Navigating the Postal Rate Increase with USPS Promotions for Direct Mail

When your business frequently uses direct mail marketing, staying ahead of industry and postal changes is pivotal for campaign success. Therefore, understanding the upcoming postal rate adjustments and how to leverage the power of direct mail marketing most effectively in 2024 as cost-effectively as possible is critical for a successful marketing ROI this year and beyond.

Come January 21st, 2024, businesses nationwide will begin to pay inflated postal rates, with First-Class Mail®, Marketing Mail^R and other USPS postage rates set to rise. USPS Marketing Mail® (formally known as standard rate) will experience a small increase of less than half a penny for popular letter rates.  First Class automated presorted letter mail rates are increasing one cent and postage stamps by two cents.

Strategies to Counterbalance: USPS Promotions & Incentives for Direct Mail

Amidst the changes, USPS introduces a silver lining in the form of discounts outlined by its annual Promotions & Incentives calendar. These savings are designed to mitigate costs and, in some cases, offer businesses a pathway to amplify the effectiveness of their direct mail campaigns. They encourage the execution of various direct mail tactics at a discounted rate to improve the effectiveness and frequency of direct mail campaigns.

These promotions encourage the adoption of specific mailing techniques and technologies, offering businesses an opportunity to test new embellishments while saving money.

Pro tip: you can run more than one promotion during overlapping promotional periods but only ONE discount can applied.

Each of these promotions is outlined in its own detailed guidebook containing the application and execution processes in complete detail on USPS’s website:

Personalized Color Transpromo (February 1 – July 31, 2024)

• First-Class Mail® presort & automation letters
  • Color Ink: 3% Discount off at Postage Statement line level
• First-Class Mail® presort & automation letters
  • Color Ink w/Reply Mail: 4% Discount off at Postage Statement line level

To apply for Personalized Color Transpromo discount approval:

• Get pre-approval of the mailpiece from USPS® via the Mailing Promotions Portal on the Business Customer Gateway (all reply pieces must include a valid IMb) and receive a Pre-Approval letter.
• Register for the Personalized Color Transpromo Promotion on the Business Customer Gateway via Incentive Programs.
• Prepare and submit postage statements electronically.
• Send out your mailing.

Tactile, Sensory and Interactive (February 1 – July 31, 2024)

• First-Class Mail® & Marketing Mail®
  • 5% Discount off at Postage Statement line level

To apply for Tactile, Sensory and Interactive discounts:

• Initiate a Service Request for Tactile, Sensory, and Interactive discounts through the Mailing Promotions Portal on the Business Customer Gateway. Attach a PDF copy of your mailpiece to kickstart the approval process.
• Print the details from your service request and enclose it with the sample. Specify your location during the service request creation. Dispatch your mailpiece sample to the address provided by the Mailpiece Design Analyst (MDA) assigned to your ticket. Approval decisions will be communicated through both the Portal and email.
• Enroll in the Tactile, Sensory, and Interactive Promotion on the Business Customer Gateway via Incentive Programs.
• After receiving approval, electronically prepare and submit postage statements. Proceed to send out your mailing.

Emerging and Advanced Technology (Now through June 1, 2024)

• First-Class Mail® & Marketing Mail®
  • Emerging Technology: 3% Discount off at Postage Statement line level
• First-Class Mail® & Marketing Mail®
  • Enhanced Emerging Technology: 4% Discount off at Postage Statement line level

To apply for Emerging Technology discount approval:

• Secure pre-approval for your mailpiece from USPS.
• Register for the Emerging and Advanced Technology promotion.
• Prepare and submit postage statements electronically, ensuring a seamless submission process.
• Send your mailings.

Reply Mail IMbA™ (July 1 – December 31, 2024)

• First-Class Mail®
  • 3% Discount off Static IMbA
  • 6% Discount off Serialized IMbA

To apply for Reply Mail IMbA™ discount approval:

• Work with the USPS Mailing and Shipping Solutions Center (MSSC) to set up a permit for QBRM and link that permit to your Enterprise Payment Account (EPA). MSSC will guide you in on-boarding this permit into IMbA.
• Get pre-approval of your QBRM pieces from USPS® via the Mailing Promotions Portal on the Business Customer Gateway (BCG).
• Register for the Reply Mail IMbA™ Promotion on the Business Customer Gateway via Incentive Programs.
• Monitor reports and invoices in the Business Customer Gateway to confirm you are receiving the discount.

Informed Delivery (August 1 – December 31, 2024)

• First-Class Mail® & Marketing Mail®
  • 4% Discount for mailers at Postage Statement line level
  • 5% Incentive for eDoc submitter

To apply for Informed Delivery discount:

• Lodge your pre-approval request through the Mailing Promotions Portal on the Business Customer Gateway, including a Ride-Along, URL, and a digital sample of your Mailpiece or a Representative Image.
• Enroll in the Informed Delivery Promotion seamlessly on the Business Customer Gateway via Incentive Programs.
• Showcase your interactive campaign by uploading it on the Mailing Campaign Portal. Accessible to all business mailers through the Business Customer Gateway (BCG) under the Additional Services tab.
• Following approval, electronically prepare and submit your postage statements, and proceed to dispatch your mailing.

Retargeting (September 1 – November 30, 2024)

• First-Class Mail® Postcards
  • 5% Discount off at Postage Statement line level

To apply for Retargeting discounts:

• Secure pre-approval for your retargeting process and technology solution through USPS.
• Enlist in the Retargeting Promotion seamlessly.
• Electronically prepare and submit your postage statements for a smooth approval process.
• Dispatch your mailing once all the necessary steps are completed. Top of Form

Phoenix makes it easy for our customers to qualify for postal promotions discount. We handle all the paper work! Allow one week for USPS approval. Therefore, if a printed sample is required for approval, make sure you plan for at least one week between print production and mail processing.

Leveraging these promotional discounts during their respective promo periods will more than offset the small increase in postage rates and yield net savings. Whether incorporating advanced mailing technologies or optimizing the use of specific mailing techniques, the goal is to not only counterbalance the cost increase but also elevate the impact of direct mail campaigns.

Achieving Direct Mail ROI with Phoenix

At Phoenix, we recognize that adapting to industry shifts is a necessity and an opportunity for growth. Our dedicated team is adept at navigating these changes and is poised to assist you in harnessing the full potential of USPS promotions for your direct mail marketing campaigns. We believe in not merely weathering changes but transforming them into advantageous strategies. Call or email us to learn how you can take advantage of the promotional discounts and save money, too.

Don’t let postal increases impede your marketing efforts. Reach out to the Phoenix Group today to explore how we can guide you through these changes and propel your direct mail campaigns to unparalleled success.