Saddle up to the New Bar(code)
Newman, Seinfeld’s slovenly neighbor and U.S. postal worker, would be pleased. The USPS keeps making noises that it will downgrade to a five-day delivery service by 2011. Cutting delivery on a day with light mail volume, such as Saturday or Tuesday, could save nearly $2 billion a year, according to the Postal Regulatory Commission, which oversees the agency. Yet because Washington operates in a parallel universe, it’s anyone’s guess if the proposal will be approved (although, considering macro trends, and the digital lurch, a five-day delivery service can’t be too far off).
The USPS wants companies to implement Full-Service IMB into their mailings before it becomes mandatory in May 2011. The change applies to First-Class Mail® , Standard Mail®, Periodicals (letters/flats) and Bound Printed Matter flats. For both marketers and direct mail companies, the benefits of switching to the new service include:
- USPS incentive that reduces postage
- Free address correction service (return file provided of ACS)
- Start-the-clock, a way to measure service based on scans and delivery. Not widely used, many post offices are not fully scanning. (The Kern Org does not promote this service yet.)
- Savings on pieces mailed that qualify for full-service IMB (not all pieces in a mailing will qualify) is $0.001 per piece. For example, if 1,000,000 pieces of mail qualify, the company can save $1,000. All automation mail currently qualifies.
More top-of-mind for marketers and direct mail companies is the USPS’s upgrading from POSTNET™ barcodes to the Intelligent Mail® Barcode (IMB) technology, which is designed to provide deeper visibility into the delivery for both mailers and the post office. The IMB technology, which was approved in November and becomes mandatory in May 2011, uses one barcode to deliver and track the mail; previously, you needed two barcodes: the POSTNET and a Planet Source Code.
The USPS is currently offering incentives for companies to use IMB with $1 in savings per 1,000 pieces of mail that qualify. For every million pieces that qualify, that adds up to savings of $1,000. It’s a no-brainer, really, because switching to IMB helps marketers improve the ROI on their direct-mail campaigns. What's more, a growing number of our clients are implementing the new code and are eager to take advantage of the current discount offered by the USPS. It’s not yet known whether the discount will remain or be eliminated once the change becomes mandatory.
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Tags: Direct Mail Advertising, Direct Mail Marketing
Categories: Direct Mail Marketing
