First-Class Mail Product Development. MTAC March 2017
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1 First-Class Mail Product Development MTAC March
2 Agenda Pulse of the Industry Promotions Update 2017 Promotions Review 2018 Promotions Suggestions Update Irresistible Mail Award Update Open Discussion 2
3 Pulse of the Industry 3
4 First-Class Volume First-Class Mail Volume (% Change over SPLY) 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% -14% -16% Total Presort Letters and Cards Total Single-Piece Letters and Cards Linear (Total Presort Letters and Cards) Linear (Total Single-Piece Letters and Cards) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4% 4.1% 3.5% 2.7% 1.7% 3.5% 0.3% -1.6% -2.7% -2.0% -2.1% -2.8% -2% 1% -0.5% 0% -4% -1% -2.3% -2.5% -5.1% -6% -3.2% -3.7% -4.8% -6.4% -7.8% -9% -11.8% -13.4% 4
5 Promotions Calendar Update
6 Mailing Promotions FY16 5 Promotions (6 month duration) 14.9 billion pieces $3.6 billion revenue 1,626 participating customers 6
7 2017 Promotions Calendar Update
8 NOV DEC 2016 JAN FEB - MARCH APRIL MAY - JUNE JULY AUG - SEPT OCT NOV - DEC PRC approved as of June 16, 2016 FIRST-CLASS MAIL Earned Value Registration Nov 15 - Dec 31, 2016 Promotion Period (6 months) January 1 June 30 *registration closes Dec. 31, 2016 Approved 2017 Promotion Calendar Registration May 15 - Dec 31 Currently Open Color Transpromo Promotion Period (6 months) July 1 December 31 As of June 24, 2016 STANDARD AND FIRST-CLASS MAIL Registration Jan 15 Aug 31 Emerging & Advanced Technology Promotion Period (6 months) March 1 August 31 Starts Wednesday STANDARD MAIL Registration Dec 15 July 31 Tactile, Sensory & Interactive Engagement Promotion Period (6 months) February 1 July 31 Currently Open Direct Mail Starter Registration March 15 July 31 Promotion Period (3 months) May 1 July 31 Mobile Shopping Registration June 15 Dec 31 Promotion Period (5 months) August 1 December 31)
9 2017 Promotions Update 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 9
10 2017 Promotions Update 2017 Promotions Update Tactile, Sensory & Interactive Engagement Promotion Registration 130 Current Participants 41 Current Volume 101M pcs Same software issue in January impacted the autoenroll feature if customer did not have unique CRIDS Software updated on February 26 10
11 2017 Promotions Update Upcoming Promotions Emerging and Advanced Technology Promotion Current Registration Promotion starts March 1 st Direct Mail Starter Promotion Registration starts March 15 th Prior promotion participants (including Earned Value) are not eligible Personalized Color Transpromo Promotion Registration starts May 15 th Mobile Shopping Promotion Promotion Registration starts June 15 th 11
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 12
13 2017 Promotion Codes December 15, 2016 July 31,
14 2018 Promotion Suggestions 2018 Promotion Suggestion December 2016 January 20, submissions received prior to deadline 2 submissions received last week Additional research being conducted TT24 MSP Incentive update Promotion suggestions under initial review 14
15 Program Office contact: For More Information Mobile Shopping & Direct Mail Starter Personalized Color Transpromo Tactile Sensory Interactive Promotion Emerging & Advanced Tech Promotion Earned Value - earnedvalue@usps.gov Mail: US Postal Service Post Office Box Washington, DC
16 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 16
17 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
18 What is Informed Delivery? 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. e Users receive a morning 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) Informed Delivery integrates hardcopy mail and digital marketing, providing multiple impressions and interactivity for users in eligible ZIP Code locations. 18
19 Informed Delivery Snapshot Active ZIP Codes: 5,201 (Select major metropolitan areas) Enrolled households: 111,780 Total users: 117,436 (Total user accounts) s sent: 66,974 (Daily snapshot) Mailpiece images: 493,806 (Daily snapshot) Total Mailer Campaigns: 187 (Completed) *All metrics figures represent product reports from February 23,
20 National Expansion Progress February March April May Engineering Technical installation February 1 Technical Installation 14% March 1 Technical Installation 37% April 1 Technical Installation 89% National Postal Forum April 10 Technical Installation 100% Application Go Live Activation in major metropolitan areas first; nationwide in April 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 Employee Communications Webinars, Standup Talks, and collateral materials Pacific & Southern Eastern & Northeast Great Lakes & Western Southern & Capital Metro All Areas (follow-up employee communications) Consumer Marketing Capital Region & NY/CT Pacific & Southern User acquisition s in major metropolitan areas first; nationwide marketing and PR to follow Eastern & Northeast Great Lakes & Western National (Direct Mail & PR) Mailer Communications Ongoing Mailer Communications & Engagement Industry engagement and interactive campaign creation National Postal Forum Planning & Mailer Engagement 20
21 Informed Delivery Translucent Envelopes 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 21
22 Sample Translucent Envelope Images 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 22
23 User Survey Results Gender ID Age 56% Male 18% 19% 19% 20% 44% Female 18% 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 2% 5% Prefer Not to Answer Average Approximate Household Income <$50K $50-100K $ K $ K $200K+ 17% 28% 23% 13% 19% *According to January 2017 survey of over 6,000 respondents 23
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 96% of respondents primarily review Informed Delivery by checking daily notifications 85% use Informed Delivery to anticipate what to look for / be more aware of incoming mail Other top reasons indicated for using service: It lets me know when to expect something and gives me peace of mind that important mail will be delivered A new USPS feature that revolutionized the way mail is delivered Makes planning bill payment easy Informed Delivery is essential you need to know what's arriving when you are traveling Amazing and convenient 68% respond to or act on digital promotions/discounts on a monthly or more frequent basis See mail when traveling or cannot access mailbox Obtain a digital copy / archive of mail received 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 58% respond to or act on mail promotions (e.g., coupon in the mail or product catalog) on a monthly or more frequent basis Take action on mail sooner via digital preview 24 *According to January 2017 survey of over 6,000 respondents
25 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.
26 First-Class Simplify Single-Piece Residual Evaluate postcard size Evaluate weight breaks for letters Evaluate Single Piece 2 nd ounce Free Restructure Pricing for Picture Permit Evaluate First Class Drop Ship Evaluate the Need for Indicia on Products for Service Type Codes
27 Evaluate weight breaks for letters First-Class Postal thoughts to promote machinability of heavier letters Maximum mail piece thickness should not exceed 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.
28 Open Discussion
29 USPS Marketing Mail Product Development MTAC March
30 Agenda Pulse of the Industry Promotions Update 2017 Promotions Review 2018 Promotions Suggestions Update Irresistible Mail Award Update Open Discussion 30
31 Pulse of the Industry 31
32 Volume % Variance from SPLY USPS Marketing Mail Volume USPS Standard Marketing Mail Mail Volume Volume 15% Volume % Variance from SPLY Volume 30 10% 8% 9% 25 5% 0% -5% -10% 0% 4% 2% 1% -2% -5% -5% -8% -8% 3% 1% 1% 1% -3% 1% 3% 0% 4% 0% -2% -2% -3% 2% 2% 5% 1.5% Volume (in Billions) -15% -11% 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 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source (s): RPW Quarterly Reports; Excludes Parcels and International Mail volumes 32
33 Volume Changes Standard Mail: % Change SPLY USPS Marketing Mail: % Change SPLY FY15 Q1 FY15Q2 FY15Q3 FY15Q4 FY16Q1 FY16Q2 FY16Q3 FY16Q4 FY17Q1 High Density and Saturation Letters High Density and Saturation Flats and Parcels* (2.3) (4.8) (7.0) (3.1) Carrier Route 7.5 (5.7) (11.3) (24.7) (30.1) (22.0) (19.1) Flats (5.7) (7.0) (2.4) (0.8) Letters (2.3) (2.2) (1.1) (0.4) Total Standard Mail (Excludes Parcels & Intl) 4.4 (0.1) (2.1) (2.2) (3.0) Notes: *Includes EDDM Retail Source: *RPW Quarterly Files 33
34 Promotions Calendar Update
35 Mailing Promotions FY16 5 Promotions (6 month duration) 14.9 billion pieces $3.6 billion revenue 1,626 participating customers 35
36 2017 Promotions Calendar Update
37 NOV DEC 2016 JAN FEB - MARCH APRIL MAY - JUNE JULY AUG - SEPT OCT NOV - DEC PRC approved as of June 16, 2016 FIRST-CLASS MAIL Earned Value Registration Nov 15 - Dec 31, 2016 Promotion Period (6 months) January 1 June 30 *registration closes Dec. 31, 2016 Approved 2017 Promotion Calendar Registration May 15 - Dec 31 Currently Open Color Transpromo Promotion Period (6 months) July 1 December 31 As of June 24, 2016 STANDARD AND FIRST-CLASS MAIL Registration Jan 15 Aug 31 Emerging & Advanced Technology Promotion Period (6 months) March 1 August 31 Starts Wednesday STANDARD MAIL Registration Dec 15 July 31 Tactile, Sensory & Interactive Engagement Promotion Period (6 months) February 1 July 31 Currently Open Direct Mail Starter Registration March 15 July 31 Promotion Period (3 months) May 1 July 31 Mobile Shopping Registration June 15 Dec 31 Promotion Period (5 months) August 1 December 31)
38 2017 Promotions Update 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 38
39 2017 Promotions Update 2017 Promotions Update Tactile, Sensory & Interactive Engagement Promotion Registration 130 Current Participants 41 Current Volume 101M pcs Same software issue in January impacted the autoenroll feature if customer did not have unique CRIDS Software updated on February 26 39
40 2017 Promotions Update Upcoming Promotions Emerging and Advanced Technology Promotion Current Registration Promotion starts March 1 st Direct Mail Starter Promotion Registration starts March 15 th Prior promotion participants (including Earned Value) are not eligible Personalized Color Transpromo Promotion Registration starts May 15 th Mobile Shopping Promotion Promotion Registration starts June 15 th 40
41 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 41
42 2017 Promotion Codes December 15, 2016 July 31,
43 2018 Promotion Suggestions 2018 Promotion Suggestion December 2016 January 20, submissions received prior to deadline 2 submissions received last week Additional research being conducted TT24 MSP Incentive update Promotion suggestions under initial review 43
44 Program Office contact: For More Information Mobile Shopping & Direct Mail Starter Personalized Color Transpromo Tactile Sensory Interactive Promotion Emerging & Advanced Tech Promotion Earned Value - earnedvalue@usps.gov Mail: US Postal Service Post Office Box Washington, DC
45 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 45
46 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
47 What is Informed Delivery? 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. e Users receive a morning 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) Informed Delivery integrates hardcopy mail and digital marketing, providing multiple impressions and interactivity for users in eligible ZIP Code locations. 47
48 Informed Delivery Snapshot Active ZIP Codes: 5,201 (Select major metropolitan areas) Enrolled households: 111,780 Total users: 117,436 (Total user accounts) s sent: 66,974 (Daily snapshot) Mailpiece images: 493,806 (Daily snapshot) Total Mailer Campaigns: 187 (Completed) *All metrics figures represent product reports from February 23,
49 National Expansion Progress February March April May Engineering Technical installation February 1 Technical Installation 14% March 1 Technical Installation 37% April 1 Technical Installation 89% National Postal Forum April 10 Technical Installation 100% Application Go Live Activation in major metropolitan areas first; nationwide in April 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 Employee Communications Webinars, Standup Talks, and collateral materials Pacific & Southern Eastern & Northeast Great Lakes & Western Southern & Capital Metro All Areas (follow-up employee communications) Consumer Marketing Capital Region & NY/CT Pacific & Southern User acquisition s in major metropolitan areas first; nationwide marketing and PR to follow Eastern & Northeast Great Lakes & Western National (Direct Mail & PR) Mailer Communications Ongoing Mailer Communications & Engagement Industry engagement and interactive campaign creation National Postal Forum Planning & Mailer Engagement 49
50 Informed Delivery Translucent Envelopes 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 50
51 Sample Translucent Envelope Images 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 51
52 User Survey Results Gender ID Age 56% Male 18% 19% 19% 20% 44% Female 18% 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 2% 5% Prefer Not to Answer Average Approximate Household Income <$50K $50-100K $ K $ K $200K+ 17% 28% 23% 13% 19% *According to January 2017 survey of over 6,000 respondents 52
53 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 96% of respondents primarily review Informed Delivery by checking daily notifications 85% use Informed Delivery to anticipate what to look for / be more aware of incoming mail Other top reasons indicated for using service: It lets me know when to expect something and gives me peace of mind that important mail will be delivered A new USPS feature that revolutionized the way mail is delivered Makes planning bill payment easy Informed Delivery is essential you need to know what's arriving when you are traveling Amazing and convenient 68% respond to or act on digital promotions/discounts on a monthly or more frequent basis See mail when traveling or cannot access mailbox Obtain a digital copy / archive of mail received 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 58% respond to or act on mail promotions (e.g., coupon in the mail or product catalog) on a monthly or more frequent basis Take action on mail sooner via digital preview *According to January 2017 survey of over 6,000 respondents 53
54 Renaming Standard Mail to USPS Marketing Mail
55 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
56 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
57 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.
58 USPS Marketing Mail 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
59 USPS Marketing Mail Evaluate weight breaks for letters Postal thoughts to promote machinability of heavier letters Maximum mail piece thickness should not exceed 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.
60 Open Discussion
61 Periodicals Mail Product Development MTAC March
62 Agenda Pulse of the Industry Periodicals Update Promotions Update 2017 Promotions Review 2018 Promotions Suggestions Update Irresistible Mail Award Update Open Discussion 62
63 Pulse of the Industry 63
64 Volume % Variance from SPLY Periodicals Volume Periodicals Volume 14% Volume % Variance from SPLY Volume 2.0 9% % -1% -6% -11% -16% -1% -3% -2% -1% -4% -5% -3% -2% -2% -3% -4% -5% -5% -5% -5% -5% -5% -5% -5% -5% -6% -6% -7% -7% -7% -8% -8% -8% -12% 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 FY Volume (in Billions) Source(s): RPW Quarterly Reports 64
65 Periodicals Update MTAC 3/1/17
66 Millions Periodicals (Outside & Inside County) Volume by Frequency 4,000 3,500 3,000 2,500 2,000 1,500 1, Quarterly (1-7) Monthly (8-18) Semi-Monthly (19-36) Weekly (37-60) Semi-Weekly (61-120) Daily (>12)) 66
67 Periodicals (Outside & Inside County) Publications by Frequency 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Quarterly (1-7) Monthly (8-18) Semi-Monthly (19-36) Weekly (37-60) Semi-Weekly (61-120) Daily (>12)) 67
68 Periodicals (Outside & Inside County) Publications Changes by Frequency (100) (200) (300) (400) (500) (600) (700) (800) (900) Quarterly (1-7) Monthly (8-18) Semi-Monthly (19-36) Weekly (37-60) Semi-Weekly (61-120) Daily (>12)) 68
69 Periodicals: Periodicals Update 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 69
70 Promotions Calendar Update
71 Mailing Promotions FY16 5 Promotions (6 month duration) 14.9 billion pieces $3.6 billion revenue 1,626 participating customers 71
72 2017 Promotions Calendar Update
73 NOV DEC 2016 JAN FEB - MARCH APRIL MAY - JUNE JULY AUG - SEPT OCT NOV - DEC PRC approved as of June 16, 2016 FIRST-CLASS MAIL Earned Value Registration Nov 15 - Dec 31, 2016 Promotion Period (6 months) January 1 June 30 *registration closes Dec. 31, 2016 Approved 2017 Promotion Calendar Registration May 15 - Dec 31 Currently Open Color Transpromo Promotion Period (6 months) July 1 December 31 As of June 24, 2016 STANDARD AND FIRST-CLASS MAIL Registration Jan 15 Aug 31 Emerging & Advanced Technology Promotion Period (6 months) March 1 August 31 Starts Wednesday STANDARD MAIL Registration Dec 15 July 31 Tactile, Sensory & Interactive Engagement Promotion Period (6 months) February 1 July 31 Currently Open Direct Mail Starter Registration March 15 July 31 Promotion Period (3 months) May 1 July 31 Mobile Shopping Registration June 15 Dec 31 Promotion Period (5 months) August 1 December 31)
74 2017 Promotions Update 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 74
75 2017 Promotions Update 2017 Promotions Update Tactile, Sensory & Interactive Engagement Promotion Registration 130 Current Participants 41 Current Volume 101M pcs Same software issue in January impacted the autoenroll feature if customer did not have unique CRIDS Software updated on February 26 75
76 2017 Promotions Update Upcoming Promotions Emerging and Advanced Technology Promotion Current Registration Promotion starts March 1 st Direct Mail Starter Promotion Registration starts March 15 th Prior promotion participants (including Earned Value) are not eligible Personalized Color Transpromo Promotion Registration starts May 15 th Mobile Shopping Promotion Promotion Registration starts June 15 th 76
77 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 77
78 2017 Promotion Codes December 15, 2016 July 31,
79 2018 Promotion Suggestions 2018 Promotion Suggestion December 2016 January 20, submissions received prior to deadline 2 submissions received last week Additional research being conducted TT24 MSP Incentive update Promotion suggestions under initial review 79
80 What is Informed Delivery? 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. e Users receive a morning 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) Informed Delivery integrates hardcopy mail and digital marketing, providing multiple impressions and interactivity for users in eligible ZIP Code locations. 80
81 Informed Delivery Snapshot Active ZIP Codes: 5,201 (Select major metropolitan areas) Enrolled households: 111,780 Total users: 117,436 (Total user accounts) s sent: 66,974 (Daily snapshot) Mailpiece images: 493,806 (Daily snapshot) Total Mailer Campaigns: 187 (Completed) *All metrics figures represent product reports from February 23,
82 National Expansion Progress February March April May Engineering Technical installation February 1 Technical Installation 14% March 1 Technical Installation 37% April 1 Technical Installation 89% National Postal Forum April 10 Technical Installation 100% Application Go Live Activation in major metropolitan areas first; nationwide in April 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 Employee Communications Webinars, Standup Talks, and collateral materials Pacific & Southern Eastern & Northeast Great Lakes & Western Southern & Capital Metro All Areas (follow-up employee communications) Consumer Marketing Capital Region & NY/CT Pacific & Southern User acquisition s in major metropolitan areas first; nationwide marketing and PR to follow Eastern & Northeast Great Lakes & Western National (Direct Mail & PR) Mailer Communications Ongoing Mailer Communications & Engagement Industry engagement and interactive campaign creation National Postal Forum Planning & Mailer Engagement 82
83 Informed Delivery Translucent Envelopes 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 83
84 Sample Translucent Envelope Images 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 84
85 User Survey Results Gender ID Age 56% Male 18% 19% 19% 20% 44% Female 18% 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 2% 5% Prefer Not to Answer Average Approximate Household Income <$50K $50-100K $ K $ K $200K+ 17% 28% 23% 13% 19% *According to January 2017 survey of over 6,000 respondents 85
86 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 96% of respondents primarily review Informed Delivery by checking daily notifications 85% use Informed Delivery to anticipate what to look for / be more aware of incoming mail Other top reasons indicated for using service: It lets me know when to expect something and gives me peace of mind that important mail will be delivered A new USPS feature that revolutionized the way mail is delivered Makes planning bill payment easy Informed Delivery is essential you need to know what's arriving when you are traveling Amazing and convenient 68% respond to or act on digital promotions/discounts on a monthly or more frequent basis See mail when traveling or cannot access mailbox Obtain a digital copy / archive of mail received 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 58% respond to or act on mail promotions (e.g., coupon in the mail or product catalog) on a monthly or more frequent basis Take action on mail sooner via digital preview *According to January 2017 survey of over 6,000 respondents 86
87 Program Office contact: For More Information Mobile Shopping & Direct Mail Starter Personalized Color Transpromo Tactile Sensory Interactive Promotion Emerging & Advanced Tech Promotion Earned Value - earnedvalue@usps.gov Mail: US Postal Service Post Office Box Washington, DC
88 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 88
89 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
90 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.
91 Periodicals 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 Evaluate the need for indicia on products with Service Type codes
92 Open Discussion
93 Package Services Simplification Ideas March 1, 2017
94 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.
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