Direct Mail answers for PR & Marketing Professionals, Nonprofits, and Small Business

Breaking News: Every Door Direct Mail Now Requires a Login

2012-02-01T21:38:09-05:00

If you use Every Door Direct Mail Retail for marketing, then you must read this.

Unfortunately, the United States Post Office now requires a login before you can print the required paperwork and before you can use their website to get a count of your prospect area.

Launched nearly a year ago, the spirit of EDDM (Every Door Direct Mail) was to provide a simplified option for entrepreneurs and small businesses to leverage the power of direct mail marketing.

Overall EDDM has been a success for both small businesses and the USPS; however, this latest change represents a step backward. Instead of making EDDM easier, the USPS is making it more complex.

I was astounded at how complex it was to login to the new EDDM site the first time. In fact, the initial login involved navigation through seven different screens.

So that you don't have to suffer through the same frustration that I did, I decided to include screen shots of the mandatory screens with yellow oval highlights showing where to click to progress through the required steps successfully. Most screen shots are cut off on the right-hand side; simply click on any of the images in this post to see a full-size screen shot.

Click on this link to get to the main page. Then click on the EDDM Retail Button as displayed in the in the bottom left of the graphic below.

Next, you’ll need your e-mail address & password to LogIn and move forward. Enter this info in the top right and click the “SignIn” button. See below:

What if I forgot my password? You may have been using EDDM without a password for as long as ten months. As a previous EDDM customer, you would have been issued a Customer Registration ID (CRID) number. It's mandatory that your CRID number be placed on all EDDM postage statements.

Your "username" should be the e-mail address that was used when you first registered with the USPS and got your CRID number. Simply click on the "I forgot my password" link directly below the login prompt and enter your e-mail address to receive your new password.

On the next screen, you’re required to check a box in the bottom left hand corner and then click “Next” on the bottom right to proceed. Be careful, it's easy to overlook the check box.

Simply click the “Continue” button on the right-hand side of the screen.

Be careful, the next screen has a bunch of different menus, so it's very easy to get confused. Look for the 4th Heading down titled “Mailing Services” then select “Every Door Direct Mail on the right-hand side.

Now, to make you feel as if you've made no progress at all, you are brought back to the first screen that you started with-this is the part that really confused me.

At this point, you've got two options for selecting "EDDM Retail." You can again click on the EDDM Retail Button in the bottom left or you can click on the text “EDDM Retail” that appears in the blue bar that runs across the top of the page directly underneath the USPS Logo.

You will then be delivered to the screen below where you’ll be able to run a query/count or print all of the paperwork that you’ll need to launch an EDDM Retail Campaign.

After logging into the USPS Business Customer Gateway the first time, subsequent logins should be easier. Simply bookmark the page displayed below. Here's a live link to the page if you want to save it as a bookmark or favorite. You'll need to click the "EDDM Retail" button in the bottom left.

You'll then have to re-enter your username and password (unless you've programmed your browser to automatically store your password for this site). Then click the blue "SignIn" button.

Finally, you'll be back to the screen below where you’ll be able to run a query/count or print all of the paperwork that you’ll need to launch an EDDM Retail Campaign.

Yes, the USPS made a mistake by making EDDM Retail more complicated, but this does not negate the fact that EDDM is still a relatively simple and very cost-effective method for marketing to prospects located in a particular geography. If your most likely customers are located in a specific neighborhood and you're not already using EDDM, you could be making a huge mistake.

If you want to take advantage of this program, but don't want to worry about the tedious navigation and research involved, I hope you'll please contact me. I launch EDDM Retail campaigns every day for my clients.

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What do you think are the best and worst features of Every Door Direct Mail Retail? Please share your comments below.

Dear USPS: Here's How To Get More Love from Business Mailers and Increase Your Revenues in the Process

2012-01-12T22:46:32-05:00

Dear USPS,

We the business mailers, nonprofits and marketers are here to help you! If you help us, we'll help you become profitable. Does this sound like a pretty good deal? If so, here are a few simple suggestions to help get you moving in the right direction.

I'd like to start out with some positive feedback. The 2011 launch of Every Door Direct Mail was a baby step in the right direction. However, even with the introduction of this simplified bulk program, there is still substantial room for improvement. Here's where I think improvement is needed:

Simplicity: The EDDM website uses "postal speak" and offers marketers the opportunity to target by carrier route. Do you know which carrier route that you live in? Most people don't. In fact, most people refer to the neighborhood or community that they live in by name. Until the USPS can provide a product that offers users the ability to target people by neighborhood, they will continue to alienate a large audience of prospective customers.

The EDDM site offers the ability to target an address using a USPS-generated map, but in my experience it's still very confusing to determine exactly where you are mailing with any level of confidence.

The best solution that I've found to this is to make a small, one-time investment in a carrier route map of the specific county, zip code or state where you will be doing your marketing. These maps can be purchased instantly online at Maponics.com.

I personally use maps from Maponics.com to confirm that I am targeting the correct neighborhoods for my clients. For anyone attempting to do-it-yourself, I think these maps are indispensable. (Psst-you can use any of the above links to save 10% off of the regular carrier route map prices).

Consistency: The main URL to access the USPS Every Door Direct Mail portal was changed. That's right, marketers like me bookmarked your site and educated our clients about the new EDDM site. I even created, printed and distributed educational flyers listing the EDDM URL. All of this information is now incorrect.

Missteps like this make you, your own worst enemy. We want to use your services, but instead feel like rats in a maze where the piece of cheese is constantly being moved. The original URL was linked to the new URL for a period of time, but it's now long expired. Please try to view the decisions that you make from your customers' point-of-view.

Flexibility: Right now EDDM is only available for Flat-sized pieces. The natural evolution of this program is to also make it available for letter-sized mail pieces. I've spoken with dozens of frustrated customers who've ordered a large amount of postcards only to discover that standard sized postcards don't currently qualify for EDDM.

Personalization: EDDM is an economical solution for a geographically-based prospect audience, but it does nothing to help small businesses who want to market to their existing customers using bulk mail.

Ask yourself how you can simplify existing bulk mail programs, or launch new programs that will make it easier for business mailers and nonprofits to market to their existing clients using mail.

As the USPS, you own direct access to every customers' mail box-this is what differentiates you from every other available marketing channel. This is your strength!

You must develop solutions & products that allow marketers to leverage this direct customer access. Please develop new product options with marketers in mind.

Make new product offerings as simple as possible, publish educational material that the average person can understand, and once we've figured out how to do something, please don't change the rules.

Marketers can spend a lifetime trying to access the customers and prospects whose mailboxes you control.

Stop encouraging marketers to use other channels by the decisions that you make or fail to make. There's a lot of money to be made for both the USPS and my fellow marketers if you can get this right.

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Please share your ideas for how the USPS can improve direct mail marketing in the comments section below.

Does Nonprofit Postage Save a Lot of Money?

2011-12-14T23:41:52-05:00

Getting approved to mail at the nonprofit rate is a big deal. On average it, will save you about 10 cents apiece in postage compared to the regular rate for bulk mail. However, when the nonprofit rate is compared to the cost for using a regular first-class stamp, you're looking at a savings of closer to 29 cents apiece-this is huge!

The postage rate increase scheduled for Jan 22nd, 2012, will not increase postage for those who mail letter-sized pieces at the nonprofit rate. This means that being approved to mail at the nonprofit rate will save you even more money starting in 2012.

Is it free to get approved to mail at the nonprofit rate? The number one misconception about mailing at the nonprofit rate is that there is a fee. The reality is that it's 100% free to get approved to mail at the nonprofit rate.

Now that you know it's free, you've got no excuses. Here's a link to an earlier post that explains the steps required to get approved, and also includes a link to the form that you'll need to complete.

Please understand that the USPS must first review your application, and this can take weeks.

If you are approved, however, you will receive a form in the mail that looks just like the once included below.

The form from the USPS will list your 6 or 7 digit authorization number. You'll want to make sure that this information is included on all bulk mail paperwork submitted by you or by a third party bulk mail professional like me.

Who qualifies to mail at the nonprofit rate? I was recently contacted by a 501C6 that did not qualify to mail at the nonprofit rate.

If you're not sure if your organization qualifies, a simple rule of thumb is that if donations to your organization are tax deductible in the US, then you most likely qualify. Here's a link to the USPS site, that explains more specifically who does/does not qualify.

What other restrictions are there? Once you're approved, the USPS wants to make sure that the purpose of your mailings is to benefit your organization and not a for-profit business. Rules are especially strict when partnering with credit card companies, insurance agencies or travel agencies. Read this short post for full details regarding this.

Is there such a thing as the first-class nonprofit rate? No, there's no such thing as the first-class nonprofit rate-this is despite people talking about this fictitious rate all the time.

Still confused? Here's a link to a short post that attempts to make sense of the different classes of bulk mail offered by the USPS.

Mailing at the nonprofit rate is a phenomenal way to save money and stretch limited resources. Too much money is wasted by nonprofits each year simply because they are not aware of this, or they have not taken the time to complete and submit the required paperwork. Please share this with any friends in the nonprofit industry who you think could benefit from this.

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What’s your experience mailing at the nonprofit rate? Please share your comments below.

Marketer's Nightmare: USPS Combines Slower Service with Higher Postage Rates

2011-12-05T23:10:39-05:00

Under tremendous pressure to reduce its deficits, the USPS has decided to increase postage rates while substantially reducing the speed of delivery for most first class mail. The postage rate increase is scheduled to go into effect on January 22, 2012, and now today, the USPS released its recommendations to slow down first class mail.

Does this make sense? It just seems counterintuitive for the USPS to say to its customers "We're going to offer you an inferior product, but charge you more."

While most organizations have been forced to reevaluate their business plans in light of a changing economy, I can't think of another organization brazen enough to do something like this. It certainly seems like an invitation for USPS customers to use competitors or come up with alternatives that do not involve the USPS.

As a bulk mail professional, I'm heavily committed to direct mail marketing. It's a cornerstone of my clients' marketing, so I'm certainly not ready to abandon it. While I'm very discouraged by this latest turn of events, ironically, there are some genuinely positive steps that the USPS has taken over the course of the last 12 months.

So is the USPS making any positive changes?
• Introduction of Every Door Direct Mail (EDDM)
Recognizing that the direct mail market for small businesses in the United States was largely untapped, the USPS took a step in the right direction with the introduction of EDDM. This simplified bulk mail program removes many of the barriers and complexities associated with traditional direct mail.

No mailing permit is required for Every Door Direct Mail Retail, postage can be paid for with a credit card and mailings can be dropped directly at the retail counter instead of the Business Mail Unit.

Additionally, the postage for Every Door Direct Mail is substantially less than traditional bulk mail; it's just 14.2 cents apiece.

Every Door Direct Mail and its rollout were certainly not perfect, but this program does represent a huge step in the right direction.

• Pushing back adoption of the Intelligent Mail Barcode
Raise your hand if you think the USPS is too difficult to do business with.

Any steps the USPS can take to reduce red tape and simplify the bulk mail process will only result in more satisfied customers and ultimately, more business.

By removing the requirement for the adoption of the Intelligent Mail Barcode, the USPS helped business mailers who didn't want to deal with the expense and complexity associated with this change. This decision shows that the USPS is capable of making choices based on what's easiest for their customers as opposed to what's easiest for the USPS.

• Discounted postage for bulk mail that includes a QR Code
In the Summer of 2011, the USPS launched a campaign that offered a 3% postage discount for bulk mail that contained a QR Code. The program was relatively easy to understand, and it was a very positive way to create some buzz around direct mail in the business community.

I liked this program, but wish that the USPS would have extended the discount indefinitely. I sincerely hope that they experiment with other discounted product offerings in 2012.

What will the future hold for mail marketers in the US?
In my opinion the key to the future success of the United States Postal Service is to adjust its product offering to reflect what consumers truly want. This is no different than what any other successful organization does to survive.

It's clear the USPS is capable of taking positive steps when looking at the examples above. Unfortunately, it's also capable of making bad decisions like raising rates while reducing service.

For the benefit of all of us who rely on direct mail marketing to sustain our business, I sincerely hope that the decisions made by the USPS in 2012 have customers' best interest in mind. This is critical for the profitability and survival of the USPS, and for the ongoing success of direct mail marketing.

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What do you think? Am I being too critical of the USPS? Am I being too soft? Please add to the conversation and share your comments below.

U.S. Postal Holidays for 2011 and 2012

2011-12-01T22:49:22-05:00

So why should a marketer care about postal holidays? Holidays are a time to prop up your feet and take a rest, right?

Unfortunately, while most government employees get a day off of work, the rest of us are still hard at work on many of these holidays.

Even though you may be working, no mail gets delivered on postal holidays and bulk mail campaigns cannot be launched. If you're a marketer, you need to be aware of all of these dates; they are essentially black-out days for bulk mail marketing.

Most importantly, holidays that fall on weekends wreak havoc on mailing schedules because the “recognized” holidays often get overlooked. It's almost like having a secret holiday and if you don't pay attention to these dates, you can easily get yourself in trouble by scheduling a project on a date that's actually a USPS holiday.

Both 2011 and 2012 have confusing weekend holidays. Today's short post will give you the low down on everything that you need to know to keep your critical marketing campaigns on schedule.

To round out 2011, Christmas actually falls on Sunday, December 25th, so the government is recognizing Monday, December 26th as a holiday for the USPS and most of the rest of the Federal government.

Although we'll roll into the New Year on Sunday, January 1st, the U.S. Post Office will recognize Monday, January 2nd, 2012 as a holiday.

Here are the rest of the days that the USPS will be closed in 2012:
•    Monday, January 16     Birthday of Martin Luther King, Jr.
•    Monday, February 20    President's Day
•    Monday, May 28         Memorial Day
•    Wednesday, July 4     Independence Day
•    Monday, September 3     Labor Day
•    Monday, October 8     Columbus Day
•    Monday, November 12     Veterans Day
•    Thursday, November 22     Thanksgiving Day
•    Tuesday, December 25     Christmas Day

Technically speaking, Veterans Day actually falls on Sunday November 11th, so Monday November 12th is the day that the Federal Government, including the United States Post Office, will recognize this holiday by closing for business.

What other changes by the USPS will impact bulk mailers in 2012? On January 22nd, 2012 there is a postal rate increase; click here for details.

Anything else I should know about postal holidays? Bulk mail or presort standard mail (often referred to as 3rd class mail) is the last in line for attention by the USPS. Nonprofit bulk mail is treated the same as standard bulk mail from a delivery urgency point of view.

During postal holidays, the whole mail system can get backed up, and in addition to the day lost for the holiday, there’s a very good chance that an additional day or two can be lost as the USPS gets back up to speed. With this in mind, it’s always a good idea to avoid scheduling time-sensitive mailing projects to drop the day before a USPS holiday.

Can I drop my bulk mail campaign on a Saturday? Although the USPS currently delivers mail on Saturday, the Business Mail Unit of the US Post Office is not opened on Saturdays. You can, however, drop Every Door Direct Mail Retail campaigns on Saturdays.

Can I use a credit card to pay for my bulk mail postage? No, the Business Mail Unit of the USPS currently does not accept credit card payment for bulk mail postage. Every Door Direct Mail Retail, however, is an exception to this rule because it is not dropped at the Business Mail Unit; it is instead dropped at the specified customer retail location.

As the USPS clamors for more business, hopefully they will reevaluated this policy and make credit card payment an option for all types of bulk mail.

Bulk mail projects involve successful coordination of many small steps, with delivery to the post office being the final step. Showing up at the post office on a postal holiday is a nightmare. Dropping your bulk mail project the day before a postal holiday can substantially delay delivery. Don’t risk blowing your critical deadlines by being unaware.

Pay It Forward: Please use the share buttons below to send this post to any friends or coworkers who are responsible for direct mail projects. You never know when sharing some important information like this can prevent a direct mail disaster.

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Case Study: Nonprofit Direct Mail Marketing: Why Simple Is Better

2011-11-16T23:42:41-05:00

Are you sincere about reducing marketing costs for your nonprofit? Then you'll want to read this short post.

Right now, I'm reading the biography of Steve Jobs, and one of the reasons that Apple was so successful under his leadership was his obsession with simplifying things. People love Apple products because they're easy to use.

With marketing, it's often difficult to embrace simplicity, yet in my experience, campaigns that are both simple and less expensive, often outperform complex campaigns that require larger budgets. With this in mind, I wanted to shine a light on a very simple nonprofit direct mail marketing campaign that got so many of the subtle, yet critically important elements exactly right.

As a vendor who works closely with the nonprofit community to process direct mail marketing campaigns, I feel pressure every day to pinch pennies for charitable organizations so that they can get more out of their limited marketing dollars. The challenge is that many of my cost-saving suggestions fall on deaf ears, so when I see someone who gets it right, I feel obligated to share.

So what's so special about this simple campaign?

1) Single-color ink: Just about everyone has a color printer in their office or home, so the default mindset is that everything should be printed in color-right? The reality is that for quantities fewer than 2,000 pieces, single-color printing can save substantial amounts of money-this is especially true with envelopes.

The Conservancy of Southwest Florida actually has a 3-color logo, but they also have an alternate single-color version that was used for this mailing project.

What about your organization? How many colors are in your logo? Do you have a single-color version? How would it impact the response of donors or volunteers if you started using a single-color version of your logo on some of your marketing? My suspicion is that it wouldn't have any impact at all to use a single-color version.

If you have board members who are obsessed about always printing a full-color version of your logo, this may be a good conversation to have. Before you raise the topic, do your homework and investigate how much money you could save and then share your arguments.

2) Nonprofit postage: Is your organization set up to mail at the nonprofit rate? Shame on you if not! It's 100% FREE to do this. Here's a link with instructions where you can download the paperwork and submit your request right away.

Contact me with any questions about getting approved to mail at the nonprofit rate. I've helped dozens of charitable organizations get approved.

The Conservancy of Southwest Florida mailed their invitation using the nonprofit rate. This piece was mailed to their most exclusive donor list. I know this may be shocking to you, but the truth is that millions of dollars are wasted each year by nonprofits who are not taking advantage of mailing at the nonprofit rate.

The savings are substantial. You're looking at postage of 15 cents apiece for automated nonprofit postage versus 44 cents (soon to increase) for a first-class stamp. Do the math and figure out how much money your nonprofit could save.

3) Automation: So what in the world is automation? Does it mean that your fundraising appeal needs to be prepared by robots? No, it does not; you can click here for a full explanation of automated direct mail.

Two simple benefits of automation are 1) lower postage (saving on average 5 cents apiece) and 2) speedier delivery by the United States Post Office. You'll notice the barcode printed at the bottom of the envelope. This intelligent mail barcode was added by my company BEFORE the mailing was sent.

For purists who think that the barcodes look ugly and make the mail piece look more like a solicitation, I have some bad news for you because if you don't print it one the envelope, the USPS equipment will. Don't believe me? Take a look at the mail that you receive at home today or at your office and notice all the barcodes. If you print the barcodes instead of the post office, you pay less postage.

4) Precancelled Stamps: Simply put, precancelled stamps look like first class postage but mail at the rate indicated in fine print on the stamp.

Notice the stamp on the image of the envelope. With the exception of postal geeks like me, most people will not ever realize that it's not a first-class stamp on the envelope. Here's a link that will tell you everything you need to know about precancelled stamps.

5) Mailing Labels: I hate using white mailing labels to address an invitation. I think they look cheap and tacky. You'll notice that the example piece from Conservancy of Southwest Florida has an address printed directly onto the envelope.

Of course your board will tell you that hand-addressed envelopes look better, but is your board going to hand-address them for you, and will your mailing get out on time? By hand-addressing, you'll also be sacrificing the tremendous postage savings that you get by mailing at the nonprofit rate, so my advice would be to limit hand-addressed appeals and invitations as much as possible. I think you'll agree that the font chosen for the sample piece still conveys sophistication.

I bet before you started reading this, you didn't realize the power of a lowly envelope. I didn't even talk about the piece inside, but now you see how the decisions associated with your envelope can impact not just the perception of your campaign, but the dollars and cents that you invest in every single mail marketing campaign.

Here's your homework: Take just one of the cost-saving ideas listed above and implement it in your organization before the end of the calendar year. It doesn't matter which you choose: single-color printing, mailing at the nonprofit rate, using precancelled stamps or automation.

Savings in any area will buy you the extra money that you're seeking for your next mail marketing campaign. By keeping your marketing simple and focusing on getting the basics right, you’ll be more likely to spend less and have a more successful campaign.

Remember, if you get stuck, you can always contact me, but you've got to take the first step.

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What are best practices that you've seen in nonprofit direct mail marketing? Please share your comments below.

Which Nonprofit Database Management Software is Right for Me? Interview with NonProfitEasy

2011-11-06T22:13:22-05:00

You can forget about mailing a successful appeal letter if your donor data is a mess.

I work with successful nonprofits on a daily basis to launch fundraising campaigns and other donor communication, but I have to turn others away because they are unable to produce an organized database.

As a direct mail professional, I have a vested interest in making sure that my clients maintain an organized database. In the spirit of getting things in order from the beginning, I present my fifth in a series of posts evaluating nonprofit database management solutions. Lomesh Shah from NonProfitEasy shares his answers below.

Here are NonProfitEasy’s Questions & Answers:

Is there a certain size nonprofit that your software is best suited for?
Our focus is on the small to medium community nonprofits. We target nonprofits with an operating budget between $100,000 and $2 million, although we have a couple of nonprofits that exceed that.

What do most users consider to be the 3 best features or benefits of your product?
1. Simplicity: We work very hard to ensure that the application is user-friendly and intuitive. If several users are struggling with a specific feature, we can provide additional training or we can modify the feature through a future update. All users have an opportunity to post and vote on potential updates to the system.

2. Affordability: One of the main challenges with database management programs for smaller nonprofits is the cost. Most of the community-based organizations are managing with very little resources. The product we develop has to provide value while at the same time give the nonprofit staff the tools they need to manage the day-to-day operations more efficiently.

3. Events Dashboard: This feature, along with the other Dashboard information, gives the users a quick snapshot of exactly where the organization is at a glance. Online registrations and ticketing is one of the most used features in the system.

Is there a trial version of your software available for nonprofits who would like to test drive it?
We have found that the best way to engage the potential user is through a comprehensive demo where we can actually walk them through the features that will benefit their organization the most. Unlike mass demos, we do an in-depth one on one demo and tailor that to the needs and concerns of the organization.

What sort of user training is available for your software and is it included with the price of the software?
The setup fee includes 2 one-hour training sessions. There are self-help tutorials, chat capabilities and free phone support which includes screen sharing capabilities so that they can visually see how to do certain things if they have questions.

When nonprofits are ready to launch a direct mail appeal, how do they export their mailing list?
That’s the beauty of NonProfitEasy. Any Advanced Searches or Reports you generate can be exported easily into Excel or printed.

As for Donation Acknowledgements, with NonProfitEasy, the nonprofit can customize letters before printing them and even print the envelopes. In addition, the application will document the activity so that you have a history of outgoing communication. Whether it’s a letter, postcard, or newsletter through direct mail or e-mail, NonProfitEasy can help organizations reach out to the community. And because we’re firm believers in making life easy, if they need to export data they can always download it to an Excel spreadsheet.

Why do you feel that it's important for nonprofits to invest in database management software? Nonprofits like stuff that is free. Unfortunately, when it comes to data management, free is not something you want. Data is critical to understanding the constituents and their propensity to give – time or money. Lost opportunities are seldom noticed when data is spread across different systems that do not talk to each other. Nonprofits exist for a specific purpose and it’s not to juggle data between systems.

Because NonProfitEasy was created by nonprofits, we understand and are firm believers in efficient management as a way to manage costs and pour more funds and time back into the mission. There’s no reason why a nonprofit should operate at a disadvantage when NonProfitEasy is available at an affordable cost.

About the Author
Lomesh Shah combines his proactive approach with more than 20 years of international corporate experience and business management expertise for the operations and management of NonProfitEasy. A business futurist and strategist, he has been a very strong advocate of using the power of technology for nonprofit management transformation. He has worked with small to mid-size businesses, privately-held companies and Fortune 500 corporations in various capacities from Sales and Marketing to overseeing automation and reengineering of processes and operations. He played an instrumental role in three startups before founding NonProfitEasy.

When not working, Lomesh volunteers with various non-profits in the community, bringing his business experience to the non-profits. Lomesh is very active in the Chamber of Commerce and is a mentor with the local small business incubator.

NonProfitEasy was born out of a need to help nonprofit organizations streamline the management of their businesses. Designed by nonprofits, NonProfitEasy helps organizations develop and manage stakeholder relationships (volunteers, donors, members, staff, board, foundations, government agencies, service partners) within one simple, integrated application. For more information, go to www.nonprofiteasy.com or contact Lomesh to request a free comprehensive demo.

If you enjoyed this post, you may also enjoy earlier nonprofit database management interviews with Dmitry Buterin from Wild Apricot, Mark Panger from Trail Blazer, Ellen Mowrer from GiftWorks or Peter Turk from Sumac.

By the way, if you already have your database figured out, but need help designing, printing and mailing your campaign, then I hope you’ll contact me for help.

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Please contact me if you are a nonprofit database management provider and would like to be interviewed for this blog. If you are a nonprofit and would like to recommend a particular vendor, or provide feedback on NonProfitEasy, please share your comments below.

Time for Another Postage Rate Increase from the USPS

2011-10-25T20:04:35-04:00

Do you include direct mail in your marketing mix? Then I'm sure you're not excited to learn that the USPS just announced a postage hike effective January 22nd, 2012. This represents the second postage increase in less than a 12-month period for the USPS.
Why is the USPS allowed to keep increasing postage rates? I get asked this question all the time, and as long as the proposed rate increase falls within the rate of inflation, there's no need to for approval from the US Congress or any other entity. In this case, the inflation rate is 2.1% (as measured by the Consumer Price Index) and the overall proposed hike falls below this number.

Will it cost more to mail a first class letter? Yes, the cost to mail a regular first class letter will increase from 44 cents to 45 cents. Of course if you want to stock up on forever stamps, you can preserve the lower rate for a longer period of time.

What about postcards? It will cost three cents more to mail each postcard; postage is going up from 29 cents to 32 cents-that's more than a ten percent increase-ouch!

How about foreign letters? Currently it costs 80 cents to mail to Canada and Mexico; this will increase to 85 cents. Mailing to all other countries is now 98 cents apiece, but will increase to $1.05 apiece.

How will this increase impact bulk mail rates? Both presort standard and first class presort are expected to increase about 2.1% across the board.

How will Every Door Direct Mail impacted? The rate increase will barely impact the relatively new Every Door Direct Mail program from the USPS. This new program was launched in April of this year, and it allows marketers to mail at the dazzlingly low postage rate of just 14.2 cents apiece; as of January 22nd, 2011 this will increase just slightly to 14.5 cents apiece. This is by far the most cost-effective way to utilize direct mail marketing to target by geography.

How will this impact those who mail at the nonprofit rate? I contacted the USPS directly regarding how this change will impact nonprofit postage since it was not addressed in their official press release. There's relatively good news for nonprofits.

To balance out the overall 2.1% increase, the USPS has opted to actually slightly lower the nonprofit postage rate for letter-sized pieces (6" x 11" or smaller) and slightly increase postage for flat sizes pieces that are larger than 6" x 11".

If you're a nonprofit, this means it's time to fold your newsletter in half before you mail it. A standard 8.5" x 11" newsletter mails at the higher flat rate, but by folding it one more time to 8.5" x 5.5" you can mail at the lower letter rate.

Remember, the post office prefers that you tab your newsletter at the top. If you don't want to worry about tabbing your newsletter closed, you can always drop your newsletter in a 6" x 9" envelope and still mail at the letter rate.

When was the last postage increase? The last USPS postage hike took place in April 17th, 2011. This increase was pushed through on the heels of a larger 5.6% increase that was rejected by Congress in late 2010.

The interesting thing about the last increase is that the rate of a regular first-class stamp was left unchanged. This meant that while the increase was felt by business marketers and nonprofits, it was largely unnoticed by the general public. It will be interesting to gauge public sentiment from this latest increase.

What other changes can be expected from the USPS? I'm disappointed that that the USPS has yet to push through a five-day delivery schedule. In terms of labor and fuel costs, this seems like a simple way to save a substantial amount of money.

While five-day delivery is relatively painless to the consumer, postal unions have leveraged their resources to fight against this every step of the way. I still think it's inevitable that the USPS will transition to a five-day delivery. My hope is that this happens sooner than later.

Although there's nothing that you can do to prevent the planned postage rate increases, smart marketers like you should use this as an opportunity to reevaluate your direct mail options. If you can transition any of your direct mail prospecting to Every Door Direct Mail, this will not only mitigate the postage increase, but it will actually save you a substantial amount of money in postage.

If you're mailing first class presort, you may want to consider using precancelled stamps and mailing at the lower presort standard rate.

If you have questions about which bulk mail options make the most sense for your organization, I hope that you'll please contact me for help.

Many thanks to my friends at Post & Parcel for breaking this story first.

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What strategies do you have for dealing with the planned postage increase? Please share your comments below.

Is Direct Mail Fundraising Still Pulling in the Lion's Share of Gifts?

2011-10-19T00:12:51-04:00

With all the noise about social media marketing and e-mail marketing, are you confused about how direct mail fundraising still fits into the mix?

Research published this year by nonprofit software giant, Blackbaud, shows that direct mail accounts for 79% of donation revenue for nonprofits. This answers the questions of "Is direct mail fundraising still relevant?" with a resounding "yes!"

So now that you've seen the numbers in support of direct mail fundraising, how do social media marketing and e-mail fit in?

How should nonprofits use e-mail and social media?

Technology news site, Mashable, examined the data from Blackbaud and came to the conclusion, that the most effective fundraising campaigns are coordinated, multi-channel efforts. That's right, synchronizing your traditional marketing and online marketing results in more profitable campaigns. In fact, according to Mashable, multi-channel fundraising campaigns result in three times better fundraising results-wow!

This means that instead of ransacking your direct mail fundraising budget and shifting it to social media or e-mail, you need to be sure to allocate funds to multiple channels. If direct mail marketing is responsible for 75% of your current fundraising, then you need to fund your direct mail appeals accordingly.

What steps should nonprofits take to increase their exposure online?

Successful social media marketing requires engagement. Engagement simply means interaction with your constituents, donors and volunteers. Engagement requires the substantial investments of one precious resource, and that resource is time.

It's easy to look at social media marketing and make an argument for how inexpensive it is compared to other forms of marketing, but this assumes that the required staff time has no value-which of course would be ridiculous.

You can't just sign up for a Twitter account and start a Facebook page for your nonprofit and expect people to flock there. You have to identify a team member, volunteer or paid consultant who can devote the time required to develop a presence, share relevant content, and interact.

This may sound daunting, but the good news is that another study published by Mashable shows that social media marketing is one of the few areas where smaller nonprofits can compete with the big boys. It's one area where your fundraising budget will not limit your success.

What's the best way for nonprofits to collect e-mail addresses?

E-mail marketing is viewed as another low-cost option for fundraising and marketing; however, many people forget that e-mail marketing is a permission-based form of communication.

Obtaining someone's permission to market to them via e-mail is not only the right way to go about it, but it's also mandated by the US Congress' Can Spam Act of 2003.

What about buying e-mail addresses?

I get asked on an almost daily basis by existing clients or blog visitors about purchasing e-mail addresses. I feel very strongly that purchasing e-mail addresses is the wrong way to go. A purchased e-mail address does not equal permission. Please take a look at my recent post How to Get More E-mail Addresses Without Being Labeled a Spammer for a more detailed look at this important topic.

So what's the key to get your marketing to work together?

The key to multi-channel marketing is to use the information that you already have about your supporters to fill in the missing pieces. If you have physical addresses, send a postcard asking supporters to sign up (give permission) to receive your e-mail communications. If you have e-mail addresses, invite your constituents to connect with your social media channels.

Send an e-mail campaign requesting supporters to share their physical mailing addresses. If you're worried about the logistics of this, you may want to consider using a PURL campaign. You can always hire me or another professional to manage the campaign for you. The data that you collect from existing donors is worth way more than any purchased list you could find.

Why go to all the trouble to set up multi-channel marketing?

Really, the key to improving your fundraising is to make it as easy as possible for your supporters to make a donation. The truth is that you don't get to decide how your donors want to interact with you, they do.

How donors choose to interact, may change from day to day. One day they may respond to direct mail, and the next day they may donate based on an e-mail solicitation. If you're reaching them across different channels, you are empowering your donors to support you using the channel that works best for them.

Going out of your way to make it easy for your donors, improves results and provides more money to support the important work that your organization is doing.

Like what you're reading? Have you signed up for my weekly e-newsletter yet or are you following my blog's rss feed?

Where has your organization seen success fundraising? Please share your comments below.

The Dynamic Duo: E-mail Marketing and Direct Mail Marketing

2011-09-26T23:08:17-04:00

Are you looking for more e-mail addresses for your marketing communication? I get contacted almost every day by people like you who want to purchase e-mail addresses.

The problem is that most people forget that e-mail marketing is a permission-based. Not only is getting permission the right way to use e-mail marketing, but the US Congress' Can Spam Act from 2003 mandates it. This means that it's almost never a good idea to purchase e-mail addresses to use for your e-mail marketing.

So what's another way to collect e-mail addresses?
Step 1: Create a sign up form. Prominently display your sign up form on every page of your blog or website. Make it as easy as possible for people to sign up for your e-mail marketing.

Here's an example of my sign up form. You'll also see a link prominently displayed in the top right-hand corner of my blog.

Step 2: Target the right people. Start with existing customers. Yes, you can use the physical addresses of your existing customers to get their e-mail addresses. I've launched many direct mail campaigns like this for my clients, and I can tell you that this is one of the most profitable ways to use direct mail marketing.

Since the people receiving the direct mail communication already know you-remember, these are your existing customers-they are very likely to pay attention and respond to your request to share their e-mail address.

How do I get people to sign up for my e-mail marketing campaigns? If you want to make your campaign even more successful, then offer subscribers a small incentive, reward or discount in exchange for their permission for you to market to them.

By the way, if you think for a minute that existing customers aren't worth investing your limited marketing dollars, then please take a look at my recent post, Your Marketing Blind Spot.

How do I prevent people from unsubscribing?
1) Find out what they are interested and talk about it. People are looking for solutions to their problems. If you share videos, blog entries, book reviews or any type of information that can solve problems for your customers, then they will pay attention to you and stay subscribed.

2) Offer them incentives. Coupons are the most common incentive, and this is a great way to keep people interested and engaged, but coupons and discounts are not the only way to keep people engaged. If you share information that helps to solve problems for customers and prospects, then you can keep some of the information private, and share it exclusively with people who sign up for your e-mail marketing.

How does this impact my budget? While it costs less to market to customers via e-mail, the "permission" thing gets in the way. So the reward for encouraging your customers to sign up for your e-mail marketing communications is that you're automatically stretching your budget by converting them to a less expensive platform.

What's the best way to communicate with my customers? Your customers are fickle, and you can't control that. Some days they may respond to an e-mail, others direct mail and on other days that may want to hear from you via social media.

In almost all cases, there is no single channel that will suffice for your marketing efforts.

How can I score my marketing efforts? If you're not marketing at all to your existing customers, then you earn an "F." If you are marketing using a single channel, then you are probably somewhere around a "C." Consistently marketing using two channels will earn you a grade of "B," and if you're using more than two channels, you've earned an "A."

If you think this grading system is silly, consider that the more successful you are at marketing to your existing customer, the more profitable you will be. The investments that you make marketing to existing customers result in additional business, a longer customer life cycle and referral business.

If you agree that this is really important stuff, but aren't quite sure how to get started, I hope that you'll please contact me. This is the type of stuff that I help my existing clients with every day. Let me help you realize the benefits of marketing to your existing clients.

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What do you see as the keys to marketing to your existing clients? Please share your comments below.