What the Intelligent Mail barcode does for marketers

by David Henkel at Target Marketing Magazine

The address block at the top features the various coding needed to support Address Change Service, POSTNET and PLANET CODE services. Below, the Intelligent Mail barcode rolls all this information up into one line, giving marketers more space on mail pieces for copy and design.

Most likely, any business that produces frequent, large mailings has already heard something about the Intelligent Mail barcode (IMB) capability now offered by the United States Postal Service. The fact is, as of May 2011, the currently used POSTNET barcode will be phased out and IM barcodes will be required for marketers in order to qualify for the automation discount postage rate. However, this barcode provides additional advantages that may be of special interest to marketers wanting to optimize the impact of their direct mail campaigns.

For those who aren’t routinely involved with the nuts and bolts of high-volume mailing processes and regulations, the different postal codes and requirements can be confusing. There is a long history when it comes to following the USPS’ migration to more streamlined, automated processes, beginning with the advent of the simple five-digit ZIP code. Since then, there have been several generations of barcodes with increasing capabilities, each providing more automation, efficiency and information.

Marketers who spend a great deal of time and money on the design of those mail pieces will be happy to know that IMB replaces the myriad barcodes with a single one that combines both the information and functionality needed, while allowing for a less cluttered look and larger space for design.

Basic vs. Full-Service
IMB is available at two levels: basic and full-service. The differences may seem slight at first, but can be significant. The basic IMB option qualifies you for automation discounts and can be implemented with less effort than the full-service IMB level, which requires a rigorous set of steps, as well as software. The full-service IMB option also offers sophisticated change-of-address information that enables feedback from the USPS in the form of detailed and downloadable reports.

Marketers who currently presort and receive automated discounts with the POSTNET barcode should consider moving to basic IMB before next year. Otherwise, beginning May 11, 2011, they will lose from 3.2 cents (unsorted) to 7.9 cents per piece (5-digit sorted) on automated First Class mail when the USPS phases out the discounts for POSTNET barcode use. For those marketers not currently barcoding and presorting, and paying the full rate postage of 44 cents per piece, there will be no impact (other than potential rate increases) when the POSTNET program is phased out.

Given these substantial savings, marketers should consider moving to basic IMB whether they currently barcode or not. Additionally, there is the potential benefit of a small-volume mailer being seen by its customers and prospects as having postal expertise for using the same innovative technologies as big-volume mailers. However, even though it may make sense to go with the basic IMB option, implementing the full-service IMB level would most likely not pay off for small-volume mailers.

Moving to the Full-Service IMB Option
As of November 29, 2009, full-service IMB users qualified for additional postal discounts of $1 per 1,000 Standard mail pieces, or $3 per 1,000 First Class mail pieces, over and above the automation rate. These added discounts, though seemingly small at first, can add up to nice savings for marketers at a time when many businesses are seeking ways to contain their promotional budgets.

Address correction is another feature of Intelligent Mail that can benefit marketers. The reality is that the USPS handles billions of pieces of undeliverable mail each year—pieces with incorrect or outdated addresses—and at an expense to the agency and marketers. Undeliverable mail is costly for marketers to absorb, due to the waste associated with the delayed or non-delivery of everything from postcards to sales letters to catalogs.

The sophisticated change-of-address feature built into the full-service IMB option has been designed to dramatically reduce undeliverable mail as effectively and quickly as possible. This feature also goes a long way toward helping marketers keep their mailing lists clean and updated to avoid the wasted expense of mail that never reaches the intended recipient. After all, even the most eye-catching design or the deepest-discount promotional coupon will have little effect if it fails to reach your customer.

More Benefits From Both
The IMB also provides a unique identity code for each individual piece of mail. This makes it possible to track each mail piece, which has great marketing potential. Having improved data as to when a mail piece will reach its destination may, for example, help call centers properly staff and manage operations for the expected inbound call volume. This insight also can assist marketing teams with the timing of e-mail follow-ups and social media marketing pushes integrated with the direct mail drop.

And the IMB program will allow for overall improved tracking of marketing efforts, so marketers can identify what times of the week, month or year result in the best response rate for a particular promotion.

Another new feature exclusive to full-service IMB users is called “start-the-clock” reporting. Start-the-clock indicates where and when a mail piece entered the USPS mail stream so that the marketer will know if the target mailing date was met and just how long it took to reach the recipient.

Preparing for the Change to IMB
Although May 2011 may seem far off, the time to prepare for this barcode change is now. If you are working with a vendor partner, be sure to ask what its plans are for compliance. If you are handling your mailings in-house, a basic IMB system can be established without much complication, using the information and tools most mail marketers already possess. There also is a host of information to be found on the USPS RIBBS website (http://ribbs.usps.gov).

The full-service IMB option, on the other hand, requires the use of software that is currently offered by several vendors. To implement the system, a marketer must register with the USPS Help Desk and go through a series of tests using different types and classes of mail before it can go “live” with full-service IMB procedures. Given the rigors involved, companies may prefer to keep their focus on marketing their core products and services and seek a qualified third-party service provider to support their migration to full-service IMB.

Whichever option you choose, the IMB program will offer key advantages to marketers, including improved control and monitoring of mailings, a better-looking mailing piece, and fully automated tools that you can build on for future mailings. Although implementing IMB does require commitment, the benefits gained are well worth ?the effort.

David Henkel is president of Johnson and Quin, located in Niles, Ill. Johnson & Quin is a provider of targeted full-service direct mail printing and production, offering the latest data and personalization technologies and multi-channel marketing capabilities. He can be reached at dhenkel@J-QUIN.com.