The $9 Million Purl

All from increasing fees…

In our business we get to meet a lot of people struggling with how to market their companies. So it is no surprise that as we talked with some retail banks and credit unions, they said one of their greatest challenges was growing deposits and loans since most customers either don’t have the funds or are afraid to increase their exposure in these tough economic times.

Through our conversations with various credit unions and banks we came across a credit union (CU) out West that not only had these issues but the needed increase fees for their members. The approach was a little different. Rather than just notify its 25,000 members of the new fees, why not treat this as a marketing opportunity and target multiple offers at the same time? They already knew a great deal about their members from their customer database. Why not use that data to offer a customized auto loan, an introductory low mortgage rate, or a or rebate if they open a new account to help offset the high fees. Plus at the same time provide an opportunity for the customer to review their financial portfolio and look for ways to enhance and improve it.

What we did: So we printed a Variable self-mailer with a Purl. The Purl (Personalized URL) was secured and needed a password for access. This is a financial institution and we wanted to hold these offers private to the individuals, not just anyone. This alone increased response because who wouldn’t want to see what was behind door number 1.

The CU also maintained a fairly good email database, so we targeted them through that channel as well. This made it easy to make a quick click through to the Purl landing page. This also increased the response and offered a modified version of the offer lead-in.

Members were targeted 3 times. Once with the postcard, and twice with emails, each time adjusting the message and removing those who already responded.

The Results: The CU saw almost a 20% response. From that they gained $4 million in new deposits and $5 million is new loans. A total of $9 million in new business. All starting from a Fee increase.

For those who do not believe in these technologies… Was it the Variable self-mailer? Was it the Purl? Was it the Platform? Start with a winning campaign, add these elements and you can have a successful campaign. When people tell me these technologies don’t bring value to their marketing efforts, it usually can be drilled down to poor execution, not so much the technology.

Moral: Never miss a marketing opportunity. If you have good data, and you know how to use Digital Marketing Technology (or find someone who does), you can run a campaign that offers builds brand loyalty and results in a positive ROI.

I guess the right approach is: When all you have are lemons to offer, find some water and a little sugar and sell them lemonade.

If you would like to know more about this program or how Digital Marketing might help you, give us a call 630-307-7100.

USPS Holiday Schedule 2012

For you Postal Geeks out there, and those of us who need to know for business continuity… Here is the official Postal Holiday Schedule. Enjoy!!!

 

>USPS Holiday Schedule

 

Texting, Social Networking Popular

The Pew Research just completed an interesting survey on Texting and Social Networking world wide. It’s interesting to see how Mobile is used around the world. I also find it intriguing that Texting has overtaken those who take pictures and it is 3 times that of Internet usage… but remember many countries are not quite as Web savvy as others.  Some light reading for the Mobile Tech junkies.

Pew Research – Texting, Social Networking PDF

Postal Rate Update – January 22, 2012

As you many now know the postal rates are going up in a couple weeks. This will affect First-Class Mail, Standard Mail, Periodicals, Package and Extra Services.

On average the increase varies based on the class and presort level, but the by law, it is capped at 2.1%, the rate of inflation as measured by the Consumer Price Index (CPI).

While most of the increase is around 1 cent for first class and standard mail, the Postcard rate is jumping 3 cents. That’s quite a hit considering the state of the economy, but the USPS is struggling with cost over runs and pension issues. They must have felt the old PC rate was too low based on how they have to process it and 1 cent would cover the increase.   Ouch…!

Some Highlights from the USPS:

For First Class

• Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a First-Class Mail stamp since May 2009.
• Single-piece letters additional ounce rate – unchanged at 20 cents.
• Postcards – 3-cent increase to 32 cents
• Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents
• Letters to other international destinations – 7-cent increase to $1.05
• The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.

For Other Services

• The price increase for Standard Mail Letters is slightly below the overall average at less than 1.9 percent
• A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
• Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.

Additional Details can be found at the USPS.com web site.

For your convenience, you can download a detailed DataMart Direct Postal Rate Chart. Click here for Postal Rates

Will the USPS survive 2012? … Cuts and changes are raising eyebrows

With the announcement the USPS has just released dealing with its challenges and cost cutting strategies, how will it impact you and your clients? No more Saturday delivery, slower stamped mail delivery, no more in-home date guarantees, cutting almost 1/2 of their processing facilities. I have to admit, the world is much different than it was when my parents starting this business 40 years ago. The way we communicate is significantly different, and the need for the USPS to be “only” way to get a message out doesn’t hold water the way it used to.

I think there is a need for the USPS to survive and I hope these measures (or whatever is finally agreed upon) make it a stronger and more nimble organization that provides the service and deliverability we need as an industry.

But back to my question. Many of our clients have already accepted these possibilities and asking how we can help manage them. Mail a bit earlier, mailing efficiencies we can suggest, even look at alternatives to mail delivery… This last one is an unfortunate reality – but one we have embraced. Our business is delivering a message on behalf of our clients. The USPS should be one of many tools we use. Our longevity will depend on how we deal with this fact and the opportunities we implement to achieve it. At least that is the direction we have chosen to follow.

What’s yours?