Case Study 3

15 February 2011

Royal Mail Mailing House Scheme

Mailing Agent

Case Study 3

Description of clients business:

Pensions Service Department.

Supplier and manufacturer of industrial gases and gas equipment


Utilities / Industrial / Energy

Synopsis of case study:† The pension department wanted to reduce the costs of sending out the†††† company pension information and pension quarterly magazine. They also wanted to streamline the processes and improve the image and reliability of the communications.

What was the clientís request?

The client wanted to reduce postage costs after the Royal Mailís change to large letter pricing for C4 and to modernize the processing - particularly of the pension quarterly C4 magazine and to improve the image of the magazine mailing.

What was the current practice in place?

The pension department printed address labels in alphabetical name order. These were then sent to the mailing house to hand sort and extract the overseas addresses. Pre-printed 2nd class poly envelopes were supplied. The magazines were hand inserted into the polylopes and address labels applied. UK mail was sent 2nd class and overseas by surface mail.

What were the disadvantages of current practice?

The data could not be pre-sorted into UK, overseas or mailsorted. The labels could become damaged or removed from the poly envelopes Attaching the labels was very time consuming and presentation was only average. The printed poly envelopes were expensive and had to be ordered in bulk for the year.

What advice was offered to the client?

1) The first issue was to put into place a data protection and client/data confidentiality agreement as the data held was personal and also contained sensitive financial information.

2) After finalising the data protection/ confidentiality, a method of extracting the address data away from the sensitive financial pension information was developed by the client.

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.

3) For the quarterly pension magazine, we recommended the use of presstream and applied for qualification of this on behalf of our client.

4) We recommended processing the magazine as presstream 2, laser printing a carrier sheet with the customer logos, return address and PPI and the addresses merged onto the carrier in a much larger font than was possible with labels. We would be able to use clear film from stock and wrap by machine.

5) In addition to this, for the general pensions newsletters and statements, we recommended mailsort 1400 and 120 covering mailsort 1,2 and 3, to be able to give the best possible range of options, covering urgent 1st class letters through to non urgent pre planned magazine or calendar mailings.

What results did the Client Achieve?

The company were very impressed with the cost savings by using mailsort and presstream. The presentation of the magazines facing out of clear poly and clear addressing to the carrier provided a much better visual effect. This also removed the issue of labels becoming damaged or removed. The quantity of magazines lost damaged or returned has greatly reduced. The clients cost for the postage of the magazine dropped from £4773 to £3189 saving £1584. A calendar mailing that was sent out at Christmas and was processed as mailsort 3 gave the customer a postage saving of £2267 dropping from £4885 to £2618.

The other mailings generally use mailsort 2, which combine a good postal speed 2-3 days, with a good level of postal discount. The layout of the carrier can be changed to keep it up to date and allow additional information to be added if required.