DM News & Tips

New Postal rates May 12th
On May 12th the Postal Service will adjust prices for all classes of mail. A First Class one ounce letter will increase to 42 cents and postcards will be 27 cents. Under the new postal reform law prices can increase no more than the rate of inflation. Standard presort mail will increase 3% on average. See the postal service website at www.usps.com/prices for downloadable price files.

First Class mail volume declining
Over the last seven years, First Class mail volume has dropped by 7 percent, a loss of 1.3 billion pieces per year. During that same time period the domestic delivery points for business and residential has increased by 9 percent – now totaling 148 million addresses in U.S. With revenue decreasing and delivery requirements increasing, an annual postage rate increase seems inevitable. A 15 percent growth in bulk direct mail has offset some of the revenue loss. The USPS is testing new products, services and ways to improve efficiency. The new 31 digit intelligent bar code is one step in that direction. It will provide tracking services and more efficient delivery.

Retain customers and stop costly “churn”
The average U.S. company will lose 20 to 40 percent of its customers this year. “Churn” is the process of replacing lost customers with new ones. Research shows that if just 5 percent of lost customers are resold - profits can increase as much as 85 percent - depending on the industry. Consistent multi-channel marketing is the best approach to retaining customers. A newsletter (like this one) is one method of maintaining customer relationships. Use National Change of Address (NCOA) to track moves. Survey past customers to learn why they left, then provide a solution.

AMA redefines marketing
Every five years the American Marketing Association reviews the definition of marketing. New concepts create new meanings for terms like “product,” “customer” or “target.” A new definition was approved in October 2007. The definition reads… “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large.” This is not intended to be a definition of marketing management, but simply a definition of marketing at all levels.