The mailing industry in 2025 stands at a crossroads. We’re all familiar with the challenges facing us, from chronic delivery issues, implementation of the Postmaster General’s Delivering for America strategic plan, and of course, continued postage rate increases.

On the other hand, there are even more reasons for optimism. As a $38.2 billion industry, direct mail is an effective marketing, branding, and fundraising channel. It provides more opportunities than ever before to help marketers and non-profits stand out from the glut of digital messaging that is so pervasive.

According to USPS, in Fiscal Year 2024, controllable losses were reduced by $434 million, while revenues increased both for First-Class Mail (by 3.4%) and Marketing Mail (by 1.9%). And in study after study, marketers and printers alike agree - mostly - on how they’re adjusting the craft of direct mail to make it more affordable while, at the same time, producing mail that gets the attention of customers and moves them to respond.

For example:

• In a 2024 Winterberry Group survey, 81% of brands plan to increase mail spending in 2025
• A recent SeQuel Response report found that 72% of consumers engage with mail each week – up three percent from 2023
• 84% of marketers in Lob’s 2024 study said that direct mail delivers the best ROI

Considering all the ways that mail has been evolving recently, let’s look forward to how to incorporate the changes that will make your mail more powerful this year and beyond.

1. Optimize Your Data

Today, it’s no longer an option: you need to get the most out of your direct mail spend. That starts with data, your single greatest asset. This has been true for decades, but given increased postage and printing costs, getting your data right is no longer just one more item on your to-do list; it’s at the top.

When you invest in solutions, you save money over both the long and short run of your direct mail campaigns. There are a number of ways to become more efficient in your processes and keep your costs under control.

To keep your costs from controlling you and produce data-driven messaging with your mail, use these tools — and use them often — for these important tasks:

• Dedupe your lists, end any internal silos, and run them through CASS (Coding Accuracy Support System) and NCOA (National Change of Address) before presort
• Segment and target your audience(s) with AI-driven testing and modeling strategies that analyze and identify high-value cohorts
• Dig into that audience data and predict which segments are most likely to respond to specific messages
• Personalize messages, offers, headlines, and images on your mail pieces with variable data printing (VDP)
  
  

2. Review Your Mail Formats

Have you noticed that some direct mail seems to be getting smaller? That flat, folded self-mailer, or envelope that you’ve been mailing for years may not be as affordable as it once was - or as effective.

Think about how you can re-work the size and complexity of your current campaign packages and elements. Many economical options exist for design, printing, processing, and postage. The savings resulting from reduced paper and postage costs may increase the ROI on your campaign.

Here are some examples:

• Shrink your catalog trim size from full-size to slim-jim while maintaining page count
• Transform a letter package or flat into a folded self-mailer
• Replace a folded self-mailer with a jumbo postcard
  
  

3. Tune Up for Automation and Tracking

Digital campaigns run at the push of a button, so why can’t mail? When you shift from resource-heavy manual processes to automation tools, you save time and money. Your focus also shifts to achieve additional improvements in performance every step of the way.

Making changes to an existing template or uploading a new mailer to a completely automated CRM system doesn’t have to be complicated. With a laser-like focus on data, and the insights AI can give you, your automation can operate “always on.” At advanced levels, data can flow from point-of-capture events or triggers into your CDP or CRM for printing and entry into the mail system.

With USPS Seamless Acceptance, mail owners’ use of electronic documentation and Intelligent Mail barcodes (IMb) streamlines mail entry verification as well as makes postage discounts available. And Informed Visibility provides numerous benefits for mail tracking, such as delivery date notifications and better workflow planning.

4. Utilize USPS Incentives

For the first time in a few years, USPS did not file a request for a January increase in postage rates. This is a welcome step, as postage is the biggest component of mail campaign costs. With a rate hike still likely to be scheduled for July 2025, it’s a good time to consider using two programs to save additional money on postage this year.

Once again, USPS is offering companies incentives for mail campaigns that incorporate new and developing marketing and printing technologies. The goal is to help marketers and printers to create high-value mail that drives engagement and increases ROI.

For 2025, the 5 USPS Promotions are:

• Integrated Technology (3% Discount)
• Tactile, Sensory and Interactive Engagement (4% Discount)
• Reply Mail IMbA (3% Discount for Static IMb, 6% for Serialized)
• Continuous Contact (3% Discount)
• First-Class Mail Advertising (3% Discount)

Campaigns may qualify for two Add-On Promotions (Informed Delivery and Sustainability), each with a one percent discount, but only when stacked with one of the five main promotions listed above.

The Mail Growth Incentives program covers both Marketing Mail and First-Class campaigns mailed in CY 2024. The goal is to drive higher sustained usage of mail by large mailers, as well as encourage higher volume by the rest. Mailers can earn credits of 30% on future volume when they exceed their 2024 volume baseline.

These trends demonstrate that direct mail is a vital entry point for marketers that is changing to meet today’s demands. It uses digital technologies to streamline processes, reach audiences with personal, relevant messages across channels, and provide a physical and authentic way to experience a brand.

Paul Bobnak creates written and video content for mailing.com, Lob, and other companies. He also speaks about direct mail at marketing and printing industry events, webinars, and groups.

This article originally appeared in the January/February, 2025 issue of Mailing Systems Technology.