First-Class Mail Product Development - USPS · First-Class Mail Product Development MTAC ... Mobile Shopping & Direct Mail Starter ... Informed Delivery Snapshot 19

First-Class Mail

Product Development MTAC

March 2017

1

Agenda

■ Pulse of the Industry

■ Promotions Update

■ 2017 Promotions Review

■ 2018 Promotions Suggestions Update

■ Irresistible Mail Award Update

■ Open Discussion

2

Pulse of the Industry

3

4

First-Class Volume

-2.7%-2.8%

1.7%

-1.6%

4.1% 3.5%

-2.0% -2.1%

0.3%

-5.1%

2.7%

-2%

-6%

4%

-4%

-3.2%

-6.4%

-2.3%

-4.8%

3.5%

-3.7%-2.5%

-11.8%

-0.5%

-13.4%

-7.8%

-1%

-9%

0%1%

-16%

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

First-Class Mail Volume(% Change over SPLY)

Total Presort Letters and Cards Total Single-Piece Letters and Cards

Linear (Total Presort Letters and Cards) Linear (Total Single-Piece Letters and Cards)

Promotions Calendar

Update

Mailing Promotions

FY16

5 Promotions (6 month duration)

14.9 billion pieces

$3.6 billion revenue

1,626 participating customers

6

2017 Promotions Calendar

Update

JAN – FEB - MARCH APRIL – MAY - JUNE JULY – AUG - SEPT OCT – NOV - DEC

Earned Value

Color Transpromo

Direct Mail Starter

Mobile Shopping

Promotion Period (3 months)

May 1 – July 31

STANDARD MAIL

STANDARD AND FIRST-CLASS MAIL

FIRST-CLASS MAIL PRC approved as of June 16, 2016

Registration

May 15 - Dec 31


July 1 – December 31

Registration

Nov 15 -

Dec 31, 2016


January 1 – June 30

Registration

Jan 15 – Aug 31 Promotion Period (6 months)

March 1 – August 31

Registration

Dec 15 – July 31


February 1 – July 31

Emerging & Advanced Technology

Tactile, Sensory & Interactive Engagement

Registration

June 15 – Dec 31

Registration

March 15 – July 31

As of June 24, 2016

NOV – DEC 2016


August 1 – December 31)

*registration closes Dec. 31, 2016

Approved 2017 Promotion Calendar

Currently Open

Currently Open

Starts Wednesday

9

2017 Promotions Update


Earned Value Promotion

Registration – 759

Current Volume – 152M pcs

2 credit periods Jan-Mar/Apr-Jun

Earned Value counts issue occurred in January

Software update on February 26 to resolve count issue

10



Tactile, Sensory & Interactive Engagement Promotion


Current Participants – 41


Same software issue in January impacted the auto-

enroll feature if customer did not have unique CRIDS

Software updated on February 26

11


Upcoming Promotions

Emerging and Advanced Technology Promotion

Current Registration - 137

Promotion starts March 1st

Direct Mail Starter Promotion

Registration starts March 15th

Prior promotion participants (including Earned Value) are not eligible

Personalized Color Transpromo Promotion

Registration starts May 15th

Mobile Shopping Promotion Promotion

Registration starts June 15th

12

2017 Promotions Issues

Promotion Issues

• Not completing registration

• Not claiming discount at the time of mailing

• Mailing before promotion start dates and requesting the discount

• No promotion codes

Final Mailpiece Submission Requirements

• Required at Promotion Office for Tactile/Sensory/Interactive

• Mailpieces submitted for review should indicate if it is a “final”

mailpiece

• Required at BMEU for all mailings

13

2017 Promotion Codes

December 15, 2016 –

July 31, 2017

14

2018 Promotion Suggestions

• 2018 Promotion Suggestion December 2016 – January 20,

2017

• 8 submissions received prior to deadline

• 2 submissions received last week

• Additional research being conducted

• TT24 MSP Incentive update

• Promotion suggestions under initial review

15

Program Office contact:

Email:

Mobile Shopping & Direct Mail Starter

[email protected]

Personalized Color Transpromo

[email protected]

Tactile Sensory Interactive Promotion

[email protected]

Emerging & Advanced Tech Promotion

[email protected]

Earned Value - [email protected]

Mail: US Postal Service

Post Office Box 23282

Washington, DC 20026-3282

For More Information

mailto:[email protected]





16

Program Requirements & Documents

https://ribbs.usps.gov/index.cfm?page=mailingpromotions

https://www.usps.com/business/promotions-and-incentives.htm

Registration

https://gateway.usps.com

PostalOne Help Desk:

(800) 522-9085 or [email protected]

Irresistible Mail: Irresistiblemail.com

Follow USPS:











https://gateway.usps.com/



irresistiblemail.com



http://usps.com/news

https://twitter.com/USPS

http://www.linkedin.com/usps

■ Contest continues in 2017

■ Quarter 3 winner announced:

The Standard Group

■ Quarter 4 entry deadline: March 27, 2017

■ Quarterly winners compete to become Grand Champion

■ Winning Client, Agency, and Printer will be announced at NPF 2017

■ # for Irresistible Mail award under review

www.irresistiblemail.com/award

What is Informed Delivery?

18

Informed Delivery is a consumer-facing feature that gives eligible residential consumers the ability to

see a daily digital preview of their household’s mail.

Informed Delivery integrates hardcopy mail and digital marketing, providing

multiple impressions and interactivity for users in eligible ZIP Code™ locations.

Users receive a morning email

that includes grayscale

images of the exterior,

address side of incoming

letter-sized mailpieces

(processed through automated

equipment); users can also

view images on the

dashboard at

informeddelivery.usps.com

If a Mailer participates in

the Informed Delivery

operational test, color

images and interactive

content will also be

shown (Letters or Flats)

e

Informed Delivery Snapshot

19

E-mails sent: 66,974 (Daily snapshot)

Mailpiece images: 493,806 (Daily snapshot)

Total Mailer Campaigns: 187 (Completed)

Enrolled households: 111,780

Total users: 117,436 (Total user accounts)

Active ZIP Codes: 5,201 (Select major metropolitan areas)

*All metrics figures represent product reports from February 23, 2017

National Expansion Progress

20

February March April May

Engineering

Technical installation

Application

Go Live

Activation in major

metropolitan areas first;

nationwide in April

Employee

Communications

Webinars, Standup

Talks, and collateral

materials

Consumer

Marketing

User acquisition emails

in major metropolitan

areas first; nationwide

marketing and PR to

follow

Mailer

Communications

Industry engagement

and interactive

campaign creation

National Postal

Forum

Pacific & Southern

Eastern & Northeast

Great Lakes & Western

Southern & Capital Metro

All Areas (follow-up employee communications)

Ongoing Mailer Communications & Engagement

National Postal Forum Planning & Mailer Engagement

February 1

Technical Installation – 14%

March 1


April 1


Pacific & Southern

Eastern & Northeast


National (Direct Mail & PR)

Capital Region &

NY/CT

Select ZIP Codes in Dallas, Houston, Fort Worth, San Francisco, San Diego, Southern California

Select ZIP Codes in Philadelphia, Pittsburgh, Toledo, Northern New Jersey

Select ZIP Codes in Chicago, Detroit, Minneapolis, St. Paul

Select ZIP Codes in Miami and Atlanta

Remaining ZIP Code Rollout

April 10


Informed Delivery® – Translucent Envelopes

21

Why might an envelope be translucent and what content can be seen?

• An envelope may be partially translucent if it is constructed of thinner material

• Similar to holding an envelope directly under light or in direct sun light, the camera flash may

cause an envelope to appear slightly translucent

• Only content on the front fold of the inside mailpiece may be seen in an image

• Bolded words and logos are often what may be seen through a translucent envelope

Is there an impact to users’ security?

• Informed Delivery users must complete an identity verification to validate household address

• Multiple users within one household (e.g. roommates, families) can view the images for all

mail delivered to that address, just as they have access to the physical mail

What can mailers do to mitigate this issue?

• Use thicker envelopes or security envelopes

• Ensure that sensitive information does not appear on the front fold of the mailpiece

• Provide a Replacement image to be included in the user’s notification instead of the actual

mailpiece image

How is USPS® addressing this issue?

• Reviewing sample mailpiece images to determine how often envelopes appear translucent

• Advising mailers on the envelope quality necessary for preventing translucency

Sample Translucent Envelope Images

22

The below envelope samples were obtained with permission from the Informed Delivery users. Details

have been redacted to protect individual and mailer information.

Back of the greeting

card is slightly visible

through this envelope

Front fold in this mailpiece

is faintly visible; does not

reveal any personal

consumer information

17% 28% 23% 13% 19%

23

Gender

56% Male

44% Female

Age

18-24 25-34 35-44 45-54 55-64 65+ Prefer Not to Answer

2%

18% 19% 19% 20% 18%

5%

Average Approximate Household Income

<$50K $100-150K $150-200K $200K+ $50-100K

User Survey Results

79% of users check

their physical

mailboxes every

day or almost

every day

88% of users check

their Informed

Delivery

notification every

day or almost

every day

ID

*According to January 2017 survey of over 6,000 respondents

24

91%

are satisfied or very satisfied

with Informed Delivery, a 10%

increase since the previous

survey (Feb. 2016)

9 out of 10 would recommend Informed

Delivery to friends, family, or

colleagues

of respondents primarily review

Informed Delivery by checking daily

email notifications

96%

It's both informative -

and fun - to preview

what's coming in the mail

every day

It gives me the ability to

plan each day’s activities

in relation to when certain

pieces of mail are arriving

Amazing and

convenient

It lets me know when to

expect something and gives

me peace of mind that

important mail will be

delivered Informed Delivery

is essential – you

need to know

what's arriving

when you are

traveling A new USPS feature

that revolutionized

the way mail is

delivered

Makes planning

bill payment easy

85% use Informed Delivery to

anticipate what to look for /

be more aware of incoming

mail

Other top reasons indicated for

using service:

Take action on mail

sooner via digital preview

Obtain a digital copy /

archive of mail received

See mail when traveling

or cannot access mailbox

68% respond to or act on digital

promotions/discounts on

a monthly or more frequent

basis

58% respond to or act on mail

promotions (e.g., coupon in

the mail or product catalog)

on a monthly or more

frequent basis


Initiatives Under

Consideration

Note: All discussions around these initiatives are to be considered preliminary and non-binding

as they are still under consideration and are pending USPS senior leadership approval.

Simplify Single-Piece Residual

Evaluate postcard size

Evaluate weight breaks for letters

Evaluate Single Piece “2nd ounce Free”

Restructure Pricing for Picture Permit

Evaluate First Class Drop Ship

Evaluate the Need for Indicia on Products for Service

Type Codes

First-Class


Postal thoughts to promote machinability of heavier letters

Maximum mail piece thickness should not exceed 0.255 inches. Mail

piece thickness should not vary more than 15% over the surface of the

mail piece.

Size A8 envelops (8.12 x 5.5) should be prohibited.

The use of envelope windows, particularly open windows, should be

prohibited.

Envelope material should be no less than 28 lb. basis weight bond

paper. (70lb. Book/text)

Envelopes should be trayed using USPS white/red plastic corrugated

EMM trays.

Insert shift in the lengthwise direction should not exceed a maximum of

.562 inches.

First-Class

Open Discussion

USPS Marketing Mail


March 2017

29

Agenda






■ Open Discussion

30


31

-11%

0%

4%

8% 9%

2% 1%

-2%

-8%

-5%-5%

-8%

3%1% 1% 1%

-3%

1%3%

0%

4%

0%

-2% -2%-3%

2% 2%

5%

1.5%

0

5

10

15

20

25

30

-15%

-10%

-5%

0%

5%

10%

15%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Standard Mail Volume

Volume % Variance from SPLY Volume

USPS Marketing Mail Volume

32

Source (s):

RPW Quarterly Reports; Excludes Parcels and International Mail volumes

Volu

me (in

Billio

ns)

Volu

me %

Variance f

rom

SP

LY

USPS Marketing Mail Volume

Volume Changes

33

Standard Mail: % Change SPLYFY15 Q1 FY15Q2 FY15Q3 FY15Q4 FY16Q1 FY16Q2 FY16Q3 FY16Q4 FY17Q1

High Density and Saturation Letters 6.3 8.7 10.9 8.3 6.6 8.6 7.1 9.4 8.6

High Density and Saturation Flats and Parcels* 2.5 1.0 (2.3) (4.8) (7.0) (3.1) 0.1 4.1 5.7

Carrier Route 7.5 (5.7) (11.3) (24.7) (30.1) (22.0) (19.1) 2.5 2.3

Flats (5.7) (7.0) 0.0 29.9 35.9 31.8 21.4 (2.4) (0.8)

Letters 5.1 0.3 (2.3) (2.2) (1.1) 3.4 2.6 5.2 (0.4)

Total Standard Mail (Excludes Parcels & Intl) 4.4 (0.1) (2.1) (2.2) (3.0) 1.9 1.7 4.5 1.5

Notes:

*Includes EDDM Retail

Source:

*RPW Quarterly Files

USPS Marketing Mail: % Change SPLY

Promotions Calendar

Update

Mailing Promotions

FY16


14.9 billion pieces



35


Update


Earned Value

Color Transpromo

Direct Mail Starter

Mobile Shopping


May 1 – July 31

STANDARD MAIL



Registration

May 15 - Dec 31



Registration

Nov 15 -

Dec 31, 2016



Registration



Registration

Dec 15 – July 31





Registration

June 15 – Dec 31

Registration


As of June 24, 2016

NOV – DEC 2016





Currently Open

Currently Open

Starts Wednesday

38









39










40


Upcoming Promotions











41


Promotion Issues








mailpiece


42



July 31, 2017

43



2017






44


Email:


[email protected]


[email protected]


[email protected]


[email protected]











45




Registration





Follow USPS:






















The Standard Group







47












view images on the

dashboard at








e


48









49


Engineering


Application

Go Live

Activation in major


nationwide in April

Employee

Communications

Webinars, Standup


materials

Consumer

Marketing




marketing and PR to

follow

Mailer

Communications

Industry engagement

and interactive

campaign creation

National Postal

Forum

Pacific & Southern

Eastern & Northeast






February 1


March 1


April 1


Pacific & Southern

Eastern & Northeast



Capital Region &

NY/CT






April 10



50















mailpiece image





51








reveal any personal


17% 28% 23% 13% 19%

52

Gender

56% Male

44% Female

Age


2%

18% 19% 19% 20% 18%

5%


<$50K $100-150K $150-200K $200K+ $50-100K

User Survey Results

79% of users check

their physical

mailboxes every

day or almost

every day

88% of users check

their Informed

Delivery

notification every

day or almost

every day

ID


53

91%




survey (Feb. 2016)



colleagues



email notifications

96%




every day





Amazing and

convenient







need to know

what's arriving

when you are


that revolutionized

the way mail is

delivered

Makes planning

bill payment easy




mail


using service:

Take action on mail









basis





frequent basis


Renaming Standard Mail to

USPS Marketing Mail™

The Postal Service received permission from the Postal Regulatory

Commission to rename Standard Mail to USPS Marketing Mail.

Changing the product name from Standard Mail to USPS Marketing Mail

better communicates to customers its intended use, improves its standing

in the market place and ultimately generates a better perception

Intention to rename the Standard Mail product was shared with mailing

community at the 2016 NPF and in subsequent MTAC meetings

Soft launch completed on January 22, 2017: Changed product name on

postage statements, forms, and in most manuals

Final implementation planned for July 2018

Work with industry on evaluating indicia needs & open and response rate

impacts

Market Research

MTAC Workgroup

Mid 2017: Changes to tray labels and pallet markings (more details will

be available soon)

January – July 2018: Changes to indicia and postage markings based on

industry feedback

Final implementation targeted for July 2018

This phased transition provides mailers and vendors sufficient time to

make any hardware and software changes

Initiatives Under

Consideration



Evaluate ways to get more CR containers in non-FSS

zones

Evaluate Marketing Mail postcards

Restructure pricing for Picture Permit

Evaluate mailpiece requirements for Marketing Mail and

BPM flats

Evaluate the need for indicia on products with Service

Type codes

USPS Marketing Mail


Postal thoughts to promote machinability of heavier letters

Maximum mail piece thickness should not exceed 0.255

inches. Mail piece thickness should not vary more than 15% over

the surface of the mail piece.

Size A8 envelops (8.12 x 5.5) should be prohibited.

The use of envelope windows, particularly open windows, should be

prohibited.

Envelope material should be no less than 28 lb. basis weight bond

paper. (70lb. Book/text)

Envelopes should be trayed using USPS white/red plastic

corrugated EMM trays.

Insert shift in the lengthwise direction should not exceed a maximum

of .562 inches.

USPS Marketing Mail

Open Discussion

Periodicals Mail


March 2017

61

Agenda


■ Periodicals Update





■ Open Discussion

62


63

-12%

-8% -8%-6%

-1%

-5%-3%

-2%

-6%

-4% -3%

-5% -5% -5%

-7% -7%

-5%

-8%

-5%

-2%-4%

-1%-2%

-5%

-3%

-7%-5% -5% -5%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

-16%

-11%

-6%

-1%

4%

9%

14%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Periodicals Volume

Volume % Variance from SPLY Volume

Periodicals Volume

64

Source(s):

RPW Quarterly Reports

Volu

me (in

Billio

ns)

Volu

me %

Variance f

rom

SP

LY

Periodicals Update

MTAC

3/1/17

Periodicals (Outside & Inside County)

Volume by Frequency

66

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2011 2012 2013 2014 2015 2016

Mill

ions

Quarterly (1-7) Monthly (8-18) Semi-Monthly (19-36)

Weekly (37-60) Semi-Weekly (61-120) Daily (>12))


Publications by Frequency

67

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2011 2012 2013 2014 2015 2016




Publications Changes by Frequency

68

(900)

(800)

(700)

(600)

(500)

(400)

(300)

(200)

(100)

-

100

200

2012 2013 2014 2015 2016



69

Periodicals Update

Periodicals: Review of statement of ownership/mailing statements to look at new Periodicals

applications to obtain characteristics such as frequency, page counts, regional

publications and other characteristics to understand developing trends in

Periodicals mail. Status

Language for Direct Mail Starter promotion indicates previous participation in any

promotion in prior years will disqualify participations in Direct Mail Starter. Vicki

Stephen to explore whether participation in Earned Value Credit (EVC) will

disqualify since EVC does not use technology involved with Direct Mail Starter.

It was reported to User Group 8 that the Direct Mail Starter promotion is open

only to customers that have never participated in any previous promotions

including the Earned Value Credit promotion.

No promotion suggestions for 2018

Steve is reviewing ability to have promotions for Periodicals

Promotions Calendar

Update

Mailing Promotions

FY16


14.9 billion pieces



71


Update


Earned Value

Color Transpromo

Direct Mail Starter

Mobile Shopping


May 1 – July 31

STANDARD MAIL



Registration

May 15 - Dec 31



Registration

Nov 15 -

Dec 31, 2016



Registration



Registration

Dec 15 – July 31





Registration

June 15 – Dec 31

Registration


As of June 24, 2016

NOV – DEC 2016





Currently Open

Currently Open

Starts Wednesday

74









75










76


Upcoming Promotions











77


Promotion Issues








mailpiece


78



July 31, 2017

79



2017







80












view images on the

dashboard at








e


81









82


Engineering


Application

Go Live

Activation in major


nationwide in April

Employee

Communications

Webinars, Standup


materials

Consumer

Marketing




marketing and PR to

follow

Mailer

Communications

Industry engagement

and interactive

campaign creation

National Postal

Forum

Pacific & Southern

Eastern & Northeast






February 1


March 1


April 1


Pacific & Southern

Eastern & Northeast



Capital Region &

NY/CT






April 10



83















mailpiece image





84








reveal any personal


17% 28% 23% 13% 19%

85

Gender

56% Male

44% Female

Age


2%

18% 19% 19% 20% 18%

5%


<$50K $100-150K $150-200K $200K+ $50-100K

User Survey Results

79% of users check

their physical

mailboxes every

day or almost

every day

88% of users check

their Informed

Delivery

notification every

day or almost

every day

ID


86

91%




survey (Feb. 2016)



colleagues



email notifications

96%




every day





Amazing and

convenient







need to know

what's arriving

when you are


that revolutionized

the way mail is

delivered

Makes planning

bill payment easy




mail


using service:

Take action on mail









basis





frequent basis


87


Email:


[email protected]


[email protected]


[email protected]


[email protected]











88




Registration





Follow USPS:






















The Standard Group






Initiatives Under

Consideration



Virtual FSS bundles for Periodicals

Incent use of Periodical trays

Simplify pending Periodicals payments

Combine nonmachinable flats and parcels

Eliminate foreign publication qualification and new agent

registry

Eliminate multiple origin entry facility types

Encourage DDU entry

Reviewing the mail piece requirements for flats


Type codes

Periodicals

Open Discussion

Package Services

Simplification Ideas

March 1, 2017

Initiatives Under

Consideration




Type codes

Evaluate if there is value in adding Carrier Route (on

address label) as an incentive

Evaluate ways to avoid over labeling by including the

Origin Pic and the manifest (over label/replacement) Pic

electronically

USPS Packages