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Postal : Up to Code

What the Intelligent Mail barcode does for marketers

June 2010 By David Henkel
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Most likely, any business that produces frequent, large mailings has already heard something about the Intelligent Mail barcode (IMB) capability now offered by the United States Postal Service. The fact is, as of May 2011, the currently used POSTNET barcode will be phased out and IM barcodes will be required for marketers in order to qualify for the automation discount postage rate. However, this barcode provides additional advantages that may be of special interest to marketers wanting to optimize the impact of their direct mail campaigns.

For those who aren't routinely involved with the nuts and bolts of high-volume mailing processes and regulations, the different postal codes and requirements can be confusing. There is a long history when it comes to following the USPS' migration to more streamlined, automated processes, beginning with the advent of the simple five-digit ZIP code. Since then, there have been several generations of barcodes with increasing capabilities, each providing more automation, efficiency and information.

Marketers who spend a great deal of time and money on the design of those mail pieces will be happy to know that IMB replaces the myriad barcodes with a single one that combines both the information and functionality needed, while allowing for a less cluttered look and larger space for design.

Basic vs. Full-Service
IMB is available at two levels: basic and full-service. The differences may seem slight at first, but can be significant. The basic IMB option qualifies you for automation discounts and can be implemented with less effort than the full-service IMB level, which requires a rigorous set of steps, as well as software. The full-service IMB option also offers sophisticated change-of-address information that enables feedback from the USPS in the form of detailed and downloadable reports.

Marketers who currently presort and receive automated discounts with the POSTNET barcode should consider moving to basic IMB before next year. Otherwise, beginning May 11, 2011, they will lose from 3.2 cents (unsorted) to 7.9 cents per piece (5-digit sorted) on automated First Class mail when the USPS phases out the discounts for POSTNET barcode use. For those marketers not currently barcoding and presorting, and paying the full rate postage of 44 cents per piece, there will be no impact (other than potential rate increases) when the POSTNET program is phased out.

Given these substantial savings, marketers should consider moving to basic IMB whether they currently barcode or not. Additionally, there is the potential benefit of a small-volume mailer being seen by its customers and prospects as having postal expertise for using the same innovative technologies as big-volume mailers. However, even though it may make sense to go with the basic IMB option, implementing the full-service IMB level would most likely not pay off for small-volume mailers.

 

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COMMENTS

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Most Recent Comments:
Hallie Mummert - Posted on May 27, 2010
Mike, thanks for pointing out that distinction. We should have provided a little more information on what's necessary to access the IMB data for mail tracking. Perhaps that would make for a good follow-up topic?
Mike Porter - Posted on May 26, 2010
An important point about IMB, and one that is frequently overlooked, is that the mail tracking feature mentioned in the article is not included in the IMB program.

Receiving mail tracking information from the USPS requires a paid subscription to CONFIRM and development of a system to make business sense out of the scan data. Many mailers utilize the services of a third party instead of buying their own CONFIRM subscription, but it is still an additional cost.

The USPS and others frequently talk about mail tracking and IMB in the same breath which can be misleading to mailers who don't understand the distinction.
Click here to view archived comments...
Archived Comments:
Hallie Mummert - Posted on May 27, 2010
Mike, thanks for pointing out that distinction. We should have provided a little more information on what's necessary to access the IMB data for mail tracking. Perhaps that would make for a good follow-up topic?
Mike Porter - Posted on May 26, 2010
An important point about IMB, and one that is frequently overlooked, is that the mail tracking feature mentioned in the article is not included in the IMB program.

Receiving mail tracking information from the USPS requires a paid subscription to CONFIRM and development of a system to make business sense out of the scan data. Many mailers utilize the services of a third party instead of buying their own CONFIRM subscription, but it is still an additional cost.

The USPS and others frequently talk about mail tracking and IMB in the same breath which can be misleading to mailers who don't understand the distinction.