USPS offers a 30% postage credit for increased mail volumes, encouraging a multichannel approach to marketing.
The United States Postal Service (USPS) is looking to breathe new life into direct mail marketing with its 2024 incentives program. By offering a 30% postage credit for increased mail volumes, USPS aims to position snail mail as a competitive player in the digital age’s marketing arena. The program encourages a multichannel approach, integrating direct mail with digital strategies to create a seamless customer experience. But is it worth the investment? Should marketers focus more on the mailbox than the inbox? Let’s explore the USPS Mail Growth Incentives program and its potential impact on the marketing landscape.
What Is the USPS Mail Growth Incentives Program?
The USPS Mail Growth Incentives program consists of two components: the First-Class Mail Growth Incentive and the Marketing Mail Growth Incentive. These incentives are designed to encourage mail owners to increase their mail volumes in 2024. The Postal Service will issue postage credits to mail owners who meet the qualifying criteria and grow their volumes compared to the baseline volume in Fiscal Year 2023. The program covers various types of mail, including presort letters, flats, and cards for First-Class Mail, and saturation letters, flats, carrier route mail, and parcels for Marketing Mail.
How to Apply for USPS Mail Growth Incentives
To apply for the USPS Mail Growth Incentives, mail owners must register through the USPS Mailing Promotions Portal, available via the Business Customer Gateway. Registration will be open from mid-November 2023 to June 30, 2024. Once registered, mail owners will receive a 30% postage credit based on the incremental volume in 2024 compared to the baseline volume. These postage credits can be used immediately after issuance but must be utilized by December 31, 2025.
Calculating Incentives for Qualifying Mail Volumes
The USPS does not have tiers or levels for the Mail Growth Incentives. Instead, a 30% postage credit is issued based on the incremental volume in 2024 compared to the higher of the baseline volume in Fiscal Year 2023 or one million pieces times the average actual price paid per mail piece. The postage credits will be issued starting in June 2024, with final credit amounts issued in January 2025 for qualifying mailings during the incentive period.
The Excitement Around Direct Mail
According to a recent survey by RRD, consumers, especially younger demographics, are showing renewed interest in direct mail. This renewed interest presents an opportunity for marketers to adjust their messaging, design, and content strategies to effectively engage these audiences. Direct mail has the advantage of being a proactive, lead-generating channel that can be seamlessly integrated with digital channels. By incorporating new techniques in creative presentation and format, along with advanced digital print and delivery systems, marketers can connect the mail channel with digital, social, and email cadences.
Pitfalls and Budget Planning for Marketers
Marketers should enthusiastically engage with the USPS’s 2024 Growth Incentive and the approved promotions to maximize savings and offset rising postal expenses. The incremental volume not only receives the 30% credit but is also eligible for promotion discounts ranging from 3% to 5%. Incorporating the postal promotions program into the overall budgeting plan is crucial for direct marketers, as it provides opportunities to leverage offline channels that complement and reinforce online channels.
Incorporating Online and Direct Mail Marketing Strategies
Integrating direct mail with digital channels can create a seamless customer experience. Marketers can leverage offline channels to complement and reinforce online efforts. For example, sending personalized direct mail to prospects who have visited a website or left items in their cart can effectively convert them into customers. Retargeting and the use of QR codes and personalized URLs can also aid in a multichannel marketing strategy, allowing marketers to track responses and increase engagement.
Addressing Environmental Concerns
As direct mail volumes increase, there are concerns about the environmental impact. The USPS’s Corporate Sustainability Initiatives team focuses on integrating sustainability principles across the Postal Service. This includes reducing waste, conserving resources, increasing recycling, and procuring environmentally preferable products. While direct mail may have environmental implications, the USPS is committed to minimizing its negative impacts.
Conclusion:
The USPS’s 2024 incentives program offers an opportunity for marketers to blend direct mail with digital marketing strategies. By providing a 30% postage credit for increased mail volumes, USPS aims to position direct mail as a powerful tool in the digital age. The program encourages a multichannel approach, allowing marketers to leverage the strengths of both offline and online channels to create a seamless customer experience. While there are challenges and considerations, such as budget planning and environmental concerns, integrating direct mail with digital strategies can yield significant benefits for marketers in today’s competitive landscape.