Mailing Industry Task Force

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Mailing Industry Task Force
Phase 2 Initial Report
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Task Force Co-Chairs

Michael Critelli Chairman and Chief Executive
Officer Pitney Bowes John Nolan Deputy
Postmaster General United States Postal Service
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Steering Committee

• Charles Morgan, Company Leader
  Acxiom
• Bobbie Gaunt, Interim CEO ADVO, Inc.
• Paul Reilly, Chairman, President CEO
  Cenveo, Inc.
• Michael Sherman, Vice Chairman
  Crosstown Traders, Inc.
• Yvonne Furth, President COO Draft
• Jeff Jurick, President CEO Fala DM
  Group
• Nicholas LaHowchic, President CEO
  Limited Brands Logistics
• Judy Marks, President, Distribution Technology
  Lockheed Martin
• Douglass Denton, Vice Chairman CTO MBNA
  America
• Hamilton Davison, President CEO
  Paramount Cards
• David Sable, V. Chairman Pres., Europe, Middle
  East, Africa Wunderman

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Overview

• Phase 2 Approach

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Overview

• Phase 2 Process

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Intelligent Mail andAddress Quality

• Michael CritelliCEOPitney Bowes
• Charles MorganCompany LeaderAcxiom
• Charles BravoSr. Vice President, Intelligent
  Mail and Address QualityUnited States Postal
  Service

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Intelligent Mail Address Quality Status

• Increased Mailer Participation in Committee

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Intelligent Mail Address Quality Status

• Goals
• Increase the use of Intelligent Mail products by
  delivering value for all stakeholders
• Increase the value of mail by increasing
  deliverability through improved quality of
  address information used by mailers

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Intelligent Mail Address Quality Status

• Supporting USPS Efforts
• Testing 4-state Barcode Encoding and Printing
• Developing Standards for IBI Readability
• Promoting Internet Change of Address
• Identifying Causes of Poor Address Quality

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Intelligent Mail Address Quality Action Plan

• Proof of concept for OneCode address change
  service
• Evaluate and test using Intelligent Mail codes to
  automate mailer returned mail operations
• Enhance address quality feedback loops
• Approach to certifying quality of mailing lists

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Pricing and Payment

• Judy MarksPresident, Distribution
  TechnologiesLockheed Martin
• Robert PedersenTreasurerUnited States Postal
  Service
• Steve KearneyVice President, Pricing
  Classification
• United States Postal Service

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Pricing/Payment Status

• Current Initiatives
• Pricing Strategy
• Customization Negotiated Service Agreements
• Simplification Priority Mail Flat-Rate Box
• Encouraging Efficiency Periodicals
  Co-palletization
• PostalOne!
• Permit system migrated to PostalOne!
• CAPS will be migrated to PostalOne! by December
• EFT payments RFP to be awarded by October

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Pricing/Payment Action Plan

• Future Initiatives
• 2nd Ounce Flexibility
• Enabling Credit
• Cyclical Pricing

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New Products, Servicesand Gateway

• David SableVice Chairman and PresidentWunderman
• Nick BarrancaVice President, Product
  DevelopmentUnited States Postal Service

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New Products/Services/Gateway
Charter

• Work together in a collaborative process
• Stimulate revenue growth within the mail channel
• Leverage the Postal Services gateway services
• Identify strategic initiatives with long-term
  impact

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Mailing Industry Business Model
New Products/Services/Gateway
C U S T O M E R S
C U S T O M E R S
Solicit
Reply
Send
Return
Revenue Growth
Retention
Bill
Pay
Loyalty
Value
Ease-of-Use
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New Products/Services/Gateway Status

• Reviewed potential initiatives
• Identified ideas that best fit with charter
• Mapped ideas to Money, Merchandise, and Messages
  framework
• Established 4 work teams to prioritize
  initiatives
• Quick, Easy, and Convenient (Bill Worth/Julie
  Rios)
• Simplified Closed Loop Business Mail Systems (Jim
  Prevost/Susan Campbell)
• Consumer-to-Consumer (Dan Stifter/Bob Michelson)
• Business-to-Consumer (Steve McLendon/George
  Hurst)

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Work Teams and Priority Initiatives
New Products/Services/Gateway Status

• Quick, Easy, and Convenient
• New Package Service Options (Provide local next
  day delivery for retailers and greater
  convenience for consumers)
• Simplified Closed Loop Business Mail Systems
• Total Relationship View
• Business Reply Mail Redesign
• National Permit
• Consumer-to-Consumer
• Reinforce the Value of Mail to Consumers
• Business-to-Consumer
• Premium Forwarding Service
• Direct Mail Business Environment Assessment

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New Products/Services/Gateway Action Plan

• New Package Service Options
• Launch pilot by January 2005
• Total Relationship View
• Complete map by December 2004
• Reply Mail Improvement Plan
• Launch Reply Mail Web site at NPF
• Reply Card Scanning pilot February 2005
• Launch Automated Accounting System January 2006
• National Permit
• Complete concept design Sept. 2004

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New Products/Services/Gateway Action Plan

• Reinforce the Value of Mail to Consumers
• Complete Mail Moment Research by Oct. 2004
• Complete map of relevant events by Jan. 2005
• Design concept test by Feb. 2005
• Premium Forwarding Service
• Complete a plan for testing Nov. 2004
• Direct Mail Business Environment Assessment
• Complete analysis Sept. 2004

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Innovation Incubator

• Purpose
• Ideas for revenue generation
• Process
• 2-day Summit
• Collect concepts
• Postal team review

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Innovation Incubator

• Results
• 49 concepts
• Five Areas of Opportunity
• Intelligent Mail
• Small Business Products/Services
• Improved Product Communication
• Personalized Service Delivery
• Process Improvements
• Next Steps
• Task Force Working Groups Assessment
• Business Case Development
• Second Innovation Summit Planning Underway

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Mailing Industry Task ForceGoing Forward

• Continue to develop innovative concepts
• Follow through on action plans in all 3 areas
• Sustain an effective USPS/Industry collaboration

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All Available at www.usps.com
All Available at www.usps.com
CV03-1347 (USPS) KCY 8/29/03 EP setup PC ppt
2000 USPS 40949-24
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Mailing Industry Task Force

• Phase 2
• Initial Report