1 May 2012 - 10:18am | posted by | 2 comments

Stamp price rise will prompt 'shift from direct mail'

Stamp price rise will prompt 'shift from direct mail'Stamp price rise will prompt 'shift from direct mail'

Monday's 30 percent stamp rise will drive UK businesses away from traditional mailers and towards electronic forms of communication, it has been claimed.

OpenText, a content management software company, believes the biggest stamp rise in almost four decades will prove a fillip to its industry.

"For businesses, customer communication through traditional direct mail has never been more expensive,” said Adrian O’Gara, OpenText UK’s director of field marketing for Europe.

"This is the biggest postal cost hike since 1975, and it has huge ramifications not only on direct marketing campaigns and budgets, but also other customer communications such as invoicing, as many businesses continue to rely on this traditional form of paper billing.

"Unfortunately the return on investment in traditional marketing inserts, which is already low, is now going to be even less compelling. Direct mail has increasingly delivered a very poor return on investment due to rising design, print and now mailing costs, as well as the inability to personalise or target individuals."

Comments

2 May 2012 - 16:48
Peter Stockton - Communisis's picture

The Royal Mail price increases will have undeniable affects on the direct marketing sectors, but the level of this impact will be determined by the industry’s reaction. Increased costs are unavoidable and therefore, to remain viable, future direct mail campaigns will be required to deliver higher value for both the consumer and the brand. But this higher value is already available with leading direct mail providers harnessing the true power of the channel through sophisticated consumer targeting and the marrying of data insight and design to deliver their customers high ROI. This personalised approach results in significantly reduced levels of waste and cost, ultimately boosting engagement and increasing effectiveness. Rather than delivering poor return, direct mail is now more targeted, engaging and integrated than ever. Recent findings from fastMAP have revealed that direct mail is equal with email as consumer’s most preferred communication route, achieving an open rate of 90%. Further to this, earlier this year, direct mail was highlighted by the IPA’s Bellwether report as one of the few marketing disciplines to see an increase in the amount of budget being invested. This evidence goes to show that this industry is as vibrant as ever and this price rise will help ensure the channel continues to innovate to continue to deliver value for those who are wise enough to invest in it.

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2 May 2012 - 17:11
richa94716's picture

You need to look into the facts a little more, for example franked mail has not gone up 30% at all, its alot less, and most businesses use mail franking machines.

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