Case Study 2

15 September 2011

Royal Mail Mailing House Scheme

Mailing Agent

Case Study 2

Description of clients business:

The client is a financial investment and management company specializing in the investment market, monitoring fund managers and seeking out new fund opportunities for client portfolios. They manage ISA/PEP, pension, offshore and trust, now managing more than £100 million of clients' money across PEPs, ISAs, pensions and investment bonds, both on and offshore.

Company Sector: Financial Sector

Synopsis of case study:  The client wanted to contact potential investors and those wanting to set up pension schemes, targeting medium to high investment sums for 5+ year periods and improve the image and reliability of the communications.

What was the client’s request?
The client wanted to reduce postage costs to an absolute minimum and target specific geographical areas around locations where they hold investment and pension seminars.  To modernize the processing, and increase the likelihood of a response from the selected database.
To improve the image of the communications.

What was the current practice in place?
Originally the letters were sent out by the client, in-house using stamps and then a franking machine and posting these out 2nd class. The letters were printed on high quality letterhead and also included a response card for the contact to complete and return. Data was purchased from a well regarded data source which provided good quality and quantity of potential customers.  The data provider required an agreement regarding usage of the data.

What were the Disadvantages of Current Practice?
The letters were sent out as and when internal staff had the time to print and fulfil the letters, then print the franking labels or affix stamps.
This was limiting the effectiveness of the excellent data lists that had been purchased.
The data could not be pre sorted or mailsorted.
Postage costs were standard 2nd class.
Prospective clients had to write out a reply envelope and apply a stamp to register for a seminar.

What advice was offered to the client?
1) The first issue was to instigate a data protection and client/data confidentiality agreement and that we would only use the data for the intended mailing then destroy the data.

2) After finalising the data protection/ confidentiality agreement between the data supplier and the mailing company (Malvern Mailing Services) data was supplied.

3) The data was mailsorted and the letters to be printed in mailsort order.
We would now be able to offer the client the very best postal sortation and postal rates matched specifically to the types of communications being sent by the client.

4) Initially we recommended mailsort 3 1400 as the cheapest option but have now changed to Mailsort 3 120 OCR as the cheapest option, now that the mail piece has been qualified for 100% machine able processing.
This now gives the client a postage cost of 17.3 pence per item.  This is a 30.9% discount compared to standard 2nd class

5) We recommended the use of pre printed outer window envelopes and freepost envelopes to make it as easy as possible to respond to the seminars and remove the requirement for postage stamps to potential customers.

6) We would hold stock of letterhead, both envelopes and response cards. This allows quick turnaround of jobs and we can control stock levels for our client.

What results did the Client Achieve?
The company were very pleased to have a seamless production for the printing, fulfilment and posting of the letters. The postage costs have now been cut by over 30%. The client receives a good level of response via the freepost envelopes or by direct contact.