Why Sampling Isn’t Enough: The Case for Tracking Every Mailpiece

Highlights

• Tracking Accuracy: Sampling mailpieces for tracking can lead to inaccuracies and misconceptions, making it important for businesses to track every mailpiece for precise data.
• USPS Performance Discrepancies: USPS service standards reveal variations in on-time delivery rates, emphasizing the dynamic nature of mail delivery and the need for accurate tracking metrics.
• Risks of Sampling: Sampling introduces potential errors such as sample bias and frame error, leading to unreliable insights about customer behavior and campaign success.
• Real-World Case Studies: Businesses that track every mailpiece, like Knight Abbey in casino marketing, achieve better ROI assessments and personalized marketing strategies compared to those relying on samples.
• BCC Track N Trace: BCC Software’s Track N Trace provides comprehensive tracking, offering businesses detailed reports and dashboards that improve visibility and accountability for mailing campaigns.

Introduction

Mail tracking plays a pivotal role in gauging the success of marketing campaigns, ensuring timely deliveries, and maintaining customer satisfaction. While businesses opt for the cost-saving approach of sampling mailpieces, this practice comes with its own set of challenges, often leading to inaccuracies and misconceptions. In this article, we delve into the importance of tracking every mailpiece, drawing on USPS service standards, real-world case studies, and research to highlight the potential pitfalls of relying on a sample.

USPS Service Standards

The United States Postal Service (USPS) is bound by stringent service standards that define the expected delivery times for various classes of mail. According to January 2024 data from the USPS Office of Inspector General (OIG), specific trends and performance metrics highlight discrepancies that emphasize the dynamic nature of mail delivery metrics and the importance of accurate tracking data:

• First-Class Mail: The OIG reports a 1.9 percentage point decrease in on-time delivery for First-Class Mail, standing at 84.0%. In contrast, the USPS reports a higher on-time delivery rate of 85.8%.
• Marketing Mail: On-time delivery for Marketing Mail decreased by 1.6 percentage points, reaching 92.1%, according to the OIG. However, the USPS reports a higher on-time delivery rate of 93.7%.
• Periodicals: The OIG reports 80.6% on-time delivery for Periodicals, consistent with performance from the fiscal first quarter. In contrast, the USPS reports a higher on-time delivery rate of 81.5%.

Reporting Errors and Causes

Errors in mail delivery reporting are numerous and varied. Sampling may amplify these metrics miscues. From tray or pallet misplacement to STID and MID Handling Unit errors, each presents a potential hurdle to accurate tracking.

The consequences of these occurrences extend beyond delayed or undelivered mail; they directly impact the reliability of tracking data, leading to skewed results and potentially incorrect assumptions about the success of a mailing campaign. Below are impediments that may impact all mail types:

• Lost Mail: Instances of lost mail contribute to discrepancies in tracking data.
• Misrouted Mail: Misrouted mail data may not always reflect the correct facility, introducing errors into tracking information.
• Blocked Mailbox: Blocked mailboxes can result in delayed or undelivered mail, impacting tracking metrics.
• Threats: Immediate threats, such as loose animals or security concerns, can lead to the suspension of delivery services.
• Hazardous Conditions: Hazardous conditions or natural disasters can delay or curtail mail delivery.
• Travel Obstructions: Road conditions obstructing mail delivery can lead to service withdrawal if repairs are not made.

ROI Implications

For businesses relying on sample-based tracking, the implications can be profound. Misinterpretation of Return on Investment (ROI), customer behavior, and campaign effectiveness can occur when a sample is not truly representative of the entire campaign.

Research by the Data & Marketing Association (DMA) underlines the effectiveness of direct mail compared to email marketing. With a response rate of 9% to a house list and 5% to a prospect list, direct mail outperforms email marketing by up to five to nine times. Accurate tracking of every mailpiece is crucial for businesses aiming to specify which respondents spent money and to understand the relationship between mailpieces and customer actions.

Case Study: Knight Abbey

Supermarkets and casinos that choose to send promotional material to their customer base can leverage BCC Software’s Track N Trace custom field features to connect a unique member ID to the mailpiece and track subsequent spending habits. This approach enables businesses to link real-time data with the success of their mailing campaigns, allowing mail service providers and their customers to make well-informed decisions when targeting specific audiences in the future.

Knight Abbey, a leader in the casino marketing industry, has seen great benefits from using Track N Trace with custom ID fields.

“By incorporating unique member IDs into our mailpieces, we can track the direct impact of our marketing efforts on customer behavior,” said Nola Czimmer at Knight Abbey. “This data-driven approach allows us to personalize future campaigns, optimize our marketing spend, and ultimately drive higher customer engagement and retention.”

Sampling Errors

There are inherent risks when relying on a sample for tracking data. Biased samples can lead to incorrect assumptions about customer behavior, potentially impacting business decisions. BCC Software urges businesses to reconsider their tracking strategies for more reliable insights. Let’s review some of the major pitfalls that result from sampling mail tracking:

• Sample Frame Error: Occurs when mailers choose to track incorrect or incomplete subsets.
• Sample Bias: Mailers track pieces from a specific customer segment or group.
• Non-Response Bias: Low response rates can lead to incorrect assumptions about the larger population.

Use Case: Sampling Errors Beyond Mail

Let’s review a use case outside of mail. Streaming content owners often face challenges when tracking only a sample of their audience. This sample may not accurately represent the diverse range of viewers and locations targeted by their videos. For example, the sample might skew to younger viewers or particular regions, leading to misinterpretations about the success of a campaign. A more holistic tracking approach can uncover the full picture of how different demographics engage with the content.

Conclusion

BCC Software encourages all customers to review their options before sampling tracking data. Cost-saving measures are appealing but may lead to poor data quality, lower ROI potential, and decreased confidence. BCC Software's Track N Trace offers customers a wide variety of reports, dashboards, and scheduled options to help ensure that accountability, visibility, and predictability are within reach.

For more information, please visit: BCC Track N Trace.