CASE STUDY
How a Retail Bank Saved Millions on Mail While Enhancing Customer Experience
Optimizing Direct Mail Delivery for Maximum Savings and Impact
KEY TAKEAWAY
By adopting GrayHair Software, this Bank successfully reduced mailing costs, improved marketing performance, and enhanced customer engagement. With real-time mail tracking, predictive analytics, and vendor accountability, the Bank now maximizes its direct mail impact while cutting operational costs.
HIGHLIGHTS
- Reduced mailing costs from $0.383 to $0.256 per piece
- Saved $127 per 1,000 mailpieces
- Eliminated blind spots in mail tracking for 100% visibility
- Improved call center efficiency with predictive delivery insights
SOLUTIONS USED
- Cloud-Based Mail Tracking & Reporting: End-to-end visibility of every mailpiece
- Predictive Delivery Insights: Optimized follow-ups based on accurate in-home date predictions
- USPS Performance Monitoring: Held vendors accountable for delivery delays
- Call Center Optimization: Reduced inefficiencies by aligning mail delivery with customer service efforts
- Cost-Saving Transition Strategy: Maintained First-Class Mail efficiency while using lower-cost Marketing Mail
INDUSTRY
Banking & Financial Services
The Problem
A Retail Bank relied heavily on First-Class Mail® for its direct marketing acquisition programs. To reduce costs, the Bank wanted to transition to Marketing Mail™, which offers lower postage rates but has longer and more variable delivery times. However, this shift introduced a major challenge: the Bank had no way to track or predict delivery performance, making it costly and ineffecient to manage customer expectations and follow-up activities effectively.
Without accurate delivery data, the Bank struggled to:
- Identify and resolve delayed or undelivered mail issues.
- Determine whether delivery issues were local, regional, or widespread.
- Measure how the USPS® and suppliers were managing the delivery of their mail.
- Ensure consistent response tracking, which is critical for marketing effectiveness.
This resulted in an inconsistent customer experience, reduced campaign effectiveness, delayed ROI, and decreased response rates.
The Challenge
Unmanaged Marketing Mail can result in delivery windows as wide as 20 days, compared to the 3-5 day timeframe the Bank aimed to achieve. The Bank needed a solution that could provide real-time visibility into mail performance, helping them optimize their marketing campaigns to increase response rates while maintaining a strong customer experience.
In short, the Bank needed a mail tracking and analytics solution that could:
- Predict in-home delivery dates for Marketing Mail to synchronize marketing efforts.
- Identify bottlenecks in USPS processing and improve vendor accountability.
- Optimize call center activity, preventing premature or delayed follow-ups.
- Reduce mailing costs while ensuring timely and consistent delivery.
With no existing system in place to measure USPS delivery performance, the Bank was flying blind, unable to adjust its strategy to maximize efficiency.
The Approach
To address these challenges, GrayHair Software provided the Bank with real-time mailstream visibility and predictive analytics. The approach included:
- Cloud-Based Mail Tracking & Reporting: The system tracked every mailpiece from the mail preparer to USPS entry points and final customer delivery.
- Predictive Delivery Insights: The Bank gained accurate in-home date predictions, allowing for better timing of follow-ups and marketing initiatives.
- USPS Performance Monitoring: GrayHair’s reports enabled the Bank to hold the USPS and vendors accountable for delays.
- Call Center Optimization: Data insights helped the Bank synchronize mailings with expected call center volume, reducing inefficiencies and unnecessary outreach.
- Cost-Saving Transition Strategy: The solution allowed the Bank to use Marketing Mail in a way that mimicked First-Class Mail timing, maximizing savings without sacrificing effectiveness.
The Results
By leveraging GrayHair’s expertise and technology platform, the Bank achieved:
- Significant Postage Savings: Switching from First-Class Mail to Marketing Mail reduced costs from $0.383 per piece to $0.256, saving $127 per 1,000 mailpieces.
- Eliminated Blind Spots in Mail Delivery: The Bank now tracks every mailpiece down to the individual level, ensuring reliable, consistent delivery.
- Improved Call Center Efficiency: The Bank predicts spikes in call volume and optimizes staffing and outbound calls accordingly.
- Better Response Rate Analysis: Tracking mail delivery ensures that marketing test results are accurate, as response rates can now be measured without delivery inconsistencies skewing results.
- Faster Resolution of USPS Issues: GrayHair’s reports revealed postal congestion issues, leading to improved discussions and problem-solving with the USPS.
