Jeanna Erickson
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Jeanna Erickson Returns to MMI Direct

Jeanna EricksonLook who’s back! We’re happy to have this familiar face return to MMI Direct. Jeanna Erickson joins our team as a List Coordinator, and she’s so excited to be working with family again. By the way, did you know she’s a disabled Navy Veteran?

When she’s not busy organizing lists for client mailings, she serves on the Daughters of the American Revolution Board, and she volunteers for a lot of nonprofits locally, too. (We knew we loved her for a reason!) See the photo of her volunteering for the Historical Society’s Murder Mystery at Kearney Mansion. How fun!

She calls Clovis, CA home (just north of Fresno if geography’s not your thing.) She absolutely loves to refinish furniture and enjoys shooting photos in her spare time.

Fun fact! She’s allergic to most fruits and vegetables, and she has 3 boys ages 15, 26, and 29. She also has an adorable cat named Kelly (pictured here.)Jeanna Erickson

We’re happy you’re back among family, Jeanna!

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DIRECT MAIL INDUSTRY UPDATE
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Direct Mail Industry Update: Paper, Postage, Logistics and More

DIRECT MAIL INDUSTRY UPDATEThe PMG Family continues to monitor direct mail industry trends that impact our clients’ fundraising and marketing programs.

Paper

Major paper mills have announced paper cost increases of approximately 8 – 10% effective May 1, 2022, according to our key suppliers. Envelope window film, adhesives, cartons and freight costs are also increasing. Fuel surcharges from carriers are the highest our suppliers have ever seen. Another paper cost increase is expected this fall.

Paper allocations remain strict and many suppliers believe this will continue through 2023. Paper producers are eliminating certain paper grades and transitioning to packaging grades in some instances, while other mills are closing permanently. Meanwhile increased demand, increased shipping costs and ongoing staffing shortages are driving up prices.

Envelope suppliers are still operating with 12 to 15 week lead times, and offset and web printers are seeking orders for paper six weeks to three months in advance of when art files are due, depending on the type of materials and quantity.

Label Stock

The ongoing Finnish Paperworkers’ Union strike at several UPM mills in Finland, a major global supplier of label materials, continues to have a serious impact on direct marketing programs. Domestic suppliers of label stock are unable to make up for the demand and are on strict allocations. Currently the strike is expected to end April 30th but manufacturing could take up to three months to reach pre-strike levels. Our suppliers are requiring four months or more lead time on label orders. Given the dire situation, The PMG Family production teams are working with our clients to explore alternative package components and formats.

Pre-Purchasing Materials

The PMG Family provides its clients with continuous guidance on budgets, schedules and changing lead times. In certain situations, we’re able to purchase materials or components (such as envelopes) for multiple months at a time and maintain inventories to help keep printing costs down. This approach may be easier to accomplish with smaller to medium-sized print runs. Clients with larger mailings may have difficulty securing the amount of paper necessary for multiple months.

More Practical Tips

Streamline client review processes to enable earlier art and data approval times and more timely delivery.

Clear direction and insisting on regular QC steps reduce the risk of errors and delays in this high pressure environment.

Include your production partner in your annual program planning to anticipate challenges, and to find efficiencies and cost savings.

Also involve your production team in the initial strategy and creative development of each project – they can advise on the best formats, processes, and stocks – and what to avoid – given current industry trends.

Postage

On April 6th, as expected, the Postal Service filed new mailing rates effective July 10, 2022 which use the full authority granted by the Postal Regulatory Commission (PRC):

July 2022 Price Increases for Nonprofit Mail:

  • Marketing Mail: 6.791%
  • First Class: 6.793%
  • Flats: 8.826%

The PRC is expected to officially approve these proposed prices before they go into effect.

Save money through postal logistics to combat ongoing postage increases.

Increasing commingling volumes to achieve the lowest rates possible is one of the easiest ways to save on postage. Commingling combines your letter mail with other mailers to increase volume to the intended Zip code and delivers mail deeper into the mail stream by skipping postal facilities, achieving significant postage savings and more predictable delivery.

The PMG Family and its MailSmart Logistics team recommend a free Postal Logistics review to uncover potential costs savings in your direct mail program.

The Alliance of Nonprofit Mailers (ANM) and other industry groups continue to pressure the PRC to reduce postage rates. This week the ANM filed a petition with the PRC requesting that the regulator immediately start a new review of the USPS rate system and end above-inflation postage increases. This is a longer term goal, however, with no short term relief in sight.

 Logistics and Overseas Production

Diesel fuel prices have risen above $5/gallon and with the ongoing war in Ukraine will probably remain at elevated levels for some time to come. Fuel prices effect the cost of all freight, be it ocean, rail, or trucking, and impact all steps in the supply chain, as noted above with paper costs.

The door-to-door delivery times from China to the Port of Los Angeles have dropped from an average of 40 days to an average of 30 days which is good news for organizations that use premium-based mailings.

The U.S. Trade Representative has a deadline of July 6, 2022 to review the China Section 301 Tariffs. Unless they take specific action to renew them, the tariffs will expire and will no longer be applied to China products.

With chronic paper shortages, postage increases, inflation and ongoing supply chain pressures, a strong production management partner advocating for you every day is essential to your success.

The PMG Family team continues to keep our clients’ direct marketing programs on track, despite all the challenges facing our industry.

Please contact us if you have any questions or concerns.  We’re here to help!

Additional Resources:

RKD Group GroupThinkers Supply Chain Podcast

MSL Return Mail Tracking Blog

Alliance of Nonprofit Mailers Petition to the Postal Regulatory Commission to End Above inflation Postage Rate Increases

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Three New Faces Join MMI Direct Team

We are happy to announce the addition of three new members to the data processing team at MMI Direct! We’re excited to have them join our ranks. Welcome Carole, Chris, and Hailey!

Carole Dixon

If you ask Carole Dixon how long she’s been in the Direct Marketing industry, she’ll laugh and tell you it feels like forever. She joins MMI Direct as Senior Account Manager with over 30 years of experience in the field. She’s especially excited to lead the Direct Marketing 101 courses and looks forward to mentoring people who are newly entering the industry. But her world isn’t all merge/purge: she loves hiking with her “ultimate travel partner” who also happens to be her son. They’ve been all over, from the rugged terrain of the Zion and Bryce Canyon to the scenic glaciers of Iceland and Banff! She also moonlights as a pickleball instructor and holidays at her house always involve everyone getting out and playing. Welcome, Carole!

chris eckertAsk Chris Eckert about himself and he’ll respond that he’s “just a regular dude who does data.” He has worked in direct mail for the last 22 years with “at least” 15 of those in data processing. In a past life, he was a sous chef for a catering company and specialized in making those fancy trays with cutout fruits. At home, he makes ample use of his kitchen (much to the delight of his wife and daughter) and always finds the time to throw a slab of meat on the smoker. He joins MMI Direct as a Senior Account Representative/Data Specialist and will be processing data for our clients. Welcome, Chris!

hailey gibsonA new face in the industry with a lot of energy and a passion for helping people, Hailey Gibson joins the MMI Direct data team as a Data Conversion Analyst. She can’t wait to jump into the world of data processing with a strong team and start making a real impact. Always the go-getter, she’s a big gym person who loves to work out and be adventurous! That might include hiking or off-roading with her Jeep club. Here at MMI Direct, Hailey will be converting data for our clients’ programs. Welcome to the team, Hailey!

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Direct Mail Trends for Remainder of 2021 and Beyond

Direct Mail Trends We’re Watching: Postage, Delivery Performance, Paper and More

direct-mail-trends-2021-beyond reportMMI Direct and the PMG family are monitoring several critical industry trends as we enter the fall mailing season:

Postage:

New postage rates go into effect August 29, 2021. Commingling rate increases are compounded by rising fuel costs, truck driver and transportation shortages and a persistent labor shortage. Yet increases for non-commingled mail are even higher.

Our colleagues at MailSmart Logistics highly recommend an initial Postal Logistics review to uncover any cost savings in your mailing program. Increasing commingling volumes to achieve the best rate possible is one of the easiest ways to save on postage, especially now.

A package design review may also reveal opportunities to modify the weight and thickness of your “flat” mailings and move into a less expensive letter rate package that can commingle versus more costly drop shipping. Freight costs are increasing significantly for drop shipping.

Mailers can also save 2% on postage this fall by participating in the USPS Informed Delivery Promotion effective September 1 – November 30, 2021.

Mail Delivery Performance:

In a recent USPS Industry Alert, service delivery performance data for July 1st – August 12th showed steady improvement across First-Class, Marketing and Periodical mail categories from the 3rd quarter ending June 30:

  • First-Class Mail: Delivered 88.8 % of First-Class Mail on time against the USPS service standard, an improvement of 1.3% from the third quarter.
  • Marketing Mail: Delivered 92.6% of Marketing Mail on time against the USPS service standard, an improvement of 1.6% from the third quarter.
  • Periodicals: Delivered 82.4% of Periodicals on time against the USPS service standard, an improvement of 3.1% from the third quarter.

Our supplier partners are reporting performance levels of client mail slightly below the USPS reported data, most likely due to the limited amount of mail included in the USPS measurement.

The USPS is trumpeting its service level improvements but is now officially slowing delivery of mail. On August 6, the Postal Service announced its plan to move ahead with lengthening the service standards for almost 40 percent of First Class Mail and 7 percent of Periodicals Mail beginning next month. Deteriorating service will most likely have a negative impact on mailer volumes and USPS revenue. Through pressure from Alliance of Nonprofit Mailers, The Nonprofit Alliance and other industry groups, we hope this misguided decision will be reversed.

Paper & Materials:

Paper shortages, delivery delays and price increases continue. Paper allocations remain very strict through at least October. On-the-floor inventory at our suppliers is depleted. Paper producers are eliminating some paper grades and transitioning to packaging grades in some instances, while other mills are closing permanently. Meanwhile increased demand, increased shipping costs and ongoing staffing shortages are driving up prices.

Environmental-spec papers like Forest Stewardship Council (FSC) and Sustainable Forest Initiative (SFI) stocks are limited. Clients that require these environmental certifications on their mail pieces limit alternative paper sourcing options. Some organizations are dropping their logo requirements temporarily to allow more flexibility in substitute stocks.

Suppliers that focus on coated stocks expect another paper cost increase of 5-7% this year, with at least two increases projected for 2022. One of our leading suppliers in offset paper stocks expects price increases of 8-9% by the end of 2022.

Suppliers are also seeing rising costs for other materials, including pigments and chemicals used in ink, polybag substrate, fuel and freight. Cost increases of at least 5% are expected in 2022 across these categories of materials.

Despite shortages and cost increases, demand for printing is high. Many of our suppliers are operating at capacity. Labor shortages and the threat of Covid/Delta Variant outbreaks could further impact schedules and lead times. Last minute drop-in projects often can’t be scheduled, so long-term planning, ample lead times and sticking to art and data schedules are critical.

Overseas Production:

Though ocean freight costs continue to rise, our suppliers’ relationships with ocean freight companies allow us access to containers when others cannot get them. These relationships contribute directly to our ability to meet our clients’ mail dates.

Flexibility in budgets is helpful when scheduling is the priority. Switching to a faster yet slightly more expensive production process, for example, jet printing envelopes instead of using flexo, can help meet your mailing deadlines.

MMI Direct and the entire PMG family are constantly finding ways to keep your direct marketing programs on track despite all these challenges.

We will continue to advise you on how these trends may impact your project budgets and schedules this fall and into 2022.

Please contact us if you have any questions or concerns. As always, we’re here to help!

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Do a Deep Dive Into Your Acquisition Merge/Purge Reports This Summer!

It’s Acquisition Season. Do you really know what’s going on in your merge/purge process?

Avoid looking only at your bottom line mailing quantity when you receive merge/purge reports from your data partner.

Instead, understand the merge process, analyze the details and dynamics of your data, and discuss the findings with your internal team, your data provider and your list broker. This will help you make much better business decisions about your prospecting campaigns.

Check out MMI’s “Demystifying Merge Purge Processing Reports” on demand training to get a thorough explanation of every merge purge report, plus valuable insights, testing ideas and red flags to watch out for from our expert trainer Marvin Dawson. So much learning in just 50 minutes!

We’ve also put together this Acquisition Data Merge Purge Reports Checklist to help you dive deeper into your merge/purge process:

  1. List of Lists: Documents all files received, quantities declared, and file conversion input and output statistics. Includes all lists in the merge: house files, rental lists, exchange lists, and suppression files. Look for significant variance between ordered and received quantities.
  2. List Hygiene Report: Usually all lists from the List of Lists will appear here, unless mailer specifies that certain files do not go through hygiene processing: lapsed donors, active donors, non-donor house files, outside prospect lists. This reports provides hygiene stats of individual lists.
  3. List Processing Report: Shows you what names were dropped prior to the merge. Review reject categories to make informed decisions about dropping names for future mailings. Drop categories can include: Deceased, NCOA, Prison Addresses, No ZIP+4/No ZIP, Unique ZIPs, Business Addresses (with or without individual name), Temporary Moves, Disaster Areas, Profanity/Buzzwords, and Vacant Lots. Are any of these categories higher or lower than you anticipated?
  4. Merge/Purge Summary: Look for unusually high number of drops. Are the percentage of names kept as you expected? Look for unusually high (or low) hits against another list or suppression file. Examine individual list information if you see something out of the norm.
  5. Match Analysis Matrix: This report shows the interaction between lists by percentage of matches and quantity of matches. Helps you understand the lists that have high percentages of overlap as well as lists that don’t overlap much at all.
  6. Multi-Buyer Summary: Multi-Buyer names appear on more than one acquisition list and typically perform better than individuals who appear on only one list. How are you going to cultivate them?
  7. List Broker Report: This report reflects all processing from the receipt of files through the merge/purge un-duplication process. Shared with your list/data brokerage partner to show input and output detail of each list for campaign reporting and future list planning.
  8. Counts by Package/Source Code: Unique source codes are assigned to each list and can be created for each package/list combination to precisely track results.

Merge/purge processing is a critical part of your donor prospecting strategy, so dive in!

Start by watching “Demystifying Merge Purge Processing Reports” on demand training featuring Marvin Dawson’s not-to-be-missed Pro Tips!

Contact us if you have any questions about your merge/purge process, or if you need help with your next acquisition campaign!

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ON-DEMAND TRAINING: MMI Direct Demystifying Acquisition Merge/Purge Reports

Learn how to decipher and analyze acquisition data merge/purge reports to make better decisions about your direct mail acquisition campaigns. Dive deep into list of lists, broker report, merge/purge summary and more! Discover the true meaning of each report, learn to identify potential red flags, and gain confidence in your acquisition data processing know-how in this insightful training.

Marvin Dawson is your instructor in this fun and informative course in the latest of PMG’s Incredibly Useful Training Series.

 

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MMI Direct Good Creative Bad Data
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Don’t Let Bad Data Ruin Your Clever Creative

MMI Direct Good Creative Bad DataI recently received this mailing from my local Toyota dealership.

It uses visually interesting techniques and a fresh messaging approach along with highly personalized data. 

The outer envelope features a realistic faux handwriting font in blue ink, and a slightly askew stamp. The back flap contains a return address but no name. These techniques increase “open-ability” – the letter looks personal and there’s some mystery around the sender.  

Inside is a one page Microsoft Outlook-style email message with “URGENT: Exclusive Offer for Polly” in the subject line. The email is from the general manager of the dealership to a team member about me and my 2017 Toyota Tacoma and how the dealership should pay me top dollar for my truck, with an urgent tone.  

It’s fun reading an email about yourself that’s not addressed to you. A yellow sticky note with the realistic blue ink handwriting “Polly, Please call me!” is attached to the email print out. 

The creative nails it –  clever, fresh, a quick read with a clear call to action. 

BUT, the data is totally wrong:  

“Please contact Polly and let them know that I want to purchase their 2017 Toyota Tacoma.”  

OOF. I never owned the 2017 Toyota Tacoma. It was a leased vehicle. And I turned it in about a year ago, in June of 2020.  

Wow! Such a great creative approach, that fails miserably due to really bad data. It doesn’t even make sense for me to respond since the offer is completely irrelevant to me. 

Data hygiene and data accuracy are so critical to the success of your marketing campaigns. At MMI Direct, we focus exclusively on quality data hygiene and data processing services for our clients. We use 8 Levels of Data Hygiene tailored to your unique data set, strategy and goals.  

Get your free MMI Direct “8 Levels of Data Hygiene” Checklist. And contact us at any time with your data hygiene questions. We want you to be successful! 

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ON-DEMAND TRAINING: MMI Direct Acquisition Data Merge/Purge: The Basics

Find out how a direct mail acquisition data processing program can help you optimize your data merge/purge strategy and process, improve mail deliverability, reduce your production costs and postage rates, and more!

Marvin Dawson is your instructor in this fun and informative course in the latest of PMG’s Incredibly Useful Training Series.

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ON-DEMAND TRAINING: MMI Data Hygiene Training: The Basics

Direct mail data accuracy is vital, now more than ever. Find out how a thorough, customized and ongoing data hygiene program can provide you with the clean and accurate data you need to improve mail deliverability, get your mail delivered faster, reduce your postage rates, and more!

Marvin Dawson is your instructor in this fun and informative course in the latest of PMG’s Incredibly Useful Training Series.

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Say Hello to Zakk Becker

Got a question about data processing? Zakk Becker probably has the answer! Zakk has joined our MMI Direct family as the new Senior Account Manager Data Specialist and will be processing data for our clients and their mailings.

Zakk has lived in the data world for some time. He’s been in the mail industry for fifteen years and the printing industry for over twenty years. He spent the last ten of those as a director of data processing working with mail houses and print shops. He’s excited for the opportunity to do more in his new role and looking forward to taking on a new challenge here at MMI Direct. 

But he’s not just a man of ask strings, tracking codes and data hygiene. When he’s not up to his elbows in lists, he’s in the kitchen trying out new recipes that he found online.  There’s no dish he won’t try to recreate, and you’ll be happy to hear that 90% of them work out. 

A self-proclaimed coffee fiend and lover of all animals, Zakk was once a musician and a nightclub DJ.  It was while chasing his dreams of becoming a rock star that he discovered his love of cooking from working in various restaurants.

In addition to cooking and disc-jockeying, Zakk likes reading comic books, a habit he picked up as a way to kill time at the library while his wife tutored. Given the choice, he usually picks up Marvel from the shelf. Sounds like a super way to pass the time!

He and his wife, who teaches elementary school, also enjoy hosting their nieces and nephews over on the weekends and sending them home full of sugar. Ah, the simple things. 

We’re thrilled to welcome Zakk to the MMI Direct team. And if he ever needs any volunteers for those online recipes, we’ll happily sign up!

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