As a picky shopper and retail marketing expert, I know the power of effective advertising to influence consumer behavior. And when it comes to reaching and converting buyers, it‘s hard to beat the ROI of direct mail. In fact, recent data shows Marketing Mail is thriving in our digital age:
- 81% of consumers still read their mail daily (USPS)
- Direct mail has a higher response rate (5.1%) than email (0.6%) or paid search (0.6%) (DMA)
- 40% of consumers have made a purchase in the past 3 months because of direct mail (MarketingCharts)
- Direct mail recipients purchased 28% more items and spent 28% more than non-recipients (USPS)
If you‘re a retailer looking to make more sales and maximize your marketing dollars, USPS Marketing Mail should definitely be on your radar. In this guide, I‘ll share everything you need to know about the requirements and best practices surrounding this valuable marketing channel.
What is USPS Marketing Mail?
USPS Marketing Mail is a cost-effective bulk mail service that enables businesses to send printed marketing materials like flyers, catalogs, newsletters, and promotions to a large audience. It offers lower postage rates than First-Class Mail in exchange for slower delivery times and fewer forwarding/return options.
To qualify for Marketing Mail pricing, your mailpiece must meet certain guidelines around size, weight, content, quantity, and preparation. But when done right, Marketing Mail can yield a significant return for your business. Check out these eye-opening stats:
| Marketing Mail ROI by Industry | ROI |
|---|---|
| Retail | $15 per $1 spent |
| QSR/Casual Dining | $12 per $1 spent |
| Telecom | $11 per $1 spent |
| Financial Services | $10 per $1 spent |
Source: ANA/DMA Response Rate Report 2018
As you can see, retailers in particular can benefit greatly from investing in Marketing Mail. The tangible experience of receiving and browsing a printed ad or catalog can create an emotional connection with shoppers that digital channels often lack. A Canada Post study found direct mail requires 21% less cognitive effort to process than email and is 20% more motivating.
USPS Marketing Mail Requirements
Of course, to reap the rewards of Marketing Mail, retailers must adhere to the various USPS requirements. Here are the most important factors to keep in mind:
Minimum Quantities
All Marketing Mail must be sent in batches of at least 200 mailpieces or 50 pounds worth of mail. This can be comprised of a single mailing or multiple mailings within a single day. There‘s no getting around this one, so it‘s best suited for larger-scale campaigns rather than one-off promotions.
Mailpiece Specifications
Your Marketing Mail must fall within certain size and weight restrictions to be accepted. Letters can measure up to 6-1/8" x 11-1/2" and weigh up to 3.5 oz, while flats can measure up to 12" x 15" and weigh up to 13 oz. Any pieces exceeding 13 oz will be classified as parcels, which have their own set of requirements.
It‘s also important that your mailpieces are automation-compatible, meaning they can be processed by the USPS‘s sorting equipment. This means using standard sizes and shapes, proper formatting, sturdy materials, and readable fonts. When in doubt, consult with a mail service provider who can guide you.
Content Restrictions
The content of your Marketing Mail should be primarily commercial in nature, such as advertisements, product info, newsletters, event notices, and the like. You cannot include personal correspondence, bills/statements, credit card applications, or handwritten notes. The USPS may inspect your mailpieces to ensure compliance.
Presort & Postage Levels
To unlock the biggest postage discounts for your Marketing Mail, you‘ll want to employ presorted and automation techniques. By grouping your mailpieces by destination in a specific order, you enable more efficient handling by the USPS, which passes the savings on to you in the form of lower rates.
Here‘s a breakdown of the most common presort tiers and their corresponding postage prices:
| Presort Tier | Price |
|---|---|
| Mixed AADC Letters | $0.274 |
| AADC Letters | $0.249 |
| 5-Digit Letters | $0.184 |
| Carrier Route Letters | $0.172 |
Prices as of January 2022. Additional presort tiers and prices exist for flats and parcels.
As you can see, it pays to presort. By simply sorting your letters to the 5-digit ZIP code level, you can save over 30% per piece compared to unsorted mail. Of course, presorting does require extra time and labor, so you‘ll need to weigh the costs and benefits for your business.
Permits & Paperwork
Before you can send out Marketing Mail, you‘ll need written authorization from the USPS in the form of a permit. This involves submitting an application, paying a fee (currently $240/year), and providing identification at your local post office. You‘ll then be able to use a permit imprint to pay for postage rather than stamps.
Each time you send out a Marketing Mail batch, you‘ll also need to submit a postage statement detailing the number of pieces, postage payment method, and any special services requested. This helps the USPS track your mailing and ensure you‘re paying the correct amount. Again, working with a reputable mail service provider can streamline this process.
Marketing Mail Best Practices for Retailers
Now that we‘ve covered the technical requirements, let‘s talk strategy. How can you craft Marketing Mail that captures shoppers‘ attention and persuades them to buy? Here are some best practices I recommend based on my experience:
Know Your Goals & Audience
Before putting pen to paper (or pixels to printer), be clear about what you want to achieve with your Marketing Mail campaign. Are you looking to generate leads, reactivate lapsed customers, increase average order value, or promote a new product line? Your goals will dictate your format, messaging, and call-to-action.
Just as important is defining and understanding your target audience. Purchase history, demographics, and lifestyle data can all help you segment shoppers into distinct personas. The more targeted your mailing list, the more relevant your offer can be, and the higher your response rate is likely to be.
Make Your Mailer Stand Out
With consumers being bombarded with marketing from all channels these days, your Marketing Mail needs to be eye-catching and compelling to avoid the recycling bin. Leverage four-color printing, high-quality imagery, and an attention-grabbing headline on the outer envelope or front cover.
Some retailers have seen success with unusual sizes, shapes, and textures for their mailpieces–like oversized postcards, custom die-cuts, and embedded gift cards. Research from the USPS found that mailpieces using these features saw a 20% higher response rate than standard mailpieces.
Personalize Where Possible
Modern variable data printing allows you to customize each and every mailpiece with the recipient‘s name, location, interests, and past purchases. Personalization has been proven to boost direct mail effectiveness significantly:
- 84% of consumers say personalization makes them more likely to open a mailpiece (SG360)
- Adding a name can increase response by over 130% (DMA)
- Personalized coupons had a 39% higher redemption rate than generic coupons (RetailMeNot)
Even if your budget doesn‘t allow for full variability, simply segmenting your mailing list and tailoring your offer and creative to each segment can make shoppers feel seen and valued. Consider testing different versions to see what personalization tactics work best.
Provide a Clear Call-to-Action
Once you‘ve got your shoppers‘ attention, make it crystal clear what you want them to do next. Whether it‘s visiting your website, redeeming a coupon code, calling to schedule an appointment, or bringing in a tear-off voucher, your call-to-action should be specific, prominent, and easy to complete.
Some effective techniques I‘ve seen:
- Using active language and urgent phrases like "Shop Now," "Save Today Only," and "Hurry In"
- Highlighting deadlines and limited-time offers to create a sense of scarcity
- Featuring a tracked phone number or personalized URL to measure response
- Offering a discount or free gift with purchase as an incentive
Make the next step so enticing and frictionless, shoppers can‘t help but follow through. Just steer clear of overused clichés that can breed skepticism.
Implement Multichannel Integration
While standalone direct mail campaigns can be profitable, the real magic happens when you coordinate Marketing Mail with your digital channels. By presenting a cohesive experience across touchpoints, you‘ll increase the odds of conversion and retention.
Some ideas for multichannel integration:
- Use direct mail to drive shoppers online with QR codes, vanity URLs, and social media handles
- Sync your direct mail and email campaigns with similar visuals and offers to reinforce your message
- Follow up a mailpiece with a targeted display ad or text reminder for optimal frequency
- Invite shoppers to sign up for your loyalty program or email list to build your database
- Use post-purchase direct mail to cross-sell related products and gather reviews
With marketing automation and CRM tools, it‘s never been easier to create triggered journeys that guide shoppers down the funnel. By surrounding them with consistent messaging in their preferred channels, you‘ll leave a lasting brand impression.
Test, Measure, Repeat
Finally, retailers should treat Marketing Mail as an ongoing optimization exercise rather than a set-it-and-forget-it tactic. Commit to continually testing new segments, offers, formats, and creative–and rigorously tracking your results to identify what moves the needle.
Some key performance indicators (KPIs) to measure:
- Response rate: # of responders / # of mailpieces sent
- Conversion rate: # of buyers / # of mailpieces sent
- Average order value: Total revenue / # of orders
- Return on ad spend: Total revenue / total campaign cost
- Cost per acquisition: Total campaign cost / # of new customers acquired
By setting up control groups and A/B testing different variables, you can gradually tweak and improve your Marketing Mail strategy for maximum ROI. Don‘t forget to survey your customers as well to learn what they liked (or didn‘t) about your direct mail.
Examples of Winning Marketing Mail Campaigns
Now, let‘s see these best practices in action with some real-world examples of retailers killing it with Marketing Mail:
Sephora‘s Birthday Gift Mailer
Every year, beauty retailer Sephora sends a personalized postcard to its Beauty Insider members during their birthday month. The mailer includes a promotional code for a free gift redeemable online or in-store, along with product recommendations based on the member‘s past purchases. By making shoppers feel special and appreciated on their big day, Sephora builds loyalty and drives incremental sales.
Wayfair‘s "Room Planner" Catalog
Home goods giant Wayfair publishes a 100+ page catalog that helps shoppers visualize how to furnish and decorate entire rooms. Rather than just presenting products on a white background, Wayfair shows aspirational lifestyle photos of how different pieces can be mixed and matched for a cohesive look. The catalog also includes decorating tips, trend forecasts, and customer reviews. By acting as a helpful resource, Wayfair inspires shoppers to take on bigger home projects–and fill their carts.
IKEA‘s Moving Guide
Knowing that moving marks a key lifestage when consumers often make major furniture and decor purchases, IKEA targets new movers with a comprehensive checklist mailer. The mailpiece walks movers through a timeline of pre- and post-move tasks while showcasing relevant IKEA products that can help. By providing valuable content and positioning itself as a one-stop-shop, IKEA is able to capture a greater share of the lucrative mover market.
Target‘s Toy Catalog
For the past few holiday seasons, Target has mailed out a high-quality toy catalog featuring hundreds of top gifts from major brands. Styled like a retro "Wish Book," the catalog taps into nostalgia while making it easy for gift-givers to compare and shop across categories. Kids can circle the items on their list, while parents can visit an online hub to purchase or find store availability. By combining an engaging format with seamless multichannel shopping, Target has turned its toy catalog into a holiday tradition.
These examples prove the versatility of Marketing Mail to serve different goals throughout the customer lifecycle, from acquisition to nurture to retention. With a little creativity and strategic planning, any retailer can adapt these tactics to their own products and target markets.
The Future of Marketing Mail
As technology advances and consumer behaviors evolve, it‘s natural to wonder about the longevity of a centuries-old marketing medium like direct mail. But I believe Marketing Mail will not only survive but thrive in the years to come–especially for retailers. Here‘s why:
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Digital fatigue is real. With the average consumer being exposed to thousands of digital ads per day, many are tuning out and craving more authentic, tactile experiences. Direct mail offers a refreshing break from the screen and a chance to engage more of the senses. Neuromarketing studies have found that direct mail can be more memorable and emotionally impactful than digital media.
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Data is getting smarter. Thanks to Big Data and machine learning, retailers can now micro-target shoppers with more relevant, timely, and personalized mailpieces than ever before. Predictive modeling can help you identify your most valuable prospects and tailor your offer to their unique needs and behaviors. This level of sophistication helps offset the relatively higher cost of direct mail compared to digital channels.
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Digitally native brands are embracing mail. From Casper to Warby Parker to Allbirds, many of the most successful e-commerce upstarts have turned to direct mail to scale their growth. They‘ve found that sending a tangible touchpoint can help build credibility, tell a richer brand story, and prompt online search and social chatter. As long as these digital disruptors keep seeing positive ROI from mail, the practice is sure to trickle down to other retailers.
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Innovations keep coming. Marketers continue to push the boundaries of what‘s possible with direct mail, leveraging new technologies and creative strategies. For example, dynamic QR codes can create a bridge between offline and online experiences, allowing retailers to retarget mailpiece recipients with digital ads. Programmatic direct mail can trigger mailpieces to recent website browsers, capitalizing on intent. And more eco-friendly materials and processes can help mitigate the environmental impact of mail. There‘s still plenty of room for innovation in this space.
Of course, this doesn‘t mean retailers should double down on direct mail at the expense of other channels. The most successful brands will be those that find the right media mix for their audience and create seamless experiences across touchpoints. But when used strategically and in compliance with USPS requirements, Marketing Mail can be a powerful differentiator in a crowded retail landscape.
Conclusion
Direct mail may be one of the oldest tricks in the marketing playbook, but it continues to drive outstanding results for retailers who follow the requirements and best practices outlined in this guide. With its unique ability to reach and influence shoppers on a tangible, personalized level, Marketing Mail is a channel worth investing in for customer acquisition and retention.
The keys to Marketing Mail success in 2023 and beyond will be:
- Ensuring mailpieces meet USPS size, content, and preparation requirements to qualify for optimal postage discounts
- Leveraging robust shopper data and segmentation to deliver relevant, targeted offers and creative
- Developing eye-catching, value-added mailpieces that engage shoppers‘ senses and emotions
- Integrating direct mail with digital channels to create a cohesive, mutually reinforcing brand experience
- Continuously testing, measuring, and optimizing mail campaigns for improved ROI
By starting with a strategic plan, working with knowledgeable partners, and staying up-to-date with the latest postal regulations and industry trends, retailers can maximize the impact of this tried-and-true tactic. So don‘t sleep on Marketing Mail–your competitors certainly aren‘t.
