Direct mail plays an important role in the Marketing channel mix. The email inbox has certainly replaced the mailbox as the most efficient channel for relationship development and maintenance, but for relationship creation, direct mail still remains king.

That reality may be challenged over the next decade without some major changes in how direct mail gets delivered – the USPS business model may well push direct mail right out of the marketing picture entirely. The effects of an entity with monopoly privledges and Congressional oversight are clear – higher prices and lower services. Consumers and business are responding – 2007 mail volume of 212 billion pieces became 177 billion in 2009 with a projected decline of another 15 billion pieces in 2010. I would say that business model isn’t working anymore. 

Is direct mail dead?  Far from it – even at 150 billion pieces going thru the system in 2010 (more likely than 162), that’s still a significant business waiting to be right-sized and restructured to better suit the economic realities of today.  I wouldn’t bet against the governments’ ability to push that elephant into the tarpit however – would you?