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The Digital Mailroom

June 24, 2021
Author: Melissa Sandler


The Digital Mailroom: What It Is, Why It’s Important and How to Get It

digital mailroom: a modernized mailroom that centers on automation and combines hardware, software and online solutions to reduce costs and improve incoming and outgoing mail processes

Solutions to get the mail out faster. Fewer mail prep errors. Tools to help you save money. Sending mail through multiple channels and from multiple locations. Employees overseeing the mail process—not the paper, the invoices, the sorting and stuffing.

That’s not the digital mailroom of the future. That’s the mailroom of today!

Today, the average medium-sized company sends thousands of pieces of mail each month. In the United States, nearly 75% of invoices are still sent by way of the mail. Companies send about 77 billion pieces of direct mail each year. And 73% of American consumers say they prefer direct mail because they can read it whenever they want.

The way businesses process mail is changing and advancing, opening up new and valuable opportunities for companies that are able to evolve and automate. No matter shape, size or form, the mailroom is still the hub for sending and receiving customer communications—everything from invoices and payments to financial and benefit statements. A digital mailroom can make a positive impact on mail deliverability, the invoicing processes and overall cash flow. 

So, we’re sending a lot of mail. But how are we preparing it?

In a typical low-performing organization, more than 75% of each core back-office process is a manual process.*

When mail is prepared manually, without the use of automation and digital tools, it is opaque and highly prone to error. About 61% of late invoice payments are caused by compliance or administrative problems, errors and missing invoices. On average, businesses say that more than a third of all their invoices are paid late. That’s a lot of unpaid cash management. According to Intuit’s 2019 State of Cash Flow Report, the average small and mid-sized enterprise has at least $50,000 in outstanding receivables. That’s not all! According to the USPS®, businesses spend more than $20 billion annually on mail and packages that can’t be delivered. The real cost of undeliverable mail can be as much as $50 per mail piece or shipment.

25% of credit departments say they do not have adequate staff to manage their workload. 

Manual mail preparation often relies on all the extra hands at the office. To make incoming and outgoing mail processes more efficient, companies are adopting automated processes that are fully supported by a digital mailroom.

The impact of the novel COVID-19 pandemic has only made the digital mailroom even more necessary. In normal times, there are three key factors responsible for driving the digital transformation of mailrooms from just another room in the office to a fully automated system, accessible by every employee from anywhere:

  • Competitiveness

  • Technological advances

  • Industry regulations

Over 68% of businesses surveyed said their organization has saved money and improved process efficiency by digitizing core activities.§

The Benefits of a Digital Mailroom

There are six key benefits of adding digital solutions to your mailroom. Nearly every benefit presents the opportunity to save money on postage and mail costs.

Cuts Costs

Using mail automation reduces postage costs and the costs associated with errors, lost mail and resending invoices and notices.

Speeds Up Production

For many companies, getting the mail out quicker and with less error means they’ll get paid faster. Adding a digital mailroom solution like e-invoicing can dramatically reduce DSO. According to Forbes, having the option to send an invoice the same day you complete service means a business is 1.5x more likely to get paid on time!

Reduces Errors

If you are still preparing mail by hand, there’s a better, faster more secure way. Using software in combination with an envelope stuffing machine can transform your entire mail prep workflow.

Improves Transparency

Companies with a digital mailroom use online tools and access mail solutions in the cloud. That offers immediate insight into when mail communications are delivered and advanced tracking capabilities, something customers have come to expect.  

Protects Customer Data

Today, companies are responsible for protecting their customers’ personal identifiable information (PII), everything from social security numbers to health information and account details. It’s not only important to protect the privacy of your customers, but it’s also required. Almost every industry has set regulations and guidelines for handling PII sent through the mail and online.

Future-Proofs Your Business

The fact is, 2020 made the digital mailroom even more valuable. The option to mail remotely using online tools made a huge difference for many companies. Don’t wait for unprecedented times. Be sure you have a hybrid mail process in place for whatever situation may arise.

How to Create and Customize a Digital Mailroom

There are four simple steps you can take to create a digital mailroom that will improve mail workflow with minimal disruption to your organization.

Step 1: Assess your current outgoing mail processes

A digital mailroom is attainable for all businesses—small or large, local or global. To start, identify your top business needs and compare them to the strengths and weaknesses of your mail process.

Step 2: Identify manual processes that can be automated

Go to the source: the people at your company who work hard to get the mail out! Ask them to make a list of the repetitive, manual tasks related to mail processing and suggest areas that need improvement. This will be an empowering activity for your employees. It will also boost the adoption of your digital transformation.

Step 3: Consider adding digital workflows

Does anyone at your company agree that e-delivery will work for your business? With a digital mailroom, you can send email notifications in lieu of or in addition to postal mail. Use e-delivery for customers who prefer email or to remind customers to pay their bill. It benefits your mailroom and your AR department.

Step 4: Schedule an audit with a digital mailroom expert

More than ever, it’s important to get professional advice on how to protect your business and prepare for the future. 


Interested in A Digital Mailroom for Your Business?

Taking steps to develop a customized digital mailroom can positively impact your business and your bottom line. To learn more about creating a digital mailroom, schedule a consultation with one of our mail experts today. Our teams will help you audit your mail process and discover the right solutions for your business. 






* You’re Working TOO Hard – Using Intelligent Automation to Save Time, Money, and Effort,” AIIM (Association for Intelligent Information Management) with OpenText (2019)

+ Credit Today

§ “Mail Technology & E-Delivery Adoption,” Keypoint Intelligence InfoTrends (July, 2018)

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