The U.S. Postal Service has recently announced another increase in postal rates. This is the third increase in 12 months—and the most mailing rates have increased during USPS’s 247-year history. 

For marketers and advertisers who heavily rely on direct mail, these rate increases can pose extensive budget challenges. To mitigate a hit to your ROI, it’s time to adapt your strategies to compensate for postal rate increases.

Data is the solution to optimizing your marketing spend. With an effective combination of first-party and third-party data strategies, you can easily navigate these price increases while maximizing your ROI.

With our long history in the direct mail industry, exclusive partnership with a national postal service provider, and deep data expertise, Deep Sync is uniquely equipped to help you succeed despite these changes. 

Is it still a good time to send mail?

Despite rate increases, mail remains a valuable marketing channel. With each stamp price increase, mail volume decreases.

For instance, after the postal rate increase in January 2023, mail volume decreased by roughly 9% year-over-year. This means that your target audience’s mailboxes are less cluttered—making it easier for your marketing materials to stand out.

Decreased volume creates a huge opportunity for marketers who continue to leverage direct mail effectively. But as mail becomes more expensive, data is the answer for a better return on marketing spend.

Harness the power of data

As mail becomes costlier, investing in data-driven strategies becomes increasingly essential to maximizing your ROI. Here are some key tactics to consider for your direct mail campaigns.

Use your first-party data

Your first-party data (1pd) is extremely valuable for direct mail campaigns. However, if your database is full of outdated, incorrect, or incomplete contact information, you will run into roadblocks. After all, you can’t reach your customers with a direct mail campaign if you don’t have their current address!

Having an established data hygiene process can help you ensure that your database remains clean, so you don’t waste resources sending to incorrect or outdated addresses. If you find that your database has a large number of missing addresses—or if you suspect that your contacts have recently moved—a data append can be immensely beneficial. 

With accurate address information, reaching your target audience by mail will be significantly more efficient.

Use analytics to your advantage

Monitor how recipients have engaged with your content in the past. If they have not engaged with your previous direct mail campaigns, they may be less responsive to future mailings. It may not be worth sending mail materials to them again.

Some contacts simply prefer SMS or digital outreach to direct mail. Therefore, sending them mail may not be the most effective use of your resources. Having insights into your customer can help you inform your marketing decisions.

In addition, Predictive Analytics can be used to determine which members of your target audience will be most responsive to direct mail. With predictive response modeling, you can improve response rates by as much as 26% by targeting the members of your audience that are most likely to respond. 

By leveraging data and analytics, you can identify the channels that are likely to be most effective for different segments of your target audience.

Use third-party data solutions

If your 1pd isn’t robust enough or you’ve exhausted your current database, third-party data (3pd) can help you identify and reach new audiences. Especially with rising costs, targeting the right audience is crucial.

Enlist a data partner to help you segment your audience. Audience segmentation will help you tailor your marketing efforts, allowing you to deliver hyper-relevant content that resonates with your customers.

A data partner can also help you expand your audience by suggesting third-party target audiences that closely resemble your current customers. Third-party targeted audiences can ensure you reach prospects that are likely to respond positively to your direct mail campaigns.

Embrace digital tactics

For prospects who seem less likely to engage with a direct mail campaign, consider digital outreach. While direct mail remains impactful, digital alternatives can be a cost-effective approach to engage with prospects and provide numerous touchpoints. Furthermore, leveraging digital tactics alongside direct mail—targeted at the same audience—can increase conversion rates by upwards of 65%. 

Leverage data to identify individuals that are likely to engage with digital campaigns, and allocate your resources accordingly. Pursuing digital outreach strategies—in combination with direct mail—can ensure you reach your target audience on their preferred channel. 

Maximize your ROI with Deep Sync as your Data Partner

Deep Sync equips marketers with the data-driven solutions and 3pd they need to optimize their campaigns and drive better results. In the face of postal rate increases, this is especially important.

As a trusted provider of first-party data solutions and third-party datasets, Deep Sync provides the tools you need to navigate the budgetary challenges posed by rising postal rates. By leveraging our robust data offerings, you can identify the right prospects, reduce the amount of wasted resources, and improve the efficiency of your campaigns.

While the recent postal rate increases may pose challenges for marketers and advertisers relying on direct mail, the power of data offers a compelling solution. By leveraging 1pd, using data and analytics, enlisting 3pd solutions, and embracing digital tactics, marketers can overcome these challenges and achieve a better ROI.

Navigating these rising prices is effortless with a trusted data partner like Deep Sync. With our extensive data expertise and high-quality, privacy-safe datasets, we can help you improve your targeting and minimize your wasted resources. Embrace the power of data, today.