USPS Marketing Mail Product Development · Did Not Meet Goals 0 3 0 0 No Measurement 2 11 1 3 I do not know 0 5 2 2 11. 2017 Promotions Calendar ... Marketing Mail Under Consideration

USPS Marketing Mail

Product DevelopmentMTAC

April 2017

1

Agenda

■ Pulse of the Industry

■ 2016 Promotion/Survey Updates (Emerging & Tactile

Promotions)

■ 2017 Promotions Review

■ 2018 Promotions Suggestions Update

■ Irresistible Mail Award Update

■ Open Discussion

2

Pulse of the Industry

3

Standard Mail Volume

4

Source (s):

RPW Quarterly Reports; Excludes Parcels and International Mail volumes

March 2017 is estimated to complete FY17 Q2

Volu

me (in

Billio

ns)

Volu

me %

Variance f

rom

SP

LY

USPS Marketing Mail Volume

Volume Changes

5

Standard Mail: % Change SPLYFY15 Q1 FY15Q2 FY15Q3 FY15Q4 FY16Q1 FY16Q2 FY16Q3 FY16Q4 FY17Q1 FY17Q2

High Density and Saturation Letters 6.3 8.7 10.9 8.3 6.6 8.6 7.1 9.4 8.6 5.2

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 0.9

Carrier Route 7.5 (5.7) (11.3) (24.7) (30.1) (22.0) (19.1) 2.5 2.3 (2.2)

Flats (5.7) (7.0) 0.0 29.9 35.9 31.8 21.4 (2.4) (0.8) (26.6)

Letters 5.1 0.3 (2.3) (2.2) (1.1) 3.4 2.6 5.2 (0.4) (5.3)

Total Standard Mail (Excludes Parcels & Intl) 4.4 (0.1) (2.1) (2.2) (3.0) 1.9 1.7 4.5 1.5 (4.9)

Notes:

*Includes EDDM Retail

Source:

*RPW Quarterly Files

*March 2017 is estimated to complete FY17 Q2

USPS Marketing Mail Volume: % Change SPLY

2016 Promotion/Survey

Update

Mailing Promotions

“Refresher” on FY16 Totals:

5 Promotions (6 month duration)

14.9 billion pieces

$3.6 billion revenue

1,626 participating customers

Initial Survey Analytics…

7

CY16 Promotions Survey Results

CY16 Promotion Survey Response Results

Note(s):/1 Promotion Participant refers to each instance a company participates in a CY16 promotion;

Companies may participate in multiple promotions/2 Survey Participants refers to the list of all responses

Proprietary & Confidential

• 25% of all promotion participants1 completed surveys for CY16 Emerging & Advanced Technology and Tactile, Sensory, & Interactive Promotions

• Survey Participants largely identified themselves as Repeat Participants2

Emerging & Advanced

Technology

Tactile,Sensory &

Interactive

Promotion Participants 226 210

Responses 61 50

Repeat Participants 53 34

New Participants 5 8

I don’t know 3 8

78%

12%

10%

CY16 Participants

Repeat Participants New Participants I don't know

8


CY16 Drivers of Participation by Promotion


• Across promotions, Repeat Participants rate the discount as a driver for participation more favorably than New Participants

Drivers of Promotion Participation

Emerging & Advanced Technology2 Tactile, Sensory & Interactive3

New Participant Repeat Participant New Participant Repeat Participant

The Discount 4.75 4.97 3.80 4.69

Increased Response Rate 3.00 2.57 2.80 3.88

Furthering Customer Engagement 3.00 3.27 3.40 3.60

Adaptation of New Technology 3.75 3.33 3.40 3.13

Positive Results from Past Participation (Repeat Only)

0.00 2.83 0.00 3.63

Other 1.00 2.75 1.00 1.00

Note(s):/1 Table displays average ratings of promotion drivers by survey promotion participant segment ; ratings based on a scale from 1 to 5/2 Response Count for Emerging & Advanced Technology: 61 (53 – Repeat Participants, 5 – New Participants, 3 – I don’t know)/3 Response Count for Tactile, Sensory & Interactive: 50 (34 – Repeat Participants, 8 – New Participants, 8 – I don’t know)

Table 1. Average Rating of CY16 Promotion Drivers1

9


Note(s):/1 Response Count for Emerging & Advanced Technology: 35 (31 – Repeat Participants, 4 – New Participants)/2 Response Count for Tactile, Sensory & Interactive: 21 (16 – Repeat Participants, 5 – New Participants)


• 59% of survey participants agree or strongly agree that specialty treatments increase the effectiveness of direct mail

– 67% of Tactile, Sensory & Interactive survey participants agreed/strongly agreed

– 54% for Emerging & Advanced Tech

0 0 0

4 4

1

4

01

14

22

6

0

5

10

15

20

25

I do not know Strongly Disagree Disagree Neutral Agree Strongly Agree

Q: Based on your experience, incorporating technology/specialty treatments on to direct mail increases the effectiveness of direct mail as a marketing channel.

New Participants

Repeat Participants

Effectiveness of Technology/Treatment on Direct Mail

Part

icip

ant

Count

10


Note(s):/1 Statistics based on limited response data/2 Response Count for Emerging & Advanced Technology: 35 (31 – Repeat Participants, 4 – New Participants)/3 Response Count for Tactile, Sensory & Interactive: 21 (16 – Repeat Participants, 5 – New Participants)


• Of Promotion Participants who measure Customer Response Rate, 90% met or exceeded their goals for CY16 Promotions

• Additionally, Repeat Participants are 16% more likely to measure response rates than New Participants1

Expectations on Customer Response Rate

Does Your Company Measure Response Rate? If so, were your goals met? (Count)


New Repeat New Repeat

Yes; Company Measures Response Rate 2 15 2 11

Exceeded Goals 0 0 0 2

Met Goals 2 12 2 9

Did Not Meet Goals 0 3 0 0

No Measurement 2 11 1 3

I do not know 0 5 2 2

11

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 31Promotion Period (6 months)

March 1 – August 31

Registration

Dec 15 – July 31Promotion Period (6 months)

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

14

2017 Promotions Communications

Mailing dropped last week (included MTAC members)

Invitation to a Personalized, Interactive Video

experience (qualifying tech in Emerging & Advanced Tech

promotion)

Provides interactive overview of the 2017 Promotions

Non-personalized link on RIBBS, or at

YourVideoDM.com

http://www.yourvideodm.com/

15

Interactive Video Overview

2017 Promotions Update

2017 Promotions Update: Earned Value

Earned Value Promotion Registration – 729

Current Volume – 850M pcs

2 credit periods Jan-Mar / Apr-Jun

Earned Value reporting issue flagged in January

Software updates to resolve reporting

Quarter 1 credit reviews underway

16


Earned Value Q1 Credit Process Status

Credits Agreed/Released: 207 companies (29%)

Credit review in process: 492 companies (66%)

Disputes in process: 30 companies (4%)

eMail to participants 3/31 with instructions

Non-Origin IMB issue

SW change implemented on 4/9 to automate reporting of non-Origin

IMBs to enable visibility in Activity Report (Pulse Report Action Item)

17


2017 Promotions Updates:

Tactile, Sensory & Interactive Engagement Promotion Registration – 172

Current Participants – 113


Emerging and Advanced Technology Promotion Registration - 225

Current Participants - 220

Current Volume – 1.5B pcs

Software update on February 26

All adjustments have been processed for the subset of

affected companies

18


Upcoming Promotions

Direct Mail Starter Promotion

Registration started March 15th

Promotion period begins May 1st

Personalized Color Transpromo Promotion

Registration starts May 15th

Mobile Shopping Promotion

Registration starts June 15th

Incorporating Informed Delivery as Qualifying Technology

Must meet Mobile Shopping criteria

Requirements are being drafted; will work through UG8

Earned Value Q2 Credit process

Will begin ~ 2nd week of July 19

2017 Promotions Issues

Promotions Issues:

Not claiming discount at the time of mailing

Mailing before creative approval and requesting the discount

Final Mailpiece Submission Requirement:

Required at Promotion Office for Tactile/Sensory/Interactive- Mailpieces submitted for review should indicate if “final” mailpiece

20

2018 Promotion Suggestions

2018 Promotion Suggestions (Pulse Report Action Item)

Due January 20, 2017

Received 10 submissions (in addition to requests to continue

existing promotions)

Completed internal evaluation

Strategy for PRC Filing under review

MSP Incentive (Pulse)

Secure Destruction (Pulse)

21

22

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]





23

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


■ Announcing 4th Quarter Winner:

Porsche

■ Quarterly winners compete to become Grand Champion

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

■ #IrresistibleMail in use

■ www.irresistiblemail.com/award

25

In the age of video,

how do you make print more relevant?

You innovate,

To make print more like video.

https://www.youtube.com/watch?v=7lR3x6i6nSg posted by Patrick Coffee, Adweek

https://www.youtube.com/watch?v=7lR3x6i6nSg

Marketing Mail Under Consideration for January 20181:

Continue to evaluate how to get more Carrier Route pallets and containers in non-FSS zones

EDDM Letters

Simplify the pricing structure for Picture Permit

Product Simplification

26

1 For Discussion only. Subject to internal reviews and / or BOG and PRC approvals

Open Discussion

Periodicals


April 2017

28

Agenda



Promotions)




■ Open Discussion

29


30

Periodicals Volume

31

Source(s):

RPW Quarterly Reports

March 2017 is estimated to complete FY17 Q2

Volu

me (in

Billio

ns)

Volu

me %

Variance f

rom

SP

LY

2016 Promotion/Survey

Update

32

Mailing Promotions



14.9 billion pieces




33








Emerging & Advanced

Technology

Tactile,Sensory &

Interactive


Responses 61 50



I don’t know 3 8

78%

12%

10%

CY16 Participants


34








The Discount 4.75 4.97 3.80 4.69





0.00 2.83 0.00 3.63

Other 1.00 2.75 1.00 1.00



35







0 0 0

4 4

1

4

01

14

22

6

0

5

10

15

20

25



New Participants

Repeat Participants


Part

icip

ant

Count

36












Met Goals 2 12 2 9




37


Update

38


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





Registration

June 15 – Dec 31

Registration


As of June 24, 2016

NOV – DEC 2016





40





promotion)



YourVideoDM.com


41










42






Pulse Report Action Item: identify the number of Periodicals

mailers participating in Earned Value

Total MIDs: 2,896

Periodical Mailer MIDs: 361, 12.5% of total

43











affected companies

44


Upcoming Promotions














Promotions Issues:





46




Received 10 submissions, including those for periodicals

Received requests to continue existing promotions





47


Email:


[email protected]


[email protected]


[email protected]


[email protected]






48









Registration





Follow USPS:


49













Porsche





51



You innovate,




Periodicals Under Consideration for January 20181:

Continue to evaluate how to get more Carrier Route pallets and containers in non-FSS zones

Periodicals Sack/Tray Pricing


52


Open Discussion

53

First-Class Mail


April 2017

54

Agenda



Promotions)




■ Pulse Report Updates

■ Open Discussion

55


56

3.5%

-2.0% -2.1%0.3%

-5.1%

2.7%

-2.3%-5.6%

4.1%

-3.9%

-1.7%-3.7%-3.7%

-2.5%-11.8%

-0.5%

-13.4%

-7.8%

-1.4%

-9.0%

-0.4%

0.6%

-5.5%-15.1%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

First-Class Mail Volume(% Change over SPLY)

Total First-Class Mail Presort Letters and Cards Total First-Class Mail Single-Piece Letters and Cards

57

First-Class Volume


Total First-Class Mail Volume

Note(s):1/ Data Source: RPW FY16 – FY17

Industry Product Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Total First-Class Mail Single-Piece -3.7% -2.5% -11.8% -0.5% -13.4% -7.8% -1.4% -9.0% -0.4% 0.6% -5.5% -15.1%

Total First-Class Mail Presort 3.5% -2.0% -2.1% 0.3% -5.1% 2.7% -2.3% -5.6% 4.1% -3.9% -1.7% -3.7%

Mailing Promotions

Action item from last MTAC (Pulse Report Action Item)

Break out First Class volume reporting by Industry

Two examples follow

File with all industry charts will be distributed with

today’s meeting notes

Please note:

Class-level reporting data from RPW

Industry breakouts from CDM, so data does not align precisely,

but should represent appropriate proportions

58

2016 Promotions

Survey Update

59

Mailing Promotions



14.9 billion pieces




60








Emerging & Advanced

Technology

Tactile,Sensory &

Interactive


Responses 61 50



I don’t know 3 8

78%

12%

10%

CY16 Participants


61








The Discount 4.75 4.97 3.80 4.69





0.00 2.83 0.00 3.63

Other 1.00 2.75 1.00 1.00



62







0 0 0

4 4

1

4

01

14

22

6

0

5

10

15

20

25



New Participants

Repeat Participants


Part

icip

ant

Count

63












Met Goals 2 12 2 9




64


Update

65


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





Registration

June 15 – Dec 31

Registration


As of June 24, 2016

NOV – DEC 2016





67





promotion)



YourVideoDM.com


68










69






eMail to participants 3/31 with instructions

Non-Origin IMB issue

SW change implemented on 4/9 to automate reporting of non-Origin

IMBs to enable visibility in Activity Report (Pulse Report Action Item)

70











affected companies

71


Upcoming Promotions














Promotions Issues:





73




Received 10 submissions (in addition to requests to continue

existing promotions)





74


Email:


[email protected]


[email protected]


[email protected]


[email protected]






75









Registration





Follow USPS:


76













Porsche





78



You innovate,




First-Class Under Consideration for January 20181:

Simplify First-Class Mail Single Piece Residuals

Offer one price for Single Piece First-Class Mail letters

Simplify the pricing structure of Picture Permit


79


Open Discussion

80