Direct Mail

Traditional direct mail testing commonly involves an A and a B version.  You would print one or two static Forms, put it on a laser or inkjet printer, and personalize the piece using black toner.   This is the method used for the majority of direct mail campaigns today.

Any changes in the offer or text were accomplished using black print alone. If you wished to have an entirely new color mailer, you’d need to change the plates on the printing press, which means more proofs and setups, more print versions to manage, and the creation of more mail cells that require commingling or higher postage costs.

If you’re printing 10,000 pieces or only have A and B versions, this approach is somewhat manageable.

However, what happens if you want to print 100,000 or 1 million pieces and go beyond A/B testing to create C, D, and E versions?  When you take into account preprinting forms, setup time, waste, and different forms being stored in your vendor’s warehouse, this traditional method can be costly and time-consuming.

This is one reason why direct response marketers often settle for just “A/B” or “either/or” testing. They’re reluctant to push the envelope. Many have never been shown how to use modern technology to easily execute complex testing in a way that’s not only fast and cost-effective, but also can deliver better intelligence and long-term results!

How Direct Mail Testing Became Smarter, Faster, and More Efficient

Modern digital printing has taken direct mail testing capabilities to a totally new level.  With recent developments in print technology, paper, and ink, the cost has gone down considerably, while the quality has improved to near litho print quality.

High-definition digital inkjet printers introduced in just the last few years print at speeds never before possible. They also make it possible to swap out an unlimited number of offers and images on the fly in stunning, high-resolution color.

For example, if you have 100,000 pieces of mail, you can produce 100,000 unique versions since the process is driven by your data, business rules, and any images that you wish to include.

Also, keep in mind that the traditional approach requires that you break your mail file into separate postal sorts every time you create a new print version. This reduces the concentration of your mail, causing your postal costs to increase. You can use a commingling service to get a postal discount, but this can cause a delay in meeting in-home delivery dates.

Using this digital print idea, we essentially commingle versions right on the press to achieve the maximum postal discounts possible, with zero setup, waste, or storage.

The Missing Ingredient in Most Direct Mail Tests

There’s a critical component to direct mail testing with modern technology that most organizations are missing – experience.

Anyone can buy technology, but you need to have the experience to build an image library in a way that lets your data automatically pull in the right image for each piece. You need to know how to format your mail to optimize costs. And you need to understand how to track and analyze the results so your direct mail testing provides meaningful insights that enable optimizations of future campaigns.

Direct Mail Depot brings this expertise to the table for every client.  In addition to offering the right tools, we have the right people who have successfully planned and executed hundreds of complex, high-volume direct mail campaigns and can walk you through the process.

Real-World Examples of Modern Direct Mail Testing

One emerging form of insurance is pet insurance. Testing is typically A/B with a generic dog version and a generic cat version. If you know what type of animal each customer has, why not take customization and testing a step further?

For example, instead of simply having a dog version, create versions for each breed of dog that your prospect owns – German shepherd, collie, poodle, black lab, etc. Pet owners will be drawn much more to a photo that resembles the pets they love, which improves the open, engagement, and response rates.

If you’re offering auto insurance, you can run tests using an image library of not only different styles and models, but different colors of each vehicle.  For example, instead of having images of just a sedan, SUV, and pickup, you can include images for specific models in a variety of colors and customize your mail accordingly. This can all be based on the unique characteristics or desires of each recipient.

Auto insurance affinity programs for college alumni are also very popular. Rather than simply using a black-only school logo, you can use a full-color logo with a photo of a signature building on campus to grab the attention of the recipient.

For financial service companies promoting low mortgage rates, you can customize your offer and terms for each individual in full color.  Even if you’re promoting something as specific as a VA mortgage, images and offers can be customized to appeal to veterans of different generations with the goal of creating more interest and increasing open and response rates.  The added benefit is that high-speed digital print technology cuts production time in half so you can get to your prospect’s mailbox faster than your competition!

Modern technology overcomes the challenges of limitations of traditional A/B testing, while Direct Mail Depot’s experience enables you to expand your direct mail testing with confidence.  If you’d like see examples for yourself and discuss what’s possible with direct mail testing, contact us today to schedule a consultation.

“I don’t want my mailing showing up in someone’s mailbox on the same day as my competitor!”

This is a common objection we hear from companies as they plan their direct mail campaigns. They’re hesitant to commingle their direct mail because they’re afraid of sharing mailbox space with competitors.

For example, if mailings from Liberty, Geico, and State Farm are commingled, they could arrive in the same mailbox at the same time.

Of course, the same thing can happen if you drop your mail separately. In other words, a competitor’s mail could still be sorted together by the USPS and arrive on the same day! There’s no surefire way to avoid it.

The difference with commingling through Direct Mail Depot is the opportunity to save on postage. Let’s take a quick look at commingling and when it makes sense for direct mail marketing.

What Is Commingling?

Commingling is a process that involves combining, or commingling, the mailings of multiple companies to targeted areas in a way that qualifies for USPS postage discounts. A commingling provider like Direct Mail Depot can sort your mailings and deliver them to the destination Sectional Center Facility (SCF) and/or Network Distribution Center (NDC). SCFs and NDCs are USPS mail processing plants across the country.

As a result, you bypass intermediate processing facilities, reducing the number of stops your mail makes on the way to the households or businesses on your list. This saves the USPS a lot of work, which is why they offer postage discounts for commingling.

For example, pieces, you , which works out to about a penny per piece. If you’re mailing a million pieces, commingling could save you more than $10,000.

The USPS will essentially go through the same sorting process even if you don’t commingle through a provider. It just happens at a different time in a different facility and you’ll pay more in postage.

By commingling, you get the best postage rate because your mail is mixed with millions of other pieces of mail destined for the same NDCs and/or SCFs.

Again, even if you don’t use our commingling services, your mail could be mixed with competitor’s mail anyway. If Liberty, Geico, and State Farm are sending direct mail, and one household is on all three lists, all three mailings could be in the same SCF on the same day and delivered to the same mailbox at the same time.

The only difference is you won’t receive a discount on postage for commingling.

How Direct Mail Depot Approaches Commingling

The decision to commingle does not have to be an “all or nothing” proposition. Direct Mail Depot will analyze your mail to determine the most efficient way to ship and maximize your postal savings.

For example, we try to avoid dropping all mail locally, which the highest postage rate. It might make sense for you to drop-ship a portion of your mail and commingle the balance. Each mailing strategy is customized based on the density and geographical nature of your mail file.

The key takeaway here is that commingling is nothing to be afraid of. Just make sure you partner with a direct mail provider that knows the ins and outs of the USPS and how to optimize your marketing campaigns.

If you’re not sure if all or a portion of your direct mail should be commingled, contact Direct Mail Depot. We’ll analyze your mail file, explain your options, and help you minimize your postage costs.

Each year, the USPS introduces promotions and incentive programs aimed at motivating marketers to integrate new technologies and printing techniques into their direct mail campaigns.

It’s a win-win: by enhancing your mailings, you boost engagement and response rates while earning a 4 percent postage discount by meeting a few straightforward requirements.

Despite the interest from many large marketing agencies, some hesitate to proceed with USPS promotions. They often feel overwhelmed by new techniques and revert to familiar strategies.

However, running campaigns eligible for USPS promotional discounts is relatively easy, especially if you partner with a company like Direct Mail Depot that specializes in these campaigns.

Here are three USPS promotions for 2024 and how you can easily qualify for them:

Tactile, Sensory, and Interactive Engagement (available December 15, 2024 through July 31, 2025)

This promotion focuses on innovative paper stocks, inks, interactive elements, and finishing techniques. One of the simplest ways to qualify is by using a textured envelope.

Direct Mail Depot’s real-world examples include:

•  A soft-touch envelope with a velvet-like feel, used by a communications provider to enhance the mailing’s prestige.
•  A textured envelope mimicking the surface of a basketball, used by an insurance provider to appeal to sports fans, with other options like baseball or football textures.

These mailings not only qualify for the promotional discount but also stand out in the mailbox, catching the recipient’s attention. While there are other options like pop-ups or scented mailers, a textured envelope might be the easiest to implement.

Informed Delivery (Now through December 31, 2024, and all year in 2025)

Running an Informed Delivery campaign is simple: just provide an image that links to your website. This approach not only saves you 4 percent on postage but also doubles your advertising exposure at no extra cost!

Informed Delivery is a free USPS service that allows residential consumers to preview incoming mail and packages via a daily email. This email includes a color or black-and-white image of your mail piece before it arrives, with the added benefit that everyone in the household can see it, not just the addressee.

The physical mailing arrives along with a digital version linking directly to your website, creating an additional touchpoint.

Informed Delivery boasts high customer satisfaction and email open rates. Consider using it during the promotional period from Labor Day to Thanksgiving to save 4 percent on postage.

Informed Delivery has extremely high customer satisfaction rates and email open rates. Why not try Informed Delivery during the promotional period from Labor Day to Thanksgiving and save 4 percent on postage?

See the entire 2024 USPS Promotional Calendar here.

Still feeling uncertain about integrating these techniques into your marketing strategy? Let Direct Mail Depot assist you. With our experience in executing these types of campaigns, we can guide you through the process.

Reach out to us today to discover which tactics are best for your campaigns, how to qualify for postage discounts, and how to achieve optimal results.