Tag: direct mail

UK government and health sectors see significant growth in direct mail volumes

Posted by | Mar 12, 2007 | |

Government organisations sent a total 17.47 million mailings in the last quarter of 2006, up from 16.48 million in the same period in 2005, reported Royal Mail.

This strong result illustrates the importance of direct mail to the public sector for communicating important and often complex information and reflects the increase in winter campaigns providing advice on staying warm and healthy during the cold period.

Royal Mail also revealed a rise in the volume of direct mail sent to the 55 – 64 year old age group. In addition to being responsive to direct mail, this generation is also a particularly important target audience for government organisations when relaying information about pensions, benefits and health advice.

Other sectors that performed well include building societies with a year on year volume increase of 18.8 per cent to 15.92 million items. The charity sector also showed strong growth with a volume increase of 9.1 per cent to 132.27 million direct mail pieces.

Overall direct mail volumes during October to December 2006 experienced a slight fall with 958.69 million items sent compared with one billion mail pieces during the same period in 2005. This is a result of companies across all sectors improving their targeting to create even more relevant and personal offers for their customers and prospects.

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Nordstrom to put recycled paper in catalogs

Posted by | Mar 8, 2007 | |

Nordstrom Inc. yesterday became the latest cataloger to adopt more environmentally aware practices into its catalog program. The decision comes after similar moves by Williams-Sonoma, Hewlett-Packard and Limited Brands.

Catalogers have long been the target of environmental activists for their heavy paper usage. The rash of new green policies being announced by major catalog brands could change that, even though many direct marketers still argue that it is not economically feasible to switch to more environmentally friendly paper.

Starting in April, Nordstrom said it would be the first among its peers in the specialty fashion arena to print on Forest Stewardship Council certified stock with 30 percent post-consumer waste.

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Marketsmith launches postal calculators

Posted by | Mar 7, 2007 | |

Direct and multichannel marketing firm Marketsmith Inc. has created two postal calculators to assist the direct marketing community with the recalculation of the new higher postage that may go into effect in May.

According to a recommended decision from the Postal Regulatory Commission earlier this week, rate increases will be 7.6 percent on average.

Morristown, New Jersey-based Marketsmith said that both calculators – the Piece Rate Calculator and the Piece/Pound Rate Calculator – provide mailers with information required to maximize the profitability their catalogs and other mail pieces.

These simplification tools incorporate two additional presort levels: ADC [Area Distribution Center] and the current 3/5-digit level that will be split into 3 and 5 digits.

Marketsmith also provides a circulation and Pre-Sort Level Chart to be used in conjunction with the calculators. Both enable mailers to measure the effect the postal increase will have on their future budgets.

The calculators may be accessed at www.marketsmithinc.com/postal_calculator.php .

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Direct Group Launches Postal Optimizer

Posted by | Mar 6, 2007 | |

Direct Group announced the launch of its Postal Optimizer® product line, which can provide cost savings to direct mail marketers facing the postal rate increase expected to take effect May 6.

Postal Optimizer will deliver savings impact on mail campaigns processed through the United States Postal Service Bulk Mail Centers (BMC) and Sectional Center Facilities (SCF). Direct Group’s use of “intelligent mail” technologies – in collaboration with the USPS – will play an important role in achieving these cost reductions.

Postal Optimizer provides multiple opportunities to secure cost savings for direct mail marketers, whose postage expenses can represent up to 75 percent of total project costs. Postal Optimizer features proprietary software that analyzes customer data and generates comprehensive solutions for entry-point deliveries, commingling and other logistics strategies including optimal packaging, targeted in-home delivery dates, load planning, reporting, and standardized interfaces that determine the most efficient trucking and transport options.

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Chase Drops, Still Tops Direct Mail Volume List

Posted by | Mar 5, 2007 | |

Billions of pieces of mail inundating our mailboxes. Response rates of less than 1%. And yet credit card companies continue to be the single largest industry soliciting new customers through the mail.

In 2006, the average American household received 80 credit card solicitations, according to year-to-year results compiled by Mintel Comperemedia of Chicago.

Offers of rewards, points and cash back helped fuel an increase of 6% in mailed customer acquisition pieces by the more than 150 credit card companies whose direct marketing activity is tracked by Mintel.

From credit card companies alone, American households and businesses received 9.2 billion pieces of mail. Although year to year, Chase showed a decline of 4% in its direct marketing initiatives last year compared to 2005, it still topped the list with 1.7 billion customer acquisition solicitations.

The unit of JP Morgan was followed in descending order by Capital One Bank (1.2 billion), American Express (1 billion), Citibank (98 million) and Bank of America (92 million). Capital One posted a 13% gain over 2005 in its direct-mail volume, representing the largest increase of the top five mailers.

Both Citibank and Bank of America decreased their volume by 2% and 17%, while HSBC and Discover increased their acquisition activity year to year by 25% and 29%, respectively, according to Mintel’s research.

Barclays Bank ranked among the top 10 in mail volume, registering an increase of more than 70% as it stuffed 193 million pieces into American mailboxes.

The volume of posted mail is expected to decrease markedly in the aftermath of an anticipated postal rate increase and the emergence of more e-mail-based marketing initiatives, Roock says.

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