How to Make the USPS Promotions Work for Your Direct Mail Strategy
7/10/2023 Stefanie Cortes
Recent RRD research shows that over half of consumers are excited to receive direct mail. This is great news for marketers, as direct mail is a tried-and-true channel providing tangible engagement opportunities. However, standing out from the stack is critical.
Incorporating color, novel paper and substrate combinations, and even new technologies into your mail campaigns can all greatly increase response rates. They can also provide postage savings through the USPS Promotions and Incentives program.
Offering discounts in exchange for certain mail enhancements, the program can help you not only save off the bottom line, but also increase program interaction and engagement. The key, however, is to apply these promotions in alignment with your brand’s existing messaging and ROI strategy — not the other way around.
Here are the ins and outs of five key USPS direct mail promotions, and best practices to keep in mind when integrating them into your direct mail strategy.
USPS Promo: Tactile, Sensory, and Interactive
Promotion details
Postage discount for using novel visual effects, textures, and dimensional techniques to create a multi-sensory customer experience.
Applying the promotion
While your message and offer may change from campaign to campaign, using the same paper, ink, and format can actually limit your campaign's success. Creating a piece that is visually and materially distinct from previous campaigns can stand out in the mailbox and increase engagement. This promotion can be especially effective for rebranding campaigns, conversion initiatives, and new product announcements.
Experiment with printing on a unique paper stock or substrate, or create a striking visual effect with a spot varnish or other special ink. Pop-ups, special folds, or other interactive treatments can also be effective at engaging end recipients. Implementing these tactics can have a significant impact on brand recognition and response rates.
Use case
A leading national meal kit service sought to increase their typical conversion rate with an upcoming mail campaign. Their RRD direct mail specialist suggested applying a subtle, tactile bubble die, giving the piece a patterned texture. Not only did this addition help achieve their conversion goals, it also saved them 5% on postage costs. The company invested the savings back into the quantity mailed, ultimately increasing the reach of the program.
The fine print
- Promotion timeline: February 1, 2023 through July 31, 2023
- Registration timeline: January 9, 2023 through July 31, 2023
- Postage discount: 5% at the time of mailing
- Eligibility requirements: First-Class Mail® and Marketing Mail®
USPS Promo: Personalized Color Transpromo
Promotion details
Postage discount for using color, personalization, and other techniques when mailing bills and statements.
Applying the promotion
A monthly bill or statement printed in black and white will relay basic customer account information. But do you want black-and-white relationships with your customers?
Incorporating color and personalization into a piece that customers already expect to receive can create a more engaging and informative user experience. Colored ink can help highlight key information, make your materials more visually appealing, and feel more intentional from a customer perspective. Personalization builds trust and loyalty, and makes your mailed materials feel more relevant and tailored to the end recipient.
Use case
A large utility provider in Chicago actively sought ways to better connect with their customers. RRD helped redesign the company’s billing statements to improve user experience, adding color and visual elements to previously black and white statements. The addition of color qualified the company for the USPS promotion, and in just six months, the utility provider estimated a savings of over $130K. They have now fully integrated color billing statements into their direct mail program.
The fine print
- Promo timeline: February 1, 2023 through July 31, 2023
- Registration timeline: January 9, 2023 through July 31, 2023
- Postage discount: 3% at time of mailing – 4% with reply mail feature
- Eligibility requirements: First-Class Mail presort and automation letters
USPS Promo: Emerging Technology
Promotion details
Postage discount for incorporating various digital technologies within mail campaigns.
Applying the promotion
Today’s consumers can do virtually anything — all from a phone in the palm of their hand. So, today’s direct mail needs to be more than a name and phone number printed on a card. Adapting your mail campaigns alongside ever-changing technology can create personalized and interactive experiences that stand out in consumers’ minds.
Enhanced augmented reality can depict real-world objects using 3-D technology. Virtual reality can transform a user’s physical presence. Mixed reality can boost sight, sound, and touch. Near-field communications (NFC) chips let your customer interact with messaging on their smartphone. The opportunities are endless, and are great for brand awareness initiatives, new product launches, highlighting product features, novel customer engagement, and communicating rare offers.
Use case
A leading online personal finance company looked to increase conversion rates and reduce overall direct mail costs. RRD recommended utilizing both enhanced augmented reality and voice-activated call-to-action technology in their direct mail campaign, qualifying them for a postage discount. The company has since saved nearly $500K in just six months, and is exploring incorporating additional technologies to increase both response rates and postage savings.
The fine print
- Promo timeline: May 1, 2023 through November 30, 2023
- Registration timeline: March 15, 2023 through November 30, 2023
- Postage discount: 3% with use of emerging technology – 4% with use of advanced emerging technology
- Eligibility requirements: Qualifying First-Class Mail presort and automation letters. Additional discount for courtesy reply mail or business reply mail inclusion
Informed Delivery
Promotion details
Postage discount for including a digital ride-along image and a representative image with a direct mail campaign’s Informed Delivery preview.
Applying the promotion
Interactive, digital images that accompany your mail piece’s Informed Delivery preview can increase conversion and create anticipation. Including click-through discounts, offers, or opportunities to donate via ride-along and representative images creates a personalized omnichannel experience — all before your mail piece even arrives in a customer’s mailbox.
This promotion is especially effective for nonprofit organizations seeking donations, or for offering personalized discounts or limited offers.
Use case
After partnering with RRD, a top U.S. television provider participated in multiple USPS promotions, including integrating a ride-along Informed Delivery (ID) image with an offer to their ID preview email. Over the five-month ID period, the company saved nearly $1MM in postage costs and saw a noticeable increase in response rates. ID and other features are now standard for their direct mail programs, even outside of promotion windows.
The fine print
- Promo timeline: August 1, 2023 through December 31, 2023
- Registration timeline: June 15, 2023 through December 31, 2023
- Postage discount: 4% at the time of mailing
- Eligibility requirements: First-Class Mail, Marketing Mail, and nonprofit automation letters, postcards, and flats
Retargeting
Promotion details
This new promotion offers a postage discount to companies sending personalized First-Class Mail postcards to customers who recently visited their website or app but did not convert.
Applying the promotion
Sending personalized direct mail to a prospect who visited your website — or, for example, left something in their cart — can effectively convert them into a customer. Retargeting involves obtaining the visitor’s IP address from a website visit, or mailing address from an app visit, and then sending a dynamically printed postcard with a targeted message to their residence.
Direct mail retargeting is quickly growing in popularity as a highly effective tactic to increase response and conversion rates. Navistone reports that U.S. spend on retargeted mail campaigns stemming from web-based consumer action is expected to increase at a compound annual growth rate of +27.4% through 2026.
The fine print
- Promo timeline: September 1, 2023 through November 30, 2023
- Registration timeline: July 15, 2023 through November 30, 2023
- Postage discount: 5% at the time of mailing
- Eligibility requirements: First-Class Mail postcards
Not sure where to start?
The USPS Promotions and Incentives program provides marketers with opportunities to save money on postage while increasing direct mail campaign engagement. When thoughtfully applied, incorporating novel print methods and out-of-the-box technologies can revitalize direct mail efforts and increase response rates.
Identifying your goals — such as increasing conversion rates, supporting a product launch, or communicating an offer — can help you select the promotions that best support your objectives. Additionally, working with a direct mail expert, like RRD, can support both ideation and execution.
Stefanie Cortes is the Director of Strategic Analysis and Business Development for RRD's Direct Marketing Group.