Many people we talk to would like to utilize direct mail, however they are often unsure of the cost/benefit of mailing.  Designing a campaign is not only about creating a great message. It’s about striking a balance between your message, the cost of producing and delivering it.

Canada post traditionally offers 3 services for direct mail marketers in Canada, each with a different level of targeting and most importantly, a different level of cost.

Neighbourhood Mail

Targeted by postal walk (500 addresses)
Canada Post Pricing $0.174


Postal Code Targeting

Targeted by postal code (20 addresses)
Canada Post Pricing $0.312


Personalized Mail

Targeted by individual (1 address)
Canada Post Pricing $0.485

Neighbourhood mail and Personalized mail are understood as the broadest (Neighbourhood) and most targeted (Personalized) services.  We get questions on where Postal Code Targeting fits and if its additional targeting justifies its increased cost.

First it’s important to realize just what Postal Code Targeting is.  Postal Code Targeting gives marketers the ability to target a specific geographic / demographic group at the postal code level. Marketers can leverage their own customer postal code data to find new look-alike customers, or use Canada Post data to select postal codes with attributes of their ideal customers.  In otherwords doing so allows mailers to make the assumption that if someone buys your product or service it’s also likely that those living around your customer may also be interested in your products or services.

Postal Code Targeting uses a Standard Machinable mail item with a unique 2D barcode printed on each mail item.  This 2D barcode contains the required information for delivery.

 To qualify for the Postal Code Targeting service, mailings must:

  • Deposited and paid for in Canada for delivery in Canada
  • Consist of a minimum of 100 items for Standard Machinable mail
  • Have a unique 2D barcode on each item
  • Have three quiet zones (address, postage and on back of the item)
  • Mailed through your mail service provider.

The rates for Postal Code Targeting falls between that of Personalized and Neighbourhood mail, that added level of targeting allows you to reach prospects you don’t know by name.  However, at a much more focused level than Neighbourhood mail as it mails indiscriminately across an entire postal walk.  If added targeting is worth the additional cost depends on the strategy of your mail plan, the offer and the real world results from testing.

If you are interested in finding out more about Postal Code Targeting or designing a mail plan that will work for your product or service, feel free to reach out to the experts at JR Direct with your questions.