MTAC Informed Delivery Update. February 27 March 1, 2018

Transcription

1 MTAC Informed Delivery Update February 27 March 1, 2018

2 Informed Delivery By the Numbers 7.2M Registered Households 275+ Participating Brands * 8.2M Registered Users Campaigns Completed 3.4M -enabled Users 72.6% Average Open Rate ** User statistics as of February 22, Mailer statistics as of February 22, *Based on each unique Brand Display Name for a campaign, a freeform field intended to reflect the message owner s name. **6-month average open rate for all s sent, not just s containing mailer campaigns, as of January 2017.

3 Recent Campaign Results January: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Nonprofit % 9.26% Professional, Scientific, and Technical Services % 7.38% Finance and Insurance % 5.36% December: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Finance and Insurance % 7.19% Finance and Insurance % 4.32% Finance and Insurance % 3.93% Note: Click-to-Open rate is different than the overall Click-through rate for both and dashboard users, which is currently presented in our Post-Campaign Summary Report.

4 Informed Delivery Roadmap Goals The digital ecosystem of Informed Delivery integrates mail, package, performance, and consumer data to: Bridge the Physical and Digital Drive Transparency & Visibility Deliver Personalized Mail Users Informed Delivery provides an enhanced digital mail experience for all of its users. Consumers Can be anyone who has a mailbox or a PO box and an address! Mailers Any company looking to interact with their target audience in a first-of-its-kind way Themes Informed Delivery features are grouped into six high-level themes: User Registration All features related to the process of signing up for Informed Delivery and verifying user identity. Mailer Campaigns All features related to creating interactive campaigns to customize the appearance of mail piece in a user s notification or dashboard. Consumer Dashboard All features related to accessing and managing the Informed Delivery mail and package dashboard. Profile Management All features related to managing consumer preferences and profile settings to create a customized mail experience. Smart Tracking All features related to tracking, viewing, and managing the status and delivery progress and of all anticipated mailpieces. Advanced Insights All features related to the process of capturing, analyzing, and displaying key metrics via reports and dashboards.

5 CONSUMER MAILER Informed Delivery Roadmap & BEYOND Build an Industry Leading User Base Bridge the Physical and Digital Enhance Experiences User Registration Advanced Insights User Registration Advanced Insights Mailer Campaigns Advanced Insights Mailer Campaigns Mailer Registration Mailer Validation Mailer Campaigns Self-Service Portal Mailer Campaigns Customer Support Pre-Campaign Report Post-Campaign Reports Mailer/Business as Receiver Mailer Campaigns Rich Content Package Campaigns Single Piece Campaigns Image Data Feed Digital Campaign Metrics Data via Informed Visibility Profile Management Data Distribution Mobile Experience Campaign Templates Suggested Content Campaign Web Services Feeds to Service Providers Profile Management Premium Ad Placement Banner Ads Lifestyle Profiles Custom Mailer Campaigns Smart Tracking Flats Visibility Smart Tracking ID for Outgoing Mail User Registration Consumer Registration PO Box Registration Smart Tracking Daily Digest Bundle Scanning Flag Missing Mail User Registration Identify POs with IV Military Registration Sign Up via Code Smart Tracking Voice Activated Assistants Delivery Notifications Magazines & Catalogs Not My Mail User Registration Colleges & Universities Smart Tracking Service Alerts Delivery Window Estimate ID for Outgoing Mail User Registration Refer a Friend DMV Identity Verification Profile Management View Profile Consumer Dashboard Dashboard Access Customer Support Profile Management Assumed Change of Address Multiple Physical Addresses Multiple Addresses Consumer Dashboard Mobile Experience Social Media Sharing Rich Content Profile Management Resident-Specific Content Hold Your Mail Daily Digest Preferences Categorization of Mail Types Digital Address Book Lifestyle Profiles Consumer Dashboard Like My Mail Social Media Feed Save Offers to Wallet Save & Flag Mail Rich Content Profile Management Text Message Alerts Custom Notifications Customize Digest View

6 NEW! Informed Delivery MTAC User Group Co-Leaders Leanne Herman RR Donnelley Sr. Postal Affairs Specialist Robert E. Dixon Jr. USPS Director, Product Technology Innovation Carrie Bornitz USPS Product Development Specialist Sr. User Group Cadence Biweekly on Tuesdays from 11 AM 12 PM Charter Statement This MTAC User Group is a venue for USPS to share information with mailers, and to receive their advice and recommendations on matters concerning Informed Delivery. This dialogue is meant to enhance Informed Delivery s value for customers and to expand mailers use of the feature. 6

7 Product Management Update MTAC Product Innovation/Emerging Technology Focus Area Packages Feb 28,

8 Product Management Shipping Product Performance & Opportunity Product Position Within USPS shipping portfolio In marketplace Service Pricing Priority Mail Open and Distribute Full product lifecycle review is underway Product Management outreach for feedback Parcel Select Lightweight DSCF Entry Customer Support Ruling (CSR) 5-Digit machinable parcel 8

9 Product Management Shipping US ecommerce sales grew 16.8% from billion to billion in the forth quarter PRS Opportunity With an increase in ecommerce sales, returned items have lead to a growth in PRS volume/revenue Performance Opportunity Missorts Scanning/Visibility TNT Continuous training Active Involvement Continuous participation and support in Quarterly Business Reviews (QBR) Source: Non-adjusted figures from the US Commerce Department, Internet Retailer 9

10 Periodicals Product Innovation MTAC February 28,

11 Agenda Pulse of the Industry 2017 Promotions Review Open Discussion 11 11

12 Pulse of the Industry 12 12

13 Volume % Variance from SPLY Periodicals Volume Volume (in Billions) Source: RPW Quarterly Reports 13 13

14 2017 Promotions Calendar Close-Out 14 14

15 Volume in Millions Promotions Summary 18,000 Annual Promotions Volume 60% 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 50% 40% 30% 20% 10% %Change vs Prior Year % Vol (millions) %Change 2017 Promotion Totals Participants: 1,948 (representing 2,236 mail owners) 17.3% increase Volume: 16B pcs (7.3% increase) Revenue: $4B (11.6% increase) 15

16 Complete 2017 Promotions 2017 Earned Value Participants: 729 Final Volume: 1.3B pcs (>250% increase) Revenue: $532M 2017 Tactile Sensory & Interactive Promotion Participants: 158 Volume: 1.2B pieces (86% to SPLY tighter requirements) Revenue: $268M 2017 Direct Mail Starter Registered: 40 /Participants: 1 Volume: 11k Revenue: $2K 16

17 Complete 2017 Promotions 2017 Emerging & Advanced Technology Promotion Participants 265 Volume: 5.1B Revenue: $1.1B 2017 Color Transpromo Participants: 66 Volume: 1.5B a 52% increase from SPLY! Biggest growth in 2017 Revenue: $564M 2017 Mobile Shopping Participants: 730 Volume: 7B (97% of SPLY) Revenue: $1.5B 45 companies: Informed Delivery/Mobile Shopping campaigns 17

18 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

19 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 19 19

20 MTAC Informed Delivery Update February 27 March 1,

21 Informed Delivery By the Numbers 7.2M Registered Households 275+ Participating Brands * 8.2M Registered Users Campaigns Completed 3.4M -enabled Users 72.6% Average Open Rate ** User statistics as of February 22, Mailer statistics as of February 22, *Based on each unique Brand Display Name for a campaign, a freeform field intended to reflect the message owner s name. **6-month average open rate for all s sent, not just s containing mailer campaigns, as of January

22 Recent Campaign Results January: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Nonprofit % 9.26% Professional, Scientific, and Technical Services % 7.38% Finance and Insurance % 5.36% December: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Finance and Insurance % 7.19% Finance and Insurance % 4.32% Finance and Insurance % 3.93% Note: Click-to-Open rate is different than the overall Click-through rate for both and dashboard users, which is currently presented in our Post-Campaign Summary Report. 22

23 Informed Delivery Roadmap Goals The digital ecosystem of Informed Delivery integrates mail, package, performance, and consumer data to: Bridge the Physical and Digital Drive Transparency & Visibility Deliver Personalized Mail Users Informed Delivery provides an enhanced digital mail experience for all of its users. Consumers Can be anyone who has a mailbox or a PO box and an address! Mailers Any company looking to interact with their target audience in a first-of-its-kind way Themes Informed Delivery features are grouped into six high-level themes: User Registration All features related to the process of signing up for Informed Delivery and verifying user identity. Mailer Campaigns All features related to creating interactive campaigns to customize the appearance of mail piece in a user s notification or dashboard. Consumer Dashboard All features related to accessing and managing the Informed Delivery mail and package dashboard. Profile Management All features related to managing consumer preferences and profile settings to create a customized mail experience. Smart Tracking All features related to tracking, viewing, and managing the status and delivery progress and of all anticipated mailpieces. Advanced Insights All features related to the process of capturing, analyzing, and displaying key metrics via reports and dashboards. 23

24 CONSUMER MAILER Informed Delivery Roadmap & BEYOND Build an Industry Leading User Base Bridge the Physical and Digital Enhance Experiences User Registration Advanced Insights User Registration Advanced Insights Mailer Campaigns Advanced Insights Mailer Campaigns Mailer Registration Mailer Validation Mailer Campaigns Self-Service Portal Mailer Campaigns Customer Support Pre-Campaign Report Post-Campaign Reports Mailer/Business as Receiver Mailer Campaigns Rich Content Package Campaigns Single Piece Campaigns Image Data Feed Digital Campaign Metrics Data via Informed Visibility Profile Management Data Distribution Mobile Experience Campaign Templates Suggested Content Campaign Web Services Feeds to Service Providers Profile Management Premium Ad Placement Banner Ads Lifestyle Profiles Custom Mailer Campaigns Smart Tracking Flats Visibility Smart Tracking ID for Outgoing Mail User Registration Consumer Registration PO Box Registration Smart Tracking Daily Digest Bundle Scanning Flag Missing Mail User Registration Identify POs with IV Military Registration Sign Up via Code Smart Tracking Voice Activated Assistants Delivery Notifications Magazines & Catalogs Not My Mail User Registration Colleges & Universities Smart Tracking Service Alerts Delivery Window Estimate ID for Outgoing Mail User Registration Refer a Friend DMV Identity Verification Profile Management View Profile Consumer Dashboard Dashboard Access Customer Support Profile Management Assumed Change of Address Multiple Physical Addresses Multiple Addresses Consumer Dashboard Mobile Experience Social Media Sharing Rich Content Profile Management Resident-Specific Content Hold Your Mail Daily Digest Preferences Categorization of Mail Types Digital Address Book Lifestyle Profiles Consumer Dashboard Like My Mail Social Media Feed Save Offers to Wallet Save & Flag Mail Rich Content Profile Management Text Message Alerts Custom Notifications Customize Digest View 24

25 NEW! Informed Delivery MTAC User Group Co-Leaders Leanne Herman RR Donnelley Sr. Postal Affairs Specialist Robert E. Dixon Jr. USPS Director, Product Technology Innovation Carrie Bornitz USPS Product Development Specialist Sr. User Group Cadence Biweekly on Tuesdays from 11 AM 12 PM Charter Statement This MTAC User Group is a venue for USPS to share information with mailers, and to receive their advice and recommendations on matters concerning Informed Delivery. This dialogue is meant to enhance Informed Delivery s value for customers and to expand mailers use of the feature

26 Product Management Update MTAC Product Innovation/Emerging Technology Focus Area Periodicals Feb 28,

27 Agenda Periodical Initiatives Update Periodicals Multiplier Analysis Simplification Activities QBRM/BRM Enhancements 27

28 Working List of Initiatives Evaluate recommendations from PAG for potential implementation: Authorize Special Interest Publications (SIPs) at the group level as Periodicals Use postal delivery of periodicals to newsstands eligible for Periodicals prices? Have a Periodicals price for single copies Allow more prospecting at the Periodicals rates Increase weight limit for inserted product samples Allow mailing to a subset of subscribers at Periodicals rates for greater flexibility Reduce number of minimum pages for requester pubs to 16 Use wantedness to help new pubs acquire Periodicals status Use a click-on feature in Informed Delivery to track recipients interest in a publication Allow SIPs to be offered as subscription premiums an pay Periodicals rates when poly-wrapped with a Periodicals title 28

29 Contribution ($M) Periodical Multiplier Analysis Identified all products mailed by top Periodical Mailers Determined USPS profitability based on average cost and contribution Findings: Profitability from Other (non-periodical) postal products offsets about 62% of the contribution losses from Periodicals Some Titles/Publishers are profitability due to mailing large amounts of Standard Mail $300 Periodical Mailers Profitability Analysis $200 $100 $- $(100) Periodicals Other Products Total $(200) $(300) $(400) $(500) 29

30 Simplification Activities Product Marketing strategy FCM - bills and statements as customer communications channel by taking advantage of variable color printing and high open-and-read rates Marketing Mail - hardcopy mail as integral to an omni-channel communications strategy Mailing requirements and prep opportunities Make-up/entry VAR expansion analysis Product & pricing structure Evaluate weight structure Incentive based pricing options Review and simplify product offerings Indicia opportunities Postcard opportunities Product Assessments - Picture Permit & Simple Samples Flats alternatives Evaluate product improvements for Periodicals Promote Political and Election Mail in 2018 mid-term elections Leverage Informed Delivery to increase engagement with mail and value of the mailbox 30

31 BRM/QBRM Improvements Leverage IMb technology to innovate QBRM processes by automating counting & invoicing Streamline and Standardize QBRM Process Eliminate Manual Counting and Weight Verification Make BRM/QBRM Mail Available Earlier For Customers Decrease Costs and Increase Customer Value Proposition Path Forward Initial Merrifield test is ongoing, concurrent with present QBRM processing Accuracy Validation - Implement new counting procedures for QBRM Analysis of Hand Count vs End of Run Count comparisons to additional sites Expand to additional sites Evaluation of expansion to BRM letter mail 31

32 Open Discussion 32 32

33 USPS Marketing Mail Product Innovation MTAC February 28,

34 Agenda Pulse of the Industry 2017 Promotions Closeout 2017 Promotion Survey Updates Open Discussion 34 34

35 Pulse of the Industry 35 35

36 Mailing Promotions Action items from prior MTAC session (Pulse Report Action Items) Promotions Group to share 2018 business rule drafts as soon as possible once promotions are approved by ELT. USPS to share results from planned Informed Delivery mail campaigns conducted Evaluate how surveys are sent out and the ability for the MSP to forward

37 Volume % Variance from SPLY Marketing Mail Volume Volume (in Billions) Source: RPW Quarterly Reports; Excludes Parcels and International Mail volumes 37 37

38 Volume Changes Marketing Standard Mail: % Change SPLY FY15Q2 FY15Q3 FY15Q4 FY16Q1 FY16Q2 FY16Q3 FY16Q4 FY17Q1 FY17Q2 FY17Q3 FY17Q4 FY18Q1 High Density and Saturation Letters (0.7) (6.5) 2.3 High Density and Saturation Flats and Parcels* 1.0 (2.3) (4.8) (7.0) (3.1) (2.8) (4.4) Carrier Route (5.7) (11.3) (24.7) (30.1) (22.0) (19.1) Flats (7.0) (2.4) (0.8) (25.8) (31.8) (33.6) (38.1) Letters 0.3 (2.3) (2.2) (1.1) (0.4) (4.5) (3.5) (7.4) (4.6) Total Standard Mail (Excludes Parcels & Intl) (0.1) (2.1) (2.2) (3.0) (3.5) (3.5) (7.4) (5.9) Notes: *Includes EDDM Retail Source: *RPW Quarterly Files 38 38

39 2017 Promotions Calendar Close-Out 39 39

40 Volume in Millions Promotions Summary 18,000 Annual Promotions Volume 60% 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 50% 40% 30% 20% 10% %Change vs Prior Year % Vol (millions) %Change 2017 Promotion Totals Participants: 1,948 (representing 2,236 mail owners) 17.3% increase Volume: 16B pcs (7.3% increase) Revenue: $4B (11.6% increase) 40

41 Complete 2017 Promotions 2017 Earned Value Participants: 729 Final Volume: 1.3B pcs (>250% increase) Revenue: $532M 2017 Tactile Sensory & Interactive Promotion Participants: 158 Volume: 1.2B pieces (86% to SPLY tighter requirements) Revenue: $268M 2017 Direct Mail Starter Registered: 40 /Participants: 1 Volume: 11k Revenue: $2K 41

42 Complete 2017 Promotions 2017 Emerging & Advanced Technology Promotion Participants 265 Volume: 5.1B Revenue: $1.1B 2017 Color Transpromo Participants: 66 Volume: 1.5B a 52% increase from SPLY! Biggest growth in 2017 Revenue: $564M 2017 Mobile Shopping Participants: 730 Volume: 7B (97% of SPLY) Revenue: $1.5B 45 companies: Informed Delivery/Mobile Shopping campaigns 42

43 Post-Promotions Surveys 43 43

44 CY17 USPS Promotions CY17 USPS Promotions Required Survey Response Rates Table 1: CY17 USPS Mailing Promotion Survey Results 2017 USPS Mailing Promotions Mailer Participants Survey Responses Response Rate Earned Value % Emerging & Advanced Technology % Tactile, Sensory & Interactive % Personalized Color Transpromo % Mobile Shopping % Mobile Shopping surveys were issued throughout promo rather than at the end Will likely apply this staged approach to surveys in the future Note(s): 1/ Surveys issued through SurveyMonkey 2/ Data last collected on Friday, February 23rd, 2018 Proprietary & Confidential 44 44

45 CY17 Promotions Feedback CY17 Promotion Required Survey Response Results (E&A, TSI) 35% of all promotion participants 1 completed surveys for CY17 Emerging & Advanced Technology and Tactile, Sensory, & Interactive Promotions Survey Participants largely identified themselves as Repeat Participants 2 CY17 Participants 1% 8% Table 5: Survey Participation by Promotion Emerging & Advanced Technology Tactile, Sensory & Interactive Promotion Participants Responses Repeat Participants New Participants % I don t know 2 1 Repeat Participants New Participants I don't know Note(s): 1/ Promotion Participant refers to each instance a company participates in a CY17 promotion; Companies may participate in multiple promotions 2/ Survey Participants refers to the list of all responses Proprietary & Confidential 45 45

46 Participant Count CY17 Promotions Feedback Effectiveness of Technology/Treatment on Direct Mail (E&A, TSI) 65% of survey participants agree or strongly agree that specialty treatments & technologies increase the effectiveness of direct mail 94% of Tactile, Sensory & Interactive survey participants agreed/strongly agreed; just 58% for Emerging & Advanced Tech 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 I do not know Strongly Disagree Disagree Neutral Agree Strongly Agree Note(s): /1 Response Count for Emerging & Advanced Technology: 59 (53 Repeat Participants, 6 New Participants) /2 Response Count for Tactile, Sensory & Interactive: 16 (15 Repeat Participants, 1 New Participants) Proprietary & Confidential 46 46

47 CY17 Promotions Feedback Expectations on Customer Response Rate (E&A, TSI) Of Promotion Participants who measure Customer Response Rate, 82% have met or exceeded their goals for CY17 Promotions Additionally, New Participants are 11% more likely to measure response rates than Repeat Participants 1 Table 6: Response Rate & Goals Does Your Company Measure Response Rate? If so, were your goals met? (Count) Emerging & Advanced Technology 1 Tactile, Sensory & Interactive 2 New Repeat New Repeat Yes; Company Measures Response Rate Exceeded Goals Met Goals Did Not Meet Goals No Measurement I do not know Note(s): 1/ Response Count for Emerging & Advanced Technology: 59 (53 Repeat Participants, 6 New Participants) 2/ Response Count for Tactile, Sensory & Interactive: 16 (15 Repeat Participants, 1 New Participants) Proprietary & Confidential 47 47

48 New Survey Process Change Rewarded with Strong Response Rate CY17 Mobile Shopping Survey Process: CY17 Mobile Shopping Feedback Pre-Promotion Promotion Period Post-Promotion Enrollment-based Portion of Surveys Issued Promotion & Mailing Experience Surveys Issued Post-Promotion & Reflection Surveys Issued Results: Results: Results: 44% Response Rate 36% Response Rate 42% Response Rate Proprietary & Confidential 48 48

49 Mailer Count Mobile Shopping Survey Comparison CY17 Mobile Shopping Feedback Approximately 60% of all Mobile Shopping participants responded to this year s survey, nearly 4 times greater than CY Promotion Participation & Response Rate by Year 2014 MDMC 2015 MDME 2016 Mobile Shopping 2017 Mobile Shopping Promotion Participants Survey Responses Note(s): 1/ Response Rate and Completion Rate based on data collected from Survey Monkey surveys 2/ Promotion Participant count based on distinct Permit Holder CRID in Program Registration Mail Category Reports 3/ Data last collected on February 21 st, 2017 Proprietary & Confidential 49 49

50 Mail Owner Survey Promotion Participation CY17 Mobile Shopping Feedback Among Post-Promotion Survey respondents, 67% claim likely or very likely to continue incorporating Print/Mobile Technology 1 Table 3: Mail Owner Likelihood of continued use of Print/Mobile Technology on mailpieces after the promotion Likelihood Count Percent of Total Very Likely % Likely % Neutral % Unlikely % Very Unlikely 8 4.1% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Likelihood of Continued Technology Integration 28% 39% 23% 6% 4% Very Unlikely Unlikely Neutral Likely Very Likely Note(s): 1/ Results based on 197 Mail Owner survey participants; sample represents 33% of identified CY17 Mobile Shopping Mail Owner participants Proprietary & Confidential 50 50

51 Likelihood of recommending Print/Mobile Technology to customers direct mail campaigns in the future MSP Survey Promotion Participation CY17 Mobile Shopping Feedback Mail Service Providers who saw increases in customer participation in 2017 voted more likely to recommend Print/Mobile Technology to customers in the future Table 4: MSP Likelihood of future technology recommendation by 2017 customer participation increase Saw an increase in customer participation in 2017 Likelihood Yes No I Do Not Know Very Likely Likely Neutral Likelihood of Future Recommendation Distributions 100% Very Unlikely 90% Unlikely 80% Neutral 70% Likely 60% Very Likely 50% 40% 30% Unlikely Very Unlikely % 10% 0% Yes No I Do Not Know Saw an Increase in Customer Participation Note(s): 1/ Results based on 46 MSP survey participants; sample represents 60% of identified CY17 Mobile Shopping MSP participants Proprietary & Confidential 51 51

52 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

53 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 53 53

54 MTAC Informed Delivery Update February 27 March 1,

55 Informed Delivery By the Numbers 7.2M Registered Households 275+ Participating Brands * 8.2M Registered Users Campaigns Completed 3.4M -enabled Users 72.6% Average Open Rate ** User statistics as of February 22, Mailer statistics as of February 22, *Based on each unique Brand Display Name for a campaign, a freeform field intended to reflect the message owner s name. **6-month average open rate for all s sent, not just s containing mailer campaigns, as of January

56 Recent Campaign Results January: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Nonprofit % 9.26% Professional, Scientific, and Technical Services % 7.38% Finance and Insurance % 5.36% December: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Finance and Insurance % 7.19% Finance and Insurance % 4.32% Finance and Insurance % 3.93% Note: Click-to-Open rate is different than the overall Click-through rate for both and dashboard users, which is currently presented in our Post-Campaign Summary Report. 56

57 Informed Delivery Roadmap Goals The digital ecosystem of Informed Delivery integrates mail, package, performance, and consumer data to: Bridge the Physical and Digital Drive Transparency & Visibility Deliver Personalized Mail Users Informed Delivery provides an enhanced digital mail experience for all of its users. Consumers Can be anyone who has a mailbox or a PO box and an address! Mailers Any company looking to interact with their target audience in a first-of-its-kind way Themes Informed Delivery features are grouped into six high-level themes: User Registration All features related to the process of signing up for Informed Delivery and verifying user identity. Mailer Campaigns All features related to creating interactive campaigns to customize the appearance of mail piece in a user s notification or dashboard. Consumer Dashboard All features related to accessing and managing the Informed Delivery mail and package dashboard. Profile Management All features related to managing consumer preferences and profile settings to create a customized mail experience. Smart Tracking All features related to tracking, viewing, and managing the status and delivery progress and of all anticipated mailpieces. Advanced Insights All features related to the process of capturing, analyzing, and displaying key metrics via reports and dashboards. 57

58 CONSUMER MAILER Informed Delivery Roadmap & BEYOND Build an Industry Leading User Base Bridge the Physical and Digital Enhance Experiences User Registration Advanced Insights User Registration Advanced Insights Mailer Campaigns Advanced Insights Mailer Campaigns Mailer Registration Mailer Validation Mailer Campaigns Self-Service Portal Mailer Campaigns Customer Support Pre-Campaign Report Post-Campaign Reports Mailer/Business as Receiver Mailer Campaigns Rich Content Package Campaigns Single Piece Campaigns Image Data Feed Digital Campaign Metrics Data via Informed Visibility Profile Management Data Distribution Mobile Experience Campaign Templates Suggested Content Campaign Web Services Feeds to Service Providers Profile Management Premium Ad Placement Banner Ads Lifestyle Profiles Custom Mailer Campaigns Smart Tracking Flats Visibility Smart Tracking ID for Outgoing Mail User Registration Consumer Registration PO Box Registration Smart Tracking Daily Digest Bundle Scanning Flag Missing Mail User Registration Identify POs with IV Military Registration Sign Up via Code Smart Tracking Voice Activated Assistants Delivery Notifications Magazines & Catalogs Not My Mail User Registration Colleges & Universities Smart Tracking Service Alerts Delivery Window Estimate ID for Outgoing Mail User Registration Refer a Friend DMV Identity Verification Profile Management View Profile Consumer Dashboard Dashboard Access Customer Support Profile Management Assumed Change of Address Multiple Physical Addresses Multiple Addresses Consumer Dashboard Mobile Experience Social Media Sharing Rich Content Profile Management Resident-Specific Content Hold Your Mail Daily Digest Preferences Categorization of Mail Types Digital Address Book Lifestyle Profiles Consumer Dashboard Like My Mail Social Media Feed Save Offers to Wallet Save & Flag Mail Rich Content Profile Management Text Message Alerts Custom Notifications Customize Digest View 58

59 NEW! Informed Delivery MTAC User Group Co-Leaders Leanne Herman RR Donnelley Sr. Postal Affairs Specialist Robert E. Dixon Jr. USPS Director, Product Technology Innovation Carrie Bornitz USPS Product Development Specialist Sr. User Group Cadence Biweekly on Tuesdays from 11 AM 12 PM Charter Statement This MTAC User Group is a venue for USPS to share information with mailers, and to receive their advice and recommendations on matters concerning Informed Delivery. This dialogue is meant to enhance Informed Delivery s value for customers and to expand mailers use of the feature

60 Product Management Update MTAC Product Innovation/Emerging Technology Focus Area Marketing Mail Feb 28,

61 Agenda Industry Segment Performance & Product Trends Simplification & Other Key Initiatives BRM Enhancements Election & Political Mail Update 61

62 Marketing Mail Presort & Entry Trends Marketing Mail Volume by Shape Declining -8% 30% Flats 70% Letters Declining -2% Marketing Mail Flats Entry Share & SPLY Variance 28% DDU (+1%) 7% None (-9%) 6% DNDC (+1%) Marketing Mail Letters Entry Share & SPLY Variance 14% None (-9%) 10% DNDC (-4%) 60% DSCF (-12%) 77% DSCF (-2%) Source : Preliminary January 2018 YTD 62

63 Marketing Mail Presort & Entry Trends Marketing Mail Volume by Shape Declining -8% 30% Flats 70% Letters Declining -2% Marketing Mail Flats Presort Share & SPLY Variance 39% Sat (+3%) 5% 3D -35% 12% 5D Marketing Mail Letters Presort Share & SPLY Variance 5% HD (+7%) 3% 3% 6% HD+ MX Sat (+9%) (-5%) 21% AADC/3-D (-4%) 33% CR Basic (+5%) 7% HD 3% HD+ (-11%) (-18%) Source : Preliminary January 2018 YTD 62% 5-Digit (-2%) 63

64 Marketing Mail Trends 10.0% Marketing Mail Top Industry Segment Performance FY2018 January YTD - Volume Variance from SPLY 5.0% 0.0% -5.0% -10.0% Retail Trade Finance and Insurance Professional, Scientific, and Technical Services Information Other Services (except Public Administration) Health Care and Social Assistance Manufacturing Wholesale Trade Administrative and Support and Waste Management and Remediation Services Educational Services -15.0% -20.0% -25.0% Source : CDM January 2018 YTD, NAICS2 64

65 First Class Mail Trends First Class Mail by Shape 4% Cards 2% Flats 2% Parcels Declining -3% 92% Letters First Class Letters & Cards Presort Share and SPLY Variance 21% 5-Digit (+1%) 34% Single Piece (-5%) 21% Basic Auto (-6%) Source : Preliminary January 2018 YTD 65

66 First Class Mail Trends 10.0% FCM Top Industry Segment Performance FY2018 January YTD - Volume Variance From SPLY 5.0% 0.0% -5.0% Finance and Insurance Professional, Scientific, and Technical Services Information Public Administration Retail Trade Other Services Manufacturing Utilities Health Care (except Public and Social Administration) Assistance Administrative and Support and Waste Management and Remediation Services -10.0% -15.0% Source : CDM January 2018 YTD, NAICS2 66

67 Simplification & Other Key Initiatives Product Marketing strategy FCM - bills and statements as customer communications channel by taking advantage of variable color printing and high open-and-read rates Marketing Mail - hardcopy mail as integral to an omni-channel communications strategy Mailing requirements and prep opportunities Make-up/entry VAR expansion analysis Product & pricing structure Evaluate weight structure Incentive based pricing options Review and simplify product offerings Indicia opportunities Postcard opportunities Product Assessments - Picture Permit & Simple Samples Flats alternatives Evaluate product improvements for Periodicals Promote Political and Election Mail in 2018 mid-term elections Leverage Informed Delivery to increase engagement with mail and value of the mailbox 67

68 BRM/QBRM Improvements Leverage IMb technology to innovate QBRM processes by automating counting & invoicing Streamline and Standardize QBRM Process Eliminate Manual Counting and Weight Verification Make BRM/QBRM Mail Available Earlier For Customers Decrease Costs and Increase Customer Value Proposition Path Forward Initial Merrifield test is ongoing, concurrent with present QBRM processing Accuracy Validation - Implement new counting procedures for QBRM Analysis of Hand Count vs End of Run Count comparisons to additional sites Expand to additional sites Evaluation of expansion to BRM letter mail 68

69 2018 Election Cycle Updates Election Community Partnership Tag 191 Can now be ordered online and mailed directly to Local Election Offices Tags are to be affixed to trays, tubs, pallets, sacks and even rubber banded to single piece mailings Election Mail Visibility Use Informed Visibility (IV ) a service that provides near real-time mail tracking data for letter and flat pieces, bundles, handling units (trays, tubs, and sacks) 69

70 Election Community Partnership contd Election Cycle Updates Ballot Mail Visibility Developing Service Type Identifiers (STIDs) and 9-Digit ZIP Codes Goals Identify Ballots on-hand and enable tracking in the mailstream Sort all Ballots and Election Mail on automation equipment Benefits Increased visibility of outbound/returning ballot mail within the automation environment Enable passive identification and tracking of ballot mail Increase public confidence in the voting by mail process Phased Approach Enable Ballot Mail tracking by utilizing elements in an IMb Use scan data to create reports in Informed Visibility (IV) Returning marked ballot mail can be sorted to specific bins 70

71 2018 Election Cycle Updates Updated Interactive Election and Political Mail Map Identify Election and Political Mail coordinators Now includes Business Mail Entry Unit addresses and phone numbers ZIP Code lookup feature has been added to the front of the map 71

72 2018 Election Cycle Updates Postal Service s Operational Focus Conducting employee training on Election Mail, including a series of national webinars and employee service talks. Topics included: Outreach process Issue reporting and resolution Mail Entry processes Handling Military Ballots Key election dates by state We will implement daily all clear of ballots certification at all Post Offices and mail processing plants during weeks before and after local election primaries and Election Day 72

73 Political Mail Opportunity in every city, every state! Federal: 33 Senate seats 435 House of Representatives seats 2017/2018 Estimated Election Spending $9 Billion State: 38 offices: Gubernatorial 44 States: State House races All 50 States: Local/county races $4.8 Billion 73

74 Political Mail 2018 Election / Races 10K Races expected (Local, State, Federal level) Direct Mail spend amounted to $675M in 2016, up 33% from the last presidential campaign cycle in House of Representative seats throughout the country will be up for election Volatile Political Climate: Uptick in special interest & lobbying activity Estimated $9B in Spending 32K+ Leads 74

75 Political Mail Local Strike Teams Joint AAPC and USPS Mail Moments Report Updated Collateral Material Participation at Campaign Expo and AAPC Regional Conferences Webinar with AAPC Members DeliverTheWin.com website refresh Winner s Book will outline the factors that most influenced their vote, based on survey data of voter opinions on the factors from the last election campaign. 75

76 National Postal Forum Special Political and Election Mail Forum at NPF More than 10 Political and Election Mail associations invited E.g., Nat l Assoc of Secretaries of State, American Assoc of Political Consultants, Int l Assoc of Government Officials, Counsel of State Governments, Nat l Assoc of State Election Directors. Joint Political and Election Mail Panels Elections Friendly Initiatives Executive Dialogue Q & A with top USPS leaders Lunch and networking session Political Mail Certificate Workshop 76

77 Open Discussion 77

78 First-Class Mail Product Innovation MTAC February 28,

79 Agenda Pulse of the Industry 2017 Promotions closeouts 2017 Promotion Survey Updates Open Discussion 79 79

80 Pulse of the Industry 80 80

81 Mailing Promotions Action item from prior MTAC session (Pulse Report Action Item) Consider FCM for mobile shopping promotion Response: We do not have plans to incorporate FCM in the mobile shopping promotion, since this was developed as a standard/marketing mail opportunity, and the Color Transpromo promotion for FCM typically runs during the same/similar window 81 81

82 First-Class Volume Total First-Class Mail Volume First-Class Mail Volume (% Change over SPLY, FY16-17) Total First-Class Mail Presort Letters and Cards Total First-Class Mail Single-Piece Letters and Cards 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2.7% 4.1% 0.6% -1.4% -1.7% 0.1% -3.7% -5.1% -3.7% -2.7% -5.6% -7.8% -0.4% -6.7% -2.3% -1.0% -3.9% -13.4% -5.5% -9.0% -7.8% -11.5% -11.1% -15.1% Industry Product Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total First-Class Mail Single-Piece -13.4% -7.8% -1.4% -9.0% -0.4% 0.6% -5.5% -15.1% -7.8% -11.5% -1.0% -11.1% Total First-Class Mail Presort -5.1% 2.7% -2.3% -5.6% 4.1% -3.9% -1.7% -3.7% -3.7% -6.7% 0.1% -2.7% Note(s): 1/ Data Source: RPW FY16 FY17 Proprietary & Confidential 82 82

83 First-Class Volume Total First-Class Mail Volume First-Class Mail Volume (% Change over SPLY, FY17-18) 15% Total First-Class Mail Presort Letters and Cards Total First-Class Mail Single-Piece Letters and Cards Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10% 9.2% 6.0% 7.6% 5% 1.9% 0% -5% -10% -0.9% -4.1% -2.9% -2.8% -5.5% -3.4% -6.4% 0.2% -2.5% -5.7% -1.1% -0.6% -4.8% -0.9% -2.0% -0.6% -2.4% -3.1% -5.1% -15% -13.7% Industry Product Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total First-Class Mail Single-Piece -4.1% -13.7% -5.5% -3.4% 1.9% 9.2% 6.0% 7.6% -0.6% -2.0% -0.6% -3.1% Total First-Class Mail Presort -0.9% -2.9% -2.8% -6.4% 0.2% -2.5% -5.7% -1.1% -4.8% -0.9% -2.4% -5.1% Note(s): 1/ Data Source: RPW FY17 FY18 Proprietary & Confidential 83 83

84 2017 Promotions Calendar Close-Out 84 84

85 Volume in Millions Promotions Summary 18,000 Annual Promotions Volume 60% 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 50% 40% 30% 20% 10% %Change vs Prior Year % Vol (millions) %Change 2017 Promotion Totals Participants: 1,948 (representing 2,236 mail owners) 17.3% increase Volume: 16B pcs (7.3% increase) Revenue: $4B (11.6% increase) 85

86 Complete 2017 Promotions 2017 Earned Value Participants: 729 Final Volume: 1.3B pcs (>250% increase) Revenue: $532M 2017 Tactile Sensory & Interactive Promotion Participants: 158 Volume: 1.2B pieces (86% to SPLY tighter requirements) Revenue: $268M 2017 Direct Mail Starter Registered: 40 /Participants: 1 Volume: 11k Revenue: $2K 86

87 Complete 2017 Promotions 2017 Emerging & Advanced Technology Promotion Participants 265 Volume: 5.1B Revenue: $1.1B 2017 Color Transpromo Participants: 66 Volume: 1.5B a 52% increase from SPLY! Biggest growth in 2017 Revenue: $564M 2017 Mobile Shopping Participants: 730 Volume: 7B (97% of SPLY) Revenue: $1.5B 45 companies: Informed Delivery/Mobile Shopping campaigns 87

88 Post-Promotions Surveys 88 88

89 CY17 USPS Promotions CY17 USPS Promotions Required Survey Response Rates Table 1: CY17 USPS Mailing Promotion Survey Results 2017 USPS Mailing Promotions Mailer Participants Survey Responses Response Rate Earned Value % Emerging & Advanced Technology % Tactile, Sensory & Interactive % Personalized Color Transpromo % Mobile Shopping % Mobile Shopping surveys were issued throughout promo rather than at the end Will likely apply this staged approach to surveys in the future Note(s): 1/ Surveys issued through SurveyMonkey 2/ Data last collected on Friday, February 23rd, 2018 Proprietary & Confidential 89 89

90 FCM Promotion Survey Feedback 2017 Earned Value Surveys Participants: participants, including MSPs(36%) opened survey link 153 participants completed the survey 47 participants abandoned after opening Top Insights 19% agreed to provide success stories 62% learned about the promo via general USPS communications 71% stated that the promotion didn t impact whether the reply pieces are enclosed in the mailing Most participants (47-71%) did not have challenges with enrollment, identification of MIDS/CRIDS/permits or Imb compliance 51% would be influenced to participate further if they could reduce their mail preparation 90

91 FCM Promotion Survey Feedback 2017 Color Transpromo Surveys Participants: participants (including MSPs(67%)) opened survey link 6 participants completed the survey 12 participants abandoned after opening Top Insights 0% agreed to provide success stories Half of participating MSPs had 5 or fewer enrolled clients The discount strongly influences participation Half responded that testing the effectiveness of using color print had a high influence on decision to participate Two-thirds tailor the marketing message to the recipient 91

92 Program Office contacts: 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

93 For More Information Program Requirements & Documents Registration PostalOne Help Desk: (800) or Irresistible Mail: Irresistibl .com Follow USPS: 93 93

94 MTAC Informed Delivery Update February 27 March 1,

95 Informed Delivery By the Numbers 7.2M Registered Households 275+ Participating Brands * 8.2M Registered Users Campaigns Completed 3.4M -enabled Users 72.6% Average Open Rate ** User statistics as of February 22, Mailer statistics as of February 22, *Based on each unique Brand Display Name for a campaign, a freeform field intended to reflect the message owner s name. **6-month average open rate for all s sent, not just s containing mailer campaigns, as of January

96 Recent Campaign Results January: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Nonprofit % 9.26% Professional, Scientific, and Technical Services % 7.38% Finance and Insurance % 5.36% December: Top Campaigns by Click-to-Open Rate Industry Number of Mailpieces Sent to Informed Delivery Users Open Rate Click-to-Open Rate Finance and Insurance % 7.19% Finance and Insurance % 4.32% Finance and Insurance % 3.93% Note: Click-to-Open rate is different than the overall Click-through rate for both and dashboard users, which is currently presented in our Post-Campaign Summary Report. 96

97 Informed Delivery Roadmap Goals The digital ecosystem of Informed Delivery integrates mail, package, performance, and consumer data to: Bridge the Physical and Digital Drive Transparency & Visibility Deliver Personalized Mail Users Informed Delivery provides an enhanced digital mail experience for all of its users. Consumers Can be anyone who has a mailbox or a PO box and an address! Mailers Any company looking to interact with their target audience in a first-of-its-kind way Themes Informed Delivery features are grouped into six high-level themes: User Registration All features related to the process of signing up for Informed Delivery and verifying user identity. Mailer Campaigns All features related to creating interactive campaigns to customize the appearance of mail piece in a user s notification or dashboard. Consumer Dashboard All features related to accessing and managing the Informed Delivery mail and package dashboard. Profile Management All features related to managing consumer preferences and profile settings to create a customized mail experience. Smart Tracking All features related to tracking, viewing, and managing the status and delivery progress and of all anticipated mailpieces. Advanced Insights All features related to the process of capturing, analyzing, and displaying key metrics via reports and dashboards. 97

98 CONSUMER MAILER Informed Delivery Roadmap & BEYOND Build an Industry Leading User Base Bridge the Physical and Digital Enhance Experiences User Registration Advanced Insights User Registration Advanced Insights Mailer Campaigns Advanced Insights Mailer Campaigns Mailer Registration Mailer Validation Mailer Campaigns Self-Service Portal Mailer Campaigns Customer Support Pre-Campaign Report Post-Campaign Reports Mailer/Business as Receiver Mailer Campaigns Rich Content Package Campaigns Single Piece Campaigns Image Data Feed Digital Campaign Metrics Data via Informed Visibility Profile Management Data Distribution Mobile Experience Campaign Templates Suggested Content Campaign Web Services Feeds to Service Providers Profile Management Premium Ad Placement Banner Ads Lifestyle Profiles Custom Mailer Campaigns Smart Tracking Flats Visibility Smart Tracking ID for Outgoing Mail User Registration Consumer Registration PO Box Registration Smart Tracking Daily Digest Bundle Scanning Flag Missing Mail User Registration Identify POs with IV Military Registration Sign Up via Code Smart Tracking Voice Activated Assistants Delivery Notifications Magazines & Catalogs Not My Mail User Registration Colleges & Universities Smart Tracking Service Alerts Delivery Window Estimate ID for Outgoing Mail User Registration Refer a Friend DMV Identity Verification Profile Management View Profile Consumer Dashboard Dashboard Access Customer Support Profile Management Assumed Change of Address Multiple Physical Addresses Multiple Addresses Consumer Dashboard Mobile Experience Social Media Sharing Rich Content Profile Management Resident-Specific Content Hold Your Mail Daily Digest Preferences Categorization of Mail Types Digital Address Book Lifestyle Profiles Consumer Dashboard Like My Mail Social Media Feed Save Offers to Wallet Save & Flag Mail Rich Content Profile Management Text Message Alerts Custom Notifications Customize Digest View 98

99 NEW! Informed Delivery MTAC User Group Co-Leaders Leanne Herman RR Donnelley Sr. Postal Affairs Specialist Robert E. Dixon Jr. USPS Director, Product Technology Innovation Carrie Bornitz USPS Product Development Specialist Sr. User Group Cadence Biweekly on Tuesdays from 11 AM 12 PM Charter Statement This MTAC User Group is a venue for USPS to share information with mailers, and to receive their advice and recommendations on matters concerning Informed Delivery. This dialogue is meant to enhance Informed Delivery s value for customers and to expand mailers use of the feature

100 Product Management Update MTAC Product Innovation/Emerging Technology Focus Area First-Class Mail Feb 28,

101 Agenda Industry Segment Performance & Product Trends Simplification & Other Key Initiatives BRM Enhancements Election & Political Mail Update 101

102 First Class Mail Trends First Class Mail by Shape 4% Cards 2% Flats 2% Parcels Declining -3% 92% Letters First Class Letters & Cards Presort Share and SPLY Variance 21% 5-Digit (+1%) 34% Single Piece (-5%) 21% Basic Auto (-6%) Source : Preliminary January 2018 YTD 102

103 First Class Mail Trends 10.0% FCM Top Industry Segment Performance FY2018 January YTD - Volume Variance From SPLY 5.0% 0.0% -5.0% Finance and Insurance Professional, Scientific, and Technical Services Information Public Administration Retail Trade Other Services Manufacturing Utilities Health Care (except Public and Social Administration) Assistance Administrative and Support and Waste Management and Remediation Services -10.0% -15.0% Source : CDM January 2018 YTD, NAICS2 103

104 Marketing Mail Presort & Entry Trends Marketing Mail Volume by Shape Declining -8% 30% Flats 70% Letters Declining -2% Marketing Mail Flats Entry Share & SPLY Variance 28% DDU (+1%) 7% None (-9%) 6% DNDC (+1%) Marketing Mail Letters Entry Share & SPLY Variance 14% None (-9%) 10% DNDC (-4%) 60% DSCF (-12%) 77% DSCF (-2%) Source : Preliminary January 2018 YTD 104

105 Marketing Mail Presort & Entry Trends Marketing Mail Volume by Shape Declining -8% 30% Flats 70% Letters Declining -2% Marketing Mail Flats Presort Share & SPLY Variance 39% Sat (+3%) 5% 3D -35% 12% 5D Marketing Mail Letters Presort Share & SPLY Variance 5% HD (+7%) 3% 3% 6% HD+ MX Sat (+9%) (-5%) 21% AADC/3-D (-4%) 33% CR Basic (+5%) 7% HD 3% HD+ (-11%) (-18%) Source : Preliminary January 2018 YTD 62% 5-Digit (-2%) 105

106 Marketing Mail Trends 10.0% Marketing Mail Top Industry Segment Performance FY2018 January YTD - Volume Variance from SPLY 5.0% 0.0% -5.0% -10.0% Retail Trade Finance and Insurance Professional, Scientific, and Technical Services Information Other Services (except Public Administration) Health Care and Social Assistance Manufacturing Wholesale Trade Administrative and Support and Waste Management and Remediation Services Educational Services -15.0% -20.0% -25.0% Source : CDM January 2018 YTD, NAICS2 106

107 Simplification & Other Key Initiatives Product Marketing strategy FCM - bills and statements as customer communications channel by taking advantage of variable color printing and high open-and-read rates Marketing Mail - hardcopy mail as integral to an omni-channel communications strategy Mailing requirements and prep opportunities Make-up/entry VAR expansion analysis Product & pricing structure Evaluate weight structure Incentive based pricing options Review and simplify product offerings Indicia opportunities Postcard opportunities Product Assessments - Picture Permit & Simple Samples Flats alternatives Evaluate product improvements for Periodicals Promote Political and Election Mail in 2018 mid-term elections Leverage Informed Delivery to increase engagement with mail and value of the mailbox 107

108 BRM/QBRM Improvements Leverage IMb technology to innovate QBRM processes by automating counting & invoicing Streamline and Standardize QBRM Process Eliminate Manual Counting and Weight Verification Make BRM/QBRM Mail Available Earlier For Customers Decrease Costs and Increase Customer Value Proposition Path Forward Initial Merrifield test is ongoing, concurrent with present QBRM processing Accuracy Validation - Implement new counting procedures for QBRM Analysis of Hand Count vs End of Run Count comparisons to additional sites Expand to additional sites Evaluation of expansion to BRM letter mail 108

109 2018 Election Cycle Updates Election Community Partnership Tag 191 Can now be ordered online and mailed directly to Local Election Offices Tags are to be affixed to trays, tubs, pallets, sacks and even rubber banded to single piece mailings Election Mail Visibility Use Informed Visibility (IV ) a service that provides near real-time mail tracking data for letter and flat pieces, bundles, handling units (trays, tubs, and sacks) 109

110 Election Community Partnership contd Election Cycle Updates Ballot Mail Visibility Developing Service Type Identifiers (STIDs) and 9-Digit ZIP Codes Goals Identify Ballots on-hand and enable tracking in the mailstream Sort all Ballots and Election Mail on automation equipment Benefits Increased visibility of outbound/returning ballot mail within the automation environment Enable passive identification and tracking of ballot mail Increase public confidence in the voting by mail process Phased Approach Enable Ballot Mail tracking by utilizing elements in an IMb Use scan data to create reports in Informed Visibility (IV) Returning marked ballot mail can be sorted to specific bins 110

111 2018 Election Cycle Updates Updated Interactive Election and Political Mail Map Identify Election and Political Mail coordinators Now includes Business Mail Entry Unit addresses and phone numbers ZIP Code lookup feature has been added to the front of the map 111

112 2018 Election Cycle Updates Postal Service s Operational Focus Conducting employee training on Election Mail, including a series of national webinars and employee service talks. Topics included: Outreach process Issue reporting and resolution Mail Entry processes Handling Military Ballots Key election dates by state We will implement daily all clear of ballots certification at all Post Offices and mail processing plants during weeks before and after local election primaries and Election Day 112

113 Political Mail Opportunity in every city, every state! Federal: 33 Senate seats 435 House of Representatives seats 2017/2018 Estimated Election Spending $9 Billion State: 38 offices: Gubernatorial 44 States: State House races All 50 States: Local/county races $4.8 Billion 113

114 Political Mail 2018 Election / Races 10K Races expected (Local, State, Federal level) Direct Mail spend amounted to $675M in 2016, up 33% from the last presidential campaign cycle in House of Representative seats throughout the country will be up for election Volatile Political Climate: Uptick in special interest & lobbying activity Estimated $9B in Spending 32K+ Leads 114

115 Political Mail Local Strike Teams Joint AAPC and USPS Mail Moments Report Updated Collateral Material Participation at Campaign Expo and AAPC Regional Conferences Webinar with AAPC Members DeliverTheWin.com website refresh Winner s Book will outline the factors that most influenced their vote, based on survey data of voter opinions on the factors from the last election campaign. 115

116 National Postal Forum Special Political and Election Mail Forum at NPF More than 10 Political and Election Mail associations invited E.g., Nat l Assoc of Secretaries of State, American Assoc of Political Consultants, Int l Assoc of Government Officials, Counsel of State Governments, Nat l Assoc of State Election Directors. Joint Political and Election Mail Panels Elections Friendly Initiatives Executive Dialogue Q & A with top USPS leaders Lunch and networking session Political Mail Certificate Workshop 116