Don't let undeliverable mail ruin your customer relationships
Help protect your customer relationships by reducing undeliverable mail.
Read time: 3 minutes
Most of us will readily acknowledge the logic behind making customer retention a priority. Statistics drive the point home: according to Forrester Research, the cost to acquire a new customer is 5 times higher than the cost to retain an existing customer¹. Furthermore, improving customer retention rates by a mere 5% boosts profits by anywhere from 25% to 95%².
Unfortunately, no matter how hard you work to keep existing customers happy, there are always some aspects of doing business that have the potential to negatively impact your customer relationships. One of these negative impacts is undeliverable mail.
Consider that up to 18% of the U.S. population moves every year, but only 60% of those people register their forwarding address with the U.S. Postal Service³. In 2016 this helped contribute to 6.8 billion pieces of mail being returned to sender, almost 5% of the outbound mail volume⁴.
As much as we'd like to think otherwise, among that sea of lost documents and packages are probably some important communications: customer incentives, thank you notes, invoices, etc. — all of which cause a temporary (or permanent if a correct address for the recipient is never found) break in customer touchpoints. As a result, these missed connections can eventually lead to a dissatisfied or lost customer.
- 1"Rethinking Customer Loyalty." Forrester.com, March 16, 2017. https://go.forrester.com/what-it-means/ep04-rethinking-customer-loyalty/
- 2Amy Gallo. "The Value of Keeping the Right Customers." HBR.org, October 29, 2014. https://hbr.org/2014/10/the-value-of-keeping-the-right-customers
- 3Office of the Inspector General USPS. "Strategies for Reducing Undeliverable as Addressed Mail." May 1, 2015. https://www.uspsoig.gov/sites/default/files/document-library-files/2015/ms-ma-15-006.pdf
- 4Jeff Stangle. "Undeliverable Mail Today: The Cost is Up (Part One)." Mailing Systems Technology, July 6, 2017. https://mailingsystemstechnology.com/article-4191-Undeliverable-Mail-Today-The-Cost-Is-Up-(Part-One).html
- 5Michael Dimock. "Defining Generations: Where Millennials end and Post-Millennials Begin." Pewresearch.org, March 1, 2018. http://www.pewresearch.org/fact-tank/2018/03/01/defining-generations-where-millennials-end-and-post-millennials-begin/
Recommended for you
Modernize your mailroom
Intelligent delivery automates and digitizes inbound and outbound mail, improves efficiency, gets mail delivered quickly and saves money.
Introducing the autonomous ground vehicle
Dale Walsh of Ricoh USA's Service Advantage provides insight into the evolving robotics trend of using collaborative delivery robots for mail delivery.
Learn how Ricoh Managed Services helped Clemson University save hundreds of thousands of dollars while generating more than $2.5M in new revenue streams.