Further Royal Mail wholesale pricing changes are due to take effect from 7 December 2026, with projected increases of between 10.6% and 21.7%, depending on the service used and subject to ongoing industry discussions.

For brands investing in customer acquisition, retention, loyalty programmes and multichannel campaigns, these increases will inevitably affect budgets.

However, rising postal costs do not automatically reduce the value of mail as a marketing channel. Instead, they place greater emphasis on campaign effectiveness, audience targeting and customer engagement.

As marketers come under increasing pressure to demonstrate return on investment, the focus should move beyond the cost of individual channels and towards their ability to generate meaningful attention and action.

Rising Postal Costs Should Change How You Use Mail, Not Whether You Use It

According to Mike Hughes, Managing Director at Latcham:

“There’s always a temptation when postal prices increase to move more activity online because digital can appear cheaper and easier to implement. But that isn’t always the most effective approach.

What we’re seeing is that many organisations are moving back towards a more balanced communication strategy because digital channels have become incredibly crowded. Mail still gets attention. It still builds trust. It still drives action. So rather than asking whether mail still works, businesses should be asking how they can make every communication work harder.”

Recent research suggests there is evidence to support this view. The latest findings from JICMAIL show that Business Mail receives an average of 186 seconds of attention per item, while almost one in ten mail items (9.2%) prompts a visit to an advertiser’s website.

This is an important reminder that physical and digital channels do not need to compete. In many cases, they work best together, with mail helping to drive online engagement and digital response.

Attention Is Becoming a Marketer’s Biggest Challenge

Over the last decade, many organisations have invested heavily in digital channels because they can be quick to deploy, relatively inexpensive and easy to measure.

However, that shift has also created an increasingly crowded communications landscape.

Consumers are exposed to emails, social media content, online advertising, push notifications and digital promotions throughout the day, all competing for the same finite amount of attention.

Research from Two Sides found that 50% of consumers believe they spend too much time on digital devices, while 57% are concerned about the security of personal information held electronically.

The same research found that 76% believe they should have the right to choose how they receive communications, whether digitally or in print.

For marketers, this underlines the importance of understanding audience preferences and adopting a channel strategy that reflects how customers want to engage.

What Should Marketers Be Thinking About Ahead of the Price Changes?

Rather than focusing purely on rising postage costs, marketing teams should consider how to maximise the effectiveness of every campaign.

Focus on Attention, Not Just Cost

The lowest-cost channel is not always the most effective channel.

When audiences are overwhelmed with digital messages, attention becomes an increasingly valuable commodity.

Challenge Digital-Only Assumptions

Digital channels remain essential, but they are not always the answer to every marketing challenge.

Different audiences engage in different ways, and channel strategies should be built around audience behaviour rather than assumptions.

Use Mail Where It Adds Value

Mail may not be appropriate for every campaign, but it can be highly effective when used strategically, particularly for:

· Customer acquisition

· Event invitations

· Product launches

· Loyalty and retention campaigns

· Reactivating dormant customers

· Account-based marketing (ABM)

· Supporting high-value sales opportunities

Build Connected Multichannel Campaigns

The strongest campaigns increasingly use channels together rather than in isolation.

For example:

· Paid social creates awareness

· Email nurtures interest

· Mail reinforces the message

· QR codes and personalised landing pages drive digital response

When these channels are connected, organisations can create more relevant and effective customer experiences.

As Costs Rise, Creative Matters More Than Ever

As postal costs increase, marketers naturally focus on the cost of sending a mail piece.

But that is often the wrong metric.

The more important measure is cost per response.

A poorly targeted campaign will be expensive regardless of postal rates, while a highly relevant campaign that captures attention and drives action can continue to deliver strong value.

As Mike explains:

“When postal costs increase, creative thinking becomes even more important. The focus shouldn’t be on the cost of sending a mail piece. It should be on the cost per response.

If you’re sending fewer but more meaningful communications, improving your data and targeting the right people with the right message, mail can continue to deliver exceptional results.”

This is where organisations should focus on:

· Better data

· Stronger audience segmentation

· Personalisation

· Relevant messaging

· Clear calls to action

· High-quality creative design

When communication costs rise, every communication needs to work harder.

The Real Opportunity for Marketers

Royal Mail’s latest price increases shouldn’t simply trigger conversations about reducing budgets or cutting channels.

Instead, they provide an opportunity to reassess how campaigns are planned, targeted and measured.

The most successful organisations are unlikely to be those that simply spend less. They will be those that improve targeting, increase relevance, reduce waste and create stronger customer experiences across multiple channels.

For many brands, the challenge is no longer choosing between print and digital. It’s understanding how both channels can work together to deliver better marketing outcomes.

Latcham works with brands, agencies and in-house marketing teams to deliver data-driven print, mail and digital communications that improve engagement, increase response rates and maximise campaign performance. From customer acquisition and lead generation to personalised communications and multichannel campaigns, we help marketers make every communication count.

Postal prices may be increasing, but your communication costs don’t have to. Explore our Print, Mail & Personalisation solutions or book a free 15-minute chat with our team to discover practical ways to optimise your communications and budget.

About Latcham

Omnichannel communications and fulfilment specialists, delivering print, digital and mailing solutions.