17th April 2024 | Incentives Save Money on Your Mail by Optimising Incentives – The Advertsing Growth Incentive Share With Royal Mail notifying clients that the price of mail is increasing from early summer 2024, we are working harder than ever with our clients to ensure that they are cashing in by using Royal Mail incentives. If you are sending Advertising Mail, are you aware of, or benefiting from, the Advertising Growth, First Time User or Testing and Innovation incentives from Royal Mail? Our incentives blog series explains, in simple terms, who is eligible for each Royal Mail incentive and explores what you could be saving on your future marketing mail. Best of all, if you mail with us, we will do that hard work for you, supporting you with your application and keeping you updated on the progress of your application throughout. This blog will walk you through the Advertising Growth Incentive, which is perfect for companies who want to send more advertising mail to grow their customer base. Read the other blogs in our incentive series: Testing and Innovation – Advertising Mail Testing and Innovation – Business Mail The First Time User Incentive – For first time users or companies that haven’t sent advertising mail in 24 months The Advertising Growth Incentive – Earn a postage credit of up to 20% to spend on your future campaigns. The Advertising Growth Incentive rewards you for growing and maintaining your mail campaign volumes, and is split over three different incentives for different years of your marketing mail journey. Royal Mail is encouraging advertisers to send more Letters and Large letters by awarding retrospective postage credits to businesses that maintain or grow their mail volumes over a 12-month period. Just Starting Out with Incentives? The Advertising Growth Incentive – Year 0 Explained The key requirement when starting out on this incentive is to plan and post more mail campaign volumes than you did in the same period the year before. Through the application process, a baseline of mail volume will be agreed and retrospective postage credits will be awarded against all mail campaign volumes that are posted above the agreed baseline and above the minimum incentive volume requirements. Who is this for? This incentive is perfect if you want to increase your customer reach or acquisition while earning retrospective credits to use against future mail campaigns. How do you qualify? Send 150,000 Letter or 75,000 Large Letter incremental items over your baseline volume. The volume of advertising mail posted must be more than was posted in the same period in the previous year (the ‘baseline’ volume’). Period of the Incentive: 12 Months. How much could you earn back on your marketing mail? Postage credits awarded to companies posting marketing mail range between 5% to 20% off the access price*. The % of postage credits earned will depend on the total volume sent, the service the mail campaign was sent on and the format of your marketing mail. The table below illustrates what incentive rate can be achieved. For example, let’s imagine that you send 0-100g Letters, using the Economy Advertising Mail 70 Mailmark Service. If you exceed your baseline commitment and send less than 3 million items, you will receive 15% off the access rate*, in the form of postage credits, to use on your future mail campaigns. If you exceed your baseline commitment and send more than 3 million items, you will receive 20% off the access rate* in the form of postage credits to use on your future mail campaigns. Format Products Available Weight Range Discount % per Incremental Item <= 3m > 3m Letter Economy Advertising Mail 70 Mailmark 0-100g 15% 20% Letter Advertising Mail 70 Mailmark 0-100g 15% 20% Letter Catalogue Mail 0-150g 15% 20% Large Letter Advertising Mail 70 Mailmark 0-100g 10% 10% Large Letter Catalogue Mail 0-100g 10% 10% Large Letter Advertising Mail 70 Mailmark 101-750g 15% 20% Large Letter Catalogue Mail 101-750g 15% 20% Postage credit rates are subject to Royal Mail’s discretion and approval. Postage credits will be awarded as discounts to the access price only and available as a retrospective credit against future mail campaigns. *The access rate is the charge Royal Mail apply to every piece of mail entering their network, and this varies by weight and service. Current rates apply until: 31st December 2024 The Advertising Growth Incentive – Volume Commitment – Year 1 Explained This incentive builds on the Advertising Growth Incentive (above) and can be used in the second year of advertising mail growth. This follow-on incentive rewards the continued or matched growth of your marketing mail campaigns. To quality, simply post the same or a higher volume of Advertising Mail than you sent during the previous year, and continue to receive postal credits for your future mailings. Who is this for? This incentive is perfect if you want to maintain or continue to grow your mail campaign volume How do you qualify? Match or exceed the volume of advertising mail items posted during the 12 months of your incentive, when compared to the previous year. Period of the Incentive: 12 Months. How much could you earn back on your marketing mail? Postage credits awarded to companies posting marketing mail range between 5% to 20% off the access price*. The % depends on your total volume sent (matched volume or increased volume), the service the mail campaign was sent on and the format. The table below indicates what incentive rate can be achieved. For example, let’s imagine that you send 0-100g Letters, using the Economy Advertising Mail 70 Mailmark Service: If you match your baseline volume commitment, you will receive a postage credit of 8% off the access rate* in the form of postage credits to use on your future mail campaigns. If you exceed your baseline commitment and send less than 3 million items, you will receive 15% off the access rate*, in the form of postage credits to use on your future mail campaigns. If you match your baseline commitment and send more than 3 million items, you will receive 20% off the access rate* in the form of postage credits to use on your future mail campaigns Format Products Available Weight Range Volume Commitment Matched Discount % per Incremental Item <= 3m > 3m Letter Economy Advertising Mail 70 Mailmark 0-100g 8.0% 15% 20% Letter Advertising Mail 70 Mailmark 0-100g 8.0% 15% 20% Letter Catalogue Mail 0-150g 8.0% 15% 20% Large Letter Advertising Mail 70 Mailmark 0-100g 5.0% 10% 10% Large Letter Catalogue Mail 0-100g 5.0% 10% 10% Large Letter Advertising Mail 70 Mailmark 101-750g 8.0% 15% 20% Large Letter Catalogue Mail 101-750g 8.0% 15% 20% Postage credit rates are subject to Royal Mail’s discretion and approval. Postage credits will be awarded as discounts to the access price only and available as a retrospective credit against future mail campaigns. *The access rate is the charge Royal Mail apply to every piece of mail entering their network, and this varies by weight and service. Current rates apply until: 31st December 2024 The Advertising Growth Incentive – Volume Commitment – Further Years Explained Once you have completed the Advertising Mail Volume Commitment Incentive Year 1, you can continue to earn credits on the same maintained or incremental volumes as part of the Advertising Volume Commitment Further Years Incentive. You will keep earning postal credits as you continue to maintain or grow your mail campaigns year after year. Who is this for? This incentive is perfect if you want to continue to maintain or grow your mail campaign volume. It is a great incentive for companies who wish to grow and maintain their customer base. How do you qualify? Match or exceed the volume of Advertising Mail items posted during the 12 months of the incentive, when compared to the previous year. Period of the Incentive: 12 Months. How much could you earn back on your marketing mail? Postage credits awarded to companies posting marketing mail range between 5% to 20% off the access price*. The % depends on your total volume sent (matched volume or increased volume), the service the mail campaign was sent on and the format. The table below indicates what incentive rate can be achieved. For example, let’s imagine that you send 101-750g Large Letters, using the Catalogue Mail service. If you match your baseline volume commitment, you will receive a postage credit of 8% off the access rate* in the form of postage credits to use on your future mail campaigns. If you exceed your baseline commitment and send less than 3 million items, you will receive 15% off the access rate*, in the form of postage credits to use on your future mail campaigns. If you match your baseline commitment and send more than 3 million items, you will receive 20% off the access rate* in the form of postage credits to use on your future mail campaigns Format Products Available Weight Range Volume Commitment Matched Discount % per Incremental Item <= 3m > 3m Letter Economy Advertising Mail 70 Mailmark 0-100g 8.0% 15% 20% Letter Advertising Mail 70 Mailmark 0-100g 8.0% 15% 20% Letter Catalogue Mail 0-150g 8.0% 15% 20% Large Letter Advertising Mail 70 Mailmark 0-100g 5.0% 10% 10% Large Letter Catalogue Mail 0-100g 5.0% 10% 10% Large Letter Advertising Mail 70 Mailmark 101-750g 8.0% 15% 20% Large Letter Catalogue Mail 101-750g 8.0% 15% 20% Postage credit rates are subject to Royal Mail’s discretion and approval. Postage credits will be awarded as discounts to the access price only and available as a retrospective credit against future mail campaigns. Current rates apply until: 31st December 2024 Our experts at Citipost Mail would love to help you understand these incentives further and take the stress out of applying for your Royal Mail Incentive. Get in touch with our team today to make significant savings on your advertising mail! 17th April 2024 | Incentives Share
