Uncovering the Unseen: Why Mailers May Overlook These Incentives Mailers might not realize the availability of these promotions, which is likely due to several dynamics. First is that the growth incentive is a departure from traditional promotions and marks the first of its kind since 2010. The focus is on rewarding real and sustainable growth, making it particularly attractive for smaller mailers or those new to the media channel. Second is that the target audience for these incentives is the small- to medium-sized mailers who may not necessarily be deeply engaged with trade associations or current activities in the industry. This segment often includes individuals or organizations that are not in regular communication with the USPS, making it imperative to raise awareness about these opportunities.
UNLOCKING SAVINGS: A DEEP DIVE INTO USPS GROWTH INCENTIVES FOR MAILERS By Bob Rosser
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he recently unveiled 2024 growth incentives from the United States Postal Service (USPS) present an opportunity for marketers to reevaluate and optimize their 2024 mailing plans. With the potential to boost First-Class and Marketing Mail volumes, these incentives can be a game-changer for organizations aiming to maximize their marketing budgets and mail smarter. This article provides an in-depth overview of the USPS growth incentive programs, dissecting their intricacies and demonstrating how savvy marketers can leverage these initiatives to optimize their expenditure while elevating their campaign outcomes.
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JANUARY-FEBRUARY 2024 | MailingSystemsTechnology.com
Unraveling USPS Growth Incentive Programs The USPS growth incentives consist of two identical programs — one for First-Class mail volumes and another for Marketing Mail volumes. To access these incentives, customers need to register during the registration period, which is open until June 30, 2024. To qualify for the incentives, mailers must agree to a baseline volume they mailed during the USPS 2023 Fiscal year (October 1, 2022 to September 30, 2023). If a mailer exceeds this baseline volume during the growth incentive program period (January 1, 2024 through December 31, 2024), they become eligible to receive a 30% postage savings credit on their incremental volume, over the baseline. This presents an excellent opportunity for mailers to test and implement direct mail strategies from a marketing perspective with that incremental growth. Mailers can register for these incentives through the USPS Mailing Promotions Portal, which is accessed via the Business Customer Gateway (BCG), with registration having opened in November 2023 and closing at the end of June 2024. The earned postage credits can be utilized not only in 2024 but also through December 31, 2025, depending on a mail owner’s growth plans. Complementary Aspects of Growth Incentive for 2024 Postal Savings The growth incentives are not promotions but rate incentives: This means that it can be applied over and above the promotions a mail owner may already be planning for as part of their postal optimization strategy. Emerging and Advanced Technology Promotion: In 2024, the USPS is introducing a unique aspect to the emerging technology promotion. Unlike fixed promotion periods, mail owners can now customize their six-month period, aligning it with what works best for their company or specific lines of business within their organization. This Pick Six feature enables use of the promotion and postage savings during six consecutive months throughout 2024. This flexibility enhances the potential impact of the promotion for more seasonal oriented mailers. Containerization Discount: Marketing mailers can leverage a containerization discount for SCF level containerization, as it saves on USPS handlings from cross-docking, even if it's entered locally. This provides a dual benefit of improved service and potential postage savings. Network Remodeling Efforts: The USPS is undergoing a fullscale remodeling of its network, which promises to deliver significant changes. I encourage mailers to stay involved, be open to opportunities, and become active in local groups like your Postal Customer Council (PCC) to stay informed on changes and opportunities.