TLC Pulse / 03.14.12

• Forbes.com wrote a great article last week about how direct mail is “alive and kicking”. Among the reasons listed is that consumer surveys show that physical media – pieces that the consumer can physically interact with – leaves a deeper imprint on the brain, thereby increasing ROI.
• The USPS revised its restructuring plan recently so that $20 billion in annual costs will be cut by 2015 and another $2 billion the following year. Among the cuts proposed that Congress will need to approve is an increase in First-Class stamps to 50 cents.
• Tickets to see the new home of the Barnes Foundation go on sale tomorrow, amid news that membership has increased from 390 in March 2009 to 15,000 today.
• The 340 ton rock destined to be turned into artwork, “Levitated Mass”, arrived at Los Angeles County Museum of Art on Saturday!

TLC Pulse / 01.09.12

• Direct Marketing IQ shared 12 tests for lifting direct mail responses fast. One that might sound surprising? Remove your brochure (or other insert). It’s true; sometimes you can overwhelm your constituents with too much information and you’ll get better results by scaling back.
• Chronicle of Philanthropy wrote a growing trend in engaging donors and telling your organization’s story – infographics! Has your organization tried sharing data in this format?
• Nonprofit Quarterly commented last week on perhaps the most talked about end-of-year campaign in 2011 – Wikipedia’s distinctive banner ads helped the nonprofit raise $20 million from one millions donors. The banner ads were simple with just a personal appeal and photo of the appeal author. 

How USPS Changes Will Affect Your Program

Headlines on the USPS’s debt and impending changes in service are downright gloomy. We know that many clients are trying to sort out fact from fiction while also determining how their organization’s programs will be affected by the changes, so we hope the memo below will help inform you.

Rate Increases for 2012

It’s no surprise that postal rates will increase in 2012. First-class mail rates will increase by one cent to 45 cents beginning January 22 and postcards will jump from 29 cents to 32 cents. The good news is that nonprofit rates will largely decrease by about 1.3% for mailers who utilize advanced presorting options. Another silver lining? First-class presort is now available for mail weighing up to 1.9 ounces (as opposed to only one ounce). This allows for additional inserts to your package at no additional cost!

Changes in Delivery

The big news last week was that next-day delivery for first-class mail will be eliminated beginning in January. Due to the closure of more than 250 processing centers, the USPS says that mail delivery will increase by two or three days. Although changes in nonprofit mail delivery time were not mentioned specifically, one would assume that the usual delivery time will likely slow down as a result, potentially inching closer to the three week delivery guarantee.

Thankfully, the USPS has yet to announce a move to a five-day delivery schedule, although this could be a potential next step for the USPS, which needs to cut $20 billion from the budget before 2015 in order to remain profitable. The day most likely to be cut would be Saturday.

The Bottom Line

• Your plan of action should not be to mail less, but rather to mail smarter!
• Rate increases mean that more than ever your mailing lists must be updated and clean. We have a number of data hygiene programs that can be run in addition to our normal data processing.
• Due to new delays in delivery time, you should plan further ahead for mailings – your account manager will help meet your target in-home date.
• Utilize the Intelligent Mail Barcode (IMB) to carefully track your mail through the USPS. This will allow you to time email or phone follow-ups appropriately.
• And of course a true integrated multi-channel approach is critical to the success of your direct mail program. We’ve had a lot of success in reaching new audiences online and have found that our clients who advertise online garner a better response in direct mail when coordinated.

For further questions or concerns about the potential impact USPS changes will have on your program, please contact your account manager or Angela Struebing, VP Clients Services at angela@thelukenscompany.com.