2024 is coming to a close, and postal optimization experts Deborah Damore, Kathy Clark, and Dan Hickey have set their sights on upcoming trends in postage costs and the USPS promotions and incentives that will be available in 2025.
Why let the new year catch your marketing team by surprise? As you plan and review your direct mail marketing efforts, lean on insights from our recent webinar to enhance your direct mail strategy and maximize your overall savings. This article will summarize key points from the webinar for you and provide additional resources for working with USPS.
2025 – 2027 USPS Postage Costs Forecast
Let’s lead with some good news: USPS has announced that there will be no increase in postal rates for market dominant mail in January 2025. Market dominant mail includes first-class mail, periodicals, marketing mail, and package services. Since 2018, there have been 10 postal rate increases, resulting in a compounded 40-70% impact on marketing mail. So any reprieve from climbing postage costs is a welcome one!
USPS has also provided a peek into the near future. For July 2025, the total increase in postage costs when totaling CPI, density, and retirement factors is estimated to be 7.6%. The next official rate filing change with actual numbers for July is projected to be released in April 2025. Marketers can expect to see a CPI of 2.7%. Additional projections are available through July 2027.
2025 USPS Incentives
Mail Growth Incentive
Returning for 2025, The Mail Growth Incentive offers a 30% postage credit on marketing mail pieces that exceed the volume of mail sent in your 2024 fiscal year. Minimum volume is 1M. Advanced registration is required, and you are eligible to stack this incentive with other USPS promotions. Terms and conditions available here.
Catalog Incentive
Mailing a high volume of catalogs next year? USPS is offering a price incentive of $1 per 1,000 pieces of mail. In order to meet the new definition of a catalog, your mail pieces must be 12 or more pages, be bound or fastened along one edge, and include prices or methods to determine prices. You will also need to include fulfillment information, an organized and descriptive listing of your products or services, and, finally, adequate information for recipients to place an order. No registration required.
Marriage Mail Incentive
With the Marriage Mail Incentive, you enjoy 10% off postage for marketing mail letters and flats. Individual mail pieces must be under two ounces and you must mail 10 or more times a year to qualify. Your mail must include four or more advertisements from different companies. Electronic documentation is required to pay postage. No registration required.
2025 USPS Promotions
Separate from USPS incentives, USPS promotions are designed to promote innovative marketing mail strategies and enhance the connection your business has with your customer base. You can only take on one promotional discount per mailing, and you must identify the promotion at the time of mailing. Don’t forget: your mail piece will need to be preapproved and you will need to register for your chosen promotion in advance.
If you have additional questions, the USPS Mailing Promotions Portal is a valuable resource.
Integrated Technology
At a 3% discount, this promotion allows you to use the latest digital technologies in your direct mail pieces to create engaging customer experiences. For instance, you can use AI tools to generate images or directional copy for your mail pieces or use mobile shopping (e.g., QR codes) to give mail recipients quick and convenient access to your products or services online.
Tactile, Sensory, and Interactive (TSI)
Innovative techniques and treatments are available to drive an increased response to your direct mail advertising. Specialty inks, sensory treatments, interactive elements like pop-ups, and holographics stickers are just the beginning of what this exciting promotion, at a 4% discount, has in store.
Continuous Contact
If you’re looking to increase touchpoints with customers and prospects, Continuous Contact provides a 3% discount when you plan campaigns with a series of follow-up mailings that deliver targeted information to the same address to drive higher conversions. Your first mailing won’t have the promotional discount, but the benefits are undeniable.
Reply Mail IMbA
If you’re willing to migrate to automated Intelligent Mail barcode Accounting (IMbA), this promotion offers a 3% discount on static barcodes and 6% discount on serialized barcodes. In addition to obvious savings, you’ll enjoy automated invoicing and expedited processing.
First Class Mail Advertising
Elevate your first-class mail marketing efforts with a 3% discount. Whether you’re using a standalone advertisement as a first-class mail piece or incorporating a distinct marketing message within first-class mail pieces, you qualify for this promotion.
Bonus Promotions
Otherwise known as add-on promotions, Informed Delivery® and Sustainability are bonus promotions that only apply if you are already using one of the USPS promotions listed above. Informed Delivery® can give mail recipients a digital preview of your marketing materials, increasing customer touchpoints. Sustainability allows you to use environmentally friendly materials for your direct mail marketing campaigns, giving your brand an ethically responsible edge. Both add-ons feature a 1% discount.
Successful Direct Mail Advertising Starts with Enru
With so many promotions and incentives available to you, the details can be difficult to manage. Lean on your mail service providers – that’s Enru! – to keep deadlines in check and ensure that you’re getting the most out of your direct mail advertising campaigns. Contact us today to streamline your mailing operations and don’t forget to join our email list to access our webinar.
Full guidebooks and calendars for the 2025 promotions and incentives can be found on the USPS website.
