Are you harvesting the power of your existing customers?

As direct mail marketers, we often get so focused on obtaining new customers that we forget to nurture our existing customers. The fact is that existing customers are an incredibly profitable piece of your prospect base.

Why nurture your existing customers?
In a nutshell, the 80/20 rule should be reason enough to reconsider how you are handling your existing customers. The 80/20 rule states that 80% of your business comes from 20% of your customers. With a rule like that, you’d have to be crazy not to consider investing in your existing customers.

Not only does an existing customer cost much less than a new one—less marketing dollars, no training on your internal processes, you already understand their expectations and communication style—but a customer who purchases not only once, but twice is much more likely to keep coming back. They are also more likely to refer, and referrals give a great boost to your bottom line. Consider how many contacts each of your customers might have—25, 50, 100? Imagine how long it would take your sales force to not only locate but to make contact with that many prospects. These leads are at the tip of your customer’s finger, which means your existing customer could turn into a great tool for growing your business.

How to tap into the power of repeat customers and create referrals.
First and foremost you’ve got to get in your customer’s head. What you think they value about your product or service may not be the case. It might be your sales representative’s quirky sense of humor, rather than your low pricing that keeps them coming back. Dig around a little and try to read between the lines as to why they are loyal. Once you know why they love you, you can use that to your advantage. You can do this in several ways.

First, whatever you are doing that they love you for, keep doing it and find ways to continue improving to satisfy them even more. Never let your service slack just because you feel you already have them as a customer. Be consistent in your brand values in terms of product, service and communication. Stay in contact with them, and keep it as personal as possible. Watch out for their best interest and work to keep them impressed. After all, these people are potentially walking advertisements for your company. They are worth a few extra minutes on the phone or an extra email updating them on the status of their project or a new product they may find interesting. When applicable, feel free to acknowledge that you always appreciate their quality referrals. And if they refer, ALWAYS remember to thank them personally!

Second, consider how you can use your knowledge of their needs to produce more business from them. For example, if they consistently purchase one product or service from you, but you have a second, companion product or service that could benefit them, make sure to point this out. With today’s technology, you could even offer up this product while making a splash in their mailbox with a personalized direct mail campaign.

The moral of the story is to pony up and start treating your loyal, existing customers like they matter. After all, they potentially make up the bulk of your livelihood. If that isn’t worth a little of your time and money, I don’t know what is.

New USPS Flat Automation Changes Flat Mail Panel Requirements

The USPS recently announced that it has acquired new equipment to enable the automation of flat-rate mail. As a result, the mail panel requirements for these pieces have changed. The biggest change is that the mail panel portion of your flat-rate mail must now fall in the top half of your piece. As defined by the post office, for pieces not enclosed in an envelope or polybag, the top half of the piece is either one of the shorter edges when the bound or final folded edge is vertical and on the right-hand side of the piece. The address may be parallel or perpendicular to the top edge, but never upside-down and of course the postage must also fall within this top half. As for placement of your delivery address and return address in relation to the postage, feel free to continue positioning these items as usual, with the postage to the right or upper right of your delivery address and the return address about 1 inch above and to the left of your delivery address. These changes are effective immediately.

Get creative with your mail panel in an automation-friendly way

Questions about mail panels are constantly buzzing around our office. What size should the panel be? Can it have a background color or pattern? Can the indicia be inside the mail panel or should it be outside of it? Is there any way to make the mail panel interfere less with the postcard design?

Throughout our years in direct mail design and production, we’ve narrowed down a few answers to these questions that will hopefully help you in your direct mail design.

How big does the mail panel need to be?
The mail panel must be a minimum of 4” wide by 2” high, and should be anchored at the right-hand side of your piece, usually towards the bottom. This room is needed in order to inkjet on the address and barcode in a font size that is readable by USPS postal equipment. By leaving this room, you ensure that your mail piece will qualify for the lowest automation rate, which could save you a lot of money. If you fail to provide enough room, your mail piece may need to be addressed using labels, which doesn’t exactly produce the most professional look, and you may be charged extra as the piece may not be able to be automated.

Can the postage be inside this 4” x 2” mail panel?
We recommend leaving the entire 4” x 2” mail panel clear for addressing, and therefore recommend moving the postage area or indicia just above the top right corner of the mail panel.

Does my mail panel have to be shaped like a rectangle?
The mail panel does not have to be rectangular in shape, but whatever shape you choose you absolutely MUST ensure that there is 4” x 2” clear of space to add the address.

Does the mail panel have to be white in color?
The mail panel does not have to be white and can be a very light tint of a color. If you choose to tint your mail panel, it should be no more than 8% screen. If the color gets darker than 8%, there is a risk that the color will get too dark and will not contrast with the address that is inkjet on. If the address does not contrast enough, it will not be able to be read by USPS equipment.

Can I put a pattern in my mail panel?
Much like the rule about color, you can use a pattern, but it must not interfere with the address or barcode area. This means it must follow the same rule of 8% tint and it should not be high in contrast or contain vertical lines that would interfere with reading the barcode.

How can I make the mail panel less interruptive to my design?
This is a popular question, and we believe that the most discreet way of formatting a mail panel is to stretch a 2” strip across the entire bottom of the piece. This method is a little more elegant and doesn’t interrupt the flow of content as much as a 4” x 2” rectangle, however you will lose a little more page real estate.