Why Postal Code Targeting Should Be on Your Marketing Radar in 2023

Postal Code Targeting is an effective Smartmail Direct Mail campaign to target new customers and clients. Better yet, direct mail and postal code targeting have been simplified in recent years by online tools like PostNow. This means small businesses now have access to the same resources and targeting capabilities that large organizations use to optimize their mailing campaigns. So, whether or not you’ve used postal code targeting in the past, it should be on your marketing radar in 2023.

Let’s explore postal code targeting for small businesses, how it works and why you should consider using postal code targeting as part of your marketing mix in 2023.

What is postal code targeting?

Postal Code Targeting, or PCT Direct Mail, is one of three types of Canada Post direct mail campaigns. PCT involves sending out direct mail to specific addresses based on their 6-digit postal code. When running a PCT campaign, small businesses can select postal codes in one of two ways:

1. Based on the addresses of their current customers – in other words, small businesses can target their current customers’ neighbours. This is an effective targeting strategy, as it allows business owners and entrepreneurs to reach out to people who are similar to their current clients. As a result, these individuals are more likely to respond to the campaign.
2. Based on the detailed demographic, geographic, behavioural and lifestyle data associated with each postal code in Canada Post’s database – for example, small businesses can target households that have similar incomes, spending habits, and lifestyles as their current clients and customers.

Postal Code Targeting has many benefits for small businesses. It can be used to build brand awareness and incite action among potential clients and customers.

Now that you know a bit more about PCT and how it works, let’s take a look at how it can help your small business achieve its marketing goals in 2023.

Here’s Why PCT Should Be on Your Radar in 2023

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PCT Direct Mail is a game-changer for Canadian small businesses. Here are some of the most significant benefits and why you should consider PCT in 2023.

Postal Code Targeting Allows for Precise Targeting

Postal Code Targeting is one of the best possible ways to reach new customers and markets. By using current customer data (e.g. profiles and addresses), a small business can engage in direct communication with individuals who are most likely to respond to their message. In addition, current client addresses can be suppressed. This means business owners and entrepreneurs can reach out to only the most valuable contacts.

Essentially, this type of direct mail campaign allows small businesses to contact potential buyers who mirror their current customers. Better yet, there’s no need to collect the names or personal information of prospects. All you need to know is who your current customers are and you can reach your ideal target audience!

Highest Deliverability Rate

There are a few special advantages that ensure PCT has the highest deliverability of any marketing channel.

First, by using Canada Post’s address data, there is no other campaign type that can reach as many households in Canada.

Second, Postal Code Targeting Direct Mail travels as 1st-class mail. That means it reaches homes in the same bundle as other addressed mail (bills, letters, etc). This also contributes to the speed at which PCT pieces are able to reach homes.

Maximum ROI

The precise targeting offered by PCT allows businesses to maximize their return on investment. No more wasting your marketing budget on less than ideal candidates or individuals who have already bought into your products or services. With postal code targeting, every marketing dollar is spent on a potential customer who is likely to respond to your campaign.

Cost-Effective

Postal Code Targeting is also one of the most cost-effective forms of direct mail marketing. Using PCT, small businesses can send out highly targeted campaigns at cost-effective prices. Here’s how:

• No Contact List Needs to Be Purchased – with postal code targeting, there’s no need to purchase a mailing list. With the help of PostNow, small businesses can access Canada Post’s address information. Using current customer details, a new mailing list can be created. And, since data and targeting costs are built into the postage rate, no additional costs are incurred!
• A Smaller Number of Mail Pieces Can Be Printed and Delivered – PCT allows small businesses to target specific, high-value contacts while suppressing unnecessary addresses (such as the addresses of current customers). Not only does this reduce postage costs, but it also reduces printing expenses.
• No Sorting Costs – there’s no need for bundling or special handling with postal code targeting campaigns. Therefore, sorting costs are eliminated.

Want to know how much your PCT campaign will cost? Find out instantly using PostNow’s Direct Mail Campaign Calculator. Create an account and receive 20% off the print, data  and design of your first Direct Mail campaign with PostNow.ca

Not Impacted by Canada’s Anti-Spam Legislation

Canada’s anti-spam legislation (CASL) does not impact direct mail. Therefore, small businesses can contact potential customers directly without having to worry about consent or facing any repercussions.

Perfect for B2B Marketing Campaigns

Postal Code Targeting can also be used for pinpoint accurate B2B direct mail campaigns. Canada Post has a directory of more than 900,000 business addresses that can help you reach your ideal B2B customer. In addition, non-business addresses can be suppressed, resulting in a highly-targeted campaign.

How many addresses are in a postal code?

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In typical urban areas with houses, there are an average of 16 to 20 addresses/houses in each postal code. Therefore, by using a single postal code in a PCT campaign, you would be able to target about 20 homes.

Want to see exactly how many addresses your PCT campaign will reach? Try PostNow’s new online Direct Mail Campaign Builder. Simply enter an address and instantly see how many homes you’ll be able to target. From there, the PostNow campaign builder will help you create the perfect PCT campaign for your small business.

What types of businesses benefit from PCT?

Direct mail, and postal code targeting specifically, is an extremely effective way to engage with new consumers. Therefore, nearly all small businesses in Canada can benefit from PCT. However, some of the most common industries that use PCT include:

• Real Estate
• Automotive Dealerships
• Financial Services
• Insurance Providers
• Home Service Companies
• Charities and Non-Profits

Create a PCT Direct Mail Campaign Quickly and Easily with PostNow

PostNow is a revolutionary new online tool that makes PCT campaigns quick, easy and affordable for small businesses in Canada.

Until this point, small businesses were unable to harness the power of PCT, due to the high cost and lengthy process of creating and running a campaign. But, thanks to PostNow’s easy-to-use direct mail tools, small businesses can now send postal code targeting campaigns across Canada with the click of a button.

Campaign pricing is all-inclusive. You pay what you see for the Print, Data, Design & Canada Post Delivery Postage Rate. Have a custom rate with Canada Post? We make sure you keep that without needing to do additional work on your own end.

Watch how to build a PCT Audience on PostNow

Best of all, with the help of PostNow, small businesses can create and send out direct mail campaigns in 5 days or less! Plus, when you use PostNow, you’ll gain access to:

• Free address data from Canada Post
• Custom audience builder
• Campaign planner to manage marketing spend
• Tools to measure campaign results
• Hundreds of direct mail design templates
• Canada Post Smartmail Marketing Expert Partner
• Professional designers
• Direct mail experts that can help optimize campaign results
• Printing and finishing services

Pro PCT Tip: Direct mail offers the best results when used as part of an omnichannel approach. Therefore, we recommend integrating your direct mail campaign into a multi-channel marketing strategy. For example, email marketing works well alongside direct mail. Just be sure that you are aware of the differences between email marketing vs direct mail so you can use them together effectively.

Want to take advantage of the amazing benefits of postal code targeting? Get started today by creating a free account at PostNow.

To learn more about how to effectively use postal code targeting for your small business, check out our Direct Mail for Small Business Webinar Series. In this series, our direct marketing and mail experts will demonstrate how small businesses can use direct mail to boost their business and optimize campaign ROI.