Royal Mail is hoping to get more businesses mailing promotional items to their clients and customers by offering a new payment-by-results service.

The firm believes that its new payment-by-results price offer will keep direct mail as competitive as its digital counterparts – like email and social media marketing.

The announcement comes after Royal Mail's Meta Analysis of Direct Mail showed that return-on-investment for promotional item mailouts was very favourable.

Royal Mail is still finalising the terms of its “risk reward” deal, which would mean the amount that businesses or charitable organisations pay would be directly related to the number of sales or amount of money they raise as a result of their campaign.

Mark Thompson, media director at the organisation, said that the pricing initiative would be coupled with other new services to ensure that direct mail is promoted more proactively than Royal Mail's integrated marketing campaign services.

1 Parsons, Russell. “Royal Mail plots payment by results offer“. Marketing Week. Wednesday, March 16th 2011.