Royal Mail has announced the launch of its Catalogue Mail incentive, set to commence on 15 August 2024*. This new incentive is a fantastic way for retailers to earn retrospective postal credits by increasing their catalogue mailing volume between September 2024 and January 2025.
Moving towards the Christmas season, this incentive is a brilliant way for businesses to maximise the ROI of their campaigns while earning postal credits to spend on their future mailings too. Royal Mail’s Marketreach research and report, written in collaboration with Retail Week, reveals that catalogues can convert browsers into buyers, with 55 per cent purchasing after seeing something in a catalogue. So, I guess the question is, why wouldn’t you include catalogues in your marketing mix and earn money for doing so?
After working in the mail industry for 25 years, I know the biggest barrier for businesses is fully understanding the specifications for incentives and knowing how to apply, meaning many miss out on this money saving opportunity. Below is a brief overview of the new Royal Mail Catalogue Incentive to help.
Incentive Overview
The Catalogue Mail incentive allows participants to earn retrospective postage credits. Retailers can receive up to 22.5 per cent credit for incremental Catalogue Mail volumes and 1.5 per cent for planned volumes. This incentive is designed to encourage increased use of Catalogue Mail, which has been shown by JICMail data to drive strong customer engagement and commercial actions.
Eligibility Criteria
To qualify for the incentive, mail campaigns must meet the following conditions:
- The campaigns must be Catalogue Mail and equal to or exceed 80 per cent of the advertising mail volume posted between September 2023 and January 2024.
- A minimum of 100,000 incremental Catalogue Mail items or 2.5 per cent of the planned catalogues, whichever is greater, must be posted.
- Mailings must be in trays and cannot include postcards or one-piece mailers.
Incentive Period and Application Process
- Posting Window: The incentive runs from 2nd September 2024, to 1st February 2025.
- Application Deadline: Applications must be submitted by 6th January 2025.
Baseline and Credit Calculation
The incentive is structured to promote incremental Catalogue Mail against a customer’s planned advertising mail volume. The baseline is set at 80 per cent of the mail volume posted between September 5, 2023, and February 3, 2024. Credits are earned based on the percentage of incremental Catalogue Mail sent above this baseline. For example, posting 17.5 per cent above the planned volume could result in a maximum credit rate of 1.5 per cent for planned volumes and 22.5 per cent for incremental volumes.
Examples and Guidelines
Retailers must declare their planned mail campaign volumes, including Catalogue Mail, Advertising Mail, and Partially Addressed Mail. For instance, if a retailer plans to post 4 million Catalogue Mail items and adds 700,000 additional items due to the incentive, they would qualify for the maximum credit rate if the total volume exceeds the baseline.
Conclusion
The Catalogue Mail incentive offers a strategic opportunity for retailers to enhance their marketing efforts through increased catalogue distribution. By leveraging this incentive, retailers can benefit from substantial postage credits while driving customer engagement and sales. For more detailed information or assistance, contact Rob.
*Pending no industry objections.
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