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The Mighty Envelope is a Must in Hamburg

September 1st, 2010

We all know the power of the first impression. Sure, you can’t judge a book by its cover, but a good cover never hurts. And while sometimes taken for granted, the outer envelope may be the most important piece of direct mail creative. This is why IWCO Direct’s creative services team is always developing new envelope formats for acquisition, loyalty and engagement direct mail programs to boost open rates and improve the effectiveness of these marketing programs. Here are some of our best tips for using the outer envelope to increase open rates.

In fact, envelope conversion is so important to our Total Package platform that last week we announced the installation of two F.L. Smithe envelope converters at our Hamburg, Pa., facility. It was critical to our national footprint approach to also be able to offer this important capability from our Hamburg facility.

Both converters are expected to be running at full throttle by the end of the month. In light of recent instability in the envelope market, it’s especially good news for mailers to know we can convert approximately 60 million envelopes per month at this facility alone. We are also planning to add additional envelope converting equipment in Hamburg next year.

If you would like to learn more about our approach to envelopes or this recent equipment installation, please ask your sales rep or contact me.

- Mike Ertel
Vice President–Sales

Tags: direct mail, Direct Mail Envelopes, Envelope Converting, Envelopes, Envelople Conversion, F.L. Smithe, Hamburg, Mike Ertel, Outer Envelope, Tips to Increase Open Rates, Total Package
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Taking Geographic Direct Mail Distribution from Theory to Practice

August 25th, 2010

In theory, it makes perfect sense for a national direct mail campaign to be produced in multiple locations, with each piece produced as close to its final destination as possible.

But is the geographic distribution of mail from multiple plants real and do the benefits outweigh the challenges?

The entering of mail from more than one location based on geographic optimization has numerous benefits to the marketer’s program:

1. It dramatically decreases the average in-home cycle for the mail piece
2. It lowers program transportation costs and likely the per-piece postage costs
3. It lessens environmental impact because of less transportation required for the whole program

So it must be a no brainer, let’s start today! Hold on, cowboy. First there are practical items that need to be accounted for and solved. Before you jump into a multi-plant drop plan ask yourself the following:

1. Does your supplier have optimized plant locations coupled with an ERP system that would allow for a multi-plant drop plan within your specific program?
2. Do the additional costs of make readies and equipment set-up required to produce the same program in multiple locations outweigh the cost savings?
3. Does this strategy create additional staff time to manage multiple sets for proofs and sign offs?
4. Are your response channels (call centers or mail processing centers) scheduled around a single location drop versus a multiple location drop that will increase in-home dates dramatically?

OK, so it’s not as simple as some may think. But all these challenges can be overcome if your team is willing to invest some time with the right supplier. Once these challenges are planned for and addressed ONCE, then the “go forward” process can adopt the modifications to allow for a smooth multi-location drop schedule week in and week out.

Folks, the marketing benefits for building a program that can optimize a multi-plant drop plan absolutely outweigh what drawbacks or investments you and your supplier have to make.

If you are interested in learning more, please reach out to a sales representative or a marketing contact at IWCO Direct. We have the plant locations, technology platform and postal/logistics relationship to make this theory a reality.

Have a good week.

-Tom Wicka
Executive Vice President – Chief Marketing Officer

Tags: direct mail, Geographic Direct Mail, Geographic Optimization, In-Home Cycle Time, Multi-Plant Direct Mail, Reduce Cycle Times, Reduce In-Home Time, Tom Wicka
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Lean Testing A Proven Success Across Other Areas of Production

August 18th, 2010

In previous blog posts, we’ve described the initial steps in our Lean Journey, which began with Value Stream Mapping and transitioned to testing our plans for improvement on one of our envelope converters. The results were impressive, cutting set-up time in half and prompting several safety and ergonomic improvements. Our next step was to see if we could replicate these types of positive outcomes along other areas of the production stream.

During the past several months, we’ve conducted Kaizen events in several areas of production including our commingle sweep process and set-ups on mini Ehrets. Each Kaizen test began with observations of our processes and procedures and, after gathering initial data, transitioned to implementing a series of trials. Major improvements were achieved during our testing, including significantly reducing set-up and changeover time, as well as improving safety.

Our Lean initiative has brought many benefits in addition to making our processes more efficient. Our customer teams are empowered to continue to make improvements to our workflow and our customers are benefiting from our heightened focus on waste reduction. Stay tuned as we continue to provide updates on the results of our Lean Journey.

-Steve Myrvold
Vice President–Operations

Tags: commingle sweep, direct mail, Ehrets, envelope converters, Kaizen events, Lean Journey, production stream, Steve Myrvold, Value Stream Mapping, waste reduction
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Print Council Launches New Website And Aims To Raise $200K

August 11th, 2010

If you’re a regular reader of Speaking Direct, you likely rely upon printed communications in one form or another. If so, you may be aware of The Print Council. I am a member of the Marketing Committee for this important organization in our industry.

Led by Executive Director Ben Cooper, The Print Council is an alliance that works to promote the use of print media through education, awareness, and research. They recently launched their new site which provides timely and relevant information on the value of print in the marketing mix. For example, you can find information on Why Print is Green; Print in the Mix – which provides the best available research on the effectiveness of print; in addition to information on Print Delivers, a traveling seminar that aims to educate marketing decision makers, planners, and agencies about the role of print and its effectiveness in marketing campaigns.

In another exciting development, Unisource Worldwide recently announced it has committed a $100,000 matching grant to The Print Council if other group members match that amount through pledge commitments received by September 30, 2010.

We hope you’ll visit the new website and consider joining The Print Council. And if your company is already a member, be sure to send your pledge commitments by the end of September.

-Debora Haskel
VP–Marketing

Tags: Ben Cooper, Debora Haskel, Green Printing, Print Council, Print Delivers, Print in the Mix, Print is Green, Print Media, Printed Communications
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Top Challenges Facing the New CEO of the DMA

August 4th, 2010

We are pleased to join the Direct Marketing Association in welcoming Larry Kimmel as its new CEO. After an extensive six-month search, Larry, the former Chairman and CEO of Grey Direct Global Network, was the overwhelming choice of the DMA’s Board of Directors. Larry assumed the new position on Monday.

IWCO Direct is a proud member of the DMA. We believe the association is an essential advocate for the direct marketing industry. In particular, it played a leading role in helping legislators realize the need to pass the Postal Accountability and Enhancement Act of 2006.

As our industry continues to evolve and adapt, it faces vastly different challenges than it did just a few years ago. In our view, here are the top two industry issues Larry must roll up his sleeves to help shape the outcomes:

1. Postal services pricing and long-term viability of the USPS

2. Preserving the right to market through mail

We’re looking forward to working with Larry and the DMA to successfully meet these challenges.

-Jim Andersen
President & CEO

Tags: direct marketing, Direct Marketing Association, DMA Board of Directors, Grey Direct Global Network, IWCO Direct, Jim Andersen, Larry Kimmel, mail, Postal Accountability and Enhancement Act of 2006, postal services, USPS
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Healthy Employees Create A Healthy Company

July 28th, 2010

Rising health care costs and diminishing health. It’s on the minds of nearly every employer and politician in America. At IWCO Direct, we understand that employee wellness is not only a critical factor to our company’s success but also the success of our customers’ direct marketing programs. We also believe being proactive about employee wellness is more than anguishing over health care costs. We’re committed to learning everything we can about disease and lifestyle management programs that can improve the lives of our employees.

As an example, some of our facilities have on-site fitness centers, and we encourage employees to work out before or after their shift. We have developed wellness programs and offer weekly stretching, yoga and Weight Watchers classes on-site. In addition, employees can earn gift cards throughout the year by completing online fitness/health surveys. We also have begun to incorporate tips for living a healthier lifestyle into our internal newsletter. Topics have ranged from flu prevention to ideas for better, more healthful snacking.

Our employees are also taking up the challenge and taking it upon themselves to make fitness a priority. For example, several employee groups participate in weekly runs, bike or walks – in addition to their personal programs.

We will delve deeper into a few of our wellness programs in future posts. But we would like to hear from you too. How does your company promote wellness?

-Dana Ohnsorg
Manager, Comp/Benefits/HRMS

Tags: Dana Ohnsorg, Direct Market, Direct Marketing Programs, Employee Wellness, Health Care, Health Care Costs, Weight Watchers, Wellness Programs
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Mailers Form the Affordable Mail Alliance

July 21st, 2010

There’s been a lot of talk, questions and hand-wringing over the Postal Service’s recent request for an exigent (emergency) price increase.

To provide a unified voice in opposing the matter, an unprecedented coalition of businesses and mailing organizations have formed the Affordable Mail Alliance. Since the announcement, the Alliance has added more than 250 members, bringing its total to more than 650. This includes nonprofits, large and small businesses, newspaper and magazine publishers, consumer groups and everyday customers from Grass Valley, California to Mayville, Wisconsin to Ellsworth, Maine.

The Alliance makes the following points against the Postal Service’s request:

The conditions laid out in the request do not meet the definition of “extraordinary and exceptional circumstances” envisioned in the Postal Accountability and Enhancement Act of 2006
Postage price increase in excess of the rate of inflation will do further harm to the struggling mailing industry
The USPS has not taken sufficient steps to streamline its processing network to align with current mail volumes

IWCO Direct is a proud member of the Affordable Mail Alliance and supports its goals. If your business or livelihood depends on an affordable and viable postal service, we urge you to join this important Alliance. It’s easy to do, just send an email to AffordableMailAlliance@gmail.com and tell them you want to join the coalition.

-Chris Carosella
Vice President Product Development/Regulatory Affairs

Tags: Affordable Mail Alliance, Chris Carosella, direct mail, Emergency Price Increase, Exigent Price Increase, Postal Accountability and Enhancement Act, Postal Reform Act, Postal Regulatory Commission, Postal Service
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The ROI on Trigger Mail Makes It the New Black

July 14th, 2010

We continue to see our most sophisticated customers employ trigger programs to augment their acquisition direct mail programs. The new trigger programs are not replacements for their core acquisition program - they are an enhancement to certain market segments that provide outsized response and conversion rates. Why have trigger programs gained such traction over the past two years? As I see it, it comes down to three factors:

Access to accurate data that is being segmented and targeted has increased dramatically through our customers’ internal and external data sources (systems/platforms). With more accurate and easy access, the ability to be surgical and mail only to the desired names has greatly increased.
IWCO Direct’s systems have allowed us to provide our customers with automated programs that are not a production burden to their marketing and production staff. Daily programs can now be fully automated at each step of production. This allows today’s “smaller staffs” to add trigger programs, but not add workload.
Digital print and efficient internal workflows have allowed production costs to come down significantly over the past few years. This allows trigger programs to deliver high ROI in part because of competitive per unit costs. I estimate that five years ago the unit cost of these same production programs would cost 35% more than they do today - that is dramatic.

I can’t profess to have all the answers on why we are seeing the growth of trigger programs, but I do know the three factors I have outlined are major factors in this growth. Triggers are not a replacement for a core acquisition campaign, but they are a way to juice your overall results. If you are interested in how to enhance your acquisition program with a successful trigger program, reach out to us and we can have an additional discussion.

-Tom Wicka
Executive Vice President – Chief Marketing Officer

Tags: Acquisition Direct Mail, Acquisition Program, Automated Marketing Programs, Conversion Rates, Data Segmenting, Digital Print, direct mail, Direct Mail ROI, DIrect Marketing ROI, Response rates, Targed Data, Tom Wicka, Trigger Mail, Trigger Mail ROI, Trigger Programs
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We Oppose The Postal Service’s Exigent Price Increase

July 7th, 2010

Yesterday the Postal Service filed a request for an exigent (emergency) price increase with the Postal Regulatory Commission (PRC). While the PRC now has 90 days to hold hearings and act on the request, with a decision expected in early October, we at IWCO Direct join nearly every mailing industry coalition partner in rejecting the Postal Service’s contention that an exigent price increase is justified within the language of the 2006 Postal Accountability and Enhancement Act (PAEA).

First the details. This proposal reflects an average 5.6% increase, but varies widely across postal products. Here are the projected increases:

Presorted First-Class Mail

Automated Letters: 6.3%
Automated Flats: 16.2%

Standard Mail

Automated Letters: 4.6%
High-density/Saturation Carrier Route Letters: 4.9%
Automated Flats: 5.8%

The proposal also includes a reduction in the destination-entry discounts for Standard Mail of $1/M, which will magnify the increase felt by mailers taking advantage of this discount to control their postage costs.

The hardest hit types of mail in the proposal were Periodicals (8.0%), Package Services (6.7%) and Standard Mail Parcels (23.3%!).

Although the Postal Service refers to this exigent request as “modest,” it greatly exceeds the inflation-based cap established in the PAEA, which as of the end of May stood at 0.757%.

Why An Exigent Rate Increase Doesn’t Make Sense

More than eight million jobs are tied directly or indirectly to the continued financial viability of the United States Postal Service, but raising prices for postage rate payers at this time will only drive more volume away from the Postal Service and cause more marketers to rethink their use of direct mail. This proposed price increase isn’t the answer to the Postal Service’s financial challenges. A better approach would be to address the inequities in pension and retiree healthcare funding that are burdening the Postal Service unnecessarily.

Most of the Postal Service’s current economic woes are driven by the requirement that the agency fully pre-fund retiree healthcare obligations, even though no other agency of the federal government has this obligation, nor is it common practice in the private sector. The payment schedule set in the PAEA requires the Postal Service to pay more than $5 billion each year into its Retiree Health Benefit Fund – in addition to the more than $2 billion it pays for current retiree health benefits, even though the fund already has accumulated a balance of $35 billion.

Moreover, the Postal Service’s Office of Inspector General (OIG) has shown that the Postal Service massively overpaid into the Civil Service Retirement System from 1972 to 2009. An independent study authorized by the PRC affirmed the OIG’s finding, declaring that “an adjustment of $50 billion to $55 billion would be equitable.” If this overpayment is applied to the pre-funding of retiree health benefits, that obligation would be fully funded, eliminating the requirement for additional annual payments from the Postal Service.

In addition, an exigent increase is not justified because the recent economic recession and the resulting drop in mail volumes does not qualify as the sort of “emergency” envisioned by Congress when it enacted the PAEA. Postal Service management has the flexibility to manage its business, just as members of the mailing industry have had to manage our businesses to adapt to changing economic conditions.

Join Us In Opposing The Exigent Rate Increase

We urge our customers to join us in opposing this unnecessary and unjustified price increase and in calling on our Congressional representatives to correct the inequities in pension and retiree healthcare funding that are the driving forces behind recent Postal Service financial difficulties. You can learn more about this issue and find out who to contact by visiting the Affordable Mail Alliance.

- Bob Rosser
Director of Postal Affairs, Products and Services

- Kurt Ruppel
Marketing Services Manager

Tags: Bob Rosser, direct mail, Exigent Price Increase, Kurt Ruppel, Package Services, PAEA, Periodicals, Postage Increase, Postal Accountability and Enhancement Act, Postal Regulatory Commission, Postal Service, Presorted First-Class Mail, Standard Mail, Standard Mail Parcels
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Direct Mail is Alive and Well

June 30th, 2010

In recent years there have been persistent rumblings that other marketing channels are overtaking direct mail. Don’t believe the hype. Recent studies are proving that direct mail is not only surviving, it’s alive and kicking butt.

At IWCO Direct, we know that direct mail is the single most effective marketing channel for successful customer acquisition, customer loyalty and customer engagement programs. It also lends itself to integration with other methods. So the next time you encounter someone claiming direct mail is losing the direct marketing battle, drop a few of these knowledge bombs on them:

(Please note the first set of statistics come from an email marketing company)

2009 ExactTarget Channel Preference Survey

76% of consumers have been directly influenced to purchase through direct mail
78% of online consumers have provided a company with a mailing address to receive direct mail offers
Direct mail has the highest “message acceptability” rating of all channels
Direct mail is the preferred channel for promotional messages from a company with whom you have never interacted
Direct mail is the only channel where permission is not a prerequisite

Direct Marketing Intelligence from Mintel Comperemedia

Direct mail volume increased 16% year-over-year in the first quarter of 2010 to 6.1 billion pieces in total

2010 Response Rate Report from the DMA

One reason why direct mail continues to be a go-to strategy for direct marketers is that improvements in printing and database technology as well as analytics have allowed direct mail and other offline media to deliver consistent response rates.

As you can see, direct mail remains relevant and delivers the ROI marketers demand. That’s a victory all marketers can appreciate.