Key Direct Mail Trends in 2023

Direct mail marketing has been around for decades, but its relevance and effectiveness have only grown in recent years. As we move further into 2023, it's important to take a closer look at the emerging trends that are shaping the future of direct mail. 

From the integration of digital technologies to the personalization of messaging, there are a number of exciting developments that are changing the way businesses are using direct mail to engage with their target audiences. In this blog post, we'll explore some of the top trends that are likely to dominate the direct mail landscape in 2023, and what they mean for businesses looking to leverage this powerful marketing tool.

Direct Mail Trends In 2023:

1. Changes to Postal Services: NZ Post is continuously making changes to achieve financial sustainability. They're investing in new technologies, streamlining services, and raising postage rates. The annual pricing increase across letters and couriers applies from 1 July (https://www.nzpost.co.nz/about-us/july2023). These changes can impact your campaign planning, so it's important to collaborate with a mailing house that can help you save money on your campaigns if necessary. For instance, reducing the size of mail pieces and tidying up data are two ways to accomplish this goal. Changes coming to NZ Post bulk mail rates include:
   • Price increases to all bulk mail services, averaging 30%
   • New specifications for Adcard font size and style will apply 
   • New charges will apply to bulk mailings that do not meet necessary specifications and require hand processing (30c per item if approved prior to lodgement, 45c per item if approved after lodgement)
   2. Overseas Trends: The United States Postal Service (USPS) realised some years ago that mail has transformed into a channel that plays well with others and meets consumers needs today. This gave rise to a promotions programme that gives mailers discounts for mail campaigns that incorporate new and innovative marketing and printing technologies. The idea is to get marketers and printers to “push the envelope”, creating mail that drives engagement and ROI. The USPS promotions include (https://postalpro.usps.com/promotions):
   • 5% discount for Tactile, Sensory and Interactive Engagement
   • 3-4% discount for Emerging and Advanced Technology (including mobile shopping)
   • 3-4% discount on Personalised Colour Transpromo
   • 3-6% discount on Reply Mail (supplying a reply mechanism)
   • 5% discount on Retargeting
   These promotions offer marketers a chance to try out cutting-edge technologies that can make their mail more valuable and engaging. In upcoming posts, we’ll deep dive on these initiatives and translate them into actionable takeaways for NZ marketers and business leaders. For now though, we see this as a real indication that where every digital experience is delivered over the same devices, more tactile approaches are on the way.3. Focus on Personalisation: Personalisation is a necessity in direct mail. No, the address and salutation is not enough! With all that customer data you have, you can take real steps to economise your direct mail spending and apply a high level of personalisation to get more bang for your buck.  With Variable Data Printing (VDP), you can use customer data to engage on a 1-to-1 basis. VDP enables you to customise your offers, copy, colours, and images to make your campaigns more relevant to your customers. This also allows you to create a more omnichannel communication strategy that meets an individual's wants or needs at the right time and moves them to act in any channel - print or digital.

   4. Increased Support from Marketers: Direct mail still brings advantages to the table when trying to reach customers. According to ANA Response Report 2023, direct mail letters average a 43% ROI, and 74% of marketers said that direct mail delivers the best ROI of any channel, according to Lob’s 2023 State of Direct Mail report. 

As a marketer, it's important to consider direct mail as a component of your marketing strategy. The ticket to success is using all channels and technologies more cohesively and wisely. Doing it in a way that meets individual members of today’s audiences where they are and driving authentic interaction.

At Mailshop, we know how to put together cost-effective direct mail campaigns, email, sms, and omnichannel campaigns. Speak to our knowledgeable team today!