03rd Sep 2018

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IMPORTANT ANNOUNCEMENT FROM AUSTRALIA POST

03rd Sep 2018

As a leading multi-channel marketing agency, part of the service we offer our customers is to keep you up to date with changes in the marketing world that can affect how you work.

Australia Post has advised us that there will be an increase in business letter prices from 1st October 2018.

The good news is that costs will only increase on average by 1.2% across Australia Post’s business letter services. For example, PreSort letters will increase on average by 1.1% (around 1.1c) and Charity Mail by 1.9% (around 1.2c). The price increases for the major services are summarised below:

Australia Post price increase table

More details are available from the Australia Post website.

Will this affect the role of direct mail in 2018?

The short answer is, we don’t think so. We expect to see direct mail remaining an important and valuable part of our customers’ marketing strategy. This is the only price increase to business letter postage prices in the 2018/19 financial year and it comes close to 18 months after the last increase on this service.

Direct mail volume expected to grow

According to a CMO Council report, direct mail growth is projected through to 2020 due to a relatively stable economy and its value in complementing digital marketing channels. 80% of direct mail providers are reported to believe that direct mail volumes will increase at an average rate of 4-5% pa over the coming years.

This is not surprising when Australia Post’s own research indicates that over 99% of people open mail, 60% read it thoroughly and 54% store it for later reference.

Importance of a multi-channel strategy

We work with our customers to help develop a successful multi-channel approach to customer engagement. While targeted direct mail remains important and is expected to grow, the impact of the cost of postage becomes less significant as organisations move to combine it with a digital environment. For support with developing your multi-channel strategy, please contact us.