Ask Randy: USPS Update January 2023

What’s new with USPS promotions in 2023?

The postal incentives are bigger than ever for this year. Why? Because the USPS is still trying to grow the relevance of mail. In their eyes, if marketers participate in a promotion, they should see higher return rates, thus justifying the continued use of direct mail as a marketing strategy. By using any of the USPS marketing mail promotions, you can get 3%-6% off your postage cost.

  • Tactile, Sensory, Interactive = 5%
  • Emerging Tech & Mobile Shopping = 3-4%
  • Informed Delivery = 4%
  • Retarget Active = 5%

Retarget Active is a new promotion for 2023. This incentivizes marketers to send out a postcard to a recent website or mobile app visitor that didn’t convert. This strategy bridges the connection between website or app behavior and direct mail, creating multiple touch points in your customer’s journey and bringing them further down the funnel to make a purchase.

Read more in-depth details about each promotion in SPCFuel’s latest blog, 2023 Promotions.

What effect does the USPS’s decision to eliminate the use of sacks when mailing flat pieces have on SPC’s marketing partners?

This welcome change will have no impact on SPC marketing partners.  On the production side of things, this is a welcome change. Sorting flats into sacks is a cumbersome labor-intensive process.  Moving to only having palletized flats will streamline the production process. 

What changes can we expect with respect to USPS network redesigns in 2023?

Talk of a network redesign has been discussed by the USPS for the past year. Although the USPS has not fully shared the specific plans, Postmaster General Louis DeJoy stated it would look a lot different than what we currently see. The basis of the plan is to do more at fewer facilities. Any change that results in cost savings to the USPS is welcome to marketers dependent on USPS service, as it should drive down prices.  We do know there will be a few name changes in January 2023:

  • Section Center Facilities (SCFs) will be renamed to Local Processing Centers (LPC)
  • Network Distribution Center (NDC) will be renamed to Regional Processing Distribution Center (RPDC)
  • Certain Destination Delivery Units (DDUs) will be merged and named Sorting and Distribution centers (SDC)

What Impact will USPS changes have on mail pieces over .75” in thickness?

This exact question just recently came up, as a client of SPC’s wanted to explore adding more pages to a catalog.  The extra pages would have pushed the piece beyond 3/4” thick and thus changed the mail class from a flat-sized mail piece to a parcel.  This would have more than doubled the postage cost per piece not only because of the change in classification but also because of the added weight. 

Randy Weiler
Senior Director of Postal Affairs, Logistics & Strategy

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