inflation.
First-class mail, used by many people to send letters and pay bills, is the highest revenue-generating mail class, accounting for $24.2 billion, or 31%, of the $78.8 billion in total USPS revenue in 2022.
While the price increase may seem like bad news for marketers, it actually represents an opportunity. With digital marketing continuing to be over-saturated, direct mail experienced a renaissance when consumer behavior shifted during the pandemic. This increase in cost may thin the herd, making those that continue to invest in the channel more relevant.
Direct mail has a number of advantages over other marketing channels. It is highly targeted, measurable, and trackable. It can also be used to build relationships with customers and prospects.
In addition, the USPS is offering a number of promotions and incentives to help businesses offset the cost of the postage increase. These promotions include the Informed Delivery Promotion, which offers a 4% discount on First-Class Mail postage, and the Personalized Color Transpromo Promotion, which offers a 5% discount on First-Class Mail postage for mailpieces that include personalized color.
Marketers who are looking for a cost-effective way to reach their target audiences should consider direct mail. With the USPS price increase, direct mail is even more affordable than before. And with the USPS promotions and incentives, businesses can save even more money.
Here are some tips to deal with the postage increase:
Target your mailings carefully. Direct mail is most effective when it is targeted to a specific audience. Use data to identify your target audience and make sure your mailings are relevant to their interests.
Personalize your mailings. Personalization is a key factor in increasing direct mail response rates. Use names, addresses, and other personal information to make your mailings feel more relevant to the recipient.
Use high-quality materials. The quality of your mailing materials will affect the overall perception of your brand. Use high-quality paper, printing, and design to create mailings that look professional and inviting.
Track your results. It is important to track the results of your direct mail campaigns so that you can see what is working and what is not. Use a tracking system to track opens, clicks, and responses so that you can optimize your campaigns for future success.
The USPS price increase is an opportunity for businesses that want to stand out and reach their target audiences more effectively.
Businesses looking to differentiate themselves from competitors and take advantage of this opportunity should contact Xcelerant Marketing Solutions.
The Xcelerant team are experts at highly engaging, cost-effective direct mail marketing campaigns for businesses of all size. Xcelerant understands the intricacies of direct mail marketing and can guide you through cost increases to achieve your goals.
Ready to get noticed with direct mail? Let’s get started.
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