September 2000

• Banner ads achieve on average only .5 percent click-through-rate (response rate for internet ads). Direct mail can claim response rates as high as 5 percent and sometimes higher.
• Customer-acquisition-cost for direct mail can be as low as one sixth the cost of online advertising.
• Direct mail has never been the victim of consumer backlash on the scale of what online advertisers have to endure. Internet users see the advertising as an invasion. To be branded a "spammer" spells almost certain demise for the online advertiser.
• In a study of electronic media, TrendWatch Publishing reported that "direct mail is part of the promotional model for web sites."

More Postage Rate Increases
The USPS has proposed a 6.4 percent increase in postage rates to the Postage Rate Commission in Washington, D.C. Major companies and associations such as Amazon.com, Dow Jones, The Greeting Card Association, Magazine Publishers of America and McGraw-Hill have banded together to oppose the rate hike. One major point of their opposition is the planned rate hike is 1.4 times the forecasted inflation rate of 4.7% for the year 2000. Testimony before the Commission concluded August 14. The commission has until Nov. 13 to finalize the rate case. New postage rates will take effect January 2001.

CCI offers the MCAP program which can save you as much as 20%. The MCAP program is free of charge and available only to CCI clients. Go to www.mailCCI.com for more information of call us at 316-265-0879 or 800-279-2505. For more information about postage rates see www.prc.gov.

Postage Rate History
Can you remember when a first class stamp was only 6 cents?

.06 - January 1968

.08 - May 1971

.10 - March 1974

.13 - December 1975

.15 - May 1978

.18 - March 1981

.20 - November 1981

.22 - February 1985

.25 - April 1988

.29 - February 1991

.32 - January 1995

.33 - January 1999

The 80's ranks the worst decade with first class postage rising 10 cents or an average of 1 cent per year. The 70's brought a 9 cent hike and the 90's brought only a 8 cent rise. Overall average rate of increase for first class postage since 1968 is $0.008 or 5.5 percent per year.

USPS News
 --USPS Electronic Services--
You'll remember last month The US Internet Industry Association described the USPS's planned internet services as "...efforts by a government agency to push established companies out of the marketplace using its monopoly revenues and powers." Recently, Republican State Representative of New York, John McHugh proposed any future internet services offered by the USPS be moved to a separate, entrepreneurial business. McHugh's proposition has been approved by the House Postal Service Subcommittee.

Meanwhile, the USPS's Electronic Bill Payment service is underway. See it at www.usps.com/ebpp (dead link as of 03/2007).

September News Poll
How much would you allow the USPS to raise its rates?

www.mailCCI.com
 --Variable Data Printing--
Did you know that customizing your reply card can increase response by eliminating the need for the recipient to fill in his or her name, address, etc. And you can also assign a code to each reply card for response tracking. According to TrendWatch Publishing, personalization is knowing which sales pitches to send to which individual. See what they mean at http://www.mailcci.com/variable_data_printing/index.asp.

 --Searching The Internet--
If you think your search engine position isn't important, read this:

• 57 percent of internet users use search engines at least once per day. Searching is the second most popular internet activity; email is the first. (MarketingPosition Newsletter August 2000)
• 42 percent of online buyers arrived at the e-commerce site via a search engine. (MarketingPosition Newsletter August 2000)

 If search engines are not part of your online marketing strategy, you are most likely losing revenue. Contact CCI about the Heavy Hitter package. We've designed a marketing solution that includes both traditional direct marketing and online marketing that gets your web site noticed. Go to www.mailCCI.com or call us at 316-265-0879 or 800-279-2505 to learn about this innovative program available only from CCI.