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Stamp price rise will prompt 'shift from direct mail'

Monday's 30 percent stamp rise will drive UK businesses away from traditional mailers and towards electronic forms of communication, it has been claimed.

OpenText, a content management software company, believes the biggest stamp rise in almost four decades will prove a fillip to its industry.

"For businesses, customer communication through traditional direct mail has never been more expensive,” said Adrian O’Gara, OpenText UK’s director of field marketing for Europe.

"This is the biggest postal cost hike since 1975, and it has huge ramifications not only on direct marketing campaigns and budgets, but also other customer communications such as invoicing, as many businesses continue to rely on this traditional form of paper billing.

"Unfortunately the return on investment in traditional marketing inserts, which is already low, is now going to be even less compelling. Direct mail has increasingly delivered a very poor return on investment due to rising design, print and now mailing costs, as well as the inability to personalise or target individuals."

Featured by The Drum