Feeling the Pinch? Consider your USPS Costs
How to Save Money in a Tight Economy

Reduced head counts.  Limited travel budgets.  An increased focus on process efficiencies.  Most organizations have been forced to tighten their belts to make ends meet in today’s troubled economy.  However, saving money in '09 isn't just about cutting costs - it’s about reducing them.

While there are many obvious things to do, and probably already being done in your organization to lower expenses, have you considered your USPS costs? 

On February 10, the U.S. Postal Regulatory Commission announced another postal rate increase, scheduled to take effect May 11, 2009.  What's more, in accordance with The Postal Accountability and Enhancement Act, the United States Postal Service (USPS) will adjust mailing services prices each May – meaning it’s now more important than ever to evaluate your customer communications and identify areas for postage savings. 

For organizations of all shapes and sizes, postage ranks high among operating expenses.  As postage rates continue to rise, the effect these costs have on your balance sheet becomes more evident. 
If the upcoming postal rate increase has you exploring alternate ways of getting your message out to customers, read on to learn how leading organizations have offset this additional expense by bolstering print/mail efficiency.

New England Financial Services Provider
As a result of the USPS adjusting mailing services prices each May, this leading financial services provider was beginning to feel the pinch and was simultaneously looking to improve the customer experience realized through their customer communications.

Previously printed three up on 8 ½” x 11” stock, then cut for insertion into envelopes, the design of the bank’s insufficient funds notices proved inefficient.  With the majority of notices produced in house at the bank’s IT print center, the process of printing and distributing notices was costly and left little time to focus on how to enhance the marketing value of their customer communications.

By outsourcing the daily production and distribution of their insufficient funds notices, the bank has now transitioned to a double postcard format for notices, which has saved nearly $250,000 in postage each year, and also created opportunity to utilize a more engaging customer notice design.  In addition, the bank benefits from using the reply portion of the postcard for marketing or cross-selling messages. 

America’s Leading Dental Benefits Carrier
When the state recently amended a mandate to provide dental plan members with printed evidence of coverage books, giving providers the option to post the content on the Web, this dental benefits carrier saw a significant opportunity for savings.

Previously, each dental plan member would receive a printed book in the mail, which was costly in terms of both printing and mailing.  After exploring various mailing formats, the carrier discovered that significant postage savings could be had by distributing an innovative double postcard customer notice – mailed at a postcard rate vs. letter or flat rates.    

Now, each dental plan member receives a double postcard customer notice in the mail alerting them that their evidence of coverage materials can be accessed online. The postcard provides the member the opportunity to continue receiving a printed copy simply by returning the reply portion of the card in the mail.
With approximately 300,000 notices distributed each year, the potential savings are significant for the customer – $.40 to produce a postcard notice compared to an average $3.90 for a printed book.

Chief Self-Storage Facilities Operator
With over 2,100 self-storage facilities located across the U.S., this self-storage provider looked to identify areas for process efficiencies and cost savings when it came to communicating with its over one million customers. 

Previously, the company was printing Preliminary Lien Notices and other time-sensitive customer communications in 8.5’’ x 11’’ format, stuffed in custom envelopes and mailed at a letter rate of $0.42 per piece. In addition, the complete process of printing and distributing notices was highly decentralized with supplies sourced separately and trips made to the post office each time notices were to be distributed.  With nearly 700,000 notices distributed monthly, the company was in need of a timely and cost-effective approach to account communications.   

Saving both time and money, the company now employs a fully-automated customer notice solution.  The solution not only accelerates speed to market, but has also cut postage expenses nearly in half by converting notices to a double postcard format, which are distributed at a rate of $0.21 per piece.   The comprehensive process enables accurate and timely delivery of customer communications.

In today’s highly regulated environment and with postal rates continuing to rise, businesses across the country are exploring ways to cut costs.  As you examine your customer communications, keep in mind that in addition to postage savings, operational savings abound.  Outsourcing the production and distribution of your customer notices not only frees up valuable company resources, but also provides an added layer of disaster-recovery protection and eliminates fixed costs associated with equipment.

Contact Standard Register today to discover how you can optimize your spending on postage and transform your customer communications with our customer notice solutions.