by guest contributor Blase Ciabaton
January is the month of change for the USPS and bulk mailers. These changes will have wide reaching impact across both the business and nonprofit communities.
Changes include mandatory adoption of the Intelligent Mail Barcode, new tabbing regulations for letter-sized self-mailers and a postage rate increase.
This article will cover the highlights of what these changes mean to you as a business mailer, marketing professional or nonprofit. If these changes are making you reconsider your commitment to direct mail marketing, then skip to the last few paragraphs to see why now is not the time to abandon your mail marketing efforts.
New tabbing regulations: New USPS rules regarding tabbing are the first major change to take effect; the effective date for this change is Saturday January 5th. These rule changes impact mail pieces that are folded and mailed without an envelope; the largest audience impacted will most likely be the nonprofit community because nonprofit newsletters are typically folded in half and mailed at this size.
The rules regarding tabbing are extensive and complicated-so complex, in fact, that the USPS actually offered training classes to cover the roll out of these new rules. A very notable loophole with these changes is that they only apply to letter-sized pieces. We’re talking about tabbed pieces that are 6″ x 11″ or smaller. I mention this for two reasons 1) If you’re mailing at the flat/catalogue rate, these rules will not apply to you 2) If you’re mailing at the letter-rate, you have the option of unfolding your mail piece and sending it at the flat rate to avoid compliance with these new regulations. The upside of this is that you don’t have to worry about tabbing, the downside is that your postage will be more expensive if you mail at the flat rate.
Of course another way to avoid tabbing requirements is to mail your letter-sized piece in an envelope. The downside of this is that you’ll have to incur the cost of the envelopes plus deal with the labor required to insert your mailer into the envelopes and seal it.
In lieu of wafer seals or tabs, you can use adhesive or “glue dots;” however, the same regulations apply for either glue or paper tabs so there’s no benefit to using one instead of the other.
You can click here to see full details of the new tabbing requirements as well as sample photos of what is and is not considered approved.
Intelligent Mail Barcode requirement: The mandatory adoption of Intelligent Mail Barcode has been delayed several times by the USPS. Despite predictions of demise on the scale of the Mayan Apocalypse, the rollout of the Intelligent Mail Barcode by the USPS is not that big of a deal.
Simply put, there are two basic levels of postage discounts for most bulk mail. The first level of discount is for presorting your mail, completing bulk mail paperwork and using an approved method to update mailing addresses within 95 days of the mail drop.
To earn the second level of postage discounts you need to satisfy the USPS automation requirements, including use of a postal-approved barcode. The old version of the barcode was called the “postnet” barcode; the “Intelligent Mail Barcode” is the new USPS standard.
Not only does the Intelligent Mail Barcode look different, but it contains more detailed information than the postnet barcode. The additional information in this newer barcode gives mailers the ability to do more sophisticated things like track their bulk mail through the system and receive a delivery confirmation.
Perhaps this will incentivize some people to outsource their direct mail processing or to upgrade their software, but ultimately, I don’t think it will prevent interested parties from engaging in direct mail marketing. I see the address update requirement as more of a hassle for smaller bulk mailers than the roll out of the Intelligent Mail Barcode.
Postage Rate Increase: Did you know that the USPS is permitted to increase rates annually? In fact, as long as their proposed rate increase falls within the rate of inflation, there’s no need for approval from the US Congress or any other entity.
Rate increases are typically not distributed equally across all classes of mail. As a result certain mailers feel the brunt of the increase more than others. It can be downright confusing trying to determine exactly how the increase will impact you. Fortunately, I’ve got some contacts at the USPS who helped me interpret the impact of the increases across the different classes of mail.
While the overall percentage increase is 2.57%, some of the biggest losers are organizations that mail at the nonprofit rate because letter-sized pieces will increase on average by 3.25%.
Those using Every Door Direct Mail for marketing will see postage rates increase over 10% from 14.5 cents apiece to 16 cents apiece. This is a real shame because this is one area where I’ve seen increased investment from many of my clients.
Additionally, you won’t be happy if you mail internationally to Canada or Mexico, because letter-sized postage will increase from 85 cents apiece to $1.10 apiece. Nearly a 30% increase-yikes! In fact the letter rate for all international mail will be standardized at $1.10. There’s also rumor of a “forever” stamp being available for international letters.
So why should you still use Direct Mail marketing? Despite stricter rules and higher rates, direct mail continues to be a profitable option for growing market share for businesses and generating charitable donations for nonprofits. Research published in 2012 by nonprofit software giant, Blackbaud, indicates that direct mail accounts for 79% of donation revenue for nonprofits.
According to a survey published in “Deliver” Magazine, 98% of consumers bring in their mail the day it is delivered and 77% sort thorough it immediately. Another survey by Epsilon Consulting revealed that direct mail is the top consumer preferred marketing channel.
Finally, if you think that direct mail marketing is just for old people, then you’ll be surprised to learn that the 18-34 year old demographic lists direct mail as their channel of choice based on research done by the Direct Marketing Association.
These statistics show that despite the buzz associated with newer marketing options, direct mail marketing is still delivering solid, measurable results.
About the Author: In 2009, Blase Ciabaton launched the blog www.TheDirectMailMan.com. Blase leverages his nine years of expertise as a direct mail professional to share tips on USPS rules & regulations, prospecting, customer loyalty, improving response rates & identifying targeted mailing lists.
Blase is crazy-passionate about helping people design, print and distribute successful direct mail campaigns, and he hopes you’ll think of him as your “go-to guy” when you’re ready to outsource your next mail marketing piece, newsletter or direct mail appeal. Connect with Blase on Twitter or LinkedIn.
