AI Driving Results in Mail and Shipping

Results beat cool technology. The National Postal Forum (NPF) was filled with exhibitors and speakers demonstrating many new technologies and AI use cases. The big difference—it wasn’t just cool technology. Speakers and exhibitors alike presented real world results across many vertical markets. Marketers spoke about the key performance indicators (KPIs) of response, conversion rates (CVR), average order value (AOV), and Return on Investment (ROI). I heard many impressive examples of AI technology enabling better results in direct mail acquisition, retention, and shipping operations.

The big AI themes were:

• Smarter targeting: propensity and predictive modeling

• Hyper personalization at scale

• Enhanced attribution and omni-channel engagement

• Improved shipping and logistics

Smarter Targeting: Propensity and Predictive Modeling

Smart marketers, mail service providers (MSPs), and data service providers are leveraging AI to build models of likely responders from customer profiles. These propensity and predictive models are enabling brands to reduce the total number of mail pieces printed, and focus on those prospects with the highest likelihood to respond and convert.

Speakers Tabrez Rajani of Boostt.AI and Christophers Wells of DSGUW shared how they built a propensity model of likely customers with 1,000 data records. Their B2B services customer experienced a 2X redemption rate and 3X increased spending. These campaign results enabled their customer to stop mailing to the least qualified prospects on their list, reduce overall cost for the campaign, and generate a significant campaign ROI.

There were many other speakers sharing impressive campaign results. AI algorithms analyze customer data to predict purchasing behaviors, allowing marketers to focus on high-propensity segments. By targeting only the most responsive audiences, marketers can manage mail volumes while increasing effectiveness.

In a session led by DirectMail2.0, they reported that integrating AI technologies into direct mail campaigns resulted in a typical ROI lift of 23% to 46%. These are the results marketers dream about.

Hyper Personalization at Scale

Hyper personalization at scale replaces versioning, and enhances segmentation. For years, inkjet production printing has enabled dynamic personalization of content, images, and offers. Now with AI, marketers can deploy campaigns with hyper-personalization—leveraging more data to deliver the best offer with the best context to each recipient. Use cases include increased use of QR codes, and augmented reality (AR) to provide tailored discounts and digital experiences at scale. Rajani and Wells shared a customer success story with data driving personalized offers which included 400k variants in a campaign. The hyper-personalization produced a 2X redemption rate and 3X increased spending.

Session speakers provided examples of unified campaign and customer analytics to establish KPIs and provide better campaign measurability. AI tools provide rapid analysis post-mailing. Improved analysis of campaign results enables MSPs to make better decisions about testing new formats, offers, and timing of subsequent mailings. Other use cases include the integration of AI assistants in crafting personalized direct mail content. Brands and MSPs are exploring the synergy between traditional mail and digital tools to enhance customer engagement.

Beyond mail, brands are leveraging AI to build better bots for customer self-service. A speaker shared an example from Capital One that reported a 14% increase in user interactions with improved customer feedback from the AI bots. The most interesting statistic was that most chats were non-banking related conversations. The speaker stated that personalized bots are driving increased customer trust and loyalty for Capital One.

Mail Driving Attribution and Omni-Channel Engagement

A PSP exhibitor, Southeastern, based in Miami, spoke of success with predictive modeling and propensity scoring to increase results from acquisition campaigns for their customers. Their models are leveraging AI to pinpoint niche lifestyle attributes, like pickleball players, to identify likely responders and provide competitive offers to prospects.   

Southeastern enables clients to engage and win new customers that start their buying journey in digital channels. By appending mailing addresses and using personalized QR codes, companies can nurture prospects with mail after initial engagement in a digital channel. This process demonstrates direct mail driving increased conversion rates with multi-channel touchpoints. For B2B customers, they can include ads sent to the devices of decision makers for further attribution for mail and omni-channel engagement.

Always Be Testing

There was a dynamic panel discussion led by Alliant, MH, and Tri-Win Direct. The speakers wore tattoos and shirts with “KPI Until I Die,” “Always Be Testing,” and “I Dream in CMYK.” They demonstrated techniques to optimize and build better models.

Strategies included more data from multiple sources combined with ongoing creative and channel testing to improve campaign results. One strategy they recommend is for customers to mail less expensive formats to lower-ranked prospects. Collectively, they are enabling their clients to use more variables by building predictive models adding purchasing and other lifestyle data. These propensity models lead to 43% improvement in campaign returns. The speakers provided examples of incorporating digital technologies to enhance both direct mail and digital channel effectiveness. Their mantra was ‘always be testing’ to dramatically improve results over 6 - 12 months by perfecting models with additional data.

Intelligent Shipping: Optimizing Logistics and Costs

EasyPost, who provide AI-based shipping solutions, presented an interesting statistic. In 2024, it was 200% more expensive to convert online shoppers than it was in 2014. And seven out of 10 online shopping carts are abandoned. These statistics present a unique opportunity for direct mail to increase engagement and conversion.

While warehouse and shipping operations are not known as technology leaders, enterprise warehouse adoption of technology is up 50% in the last two years, Companies are investing in AI and automation to reduce the number of box sizes, create efficiency for packing, loading, and reducing shipping costs.

Shipping notifications get high open and read rates. Smart brands are now using shipping communications to not only provide status updates and tracking links, but to tell a marketing story. Marketers can provide relevant messages in a communication that customers want to read.

AI is quickly reshaping logistics for packing and shipping. AI analyzes traffic patterns and delivery data to determine the most efficient delivery routes. The changes reduce transit times and fuel costs with route optimization. Predictive analytics are changing inventory management systems to forecast demand, which aid in inventory planning and reducing storage costs. AI tools are also helping to predict return volumes, the nemesis of retail shippers.

Large volume shippers can now leverage AI solutions to change their approach from fastest time to ship to better ROI. Shippers are rapidly adopting AI tools which enable them to shop every label for the best shipping deal in seconds, reducing costs.

The NPF speakers and exhibitors shared ways AI technologies are enabling more effective mail and shipping strategies by enhancing targeting, personalization, and logistics. As AI continues to evolve, its integration into mailing and shipping processes will become increasingly essential for businesses aiming to improve ROI and customer satisfaction.