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Don't Be Square
February 2004

A few companies have already taken advantage of the new rate class, and the results are staggering. United States Postal Service recently relaxed the longstanding rectangular restrictions on mail pieces with a new class of mail.

The United States Postal Service unveiled Customized MarketMail on August 10,2003. This new rate category allows mailers to break the rectangular mold of direct mail by allowing odd shapes and multidimensional formats to mail without envelopes. This is a significant innovation for mailers to break through the mailbox clutter while pushing the creative envelope.

Bob Weitzen, President and CEO of the Direct Marketing Association thinks the onset of CMM will change the way people mail. "Customized MarketMail is a really exciting new development in an industry that welcomes innovation. The consumer is interested in new creative application of mail, and the industry is going to welcome this new technique. There is no doubt that CMM is the shape of things to come," Weitzen said.

There are a number of benefits for using CMM. Experimenting with unique shapes helps mailers overcome the mailbox clutter and provides attention-getting power without hiding it in an envelope. The power of shape allows mailers to easily demonstrate their products and services and can help build strong brand identity.

Unique mailers tend to have more staying power with recipients. These pieces are then more likely to be shared with friends and family, extending the life of the message.

Anita Bizzotto, chief marketing officer for the USPS said CMM now makes mail an even more valuable advertising tool. Now, mail is limited only by the creativity of the direct marketer.

However, the USPS has not exactly made mailing CMM an easy task. The postage for mailing CMM pieces is $.574 per piece for commercial mailers and $.460 for nonprofit customers.

CMM pieces must also be delivered to a Destination Deliver Unit (DDU). These are the facilities where the mail is sorted for delivery by the mail carrier. This step is tricky, as there are more than 80 DDU drop points in Consolidated Mailing's delivery area alone. The USPS recommends sending CMM pieces via Priority or Express mail services, further increasing postage costs. Mailers can also deliver CMM pieces themselves, an act that would be nearly impossible for national mailings.

According to the USPS, no Value-added services are available with CMM and undeliverable addresses will be discarded. According to the USPS, all CMM mail must either use an occupant address format or include an "and/or current resident" line to accompany an updated customer file. A carrier release endorsement must also accompany addresses saying "Carrier-Leave if no Response".

Despite drawbacks, recent tests of CMM have proved effective. Krispy Kreme Doughnut Company achieved an 11 percent response rate when it mailed 10,000 pieces to people in Orange County, CA. Krispy Kreme mailed a die-cut replica of a dozen glazed doughnuts with an offer for a second dozen doughnuts for a dime. The mailing achieved a significantly higher response rate than the company had achieved in the past.

Even more staggering, Rosenfield Raymon Pielech, a public accounting firm in New Bedford, MA recently achieved a whopping 20 percent response rate on a business-to-business test mailing. The firm has booked new business with eight clients as a result of their simple, circle-shaped mailing, which is expected to bring in nearly $120,000 in new business. The firm spent about $.80 per piece on their mailing, for a total cost of about $1,500.