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Postage Increases Don’t Have to Mean Less Mail – They Demand Smarter Strategy

Postage increases continue to change the economics of direct mail, but more importantly, they are reshaping how direct mail is designed and executed. The latest changes, including increases to letter rates and the sunset of the Catalog Insights Promotion, are prompting marketers to take a closer look at format, structure, and overall program efficiency.

Rather than pulling back, the most forward-thinking brands are adapting. They are rethinking how to deliver the same level of impact such as brand storytelling, product visibility, and customer engagement within a more optimized cost structure. That shift is driving smarter decisions around format, design, and ultimately, the role that paper plays in the overall experience.

From Cost Pressure to Smarter Format Strategy

As postage economics evolve, many brands are reevaluating format choices. In some cases, that means reducing flat-sized catalogs. In others, it means re-engineering them. Think: transitioning into more efficient formats such as slim-jims, self-mailers, or compact booklet-style mailings that qualify for letter rates.

Brands can still rely on direct mail to tell stories, showcase products, and create tangible brand experiences. That doesn’t change. What does change is how those experiences are delivered in a more cost-effective way.

And this is where the paper conversation becomes critical.

Why Paper Strategy Matters More Than Ever

Many of today’s catalog-like letter formats still depend on coated freesheet to deliver the visual quality, color fidelity, and brand presence marketers expect. In a smaller format, the role of the paper becomes even more important because it must do more, in less space.

This creates a more nuanced demand dynamic:

  • – Traditional large-format catalog volume may face pressure
  • – Smaller, more targeted coated applications may grow
  • – Overall demand becomes more dependent on format mix and program design

In other words, postage increases don’t just reduce demand, they redistribute it.

Turning Pressure Into Opportunity

This is where a more strategic approach can make a measurable difference.

Postage should not be viewed as a fixed cost to absorb, but as a lever that informs how campaigns are built. From format and paper selection to targeting and frequency, the right decisions can offset increased costs while preserving, or even enhancing, performance.

At MH, we work with clients to navigate this intersection. Together, we:

  • – Evaluate where format shifts can drive efficiency without sacrificing impact
  • – Align paper selection with both brand goals and postal requirements
  • – Optimize programs to maximize ROI per piece in a rising cost environment

The goal is not to eliminate print or reduce presence, it’s to make every piece work harder.

The Bottom Line

Postage increases are not new, but the way brands respond to them is evolving.

The most successful marketers are not pulling back. They are becoming more intentional, rethinking formats, refining execution, and leveraging smarter paper strategies to maintain both efficiency and experience.

…Because direct mail remains one of the most powerful channels available, and with the right approach, it can continue to deliver, regardless of where postage goes next.

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Direct Mail Is Not Just Marketing, It’s Part of the Brand Experience

Over the years, direct mail has often been viewed as a promotional tool – a vehicle for discounts and short-term response. However, it is a far more powerful medium. Today, direct mail is not just a tactic; it is an extension of the brand experience itself AND it’s measurable. 

The brands that outperform in today’s crowded marketplace understand a simple truth: how a brand shows up matters. When executed strategically, physical mail creates a sensory, memorable interaction that digital channels often struggle to replicate. In fact, brands that create stronger physical experiences often see stronger engagement, higher repeat purchase behavior, and improved long-term customer value.

Unlike digital impressions that are easily skipped, deleted, or forgotten, direct mail commands attention. It lives in the recipient’s hands. It engages multiple senses. It invites interaction. And in doing so, it creates something far more valuable than a click, it creates a feeling

That feeling is where brand equity is built.

The strongest direct mail programs move beyond discounts. Every element – from format and materials; to timing and personalization – works together to reinforce perception and create a more meaningful interaction. 

This is where direct mail shifts from a simple tactic to a storytelling channel. A well-executed piece can show quality, build trust and create emotional connection before a purchase even happens, and reinforces consistency across the broader marketing ecosystem. Most importantly, by creating this synergy, response lift increases.

The most successful programs bring together four key elements:

  • Strategic targeting: Leveraging data to reach the right audience with relevance and precision (and analyzing campaign performance) to maximize growth
  • Experience-driven creative: Designing mail that reflects the brand’s voice, values, and positioning, not just the offer
  • Measurable performance: Integrating tracking, attribution, and testing to drive insight and ROI
  • Operational excellence: Ensuring seamless execution from inception and production through delivery, identifying efficiencies, and optimizations along the way

Physical mail arrives with intention. It feels curated. It signals effort. And that perception alone elevates the brand behind it. In a crowded digital environment, direct mail has become one of the few channels capable of driving both measurable performance and meaningful brand connection.

The brands that win are not just marketing to their customers, they are creating measurable moments that increase engagement. Arguably, there is nothing more important for a brand in today’s marketplace than customer loyalty, especially when considering Customer Acquisition Cost (CAC). 

Direct mail, when done right, is one of the most powerful ways to make that moment matter.

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Seasonality Isn’t Just the Holidays, It’s Life Stages

For many brands, the holiday season is all-important. Retailers, consumer services, and gifting businesses often concentrate their marketing investments from October through December—and for good reason! Major annual holidays like Halloween, Valentine’s Day, Easter, Memorial Day, the Fourth of July, and Labor Day are undeniably important, shaped by each brand’s unique goals and audience.

However, true seasonality encompasses more than just these holidays. It includes life stages and real-world moments that influence consumer needs and behaviors throughout the year. These opportunities can be just as powerful (if not more so!) because they connect directly to meaningful transitions in people’s lives.

Examples of life stages:

Wedding Season (June-September): The peak time for weddings opens the door to targeted campaigns—not just for couples, but also for families, guests, and B2B brands attending and supporting these events.

New Movers (May-September): Moving season is a prime opportunity to reach households the moment they’re forming new routines and brand loyalties… and have changing priorities and needs! Leveraging new mover data from the USPS can help brands connect with potentially new customers early, beating your competitors to the door.

Back to School (BTS): This season gets earlier each year and often gets overshadowed by holiday planning. Campaigns tied to these moments can feel timely and relevant when executed thoughtfully and strategically.

National Moments & Global Events / Celebrations: Major events create shared attention and emotional connections like the Olympics. Campaigns tied to these moments will feel timely and relevant and most importantly, drive business. What’s coming up next? Let’s brainstorm together.

Local Events & Community Connections: Regional festivals, sports seasons, and community milestones offer opportunities for localized, personalized marketing that resonates deeply with specific audiences.

Tip: Utilize the USPS Personal Touch incentive? Not exactly sure what this means? Reach out & we’ll share more details!

Life stages are related to seasonality, and the importance of testing is applicable year-round. Consider testing a new seasonal campaign by experimenting with your creative approach or format, explore a new audience, integrate digital, try out different promotional offers, or launch a new program like loyalty. Even small tests can uncover valuable insights.

Expanding your perspective on seasonality can unlock new opportunities, deepen connection, and drive meaningful results. Sometimes, the most valuable “season” is simply the moment your customer is ready for something new.

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What’s The Right Direct Mail Format for My Individual Marketing Goals?

We often get asked, “Direct mail or email?” and recently heard this answer, “Yes.” 

Whether your marketing focus is Acquisition or Loyalty, Direct Mail will help move your strategy forward. Layer in Digital such as email, and your campaigns will thrive. Think of it like this: Direct Mail tells the story, draws someone in, and puts a product or service top-of-mind. Then that consumer receives a timely email with the exact link to products in the Direct Mail piece they were just flipping through. Boom, conversion. 

There are several components of a Direct Mail piece that make some more successful than others. From graphical treatments and copy / content, to the actual offer, we want to help you be smart with your marketing dollars.  

Possibly the most impactful starting point? Formats. Different formats solve for various things. Here are some insights into format testing. 

Acquisition: Optimal Formats for Attracting New Customers

Mini catalog: New customers must see more products. Mini catalogs inspire browsing, giving a “scrolling” effect that we’re all so familiar with today. Even better than scrolling, customers can flip pages and have more of an experience than digital devices allow. Additionally, mini catalogs are an opportunity to showcase product depth. 

Slim Jim: Don’t you love the name of this one? This is a slender, multi-page catalog or self-mailer measuring 5.5-6” x 10.5-11.5”. It is specifically designed to qualify for lower USPS letter-rate postage vs. higher flat / catalog rates. Think brochure. They are cost-effective, and present nicely with targeted promotions such as seasonal sales or new product lines. 

When your goal is to acquire new customers, the more pages in your marketing piece, the better! 

Loyalty: Optimal Formats for Driving a Second Purchase

Card: This could be anything from a compelling offer to a VIP mailer to facilitate retention and loyalty. Think in terms of seasonality and life stage moments, such as birthdays, anniversaries, season changes, holidays, and upcoming events (ex: the Olympics!). 

Postcard: An effective format for efficient conversion. You may use this to target towards next purchase. Insider Tip: Postcards are not generally effective for net new customers. This format is best for retargeting someone who is already familiar with your brand. 

Smaller Trifold: Re-engage with your customer using a cross-sell mailer. Think product-led second purchase. Maybe you showcase an entire “look” or outfit; a completed bedroom; dishes, flatware, and kitchen appliances – the possibilities are endless. Insider Tip: You likely have data on your customers that could help inform Creative on your next campaign. This seamlessly ties into customer journey, facilitating a unique, smooth and pleasant purchase experience. 

With each of these formats, featuring an offer that is compelling, competitive & unique is key! 

Today, Direct Mail open rates range from 80-90% and response rates are 5-9x higher than other marketing channels. Now, let’s talk about the Digital component. Adding in Digital not only boosts the consumer’s multi-channel experience, but the synchrony of Offline and Digital channels increases response rates by 63%. For example, Triggered Direct Mail or Bounce-Back Offers are both stronger when paired with Digital marketing, promoting a behavior-based conversion lift.

We recognize the goal is to “be smart,” but there are always ways to be smarter. We can help you sift through these ideas and determine next steps that make sense for your individual business. 

Source:
Postalytics

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Why It’s Important to Test Different Direct Mail Formats Part II

Two weeks ago, we shared a couple of reasons why it is so important to test direct mail formats. Guess what? There are even more reasons! Continuing onwards… 

Reason #3: You can achieve different marketing goals.  

Recently, we discussed how various formats resonate with different consumers. It’s also important to be mindful of your marketing goals. Direct mail helps facilitate customer acquisition, retention, market research, and increases response rates. If your marketing goal is… 

Customer acquisition:

POSTCARDS are a cost-effective way to reach a vast audience quickly. They are attention grabbing due to their size and ideal for promotions and offers.  

PERSONALIZED LETTERS facilitate a more personal connection. You will not only connect with the customer, but these are an effective way to show / explain complex offers (products or services) in more detail.  

CATALOGS showcase a wide range of products and services while personalizing and targeting your audience. Essentially, catalogs hit what postcards and letters do, and more!  

Customer retention:

SPECIAL OFFERS make a difference. Whether you use a postcard or a letter, it is important to create exclusivity with special discounts, early access (sneak peek or VIP access), limited-time promotions, and milestone celebrations.  

NEWSLETTERS serve as consistent touch points; they will help you to stay top-of-mind with customers.  

PACKAGE INSERTS pique interest. Whether you include a ‘thank you’ from your CEO or Founder, or offer a small gift or discount, this will show your customer you value their business.  

EXCLUSIVE LOYALTY PROGRAM MAILERS highlight the benefits of your loyalty program and encourage participation (Guess what? We can help you with this! Reach out here).  

Market research:

SELF-MAILERS can help. Combine a brochure / leaflet format with mailing information.  

EVERY DOOR DIRECT MAIL (EDDM) is an efficient option that delivers mail to every address on the carrier route, without requiring individual addresses. (Plus, there is a reduction in postage!). 

PERSONALIZED LETTERS allow you to connect with customers via a unique letter, and drive to your website – facilitating a multi-channel connection – with an incentive to complete a customer satisfaction survey.    

Increased response rates:

LETTERS IN ENVELOPES drive interest. The curiosity or perceived importance of a letter in an envelope can lead to a higher engagement and response rate.  

POSTCARDS are useful for grabbing attention and are an excellent format to test out different creative and offers.  

Reason #4: You can make branding (or re-branding!) a priority. 

Direct mail can increase recognition and visibility of the brand to a specific audience.  

From tangibility to creative messaging and personalization, this is a powerful channel for branding. With direct mail, you can offer consistent messaging that reinforces brand identity and helps to establish trust with consumers.  

Reason #5: You can optimize your multi-channel approach.  

Direct mail can complement digital marketing efforts, creating a cohesive and seamless brand experience across platforms. For example, sending a direct mail piece can encourage recipients to visit a website or engage on social media. Up for going one step further? Change up your formats to test performance – whether it’s different physical formats or new digital platforms, testing is always recommended.  

In fact, testing different formats – for both digital and offline marketing – can lead to cost-savings, further reach, new customers and more.  

If you’re not sold on why direct mail is worth testing, reach out and let’s have a conversation! If you are sold, what are you going to send?  

Source: OpenAI. (2025). ChatGPT (March 7 version) [Large language model] http://chat.openai.com/ch

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Why It’s Important to Test Different Direct Mail Formats Part I

Over the years, “direct mail” has become an umbrella term for any piece that’s in the mail. Did you know that there are endless possibilities of formats? That said, there are specific formats most effective for achieving different goals.  

With consumer behavior constantly changing; new audiences on the horizon; and the hot topic of attribution, there are so many reasons it’s important to test different direct mail formats. We promise (yes, promise!) that it’ll be worth it… and will ultimately help your bottom line.  

Here’s why you should test different formats…. 

Reason #1: You can reach different types of consumers & connect with them more effectively. 

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Baby Boomers: Prefer Catalogs, Self Mailers, Shared Mail, Insert Media / Package Inserts 

Creative Tips:

  • Legibility: Use large, clear fonts and high contrast (e.g., dark text on light backgrounds). 
  • Simplicity: Organize information logically. While this generation likes information, you do not want it to be overwhelming.
  • Trust: Include testimonials, reviews, certifications or badges that build credibility. 
  • Call to Action (CTA): Firstly, make sure you have one! Secondly, make it prominent, clear, and actionable (e.g., “Call now!” or “Visit us online for more details”). 

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Gen X: Prefer Personalized letters, brochures and newsletters featuring loyalty programs, interactive mail (QR codes / personalized links), mini catalogs. 

Creative Tips:

  • Straightforward & Direct Messaging: This generation values efficiency and transparency. Avoid unnecessary fluff or overcomplicated language. 
  • BeProfessional but Approachable: Gen X responds well to brands that appear reliable and trustworthy, yet personable and genuine. 
  • Clear and Actionable CTAs: Include a call to action that makes it easy to take the next step (e.g., “Call to schedule,” “Visit us online,” or “Shop now”). 
  • Tech-Friendly: Include digital components, like QR codes or personalized URLs, but make sure they’re easy to use and provide clear value. 

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Millennials: Prefer Postcards with Social Proof or User-Generated Content, interactive mail (QR codes / personalized links), mini catalogs or look books, event invitations (experience-focused), newsletters featuring content and offers. 

Creative Tips:

  • Minimalistic Design: Focus on clean lines, only delivering necessary information, imagery and creative elements for necessity with ample white space, and modern typography. 
  • Visual Appeal: Drawn to eye-catching, high-quality imagery that feel authentic. 
  • Mobile-Friendliness: If incorporating QR codes or personalized links, ensure the digital experience is mobile-optimized. 
  • Sustainability: Highlight any eco-conscious initiatives your brand is involved in, as Millennials often prefer brands that are environmentally responsible. 

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Gen Z: Prefer Interactive Mail (QR Codes, Augmented Reality, Personalized URLs), Eco-Friendly and Sustainable Direct Mail, postcards, event invitations (exclusive experiences and collaborations), Gamified Direct Mail (Scratch-Offs, Contests), Personalized Merchandise Offers (Customized Products), Limited Time Off and flash sales, User-Generated Content or Social Media Integration. 

Creative Tips:

  • Authenticity: Gen Z values honesty and authenticity in brands. Avoid overly polished or “salesy” language, and focus on being real
  • Visuals Matter: Use bold, high-quality visuals, and make sure the design is on-trend and aesthetically appealing.  
  • Mobile Optimization: Since Gen Z is heavily mobile-first, ensure any digital component (QR code, URL, AR experience) works smoothly on smartphones. 
  • Short & Sweet: Gen Z has a shorter attention span, so keep your messaging concise and impactful. A powerful message will resonate.   

Reason #2… You can capture consumers’ attention that are suffering from digital fatigue.  

From a lack of variety; to repetitive messaging; to disjointed creative; to poor targeting, digital fatigue is real! We don’t want you to be wasting any marketing dollars on ineffective campaigns. More than 60% of individuals are reportedly overwhelmed by digital marketing tactics.  

Mitigate digital fatigue with personalized content, variety in formats, a thoughtful contact strategy, audience segmentation, and opt-in capabilities.  

Forty-two percent of consumers recently reported an increased interest in direct mail and because of that, 75% of marketers have reallocated their marketing budget into direct mail.  

Switching up your mediums and formats (along with creative!) within channels is extremely important. Direct mail drives response because it’s different; because it’s personal; because it’s tangible… among many other reasons.  

In fact, we’ll take you through even more reasons next week about why it’s important to test different formats, especially in direct mail!

Source: Agility PR, OpenAI. (2025). ChatGPT (February 25 version) [Large language model] http://chat.openai.com/chat

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Who engages with Direct Mail today?

We recently came across an article from Forbes and this quote stood out to us: “As technology becomes more important, the more consumers will crave genuine human experiences.”

 

Enter: Direct Mail. A genuine, human experience.

 

Traditionally, direct mail has resonated with older demographics such as Baby Boomers and Gen X because they prefer tangible, physical forms of communication that they can hold and refer to whenever they want.

 

This channel also resonates with new movers or homeowners focused on home improvement, insurance offers or local services; it speaks to affluent audiences – it’s a medium that reflects a high level of quality, professionalism and exclusivity; consumers in rural areas also respond to direct mail. They may not be connected digitally in the way urban consumers are; they are more likely to engage with physical mail.

 

This is why direct mail is an effective channel, and necessary spoke in your omnichannel wheel. We could go on and on with the benefits of direct mail – reach loyal customers or target niche audiences – but what it comes down to is direct mail works now.

 

But, will it work for the future, and for whom?

 

Our answer is yes and you’ll never guess for whom. You may be surprised (hopefully excited!) to learn that Gen Z (typically born 1997-2012) will engage with direct mail. They are digital natives who are tech-savvy and therefore, interested in something different. That’s right, direct mail is new, fresh and different in the eyes of these consumers. As this generation enters the workforce, their purchasing power is growing rapidly, making them a key audience for direct marketers.

 

Additionally, it’s time to start thinking about Gen Alpha (born 2013 onwards). Known as “the first fully digital generation” they are highly connected and the most tech-integrated. Most important to them? Sustainability and climate change. As they come of age, they are bound to realize that doing things digitally is not always more sustainable, especially from a direct marketing perspective.

 

For direct mail best practices and how to optimize your direct marketing program, connect with us!

 

Source: Forbes, Media Tool, Chat GPT (Personal communication, January 2025)