Understanding the USPS: The rewards of change

Understanding the USPS® :

The rewards of change

March 12, 2013

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Presenter

Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of

Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal subject matter

expert to PB employees and clients.

Janet’s professional career includes 20 years of employment with the United States Postal Service,

fulfilling various roles in accounting, software systems and quality improvement. She also spent 12

years in the private sector as a successful management consultant and corporate trainer.

Janet holds the degrees of Doctor of Education, Master of Science in Human Resources

Management and Bachelor of Science in Business. She is a member of the Sacramento and San

Francisco Postal Customer Councils, a member of Mail Systems Management Association

(MSMA), a Certified Mailpiece Design Consultant (MDC), and will be a speaker at the 2013

National Postal Forum in San Francisco and at MAILCOM 2013 in April in Atlantic City.

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Agenda

2012 in reflection

2013 changes and opportunities

Looking ahead to 2014; more

change, more opportunity

Pitney Bowes Support options

Q/A

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2012 Postal Facts!*

$65B Revenue

160 billion pieces of mail

152 million delivery points and growing (654,000 new DPs)

Package services revenue increased by 8.7 percent in fiscal

2012, compared to 2011 (increased by 244 million pieces)

Moves about 40% of the World’s mail volume

Core of an $800 billion industry with 8 million employees

More retail outlets than McDonalds and Starbucks combined

Has ‘delivered’ through 237 years of change

2004 – 2011 USPS ranked in the Top Ten Firms Most Trusted for

Privacy (http://ponemon.org/research-studies-white-papers).

Amount of tax revenue received to operate = $0

USPS 2012 Annual Report to Congress

* USPS 2012 Annual Report to Congress

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Mail Volume Realities*

* Courtesy of postaladvocate.com

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Processing Center Closures

Targeted cost reductions: $2.1billion

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2013 – The Present

Intelligent Mail® barcode

Intelligent Mail® package barcode

USPS changes 2013 - Tracking label changes

What is USPS doing – • Revising Mailing Standards to require the use on an Intelligent Mail® unique tracking barcode on all

commercial parcels, except Standard Mail® parcels, claiming presort or destination entry pricing.

What does this mean to our Clients – • Delivery Confirmation is now USPS Tracking™ • Clients will be transitioned over time into new label requirements as they become available • Once complete, our Clients will be able to track all packages shipped via USPS with greater specificity.

PB Support plan- • USPS Delivery confirmation labels are currently being rebranded • Pitney Bowes will start providing the new rebranded labels as they become available . • Clients with meters are granted a “grace period” of 1 year ( January 2014) to comply with new label

requirements. • For Clients with shipping solutions (Send Suite, etc.), the waiver is through October 2013. • During the grace period current labels will be accepted with no interruption to service

Current: USPS Delivery Confirmation label Sample: New USPS Tracking label

2013 Transition

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Package Services Revenue is increasing

Number of delivery points are increasing as volume and revenue

decreases

More facility consolidations and closures

Service delivery may change from 1–3 days to 2-3 days

Local Post Office hours may change

Six new USPS Promotions

Innovations

Proposal to eliminate Saturday delivery of letters to residences and

businesses

January 2014 Full-Service IMb™ requirements

Continued

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decreases




Six new Customer promotions for 2013

Proposal to eliminate Saturday delivery of letters to residences and

businesses

Innovations

Prepare for January 2014 Full-Service IMb™ requirements

Continued

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2013 USPS Calendar of Promotions

A year full of saving and growth opportunities

Embrace and test new technologies for consumer engagement

Marry mail with mobile, connect print to digital, and put your business in the hands of your customers

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Meet your goals… and save

Direct Mail delivers strongest ROI for

acquisition, contact and retention (Target

Marketing 2012 Annual Media Usage

Survey)

80% of households say they read or scan

mail daily (Mail Moment Study 2011-2012)

U.S. Mobile Commerce sales will grow

98.6% to reach $20.85B (Internet Retailer

9/12)

59% of consumers enjoy getting mail from

brands about new products (Epsilon

Channel Preference Study 12/11)

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APRIL-JUNE Earned Value Reply Mail -Financials, Catalogers, Publishers

MARCH-APRIL •Mobile Coupons -Local & national retailers & businesses • Click-to-Call -Insurance, Financial

NOVEMBER-DECEMBER • Mobile Buy-It-Now - Retailers, e-tailers & catalogers

AUGUST-SEPTEMBER • Emerging Technologies -Retailers, e-tailers & catalogers • Product Samples -CPGs, Retailers • Picture Permit -Existing customers

USPS® 2013 Promotions Calendar

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Marry mail with mobile

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Mobile Coupon: Mail contains mobile technology that delivers a

coupon redeemable in-store or online when scanned

Click-to-call: Mail links directly to a mobile-optimized website with

a “click to call” or brings up a phone number automatically in the

user’s phone

Registration Period: Jan. 15 - April 30, 2013

Program Period: March 1 - April 30, 2013

Discount: 2 % postage discount

Mobile Coupon and Click to Call

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Mailers earn credit for BRM and CRM counted during normal mail

processing

Registered permits and Mailer IDs required

Credit applied post-promotion to Permit Imprint account for future

mailing

Registration Period: Jan. 1, 2013 - March 31, 2013

Program Period: April 1 - June 30, 2013

Credit Amount: $0.02 per mailpiece scanned

Image Source Page: http://www.postcardmania.com/submitting-art/templates.php/4x9-rackcard/templates.php?type=Cards&group=2

Earned Value Reply Mail

http://www.postcardmania.com/submitting-art/templates.php/4x9-rackcard/templates.php?type=Cards&group=2





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Emerging Technologies

Near-Field Communication: Mail contains NFC smart tag or RFID

chip enabling info transmission to mobile device

Augmented Reality: Mail facilitates a user experience combining

virtual & real time interactive, registered in 3-D

Authentication Component: Mail enables user to complete

identity/authentication process

Registration Begins: June 1, 2013

Program Period: Aug. 1 – Sept. 30, 2013

Discount Amount: 2% of eligible postage

Image Source Page: http://www.gizchina.com/2011/04/22/senscape-chinas-augmented-reality-platform/

http://www.gizchina.com/2011/04/22/senscape-chinas-augmented-reality-platform/









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Picture Permit*

Mail contains customized permit indicia area with company logos,

trademarks or brands (color images only)

Pre-testing and design approval required

6 month lead time recommended

Customers must be approved mailers

Registration Begins: June 1, 2013 (by invitation only)*


Discount Amount: Per piece fee waived

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Product Samples

Standard Mail® regular and Nonprofit marketing parcels containing

product samples. USPS has new Simple Samples options and

pricing.

Trial size product (or other item) to incite recipients to purchase a

product/service, form a belief/opinion, or take an action

Registration Begins: May 1, 2013


Discount Amount: 5% off eligible postage

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Mobile Buy It Now

Mobile barcode or similar print technology takes consumer to

mobile-optimized site for product purchase

Tangible items that can be shipped via USPS products (delivery

by the USPS not required).

Registration Begins: September 15, 2013

Program Period: Nov. 1 – Dec. 31, 2013

Discount Amount: 2% off total postage

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Recommendations for you…

Take advantage of promotions to enhance your marketing efforts

Increase circulation, support other advertising efforts

Embrace new technology on the back of a proven workhorse--test new strategies at a lower cost.

Strengthen your branding efforts

Include easy-to-use reply pieces

Put your product in consumers’ hands

Let direct mail be the foundation for your ecommerce/engagement efforts

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decreases





Innovations

Proposal to eliminate Saturday delivery of letters to residences

and businesses


Continued

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Digital Retail

Delivery

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decreases





Innovations

Proposal to eliminate Saturday delivery of letters to residences

and businesses


Continued

Change in Saturday Delivery (proposed)

Proposed changes No changes

No Saturday letter mail delivery to residences or offices

The USPS® will still process and transport mail on Saturdays

No residential or office mail pick up on Saturdays

Parcels, packages, Priority Mail® and Express Mail® will still be delivered on Saturdays

No schedule ‘blue box’ collections on Saturday or Sunday

Post Offices will remain open for customers as per normal schedule

Any mail accepted at Post Offices on a Saturday will be processed on Monday

Mail will still be delivered to PO Boxes on Saturday

Bulk mail and drop ship at USPS facilities will continue on Saturdays and Sundays

Remittance mail that is P.O. Box addressed will remain available seven days/week

80% of consumers polled are OK with this proposal!

Recommendations Plan ahead

Understand delivery times – add IMb™ Tracing

Watch the clock

Automate to expedite - Use the Intelligent Mail®

barcode

Assess your incoming mail flow Know your options – Consider Priority Mail® or

Express Mail®

Engage with your customers

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2014 – The Future

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January 2014- proposed **

Full Service Intelligent Mail®

compliance

Unique IMb™ for mailpieces and

handling units

Electronic submission of postal

documentation

Electronic scheduling of drop

shipments

Automation Changes Full-Service IMb™ required for

automation discounts

**Federal Register Volume 77, Number 77 issued (Friday April 20, 2012)

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Overview of Intelligent Mail

Intelligent Mail Barcode for Mailpieces

Intelligent Mail Barcode on Handling Units

Intelligent Mail Barcode for Containers

APPLICATION IDENTIFIER

TYPE INDICATOR

MAILER ID SERIAL

NUMBER

ZIP CODE CONTENT ID PROCESSING

CODE MAILER ID LABEL TYPE

BARCODE

ID

SERVICE TYPE ID

MAILER ID SERIAL

NUMBER ROUTING

CODE

A technology platform made possible by the suite of Intelligent Mail

barcodes for mailpieces, handling units (trays and sacks) and containers.

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Summary – Basic vs. Full-Service

Requirements Basic Full-Service

IM™BC on mailpiece Required Required- unique

IM™ tray barcode on labels Optional Required- unique

IM container barcode on placards Optional

Required- unique

Electronic documentation

(E-Doc for mailing submission)

Optional Required

Start-the-Clock

(shows USPS possession of

mailing)

NA Available

IMB Tracing (Tracking) Available Available

Address correction

(ACS electronic updates)

Optional for a fee Available

Postal incentives (discounts) Available Greatest incentives

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Why Full-Service IMb™? Benefits to Mailers Benefits to the USPS®

Status information as mail progresses through the

system

Visibility = enhanced diagnostics of service

performance

Tracking of individual pieces and trays based on

scans performed on larger containers

Scan information = identification of operational

bottlenecks

Visibility – respond to customer inquiries on the

status of valuable bills, statements, catalogs and

publications

Real-time alerts to operations = ability to respond

and avoid potential service failures

Free address change information and tracking

information from mail entry to final destination

Advance notification of volumes and makeup of

commercial mail = improved resource planning

Waiver of annual mailing fee for permits where all

postage statements contain 90% or more Full

Service pieces

Simplified mail acceptance processes

E-docs + Full Service supports Seamless

acceptance and eInduction; both paperless

processes

The ability to measure service performance for

each Full-Service mailer.

Maximum price discounts Substantial operational cost reductions

March 12, 2013

Pitney Bowes Solutions

Software Solution – by name IMB only benefits Additional TrackMyMail

benefits

SmartMailer • Supports Basic and Full

service

• Supports USPS e-docs via

mail.xml

• Outbound tracking –( presort

quantities only or, use PB

FIRST)

• End User OR Reseller. May

have reseller branded site.

• SmartMailer Manages the

entire/IMb Assignment

• Fully integrated for customer-

Easy to use

Planet Press • Supports Basic and Full

service


mail.xml

• Outbound and Inbound

Tracking

• ACS – address correction

service (for basic service)

• Fully integrated tracking and

document composition

Syntel • Supports Basic and Full

service


mail.xml

• Outbound tracking

TrackMyMail™ Optional reporting from Pitney Bowes for IMb™ Tracing service.

Easily view aggregate reports or view individual mailpieces as they

move through the USPS.

National View of Delivery Date of Delivery

Early, On-Time, Late Delivery Individual Delivery

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Understanding the USPS: The rewards of change