Posted by Gareth Cutter on 7th April 2009 to
Marketplace The steady decline of postage volumes has led to the second increase in postage stamp prices in just 12 months. As of yesterday (6 April), first and second class stamps were increased by 3 pence each to 39p and 30p respectively - which could lead to a further increase in email marketing levels.
Although the increase might not sound like much, the financial implications on businesses are potentially massive with an average cost rise of 4.3% (although business mail and franking service customers will see smaller increases in price).
Businesses that currently use direct mail to communicate with potential and existing customers and want to maintain their current contact frequency face two options: to accept the price increases and try reclaiming the costs through higher prices of their own, or to consider using cheaper on-line marketing channels, including email marketing to generate more sales.
Email marketing delivers seven times the return on investment of print catalogues, according to figures quoted by MarketingProfs, so it would be easy for businesses to recoup their losses by transferring from traditional direct mail to digital alternatives. Since direct mail volumes are expected to fall by 5-7% in the coming year, it’s possible we’ll see another increase in prices in the not too distant future. Businesses who use direct mail should start planning accordingly.
