In the fast-paced world of direct mail marketing, every penny counts. That’s why the Everywhere Direct Mail Marketing (EDDM) program offered by the United States Postal Service (USPS) often piques the interest of businesses seeking budget-friendly advertising solutions. The allure lies in its promise of delivering mailers to every deliverable address within a designated ZIP code at a seemingly discounted rate compared to standard postage. However, before succumbing to the charm of EDDM’s cost-saving narrative, it’s crucial to peel back the layers and unveil the truth.
Misconception #1: EDDM is less expensive than standard postage.
This is a widespread misconception that can lead to costly miscalculations. While EDDM might seem cheaper at first glance due to its per-piece price, the reality paints a different picture. The USPS offers other low-cost postage options like Saturation Mail and Marketing Mail, each with its own pricing structure and delivery speed. Comparing apples to oranges, EDDM’s price doesn’t factor in mailing list acquisition, and the time required to sort, bundle, and prepare your mailing for the Letter Carriers. Not to mention that you must deliver EDDM mail to each Post Office for each zip code of your mailing. All of which significantly impacts the true cost per delivered piece.
Data and Statistics: EDDM vs. Standard Postage
Let’s delve into some data to shed light on the cost comparison. A 2020 study by the USPS Office of Inspector General (OIG) revealed that EDDM mailers cost an average of 26.3 cents per piece, compared to 22.1 cents for Marketing Mail and 34.1 cents for First-Class Mail. While EDDM appears cheaper than First-Class, it falls short of Marketing Mail, raising questions about its true value proposition.
Furthermore, the OIG study analyzed the cost-effectiveness of EDDM campaigns for different mail volumes. Interestingly, it found that EDDM became cost-effective only for campaigns exceeding 5,000 pieces within a single ZIP code. For smaller campaigns or those targeting multiple ZIP codes, standard postage options often proved more economical.
Hidden Fees and the Potential for Wasted Mailers:
EDDM’s seemingly low per-piece price often masks hidden costs that can quickly inflate the overall cost such as mail preparation.
Additionally, EDDM mailings cannot be filtered to target and reach qualified homeowners. You must mail to every residence in a particular zip and that includes apartments and multi-family buildings. You may even reach renters who reside in single-family homes. All of this will result in wasted mailers delivered to uninterested recipients. This further erodes the cost-effectiveness of EDDM campaigns.
Considering the ROI Beyond Cost:
While cost is a crucial factor, it’s not the only measure of success for direct mail campaigns. Return on investment (ROI) should be the ultimate focus. EDDM’s inability to target specific demographics or exclude uninterested individuals can significantly impact response rates and ROI compared to targeted standard postage campaigns.
The Bottom Line: Choose Wisely
EDDM can be a viable option for specific scenarios, such as large-scale, non-targeted campaigns within a single ZIP code. However, its cost-saving claims often fall short in reality. Before jumping on the EDDM bandwagon, businesses should carefully consider:
- Campaign size and target audience: EDDM shines for large, untargeted campaigns within a single ZIP code. Businesses such as local restaurants and car dealerships may benefit from EDDM mailings.
- Hidden costs: Factor in the mail preparation, delivery to multiple Post Office locations and potential wasted mailers.
- ROI potential: Compare response rates and ROI between EDDM and targeted standard postage options.
By diligently considering these factors and moving beyond the initial allure of EDDM’s low per-piece price, businesses can make informed decisions about their direct mail marketing strategies, ensuring their efforts effectively reach the right audience and deliver true value for their investment.
Remember: Cost might be king, but ROI wears the crown. Choose wisely!
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