Amazon does not regard itself as a storage facility and their storage prices reflect that, especially during the fourth quarter when rates increase. If you are using Amazon to sell your products or using Fulfillment by Amazon FBA you are likely paying too much for Amazon to store your goods. Ideally you would want to store only what Amazon needs to fulfill your orders and then ship new products to Amazon to replenish your stock. One way to do this is to have a fulfillment center or 3pl store your products at a lower cost and ship them to Amazon as soon as your Amazon stocks need to be replenished. In order to do this you will need to make sure you understand and can forecast your Amazon sales in order to make sure that your stock levels are not completely depleted. You should also take into account unexpected delays or events, especially near the holiday season as sometimes Amazon does not have the capability to quickly receive product and distribute it to it's warehouses. Store your product at a fulfillment center or 3pl will also give you the flexibility to have them fulfill your website orders. This can usually be done at a lower cost than Fulfillment By Amazon and can be more customized to reflect your brand
How to Clean Your Customer Database
Your customer database is one of your most valuable assets, but if mismanaged this list could be useless or even worse could be costing you in marketing expenses and poor brand management. Below are a few tips to clean your customer database.
Remove duplicates: You should remove duplicate entries so your database is easy to navigate and you are not misinterpreting your data or sending marketing collateral twice to the same person. There are various options to de-dupe (remove duplicates from your list) including de-duping by name, address, last name, etc and Action Mail can even set parameters to catch close matches which could result from mis-entered data.
Ensure Accurate Data: Run your list against the USPS database to ensure mailing addresses and addressees match what the USPS has. This is also known as CASS certification. This will flag any records that do not match the USPS database as well as clean your records to match the correct USPS formatting. Not only will CASS certifying your data save you from sending direct mail to undeliverable addresses, it will also clean your database to ensure consistency.
Updating your database: Action Mail can also update the addresses in your customer database to account for households that have moved. Action Mail can run your data against the NCOA (National Change of Address Database), and let you know which of your customers have moved and their new address. This helps ensure your database is up to date with your clients most recent address as well as helps you remove clients that have moved out of your target geography from receiving marketing collateral and direct mail.
Appending your Database: It is also possible to append data to your database. This can include demographic information like income, age, etc to help profile your customers and it can also include additional information which can help your marketing efforts including email addresses, birth months. The possibilities are endless, but the caveat is that clean and more well developed your database is the higher probability you can append data.
Ensuring Consistency: Your database should also be consistent. Your field names should be consistent and clear and your data should all be in the same case and formatting. This enables you to use your data for variable printing without worrying about re-formatting the data. Ideally this should be done at data entry but Action Mail can reformat your data to ensure consistency.
Your most valuable asset should be cared for and used to market to existing customers as well as understand your current customer demographic for future marketing efforts. Make sure your data is clean, consistent, and includes as much valuable information as possible. Once you have your database cleaned be sure to maintain it and develop a strategy to use it correctly.
Direct Mail for Continuing Education
Continuing Education is one of the industries with the best success rate for direct mail. The main reason for this is the accessibility to data, and thus continuing education is an example of how targeted mailings can be highly successful. Other industries can have the same results as that of continuing education, but more work will need to be placed on determining the ideal demographic and finding data sources associated with that demographic.
With continuing education, the demographic and data are clear and very accessible. Since most continuing education is to maintain a certification or status, it is very easy to pull data associated with that certification and only target those individuals. Direct mail is a perfect way to advertise to these individuals. Direct mail also offers the opportunity to provide valuable information as to the value a course can provide, as there are many different options available. Many times people will not want to do the research to find the best course to fit their needs, but if they receive a mail piece for an interesting seminar or conference that also meets their continuing education requirements the choice is easy.
Targeting new prospects as well as marketing to previous clients is essential in growing a continuing education business. Direct mail is a great way to specifically target individuals who need continuing education credits because the list is already defined and a physical mail piece gives you the time and opportunity to pitch your course or seminar. Continuing education is a great case study in that it shows how important data is. Direct mail is a powerful tool if done correctly, and most importantly direct mail will need to be targeted to the correct people.
Invitation Mailing
A great way to increase attendance and awareness about an event is to send an direct mail invitation. Similarly to receiving a wedding invitation, receiving an event invitation makes the event special and allows the invitation to resonate with the recipient. Receiving a well though out event invitation in the mail will increase the importance of the event and ensure that the recipient it aware of the event. Additionally a mailed invitation can be kept as a reminder of the event date and can also create conversation and awareness about the event if it is displayed on the fridge or any other location as a reminder.
E-mail invitations and publicity on websites do not connect with your audience as well as mailed invitations, and can often get missed in people's inboxes. Mailed invitations allow you to target your database of previous attendees, donors, clients, etc, and there is also the possibility to target prospective attendees that meet the demographic of your audience. Mailed invitations are a great way to brand your event and connect with and grow your audience.
Event invitations do not need to be as intricate and expensive as wedding invitations and there are many ways to create invitations that are aesthetically pleasing and provide all the event information. Self-mailers are often great for event invitations as they allow a colorful piece while also saving money on the use of an envelope. Alternatively a simple envelope with a card inside can also be done inexpensively while maintaining a high quality look. We have also seen well design postcards that can act as invitations or save the dates. The possibilities are endless, but one thing is for sure, a well designed invitation will have a lasting effect and draw more attendance and awareness of your event.
Mail Merged Custom Printing
Adding personalized salutations or addressing a postcard or letter is a great way to customize your mailing, but adding more intricate variable data will make your piece stand out and get a higher response. If you have the data almost anything is possible. The more personalized your piece is the higher your response rate will be and this personal connection will help build your brand. Below are a few examples of custom mail merged variable data printing that can set your piece apart from the rest.
Variable imagery: If you have data regarding previous purchases, including imagery of these purchases for each specific recipient will help get your respondents attention. This is popular in the automotive industry where collateral will be customized to the car in an expiring lease.
Personal Information: Including any personal information like the previous donation amounts, previous purchases, business information, etc. If you do not have these data sets they may be available for purchase. For instance loan information can be sourced which is helpful in selling refinancing or financial offers.
Use their name: The respondents name should be throughout the mailer. You do not want your piece to look generic so include the name of your respondent in multiple locations. You can also use the address information multiple times. Anything to make your piece look more customized will help drive response.
Adding custom mail merged images and text will increase the cost of your printing but doing so will also increase the response rate and help cultivate your brand. There are some trick to included personalized, customized mail merge printing at lower costs, but your design and budget will dictate some of options available to you.
E-commerce Fulfillment Tips
The customer experience of an e-commerce purchase is a much different from the retail experience, but it is still an opportunity to develop your brand and cultivate customers. Since there are much fewer touch points and less in person communication, delivering a well branded package is important in developing your brand and customer base. Below are a few tips to improve you e-commerce fulfillment to impress your customers and drive repeat orders.
1. E-commerce fulfillment should be heavily branded and there should be a lot of though put into the customer experience. Many times your website and packaging are the only experience your customer will have with your brand. Be sure to leave a lasting impression with high quality, well thought out packaging and fulfillment
2. Communicate with your customer. Fulfilled e-commerce packages are a great way to include additional collateral or offers to increase cultivate your customers. A great way to do this is with a customized shipping notification e-mail. Alternatively including collateral or coupons with the product will help improve the users' experience and this collateral will most likely have multiple touch points and could remain in the customer's house for some time. Well thought out packaging is also a great way to provide instructions on how to use products or direct customers to tutorial videos.
3. Well designed beautifully fulfilled packages are great, but careful attention should be paid to ensure the product is packed correctly to reduce the risk of damaging the product. Broken products will disappoint customers and will add additional costs of product replacement and shipping. Packaging and fulfillment should focus on product security, but in doing so design elements should be incorporated.
4. Get your product to your customer as soon as you can. Fulfilling and shipping products quickly will help boost your brand and credibility as well as help compete with other outlets like retail stores and amazon. Many times shipping cost make it expensive to have products arrive quickly, but be transparent about this and provide options for expedited shipment.
Hidden costs of inventory in house warehousing of fulfillment products
One of the benefits of using a fulfillment company is to warehouse and manage your inventory. Fulfillment and warehousing have a lot of hidden costs and pain points when done in house, especially for start-up companies. Even though there are costs associated with using a fulfillment company you will ultimately be able to save money and grow your business. Below are some of the hidden costs in warehousing and storing your own product which can help you weigh the cost benefits of using a fulfillment company.
Space Requirements: Whether you are renting warehouse space or storing your materials in your office or home the cost and inconvenience of storing products is high. A typical pallet is 48" x 40" or about 3.65 square feet, but you will need to get enough warehouse spacing to organize and access your products. Space requirements are often close to double the size of your inventory as you will need to access and move materials easily as well as have enough space to accommodate large shipments. Product packaging like boxes and packing materials also take up considerable space and should be accounted for.
Additional Equipment: Warehousing products also requires investments in equipment like warehouse racking, forklifts, pallet jacks, labels, etc
Security: Ensuring your products are stored securely is important to protect your inventory from being damaged or stolen. Security measures should be put in place to ensure inventory is stored securely and if necessary in a climate controlled environment.
Warehouse and Inventory Management: In order to fulfill items quickly and have accurate inventory counts you will need to invest in inventory management software and ensure your warehouse manager is correctly receiving and deducting shipped items from inventory.
Insurance: You will need to insure your warehouse and products to ensure that you are covered should anything occur
Utilities: Your rental costs will not include utilities. These are surprisingly high even for small operations, and can be astronomical for climate controlled warehouses.
Employees: The cost of employing a warehouse manager will add up, as there are additional expenses to their salary and you will also need to invest significant time in training. Additional expenses like holiday pay, insurance, workers comp, overtime, recruiting, to name a few add up quickly and should be taken into account when determining if you want to hire your own warehouse and fulfillment staff.
Time: Nothing is as valuable as your time. Even if you do not account for your time as an expense the opportunities lost by warehousing, managing, or fulfilling your own product can significantly effect the growth of your business. Managing a warehouse you will need to have someone on site at all times to receive inventory and send out shipments. It is also very time consuming moving, receiving, sending, and managing a warehouse, which is valuable time you can invest in growing your business.
Managing your own warehouse can provide additional control and comfort but there are many hidden costs that you will need to take into account when evaluating your options. Often times using a fulfillment center will reduce your warehousing costs and help improve your efficiency with proven systems and processes.
What response rate should I expect from direct mail?
Your response should depend on your offer, targeted list, and design of your piece. The number 1% tends to be used in the direct mail industry but that is arbitrary as the response rate depends on how you design your piece and what you are offering. For example a piece that offers a coupon for a free product will have a much higher response rate than a piece offering 10% off. Similarly a mail piece sent to current customers should have a higher response rate than a piece sent to prospects. The design of the piece also influences response rates as the message should be clear and easy to act on.
It is better to look at direct mail campaigns return on investment rather than response rates. Especially if you are advertising a high value product or looking to acquire a new customer who will make frequent purchases looking at the ROI is a much more effective evaluation than looking at the response rates. Additionally some campaigns will be designed to be more generic and elicit a smaller response rate while others can be more elaborate and personalized and require a higher response rate.
Measuring your ROI is important in evaluating your mail piece and continuing to test and improve the piece to increase ROI. There are many factors that will influence your response rate but it is important to design your campaign to reach a target response rate that will create the largest return on investment.
Direct Mail Postcard Size
There are multiple takes on postcards. Here are a few:
First class card – You can mail a piece that is no larger than 4.25”x6” and no smaller than 3.5”x5” for 34 cents as of the date of this writing. Bulk rates are as low as 25.3 cents per card. The minimum quantity for first class bulk mailing is 500 pieces. Delivery normally takes 1-3 days.
Large postcards – Pieces up to 6.125”x11” are considered “letter mail”. The full first class rate is 49 cents. Bulk rates for first class mail can be as low as 37.3 cents. Bulk rates for Standard Mail service, which takes a little longer to deliver and doesn’t include forwarding or return service, can vary from 28.8 cents down to as low as 15.5 cents each. This postcard size does qualify for discounts if delivered to a local post office
“Jumbo” postcards – These are postcards that are too big to qualify for letter rates, typically 8.5”x11” or as large as 12”x15”, which is the maximum size. These are termed “Flats” by the U.S.P.S. and postage rates can vary from $44.6 cents to 75 cents for first class mail. For standard mail jumbo postcards postage can vary from 15.5 if sent to every address from a local post office to 55 cents.
A variety of factors can affect postal rates, and what is the best size postcard to use. Postage is a large factor in deciding the card size but the questions below can help determine what will be the best postcard size for your direct mail campaign.
How many pieces are being mailed?
What is the geographic concentration of the recipients? The more concentrated the recipients, the lower the rates.
Which post office are you entering the mail at? The closer you enter mail to the recipients, the lower the postage cost. Postage savings have to be weighed against trucking costs.
Do you qualify for lower non-profit rates?
How quickly do you need the postcards delivered?
What is your budget for postage and printing?
How much area do you need for your copy and design, and how large do you want the piece to look in the mailbox?
By asking some of these questions you direct mail house can help determine what would be the best size for your next direct mail postcard campaign.
High Value Direct Mail
Direct mail can be a great tool to target large quantities of people but it can also be a great tool to target your most coveted prospects. For these high value prospects it is best to put together a more elaborate mail piece which will be sent to a few high value prospects. These prospects will most likely also be touch be email, phone, and in person communications but a well designed mail piece will put you front and center. If done well this is something that could stick around for a while and be a constant reminder of your company and brand. For these prospects the mail piece should be upscale, high quality, highly personalized, and be sure to stick out. These will also have to get past the gate keeper and into the decision maker's hands. Sending a package, sample products, or a gift are great ways to draw the attention of your prospect and ensure your company gets the prospect's attention.
These campaigns are often more expensive, but in the long run they pay for themselves and more if they are done right. The piece should be complicated and expensive, but you should only be sending these to your highest value prospects so the quantity should be small. The list will also be highly customized to ensure you are only targeting the prospects that will generate the highest returns. Employing these strategic marketing practices will also alleviate the time and energy your sales team is using to get in the door allowing them to focus on closing deals. Using direct mail is much more cost effective and has a larger reach than having sales people go door to door.
High end high value direct mail pieces are a great way to get in the door and attract high value prospects, but the campaign will need to be run strategically with a creative and valuable offer. Just think if you were to receive a gift in the mail would you not want to know more about who sent it to you, what else they may be able to offer you, and at the very least sit down for a phone call?
How to Reduce Variable Data Printing Costs
Printing variable data and mail merges is a great way to personalize your message but variable data printing is more expensive than static printing. There are some ways that could reduce the costs of variable data printing, especially when you are printing large volumes. One option is to print static color shells and then print the variable information over these shells in black and white. Depending on the quantity and design of your piece this could help save money on your variable printing. If there are small amounts of variable data like a salutation and address block it may be more cost effective to print this variable information on an inkjet printer as opposed to a laser printer. The quality will not be as good, but if this is a small piece of variable information it will be hard to anyone to differentiate what this was printed on an inkjet printer. These options can help reduce variable data printing costs for direct mail pieces, but each project is different and it is best to speak with a mail house to identify the best methods to meet your budget while still delivering a high quality direct mail piece.
Is Amazon the cheapest fulfillment center?
Amazon's fulfillment prices are often times very cost effective, but it is not always the best option for e-commerce sites. Even though the prices and turn around times are low using Amazon for your fulfillment services may end up costing you more in the long run.
Amazon fulfillment is a great service for companies selling their product on Amazon who can take advantage of their prime network, but depending on the product, weight, shipping requirements, storage needs, and how the product is being purchased Amazon may not be the cheapest option.
When selling products on Amazon prime Amazon fulfillment charges will be per an item not per an order. So if you were to have a client that purchased three of your products you would be paying shipping and handling on all three of these products as opposed to one order fee and shipping fee and additional pick and pack fees for the additional products. This can add up, especially if you are trying to get customers to purchase multiple products. Additionally Amazon's fulfillment and shipping fees may seem low, but orders placed on Amazon also have a referral fee which offsets some of the shipping and handling savings.
Fulfillment by Amazon's Multi-Channel fulfillment services in which Amazon fulfills orders from other channels and websites is also not the cheapest option for fulfillment services. For their multi-channel fulfillment services Amazon charges an order fee + pick and pack fee + a weight fee. Shipping costs are baked into these calculations and are often more expensive than using carriers like USPS, UPS or Fedex, especially if you are able to negotiate rates. Amazon does not specify their carriers and only offer standard, 2-day and next day shipping options, reducing flexibility to use your preferred carrier at your negotiated rates.
Additionally all items sent to Amazon will need to be prepared in a very specific way to ensure that they are tracked and accounted for. Complying with these standards will add additional labor and logistical costs to your order fulfillment.
Amazon's fulfillment services are innovative and accurate, but they are often times not the cheapest or best options for businesses, especially if you are not selling goods on Amazon. There are a number of factors to evaluate when selecting a fulfillment partner including price, accuracy, presentation, responsiveness, transparency, flexibility, branding, and packaging. It is important to evaluate the factors most important to you and select a fulfillment center that can meet your needs.
Fast Direct Mail Turnaround Times
At Action Mail we have the flexibility to turn your job around quickly. Please let one of our sales reps know if you have a rush mailing project and we can work with you to develop a timeline to get your direct mail piece in homes and businesses by your deadline. Typical turn around is 2-3 days for mailing and 3-7 days for mailing and printing but it all depends on the type of job and quantity. Additional time is built into our timelines for QAQC, proofing, data analysis, postal delivery, uploading of postal documents, and work flow. To reduce turnaround times please make sure everything is ready to go and proofs and data can be approved quickly. We will also need postage funds to deposit with the USPS to send the mailing, which can often hold up rush jobs. We have the flexibility to change our schedule and mail quickly, but at the same time need to ensure all QAQC protocols and proofing are in place. Rush direct mail jobs will also need to be sent first class mail to be delivered in 1-3 days, and this will add additional expenses. For rush jobs please contact one of our sales reps who can evaluate how quickly we can get your mailing printed and delivered to the post office.
What is variable data printing?
Variable data printing is where each record has different information (text, images, colors, etc) printed based on variables in a database. This allows you to print personalized information on every single mailing piece. Variable data printing is essential for personal mailings like statements, open enrollment information, or any other confidential or personalized direct mail pieces.
Yet, variable data printing is also beneficial for direct marketing. Personalizing your piece will get you direct mail piece noticed in the mail and will increase your ROI. Tailoring your mailing to data you have collected or data that is available will make your piece more relevant for your end-user and will increase the probability that they will act on your offer. The possibilities are end-less with variable data printing, as you can customize every aspect of your mailing.
Some examples of variable data printing include:
Mortgage Mailings: Mailings can include pre-approved mortgage rates or the address or pictures of the home where the mortgage will be used for.
Car Dealership Mailings: Car dealership mailings can include photos of the model that clients have purchased previously as well as information on mileage, services, etc to either generate new car sales or book service appointments.
Statement Mailings: Statement mailing will contain detailed information on invoices outstanding and will need to be personalized for each specific customer
Open Enrollment Packages: Medical insurance mailings will include variable rates, dependent, and plans for each employee, thus each open enrollment package will need to be printed with this variable data.
What is the difference between a catalog and booklet envelope?
The difference between a catalog and booklet envelope is that the flap and opening of a catalog envelope is on the shorter side of the envelope whereas a booklet envelop has the flap and opening on the longer side.
For most mailings we recommend using booklet envelopes as stuffing the envelopes is much more efficient. Catalog envelopes are used for aesthetic purposes as some mailers prefer the look and presentation of a catalog envelope as well as the user experience of pulling documents from the top of the envelope as opposed the the side.
The same catalog and booklet terminology is used for all types of envelopes including 9x12, 6x9, etc, but catalog envelopes should always have their flap on the shorter side of the envelope whereas the flap on the booklet envelopes are on the longer side of the envelope.
For instance for a 9x12 envelope the flap and opening will be on the 9 inch side for catalog envelopes and for booklet envelopes the flap and opening will be on the 12 inch side.
Before Embarking on a Direct Mail campaign…test it
One of the big advantages of using Direct Mail is that you can easily test an offer or creative before launching a campaign. By doing this you will be able to see what works before committing to the campaign.
The easiest way to design a test is to use a sample list, code the list, and then divide the list in half and included a different offer, design, or any other variable on each part of the list. In most cases, for a statistically valid test you need to get 100 responses. Determine what your normal response rate is and then use that number to figure out how many pieces to mail. If your normal response to an offer is 2% you would have to mail out 5,000 pieces to get that response. Once responses come in you will be able to determine which list they were mailed from and from there you can see which offer or creative worked best. Once the test is complete, you can increase the quantity of your next mailing utilizing the higher converting design, or you can run another test against a new design. Never stop testing, never stop looking for the little tweaks that can make your campaign more successful.
The right shipping box or package for your shipment
Before selecting a shipping box or package type for your shipment you will need to evaluate your shipping box and packaging requirements as well as the user experience you would like your customer to have.
Below is a brief list of questions which can help evaluate what package type will be best for your shipments.
- How durable is the product?
- How much packing material will be needed?
- What is the size of the product? Is the size variable or will multiple products be shipped together?
- Which carrier would you like the package to be shipped through?
- How secure do the materials need to be?
You will also need to think about the users experience.
- Would you like you logo printed on the box? Alternatively you can apply a branded sticker or branded tape?
- Would you like the box to be colored or would you prefer a kraft or white box?
- Would you like a clean appearance without much tape?
- Are you looking for a unique appearance?
- Would you like the box to be easy to open or would you prefer a more secure packaging?
Selecting the correct packaging will effect your shipping costs and will also have a large impact on how your client perceives your brand and product. Many times outer shipping packaging is overlooked, when this is often times the first impression your client will have of your product. Selecting the correct packaging will help ensure your product arrives unbroken and at the best shipping rates, and can also help create a great first impression.
Often times the more intricate the packaging the more expensive, but there are often creative options which can make you package standout while reducing shipping and packaging costs. Sometimes boxes are not even the best options and other packages will work better to meet your needs.
How to automate shipping and fulfillment
You can automate your shipping and fulfillment straight from your eCommerce site. Whether you are using Shopify, Etsy or any other platform Action Mail can help automate your shipping to ensure accuracy and efficiency. The key to setting up automation is to make sure that as much information is included in the back end of your shipping platform as possible. Sites like Shopify allow you to add information to each product which only be present on the back end of the system. You should fill out as much information as possible to ensure that your shipping can be automated with this data. All items should be setup to have unique and consistent SKU which Action Mail can use to identify and fulfill orders. Action Mail can help you setup the weights, customs information, and shipping rules to ensure your packages are fulfilled quickly and accurately. You will also want to decide on consistent box and packing materials to expedite the shipping process.
You will also need to setup a set of shipping rules. You will need to decide how each order type will be packaged as well as which shipment method each order type will be sent as. You will also need to do the same for shipments with multiple products. This is not as complicated as it sounds because you can most likely apply the same set of rules to the majority of your products
Action Mail can pull this data from these sites and automatically setup your shipments. Action Mail will also setup controls to review that shipping rules are working correctly. Shipping and logisitics can easily be automated but the key is to setup the items, shipping rules, and logisitics properly. Spending the extra time to setup your eCommerce site will ensure accuracy of order fulfillment and increase efficiency
How to setup your print files
It is very important to design and send your print files correctly to ensure high quality printing.
Below are a few guidelines for setting up your print files correctly
Bleed: Include a 1/8" bleed around the printed area. In other words extend the design of the piece by 1/8" knowing that we will trim that extra 1/8" off the piece to ensure that the design extends to the edge of the printed piece. This means that for a 8.5x5.5 postcard will have final dimensions of 8.75x5.75 as there will be a 1/8" bleed on each side. It is helpful to add cutmarks as well.
Safe zone: Do not include any copy or critical images within 1/8" of the edge of the piece. This ensures that when the piece is cut to size no important text or images are cut in the process
Colors: All files should be designed with CMYK colors not RGB
File format: We prefer high resolution PDFs to ensure great print qualities. You can also provide native files and have us export the file to a print ready format.
If you need any help or would like us to assist you in preparing your files please contact one of our customer service representatives.
Append data to your customer lists
Data is what drives decisions and should be driving your marketing. The more data you have the more nimble and targeted your marketing approach can be. When collecting customer data it is valuable to get as much information as possible, but this is a double edge sword because you do not want to frustrate your client with surveys and forms. One solution to this is to append data to your client lists.
It is possible to take your client list and match this list with publicly available data from credit bureaus, surveys, and other publicly available data sources. The data available to append to your lists can include email addresses, birth months, income, credit indicators, and many other factors. If there is a data point you wish you had it is likely that it can be appended to your list.
Appending data to your customer lists enables you to better target your marketing and advertising which will allow you to better present and time your offer. Increasing personalization will also increase your response rate and help you better connect with your customers. Appending data will also allow you flexibility to use different mediums like direct mail, email campaigns, and display advertising.