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Quality Mail: The Secret To Small Business Success
By Larry Otto

In the Information Age, characterized by satellite communications, fax, computer networks and e-mail, mail has remained the primary business means of communications. More importantly, mail has a unique capacity to inspire, sell and incite positive action when used in a highly professional, quality manner.

Until recently, most small business owners have viewed mail as a cash drain on their operations. However, mail still offers the best mechanism for companies wishing to speed up cash flow through outbound bills, solicitations or incoming checks.

"Dollar for dollar, nothing returns as much to your business as direct mail," argues Murray Raphel, mail consultant and developer of Gordon's Aliey, a multi-million-dollar shopping mall in Atlantic City. The statistics on mail seem to support his contention.

Today, the average U.S. business sends out 30,000 pieces of mail a year. Ironically, even though companies spend millions of dollars a year on data communications to improve order entry, customer service and invoice processing, mail operations are typically ignored.

This is surprising considering mail's importance to small businesses. As Joyce Matthews of Burnham-Hahn Pest Control in Alabama argues, "Mail is important to our company because it controls our cash flow. That's what it's all about."

Unfortunately, though, many businesses haven't learned this. A 1993 Opinion Research Corporation study showed that 95% of small business owners view information technology as critical or important to their success and growth.

However, a majority of small business owners don't connect success and growth with mail. A 1993 Pitney Bowes study revealed that nearly 60% of small businesses in the U.S. don't use direct mail, despite its proven effectiveness in promoting and building sales.

Most small firms still look at out-going mail as a necessary evil rather than as an opportunity for growth. They either haven't been exposed to the benefits of direct mail, or they just don't believe that it will work for them. The results of the Pitney Bowes research shatter those beliefs. Of the 40% of small business owners who use direct mail, 85% are pleased with the results, citing new customer acquisition as the primary benefit.

Mail's effectiveness has caused massive proliferation totaling 65 billion pieces a year, double the volume in 1980. It is indeed the primary communications tool for business and will grow even more important as business-to-consumer communications expand.

The competition for customers is always fierce, but in the crowded arena of mail marketing, it can be particularly tough. It is therefore paramount that small businesses produce quality mail -- mail that the recipient is more likely to open, read and act upon.


SLOPPY PRODUCTION

Although our postal service has a great reputation for getting the mail through, the time frame for delivery can't be guaranteed when mail production is sloppy. However, by producing "quality" mail -- mail that conforms to the highest standard of professional appearance and accuracy -- a company can gain a positive image, generate a better response rate, and ensure the fastest delivery possible.

The end result? Quality mail can transform a mundane mailing into a profitable pitch for business in which new levels of productivity and cost efficiencies are met.

To date, much has been wasted because systems for generating the mail are inaccurate and inefficient. Seven percent or 4.5 billion pieces of business mail each year never get delivered because of an incorrect address. An even higher percentage is delivered late because of incorrect addressing. This amounts to millions of dollars in wasted material, printing and postage costs.

Even if your mail is reaching its destination, you may be wasting money by "over-posting." If your business does not have an electronic scale, there are two options for mailing pieces that do not fit into the 32-cents category: You can take your mail to the post office, which will cost the average small business owner one or two hours per week, or you can "over-post," affixing two 32-cent stamps on an envelope that only requires 52 cents, for example. Both techniques cost your business in the long run. An electronic scale and meter enable small businesses to put the exact postage needed on every piece of mail, thereby saving crucial time and money.

Technological advances are the key to reducing errors and costs. In fact, it is now possible to automate much of the outgoing mail process by using advanced mailing systems. Pitney Bowes has designed total solution mailing systems specifically for small business called Business Basics. These integrated systems address each aspect of the direct mail process, saving small businesses considerable time and money.

Here is a check list for ensuring that quality mail is a trademark of your organization:

 

  1. Management involvement. Small business decision-makers need to direct and encourage mail innovation to achieve quality mail.
  2. Automate all mailing processes. A recent Pitney Bowes study found that automated folding/inserting is up to 30 times faster than manual processing. In addition, manual processing averages 3.25 errors per 1,000 pieces of mail. The time savings realized with automatic mailing systems allow companies to do their own mailing in house rather than utilizing expensive outsourcing.


    ERROR-FREE MAIL

  3. Mail list management and address correction. Use systems that verify, correct and standardize addresses according to the USPS national directory to provide error-free mail.
  4. Adhere to postal regulations and automation guidelines. Take advantage of USPS automation discounts by pre-sorting and utilizing ZIP + 4 codes and POST- NET bar codes. By incorporating all the USPS automation discounts, small businesses can save nearly six cents per first class mail piece. This can result in savings each year that finance the cost of mail automation equipment.
  5. Education and training. Select a partner that provides complete training with state-of-the-art equipment for management and employees. Some companies offer full programs to bring small business staffs up-to- date on the latest USPS regulations as well as a complete how-to guide for implementing a direct mail campaign. These programs are vital to putting your business on the quality mail track.
  6. Track costs. Small businesses that want to revolutionize their mailings need to get a baseline reading on current mail volume and costs and then track those costs to insure proper equipment purchase and maximum savings. Some companies now provide management software that allows business owners to track costs and system performance.

Insuring quality mail in your organization guarantees you the following benefits:

  • Advanced mail processing technology will pay for itself quickly and continue generating savings through automation discounts.
  • Increase speed of preparation, delivery and, ultimately, sales.
  • Companies experience improved cash flow as well as greater productivity and cost efficiencies in postage and labor.
  • Automated mail allows for increased volume, which results in increased profits for your business, without the need for additional labor.
  • Quality mail enhances growth by encouraging new and repeat business.