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The Return of the DMAW List Bazaar: Key Takeaways for Nonprofit Fundraisers

The ever-popular DMAW List Bazaar returned as a standalone event on May 11th in Washington, DC. MMI Direct’s Charlie Rice along with Polly Papsadore and Jaime Grams from PMG were on hand to spend the day engaging with nearly 100 fellow industry leaders and acquisition list professionals, including list managers, brokers, agency strategists, co-operative database representatives and data scientists.

Here are some highlights from the program’s many informative sessions:

  • An emphasis on lifetime value vs. short-term results. Dan Sonners (Conrad Direct) shared fascinating campaign results data from an advocacy client showing response rate, average gift and 12-month subsequent revenue per donor. A multi-issue survey had a lower response rate and average gift, but had the highest 12-month subsequent revenue per donor compared to a single-issue survey package and a membership appeal.
  • Multichannel campaigns that build around direct mail are most effective. Per Dave Lewis (Snailworks), “At the heart of a direct marketing campaign, direct mail remains the essential channel. Coordinating it with other channels, measuring and refining the campaign are keys to its success.”
  • Britt Vatne (Adstra) and Kelly Leach (CELCO) advised looking closely at suppression strategy and files. Untapped opportunities lie within.
  • Margaret Romig and Melissa Lancaster (Lautman, Maska, Neil and Company) offered testing advice for market expansion: test new markets, test lists and test creative, and provided great perspective on the testing process: “Fail fast … learn fast!”
  • A top-notch panel of data scientists recommended:
    • The donor pool is not shrinking. Consumer behavior is changing and donor prospects can now be found in multiple channels. But focus on affinity to the cause first, not channel first.
    • Modelers should get into the head of the consumer (donor): immerse yourself in the client’s product, mission, fundraising materials … not just the data.
    • Brainstorming on completely new audiences when planning program or campaign strategies.
    • Understanding merge instructions as they can dramatically impact results.
    • Tailoring messaging, not just modeling to succeed with younger demographics (it’s the creative experience).

The program concluded with a lively town hall focused on evaluating and modernizing current industry-accepted list standards with respect to co-targeting, use of post-merge data and transparency among stakeholders. MMI Direct’s recently promoted Senior Team Leader, Ross Fate will be joining the volunteer panel of industry experts undertaking this critically important initiative. Stay tuned for future updates from MMI Direct and the PMG family!

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Leverage USPS Promotions to Offset 2023 Postage Increases

Offset Postage Expense by Using USPS Promotions

There are two promotions that just began February 1 and run until July 31. We believe the most advantageous choice for nonprofits and commercial mailers is the Tactile, Sensory, and Interactive promotion. Mailers can achieve up to a 5% discount on postage for using various techniques that enhance the mailing, engage the senses – and get the donors and buyers to interact! From various stocks, coatings, even affixed member cards – there are a variety of techniques that may qualify.

  • Sensory treatments could include metallic inks and or colors that change in UV light. Think shine!
  • Tactile could include added textures such as embossing, varnishes, scents, or holographic effects. Think touch or scent!
  • Interactive can include complex folds, zip strips, and affixed cards!

The other promotion is the Personalized Color Transpromo. However, it is a bit more niche, as it is only for First-Class Mail presort and automation letters containing bills and statements and making use of digital variable technology. This promotion has also begun, and runs until July 31. The USPS provides upfront discounts up to 3%-4%; 3% to mailers who use dynamic and variable color print for personalized, transpromotional marketing messages on their bills and statements that do not include CRM or BRM and 4% discount for CRM or BRM inclusion.

The next upcoming promotion which will run from May 1- November 30, is the Emerging Technology promotion, which now includes Mobile Shopping. It can be as simple as placing a qualifying QR code on your mailing that leads to a donation page or as exciting as augmented or virtual reality! The postage discount ranges from 3-4%, depending on the technique that is used.

We expect more information on the new Reply Mail IMbA and Retargeting promotions, and the updated guidelines for the 2023 Informed Delivery promotion to be released soon!

As always, MMI Direct is here to help you realize the best savings possible. Please let us know if we can answer any questions  or assist in any way.

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Good News for Mailers: USPS Resumes Operations

Mail Delivery Resumes to Several Zip Codes in South Florida

It’s been four months since Hurricane Ian devastated southern Florida. As the areas on the Gulf Coast continue to rebuild the USPS has announced that it will begin to accept Marketing Mail letters and flats at several post offices. Mailers have been suppressing addresses in these regions from their data files to prevent Marketing Mail from arriving in the impacted areas, but no more.

Beginning Saturday, February 4, 2023, commercial and nonprofit mailers can send Marketing Mail to the following South Florida zip codes:

  • Bokeelia – 33922-9998
  • Captiva – 33924-9800
  • Fort Myers (Downtown) – 33901-9998
  • Fort Myers Beach – 33931-9998
  • Pineland – 33945-9800
  • Placida – 33946-9998
  • Saint James City – 33956-9998
  • Sanibel – 33957-9998
  • Everglades City – 34139-9800
  • Naples (Downtown) – 34102-6706

We’re here to help you resume your mail delivery to south Florida. Please reach out if you need assistance adding these zip codes back to your mail plan. 

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Data Processing 101
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Three Key Takeaways from MMI Direct’s Direct Marketing 101 Training Sessions

The MMI Direct team is on the road and online presenting DM101 Data Processing trainings to nonprofit fundraising groups throughout the year. Here are a few highlights from these popular sessions!

Data Processing 101
  1. Understanding Data Hygiene and Merge Purge processing will help you make better business decisions about your process and your overall direct marketing program. It’s time to get empowered!
  2. Data hygiene cost-saving tactics are more critical than ever! A quality data hygiene program: 
    • Reduces your postage rates
    • Reduces printing and mailing costs
    • Improves your campaign and program performance
    • Also improves mail deliverability and gets your mail delivered faster
  3. Tailor your Merge Purge Un-duplication Strategies to the different file types in your acquisition data set and your unique program requirements.
    • Which record should be retained when duplicates are identified? Consider these criteria when assigning data set priorities: List ownership, list cost/exchange agreement, and list type: test list, retest list or continuation list
    • Customize and test your un-duplication and match criteria strategies for different list groups. A tight match allows for very few variations on a record, medium allows for moderate variations, loose allows for many variations of each data element on the record. 
    • Learn how to analyze your data hygiene and merge purge processing reports so you can identify any red flags or opportunities to improve your process.

Want to learn more? View our fun and informative on-demand trainings on YouTube:
Data Hygiene: The Basics
Acquisition Data Merge/Purge: The Basics
Extra Credit! Demystifying Acquisition Data Merge/Purge Reports

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DMAW Political Lessons Learned Online Briefing: Key Takeaways for Nonprofit Fundraisers

Our colleagues at PMG recently sponsored the DMAW Political Lessons Learned webinar—a panel discussion featuring five strategy and data experts from the political realm: digital media consultant Gayatri Bhalla, Tracy Dietz of DonorBureau, Tiffany Delgado of The Lukens Company and Chrissy Hyre of CCAH, moderated by DMAW President Heather Philpot of Tunnl. The panelists boldly (and gracefully) crossed party lines to recap the mid-term election to make all of us better direct marketers and fundraisers.

Here are some highlights from this informative session:

1) This summer’s SCOTUS decision in Dobbs v. Jackson Women’s Health Organization was pivotal in altering the expected outcome of the election…and who voted. Younger voters made their turnout felt on November 8th and will continue to shape direct marketing strategies as orgs develop effective programs to reach and engage with them.

2) Spending surpassed the high-water mark set in the 2020 election cycle and OTT (Over the Top) and CTV (Connected Television) increased significantly as a percentage of overall media investments. Big thanks to Gayatri for differentiating these two! Over the Top refers to the delivery mechanism for non-cable and non-satellite content that is viewable on mobile, desktop or connected devices. CTV is a subset of OTT that is viewable on the largest home device. For example, OTT: Streaming Hulu on mobile device. CTV: Streaming Hulu (OTT media) through a stick plugged into the television.

3) Each panelist emphasized building a mobile program as a top priority. Mobile constituent/donor lists are reaching parity with email lists, and growing yours might be your single most important investment.

4) Forward-thinking organizations that invest in OTT and mobile to reach the newest generations of supporters will succeed in the years ahead. Younger voters do not read emails and they do not watch broadcast television.

5) Texting, TikTok, Streaming, Digital Video and Mobile are certainly reaching a tipping point, but Chrissy reminded us that tried and true direct response tactics are still effective, especially when organizations can enhance their audience segmentation through data sharing and targeting models based on demonstrated donor behavior.

6) Audience segmentation in political fundraising includes national donors who donate to candidates in states other than their own, individuals who donate to female candidates, or military candidates, and donors who give to lightning rod issues that may cross party lines, like we saw in this election. Interesting stuff. And Tracy emphasized that targeting the right people with the right message is crucial.

7) Whether you think “the next two years are going to be the best for fundraising” given that panic and anger are strong donation motivators OR you believe “the next two years are going to be the best for policy,” an “always on” fundraising investment in new and existing supporters via traditional and emerging channels will be critical to reach supporters where they are in 2023 and beyond.

A big thanks to the expert panelists, attendees and everyone taking the time to read our top takeaways.

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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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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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USPS Introduces New Business Reply Mail Tool

Faster Delivery, Lower Costs and Better Tracking Are Available with the New Intelligent Mail barcode Accounting (IMbA™) for Qualified Business Reply Mail (QBRM)

Business Reply Mail

MMI Direct uses Business Reply Mail® (BRM) campaigns with our wide range of clients to help boost response since donors don’t have to find and use a stamp to mail back their donation. BRM is easy to use, as a result we’re seeing more nonprofits testing and rolling out BRM campaigns during the pandemic, as older donors may not feel comfortable venturing out to buy stamps for their return envelopes.

Business Reply Mail® does have an additional cost, and sometimes delivery can be slower than stamped mail. That’s because BRM is manually handled once it’s received by the BRM Clerk at your local Post Office™ location. The BRM Clerk has to spot-count, weigh and rate your BRM, tally the various mail types, and then enter the information into the USPS® system for invoicing. This takes time, especially if mail volumes are high.

Our clients often see BRM delivery delays of 1-2 days compared to stamped, First-Class Mail® mailpieces because of this manual processing.

We’re happy to report that the USPS has launched a new application, called Intelligent Mail® Barcode Accounting (IMbA), which fully automates the process of Qualified Business Reply Mail (QBRM), speeding delivery, offering a deeper price discount and automated invoicing.

The Postal Service’s new IMbA accounting platform automates the invoicing of Qualified Business Reply Mail (QBRM) for postcards and letters up to 2 oz.

The Intelligent Mail barcode Accounting (IMbA) application is a value-added service that provides more consistent and timely Business Reply Mail availability. IMbA participants will receive their mail earlier in the day, reducing float time with more efficient and effective mail processing. IMbA customers also have the convenience to view and download invoices from their PostalOne!®account.

QBRM is for cards and letters only. A ZIP+4® is provided for each mail type, and an Intelligent Mail® barcode (IMb) is required. There are two prepaid return options available depending on projected return mail quantities: QBRM “Basic” and QBRM “High Volume.” QBRM “Basic” is best suited for customers whose return volume is approximately 613 letters or more, or 613 cards or more, expected annually. While QBRM “High Volume” is best suited for customers whose return volume is approximately 42,947 pieces or more quarterly or 171,786 pieces or more annually. Mailers can access their data through the Informed Visibility® feature and can review their invoices in PostalOne!®

We have several clients who are testing this new service with their fall and year-end mailings. The MMI Direct team is assisting them with the sign-up process. We are also working with USPS officials to promote this new program within the nonprofit community.

If you have any questions about this exciting, new QBRM service with IMbA, or need help getting started, please contact us. We’re eager to help.

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Expert Panel Hosted by DMAW Reports on Mail Deliverability Trends & Tips for Fall Fundraising

Our colleague Debbie Sylvester of MailSmart Logistics was one of five expert panelists reporting on mail tracking data and sharing insights during this week’s DMAW “USPS Status: What is Fact and What is Fiction” webinar.

The key findings conveyed by all the panelists:

  • Mail tracking data across hundreds of mailers and hundreds of millions of mail pieces indicates that average delivery times have not changed.
  • Pandemic-related delays over the past several months have now abated and are improving. First-Class Letter Mail and Marketing Mail delivery are performing consistently, with delivery slowed by just a half-day or one day at most, when comparing monthly and annual trends, including election years.
  • Flats, such as catalogs, magazines, and larger envelopes are experiencing delays with inconsistent delivery times.
  • Inbound reply mail is experiencing some slowing.

The panelists shared valuable tips for nonprofits planning their fall mailings during this busy election and fundraising season:

  • Track your own mail! Your own mailing data is more helpful than relying on media coverage, anecdotal evidence, or even USPS data.
  • Tracking your outbound mail is the top priority, but if you can, also track your inbound mail. Tracking can help you with revenue forecasting and cross-marketing efforts.
  • Debbie Sylvester noted that 90+% of commingled mail goes directly to the Destination SCF (Sectional Center Facility), skipping four USPS steps: the local post office where your mail shop is located, the Origin SCF, the Origin NDC (Network Distribution Center) and the Destination NDC, which expedites delivery, is more predictable, and saves money.
  • Debbie also explained that Drop Shipping your mail to Destination SCFs and NDCs is another potential solution depending on the geographic density and volume of your mailings. Your postal logistics partner can analyze each mailing and recommend the best approach. In some cases, the best solution may be a hybrid plan, including both commingling and drop shipping.
  • Moderator Mike DeFlavia, Vice President of Production, at Lautman Maska Neill & Company remarked that it’s not necessary for fundraisers to know all these technical details. Your agency, production, and postal logistic partners can provide expert guidance on what’s best for your individual mailings and your overall program.
  • Business Reply Mail is sometimes delayed when it gets to its destination due to accounting unit processing delays at your local post office. Contact your local Post Office to inquire.
  • We will see large volumes of political mail in the weeks and months ahead, especially in swing states. So plan ahead and work with your partners on your campaign schedules and mailing strategy.

Steve Kearney, Executive Director of the Alliance of Nonprofit Mailers, who spent over 35 years at the USPS in leadership positions, cut through the media clutter with accurate information about postal operations and funding.

  • The Postal Service can handle mail volumes during election season, including vote-by-mail correspondence, which is a tiny percentage of overall mail volume.
  • The pandemic has impacted postal employee availability in Covid-19 hot spots; certain areas are experiencing service delays due to absenteeism.
  • Steve Kearney noted that given the volume of daily mail processed through the USPS, anecdotal evidence of delays, often covered in the media, is not reflective of the overall service levels which are well within established delivery standards.
  • The new Postmaster General Louis DeJoy is committed to maintaining service levels, prioritizing election mail, and is delaying any proposed changes until after the election.

Mike DeFlavia wrapped up the discussion by stating that direct mail continues to be a critical channel for nonprofits, and nonprofits should move forward with their plans for the fall and year-end. 33% of charitable giving is done in the last three months of the year, according to the 2019 Charitable Giving Report from The Blackbaud Institute. And for many nonprofits, direct mail continues to be the largest source of donation revenue.

If you have any questions about the USPS, mail tracking and deliverability trends, and your fall mailing program, please contact us. We’re happy to help and share our insights.

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Coronavirus: Your Data Processing and Direct Marketing

With coronavirus so much in the news, we want to assure you that MMI Direct and the PMG Family is taking every possible step to ensure continued and uninterrupted support for your critical direct marketing and fundraising programs:

  • We are fully capable of operating in a 100% remote way; both local and remote staff are accustomed to working remotely on a regular basis – remote infrastructure, workflows, and culture are already in place
  • At present, almost 50% of our employees reside outside the Washington, DC metro area and most of those are dispersed in states ranging from Florida to Tennessee to New Hampshire…read more…
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