Seal the Deal
The deadline-driven lifestyle of today’s professional requires efficient and convenient means of communication. E-mail, in particular, provides instant gratification for the “think fast” individual with a single click of the send button. However, e-mail lacks the personal touch experienced with an envelope. According to a 2007 survey conducted by International Communications Research on behalf of Pitney Bowes, 73 percent of the participating consumers indicated a preference for receiving new product announcements and offers from companies through mail; a whopping 86 percent of consumers named mail as their preference for receiving confidential communications, including bills and bank statements.
Granted, e-commerce has impacted traditional mail-based transactions, but Steve Brocker, vice president of sales and marketing for Western States Envelope & Label, Butler, Wis., nevertheless, maintains a positive attitude. “The envelope market is probably more secure than people think. The common thought that electronic alternatives will eventually eliminate the envelope is wrong,” he affirmed.
In addition to the Web, other obstacles have arisen, such as shape-based postage mandates and an increasing need to stay green. If envelope suppliers don’t utilize their creative skills, this could lead more individuals to e-technology. Here, some major players in the industry offer tips for keeping envelopes interesting, circumventing postal changes and initiating eco-friendly strategies.
In With the New
Think of envelopes as fashionable accessories for mail. Major fashion designerssoften rely on a little color to liven up their current collections, and the same technique can be applied to envelopes. Phoenix-based Action Envelope sees this firsthand on a daily basis. “[Our customers] love new things. They want to keep their mailings fresh, and they want them to stand out. Colors go in and out of fashion, and the color of an envelope in a mailing is no different,” said Seth Newman, COO. Because “green” and “natural” are all the rage, the company’s Earthtones and Grocery Bag collections are currently in demand.
However, vibrant and classic colors also remain popular. In regard to social and invitation envelopes, white is the single most requested color, comprising 50 percent of product sales, Newman reported. The other 50 percent consists of a combination of colors.
Color is key in direct mail campaigns, as it makes a positive first—and lasting—impression on the target audience. When asked the best methods to maximize a ROI on a direct marketing campaign, Aaron Hyte, president of EMA Specialty Envelopes & More, headquartered in Austell, Ga., said his beliefs are the same as they were 25 years ago during his first tabletop show for the National Business Forms Association.
“If you want the envelope opened, it needs to have color, texture, shape or graphics,” he said. “The growth in our three- and four-color printing has been significant over the last two years. I don’t mean digital, [but rather], three-and four-color offset. People know if they have a four-color image on that envelope, it’s going to get opened with more frequency than a black corner card, or a red or blue corner card.”
Brocker agreed. “Western States knows the need for eye-catching envelopes that get opened is crucial. We have a six-color enhanced flexo press that produces full coverage four-color process and spot colors comparable to litho,” he said. “Multiple windows, perforations and other applications create the dynamic, colorful billboard for direct mailers.”
Nevertheless, the primary goal of many mailers is to advertise a teaser through the envelope. To assist customers searching for an alternative to the opaque envelope, Action Envelope offers crystal clear envelopes. Translucent envelopes are a similar solution, but boast a frosted effect.
As Hyte mentioned, mailer shape can be detrimental to the millions of advertising campaigns launching today. In lieu of inflating postage costs and shape-based pricing, Hyte encouraged distributors to stop and think about the traits of mail-smart products.
Brocker commented on the effects shape-based pricing has had on the mail volume of flats—mailers ranging from 61⁄8x111⁄2" to 12x15", up to 3⁄4" thick—for instance. “In the most recent fiscal quarter, the USPS announced an 11 percent decline in flats volume. Larger envelopes [such as the] 9x12" and 10x13" fall into that category, and have shown a slight decline.” He continued, “Many customers have moved or tried to move their mailings to a 6x9" or 6x91⁄2" to fall within USPS letter-size requirements. Letters can only be 1⁄4" thick at most, so mailing content often has to be changed as well.”
Brocker cautioned that postage should not be the only determinant for downsizing a direct mail piece. “The response rate and ROI for the mailer [are] the key factor[s],” he said.
Western States Envelope & Label has responded to postal issues with a plethora of new products. The eKEY Multimedia Mailer, designed for mailing CD/DVDs at automation letter rates, is one such product. Brocker said other CD mailers that rely on a heavy board substrate incur a non-machinable surcharge of $170.00 per thousand. According to Brocker, multimedia mail is an untapped market that distributors will find “energizing and profitable.”
Effective May 1, 2009, the Intelligent Mail Barcode (IMB) will be mandatory for any mailer seeking automation discounts. For customers struggling to comply with IMB regulations, Western States Envelope & Label introduced the “H” window #10 envelope. This product features a higher window (5⁄8" from the bottom of the envelope), leaving more room to accommodate the taller IMB. “Better processing without MERLIN issues is what mailers want today,” added Brocker.
Green Possibilities
Global warming is no longer a looming possibility, but a reality, and envelope manufacturers are taking measures to combat further damage to our planet. Said Hyte, “To be eco-friendly, you have to stand up and take responsibility [by] maintain[ing] the chain-of-custody of these products.”
Hyte knows full well how serious the industry is about sustainability. One of his top accounts almost took its business elsewhere because its customers would only work with an FSC-certified company. After researching the benefits of obtaining certification and speaking with some of his other clients, Hyte made a sizeable investment by completing the audit process for FSC and SFI certification. He expects to receive word in June.
Action Envelope is already FSC- and SFI-certified, and has incorporated other green practices, including offsetting 100 percent of used power with Green-e certified wind power, using soy inks and offering window envelopes that feature a window film made from a corn-based PLA material. The company will also unveil its “Going Green Starts Here” initiatives in April. The nine-part section will educate customers on eco-paper certifications, recycled choices and environmentally cleaner print practices, Newman explained.
He added, “As an envelope supplier, we walk a fine line because our products are used once and thrown away, and looked [upon] as waste. By offering envelopes made from sustainable materials, and utilizing cleaner, less harmful substances in our print processes, customers can feel better about their mailings and their impact on the environment.”
A recent development in reusable envelopes is a major step in eliminating the amount of wasted paper. In February, Stillwater, Minnesota-based ecoEnvelopes received a National Consumer Ruling from the USPS for its reusable envelopes, marking the first time a certification has been issued on this item. Because Western States Envelope & Label has a manufacturing agreement with ecoEnvelopes, it has greatly benefited from the USPS approval of the product design. Reusable envelopes are primarily used for billing statements and direct mail.
Western States Envelope & Label produces an ecoEnvelope large-format two-way envelope that has a removable face patch. Once the patch is removed, a return address and return postage are pre-printed and ready for mailing, Brocker said. Send-and-return documents in a large-format envelope are used for university admissions, legal documents, medical forms and insurance forms.
Brocker thinks environmental concerns will only continue to grow. In response, Western States Envelope & Label has already received its FSC and SFI Chain of Custody certifications, and upgraded its white wove Recovery line from 30 percent post-consumer to 100 percent post-consumer recycled paper, which is processed 100 percent chlorine free.
Service with a Smile
Excellent customer service is necessary for any business to thrive, but when a down-and-out economy causes individuals to compete for every last available dollar, it’s even more crucial. Besides finding solutions for production and design challenges, envelope suppliers are developing practices to enhance customer satisfaction. For instance, on April 1, EMA Specialty Envelopes & More took its business model to the next level.
“We’ve recently signed on with Connect Four51, which will allow distributors to get onto Four51 for free because we are part of the manufacturers who are paying for their connection to Four51. That is huge for our distributors who aren’t giants of the industry,” he said. “Four51 will enable a distributor[ship] that has just a few salespeople to be able to have a print procurement portal for their one or two key customers [placing] 20 [to] 50 orders a month [for] various products from different locations.”
Customer service awareness is a primary reason why EMA Specialty Envelopes & More is celebrating its 25th anniversary this year. Said Hyte, “We are 100 percent wholesale and always will be to the trade. That’s who brought us to the party.”
Brocker believed to maintain a strong customer base, suppliers must provide value-added envelopes by purchasing the latest manufacturing equipment. Today, envelopes are made in a fast, but precise, manner, with speeds exceeding 1,000 envelopes per minute. “Over the last two decades, we’ve had many equipment prototypes on our floor, giving us an advantage with the newest technology. The cost to customers wrestling with bad product far exceeds the cost of the envelope. The well-made envelope adds a lot of value,” he explained.
Despite a rapidly changing marketplace, it looks like traditional envelope products will remain part of the landscape. Some will always question the future of the envelope industry, but any potential obstacle establishes the need for more solutions—much to the advantage of innovative suppliers. “Our industry has a robust future with good growth and concern for sustainability. [Possibilities] depend on your tolerance for risk, and having a vision that doesn’t guess what the future holds, but creates it,” Brocker stated. “That’s the fun part.”