Meeting ESG Challenges with Hybrid Digital & Postal Campaigns

Environmental, Social, and Governance (ESG) concerns are increasingly shaping how businesses operate and regulated industries must play their part — sustainability is no longer just a buzzword and is now embedded in the consciousness of decision makers. Throughout the customer lifecycle, there are opportunities to be more climate aware. One area that presents a challenge to regulated entities from an ESG perspective is postal mail campaigns. This traditional marketing and customer communication method has thus far survived a shift to digital due to a combination of customer preferences and regulations which languish behind the pace of technological change. Postal campaigns, while necessary, are typically more resource-intensive, environmentally unfriendly and generally less efficient compared to digital alternatives.

On top of that, pressures on fuel and electricity prices and continuing inflation contribute to higher costs for mail delivery. This is evidenced by a recent u-turn by Royal Mail, who will now manage delivery exclusively by road from October 2024 due to the high costs associated with increased cost of electricity on UK railways. This is not an isolated price-related pressure for customer communications either as it was announced by US Mail earlier in July that the price of first-class postage stamps will rise from 68 cents to 73 cents – this represents a 46% increase on their 2019 price.

The impact of postal campaigns on ESG commitments are well understood:

Environmental Impact: Postal mail campaigns contribute significantly to environmental degradation. The process involves substantial paper use, printing, and transportation, all of which increase the carbon footprint of an organisation. The production of paper is energy-intensive and often leads to deforestation. Additionally, the transportation required for mail delivery contributes to greenhouse gas emissions.
Social Responsibility: From a social perspective, organisations must consider the preferences and accessibility of their communications. While some customers prefer digital communication, others, especially those in older demographics, may still rely on postal mail. Ensuring that all customers are adequately reached without compromising on sustainability is a complex challenge.
Governance and Compliance: Regulated entities are often required to maintain stringent records of communications for compliance purposes. Postal mail campaigns complicate this process, as they generate physical documents that need to be stored, managed, and retrieved, increasing the risk of data breaches and compliance failures.

A Hybrid Transitional Solution Using CustomerMinds’ Digital-to-Print Waterfall

While this upward pressure on costs relating to physical mail campaigns is quite stark, the opportunity is equally evident. A strategic outlook in terms of reapportioning costs can turn these present day challenges into a medium to long-term advantage.

In addressing the challenges noted above, regulated entities should consider adopting a hybrid approach, leveraging digital solutions iteratively while gradually transitioning away from traditional postal mail campaigns. CustomerMinds’ Digital-to-Print Waterfall solution was built with this challenge in mind and offers a seamless integration of digital and print communications, promising sustainable cost-savings while fulfilling ESG commitments.

The Digital-to-Print Waterfall Process

This innovative Digital-to-Print waterfall solution came from listening intently to the challenges of our customers. They needed a solution for the operational headache that comes from managing data sets across different platforms, mounting costs, deduplicating campaign lists, repetitive data entry and constant fretting about adherence to regulations. What evolved from those conversations was a simple six-step process and an integration with print partner, RW Pierce – a specialist in postal communications for regulated sectors.

Step 1: Data Input

Customer data is collected from various sources and integrated into a single platform.

Step 2: Content Generation

Using a no-code designer, digital and print templates are created and personalised based on customer data.

Step 3: Digital-First Delivery

Communications are initially sent through digital channels (email, SMS, WhatsApp). This reduces the immediate need for paper and lowers the carbon footprint.

Step 4: Automated Follow-up

For customers who do not engage with the initial digital communication, an automated follow-up is sent. This can include reminders and additional nudges.

Step 5: Send Print Campaigns

If digital engagement fails or if the customer prefers physical mail, the system generates print-ready files and sends them to an approved print partner for delivery.

Step 6: Feedback Loop

The system tracks delivery success and customer responses, automatically switching to postal mail if digital communications bounce back or are undelivered.

Benefits of the Hybrid Approach

The benefits of this hybrid approach have a short and long-term impact:

Reduced Environmental Impact: By prioritising digital communications and using postal mail only as a fallback, organisations can significantly reduce their paper usage and carbon emissions.
Cost Efficiency: Digital communications are generally cheaper than postal mail. Over time, as more customers transition to digital, the cost savings can be substantial.
Enhanced Compliance: Digital records are easier to store, manage, and retrieve, ensuring better compliance with regulatory requirements.
Customer Engagement: Personalised QR codes in physical mail can guide customers to digital platforms, allowing them to update their communication preferences and reducing the reliance on postal mail over time.

The hybrid digital and print solution facilitated by CustomerMinds’ Digital-to-Print Waterfall offers a pragmatic solution to the ESG challenges posed by postal mail campaigns. It aligns with the environmental and social goals of regulated entities while ensuring compliance and enhancing customer engagement.

For more information on implementing this solution, download our eBook!