Friday, March 25, 2011

Canada Post ... The Problem with ...

Okay, so here is an open letter to the people at Canada Post regarding there lack of forethought on growing their business. Many DM efforts have used the unaddressed ad model, because why bother use a list that Canada Post doesn't sell? Opening because it drastically increases the open rate over unaddressed add mail - however, the cost savings is so minimal on the process. 22 cents for unaddressed, compared with addressed at 46 Cents, but the open/response rate for a quality mail piece is drastically higher for the latter.
Canada Post, run by the Government, got the funny idea that they could make more money acting as the list broker. By offering postal code drops, you no longer need a targeted list? Right? NO! Postal Code mailers provide DMers some targetability, but the lack of personalization and demographic data segmentation has put a huge cut into response rates. The sad thing being, by doing this - Canada Post has bitten the hand that feeds it!

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