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Current USPS Budget Plan Highlights Success of 2006 Postal Reform Efforts

March 10th, 2010

Last week the USPS unveiled a 10-year plan to fix its budget problems. The initiative focuses on aggressive cost-cutting, primarily by moving to a five-day-per-week delivery schedule, and an exigent (emergency) price increase. Cost savings from the five-day proposal are estimated to be $3 billion annually.

While the Postal Regulatory Commission’s (PRC) decision process is expected to take six to nine months, approval from Congress is also required to switch to a five-day delivery schedule.  If approved, the Postal Service hopes to begin implementing the five-day schedule later this year, although industry observers expect the approval process to push implementation to at least mid-2011.

At IWCO Direct, we support in principle the plan to drop Saturday delivery, especially now that the USPS has clarified that mail processing and transportation will continue on weekends. While businesses and consumers will likely require some initial adjustments, the USPS is confident that effective delivery of mail following a two-day weekend or a three-day holiday weekend should not be impacted.  Mailers can embrace 5-day delivery by adjusting their response models accordingly.

The USPS plan also emphasizes the importance of the mailing community’s efforts to pass the Postal Reform and Accountability Act in 2006. At IWCO Direct, we worked diligently with our industry partners to inform legislators of the value of the postal service to the American economy. One of the most important measures of the Act was linking future postage increases to the rate of inflation. This provides companies such as ourselves – and our customers – the necessary time to plan for a postage increase. We are confident that new postage increases will respect the intent of the 2006 Postal Accountability and Enhancement Act.

-Kurt Ruppel
Marketing Services Manager

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Trigger Mail is Changing the Direct Marketing Landscape

March 3rd, 2010

By now, you’ve probably heard the term trigger mail.  This is a truly powerful direct marketing tactic and we’ve seen its ability to increase the success rates of customer acquisition, customer loyalty and customer engagement programs.  In fact, reports have shown 200%, 300% and 400% improvements in marketing campaign performance using event-based triggers.

To use this tactic effectively, you first need to understand what it is. Trigger mail essentially captures just-in-time data and turns it into executable campaigns before the window of opportunity with customers and prospects closes. It helps eliminate the likelihood of reaching the wrong customer or reaching the right customer at the wrong time because of its precise timing and relevance to your customer.

Need an example?  Here are ways trigger mail can be used to acquire, engage and retain customers:

Customer Acquisition
Newly married couples in your region are likely looking to purchase a new home.  If you’re a Realtor or insurance company, why not send them an offer of your services shortly after they’ve exchanged vows?

Customer Engagement
Sending a birthday card to current customers can create a personal connection.  This can be especially effective for businesses with a vested interested in the health, well being or safety of customers.

Customer Loyalty
Reward program expiration and maturity notices can be used to trigger a “good customer” offer.  If you’re a retailer with a loyalty program, are you giving your customers a reason to stay with you?

As you can see, trigger mail programs rely heavily on data management.  But data is just one component of a successful program. To effectively produce a trigger marketing program, you will need a print and mailing vendor who has the tools, technology and experience to turn programs quickly and accurately, along with a postal strategy that ensures the fastest delivery at the lowest postage cost.

-Debora Haskel
Vice President–Marketing

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Another Summer Sale in the Forecast

February 24th, 2010

At this time of year, you probably don’t need much incentive to get excited about summer.  But if you’re a high-volume mailer there is more to look forward to than just the thought of the warm sun on your face.  Last week I attended the Mailers Technical Advisory Committee (MTAC) meeting, where we were informed the Postal Service intends to offer a 2010 Standard Mail “Summer Sale,” similar to the promotion it conducted last year.

This year’s sales period will run June through October, with June and October used as “control months.” Participating mailers (those that send 1 million annual packages or more) will receive a 30% postage rebate on Standard Mail volume above their individual baseline from July through September. Your baseline is defined as Standard Mail volume from the same period last year plus 5%. To encourage new volume, the rebate will be adjusted if June and October volumes fall below the baseline.

More details of the sale will likely be available in the coming days and weeks. Eligible mailers should receive letters of invitation to participate in the sale from the Postal Service in early March, and will be able to register online for the sale beginning in March.

A final decision on the sale is expected from the Postal Regulatory Commission by mid-April. Mailers can expect to receive their rebates in December 2010 or January 2011.

Check back in the coming months for more details on the sale.  In the meantime, talk to your mailing partners about the sale and adjust your budgets accordingly.

-Kurt Ruppel
Marketing Services Manager

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5 Ways to Sustainability in Direct Marketing

February 17th, 2010

At IWCO Direct, we see the continued success of paper-based direct marketing campaigns. But there is strong resolve and often mandates among marketers to be better stewards of the environment. Reducing paper waste is one of the best ways to achieve this goal. While it’s important to understand trees are a renewable resource, there are many ways to make the best use of paper supplies. Here are five easy tips to follow:

  1. Coordinate and communicate. Ensure your design and production staffs are working closely with your printer to make optimal use of the press sheet or roll. Ask your printer for recommendations on small changes that may produce big reductions in paper waste.
  2. Get creative. Consider all components of your direct mail package and look for ways to incorporate multiple components on one sheet.
  3. Keep an eye on production timelines. If art files arrive late, printers are often forced to use less efficient equipment or sheet sizes in order to meet deadlines.
  4. Carefully manage your inventory. It’s often possible to use aging inventory for make-readies. And look to a total package supplier that will recycle make-ready rolls between press, personalization, and bindery to reduce paper waste.
  5. Scrub your mailing lists. Data cleansing and address hygiene processes decrease the amount of undeliverable-as-addressed mail, reduces paper waste and saves postage costs.

Small changes can go a long way in ensuring your campaigns are sustainable. Addressing environmental concerns throughout the design and production process will optimize the environmental impact of your direct marketing operations. Your customers will thank you for it.

-Mike Ertel
Vice President–Sales

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Agreement to Acquire Transcontinental Direct US Operations

February 10th, 2010

As you’ve likely heard or seen in the news today, we’ve agreed to acquire Transcontinental Direct’s US operations.  This is a major announcement, not only for the two companies but also for our current and future customers.  This acquisition will fulfill our vision for having a robust national total package footprint across the United States.

We believe this move will bring many synergies to our customers.  First and foremost, it will allow us to have production centers, advanced technology and a highly skilled workforce located throughout the country.  Our customers can get their direct marketing messages in front of audiences faster and more efficiently.

Combining the key core competencies of IWCO Direct and Transcontinental Direct’s US operations in both campaign strategy and execution will bring our customers an unrivaled solution for the optimization, execution, and delivery of direct marketing campaigns.  There will be no question that IWCO Direct does direct marketing like no one else.

These are truly exciting times to be working with IWCO Direct. I would like to leave our customers with one final thought.  As we work to integrate the Transcontinental Direct US operations in the coming months, our primary focus remains on providing you with the very best in customer service.

-Jim Andersen
President & CEO

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Recapping the PODi AppForum

February 3rd, 2010

I spent the majority of last week Chairing the Direct Marketing Track at the PODi AppForum.  During my flight home I couldn’t help but feel this was the best of the three AppForum’s I’ve attended.  It is a very exciting time to be in direct marketing, as print and online marketing are converging in ways we never thought possible, and the technology driving it is truly amazing.

As I started to write this entry, I checked the PODi AppForum LinkedIn group to see if my experience matched that of others in attendance. I discovered I’m not alone in thinking:

1. The conference exceeded my expectations (which were very high to begin with).

2. The PODi staff is amazing in their attention to detail, concern for attendees, and general “fun-to-be-around-ness.”

3. The information exchange that took place in every session was well worth the price of admission.

4. There is no better place to learn about sales and business strategies, relevant direct marketing, leading edge applications, or print on demand.

Social media was the constant topic. Those who attended the AppForum as social media novices went home as experts. The sessions covered both how social media can and should be integrated with print campaigns and how companies can use social media to market their business, recruit job candidates, and create a dialogue with prospects and customers.

Perhaps the biggest buzz at the AppForum was Tuesday afternoon’s keynote session titled “Innovations that Drive Print.” Moderated by Barb Pellow, the panel discussion proved that print is very much alive. Quick Response (QR) codes and Augmented Reality were the talk of dinner that night with ideas flying around the table about ways to incorporate these applications and technologies.

It was a lot to take in, but it will make great content for future posts here at Speaking Direct.  Be sure to check back for further discussion on these topics.

-Debora Haskel
Vice President–Marketing

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Inserts Increase Loyalty Marketing Success

January 27th, 2010

If you’re familiar with IWCO Direct you’ve probably noticed the emphasis we’ve placed on customer acquisition, customer engagement and customer loyalty during our recent website redesign. We plan to touch on these important topics regularly throughout future Speaking Direct posts.

Today we’re talking about customer loyalty. One of the most opened and read pieces of marketing communication are activity statement mailings to loyalty program members. If you send statement mailings, are you giving your customers a reason to remain loyal by incorporating customized inserts and messaging that provide offers tailored to their specific interests? After all, consumers are more willing to buy from a company they have a relationship with and they are more apt to spend more or refer others to your business.

At IWCO Direct, we integrate complex data such as transaction histories, demographic and psychographic information in more than 20 languages for a variety of rewards based loyalty programs. We recognize that a successful program needs to deliver in many forms, both paper and pixel based. So we develop a delivery system that ensures your message is being created once and delivered however your customer prefers. These highly personalized solutions have shown tremendous benefits for our customers.

The key to these cross-sell and up-sell opportunities is relevancy. By sending the right offer at the right time in the right language, your customers will keep coming back for more.

-Tom Wicka
Executive Vice President–Chief Marketing Officer

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Can Customer Service Transform Direct Marketing?

January 20th, 2010

We’ve all heard the term, “world class customer service.” Admittedly, it’s hard to articulate what precisely that means. One of my favorite examples of customer service influencing a company’s strategic direction is Zappos.com – a company that plants its flag on superior customer service. Who could imagine that selling shoes online would yield a company that was sold for $1.2 billion?  But what has made them so successful is constantly exceeding customer expectations.

At IWCO Direct, we’re seeing rapid changes in the direct marketing landscape as our customers are telling us they must now be more nimble, faster to market, more creative and more collaborative then ever. This places a premium on our own customer service, as our teams are challenged to find solutions that will reduce cycle times, generate greater response rates and provide cost efficiencies.

Our corporate values were always founded on a commitment to our customers.  But now, more than ever, we’re placing increased emphasis on customer service.  We’re looking to expand our customer service teams and we are incredibly excited about the impact that this will have on our ability to provide direct marketing like no one else.

-Pat Deck
Executive Vice President–Sales & Client Services

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IWCO Direct Begins Speaking Direct

January 14th, 2010

Thanks for dropping by Speaking Direct. Our new blog builds on our ongoing efforts to educate and advocate for direct marketing. We’ve always had a goal to help not just our customers but also direct marketing reach its full potential.

Everyday at IWCO Direct we see powerful direct marketing in action – acquiring, engaging and retaining customers. We know first hand that direct marketing’s unique combination of creativity and technology continues to evolve at an increasing pace to become even more relevant, responsible and results-driven.

Speaking Direct is our way of sharing our insight into the latest direct marketing trends, industry news, postal regulations and more. We’ll provide timely and relevant information that you won’t find elsewhere. Check back every Wednesday for a new post.

Be direct! Don’t be afraid to leave a comment to share your own perspective or let us know how we’re doing!

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