How can you save on Direct marketing with Royal Mail? | DMA

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How can you save on Direct marketing with Royal Mail?


Running a direct mail campaign, despite the beneficial return and ROI it brings in, can be costly. So, any savings that can be made are always welcome! Paper, print and fulfilment cost can take a large slice of your marketing budget. However, when compared to the postage costs of the campaign the print and fulfilment usually only equates to roughly half of the cost; Postage being the other. Thankfully, Royal Mail are introducing various incentive schemes to cut the costs. Let us guide you through the existing and new incentives that Royal Mail are announcing in 2019.

Incentives were created to encourage marketers to use more Royal Mail postage services. There are various incentive schemes, but Royal Mail divides them by three main categories. You could be eligible for credits if you use Advertising, Business or Publishing mail.

Advertising mail

Additional 15% Off for First-time Users

If Direct Mail is a new, undiscovered channel to you, First-time User incentive scheme might be just right. You can earn postage credits for each of your first three mailings, provided you send a minimum of 10,000 items per mailing. Or if you are lapsed advertising mail customers with no spend on advertising mail services over the past 24 months, First-time User scheme will be suitable for you too.

Up to 15% Off for Testing and Innovation

Are you planning to extend your mailing database or increase the weight of your mailing campaign? You might be eligible for 15% incentive if you are running a campaign not less than 10,000 items. Or you could plan a series of new campaigns. However, they should not exceed 1m over the 6 months.

New, up to 15% off Growth and Volume incentive

Once you apply for Growth and Volume incentive, Royal Mail will determine your “baseline” based on the historical volumes and growing trend. To get a 7.5% discount, you need to commit to the volumes higher than your “baseline”. If you exceed the committed volume, you will be eligible for 15% credits. Such an incentive scheme is suitable for someone who is going to increase its mail advertising volumes in the next two year.

Business mail

Up to 30% Off for Testing and Innovation

Like advertising mail, to get Testing and Innovation incentive you can test new, larger format of the letter or try a new form of communication. For example, you can introduce a 'welcome pack' to promote retention. Your campaign should contain not less than 10,000 copies and can be sent as a series over 6 months up to 10m items.

New, 4% savings on Bank Statement volume Commitment Incentive

You can save 4% on the bank statements to your clients. Such an incentive is paid on a quarterly basis. However, to receive 4% incentive you will need to prove the volumes. The first year you are eligible for 2% incentive. If you reach 97% of committed volumes after year 1, then you will be automatically enrolled for 4% incentive for the year 2.

Publishing Mail

Up to 15% off New Customer Acquisition and Renewal Mailing

If you are the publisher, this incentive scheme might but just for you. It works similarly as testing and innovation incentive for advertising mail. Your campaign should contain not less than 10,000 copies and can be run for the period of 6-month.

Receive 30% discount for New Title Launch

It’s a great way to try if your new title will work. You can get up to 30% of credits back to your account if your quantity is not less than 10,000. You can also use this type of discount for the first 6 months from the launch date.

New, 2% Publishing Volume Commitment Incentive

The Publishing Volume Commitment Incentive supports the use of mail for the circulation of publishing titles. The Incentive rewards you if you post publishing mail volumes at the same level (or higher) than the year before entering the incentive. However, the minimum amount of the publications should be 250,000 a year.

Royal Mail incentive application rules could be quite challenging. And therefore, Romax here for you. If you are in any doubt or want the advice, contact us at and we will recommend what would be the best saving option for your direct mail campaign.

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