Mailing Industry Task Force

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Mailing Industry Task Force
2005 Progress 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
• Scott Harding, CEO and Director ADVO, Inc.
• Donald Treis, Chief Executive Officer Arandell
  Corporation
• Richard Daly, Group Co-President Automatic Data
  Processing
• Paul Reilly, President CEO Cenveo, Inc.
• Michael Sherman, Vice Chairman Crosstown
  Traders, Inc.
• Yvonne Furth, President COO Draft
  Worldwide
• Jeff Jurick, President CEO Fala DM Group
• Judy Marks, President Lockheed Martin
  Distribution Technologies
• Douglas Denton, Vice Chairman CTO MBNA America
• Hamilton Davison, President CEO
  Cardsmart/Paramount Cards
• David Sable, Vice Chairman Wunderman

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Overview

• Phase 2 Strategy
• Intelligent Mail/Address Quality
• Pricing/Payment
• New Products, Services and Gateway
• Innovation Incubator Initiative

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Overview

• Phase 2 Process
• Collaborative
• Assess/Plan/Implement
• Use Communication to Build Awareness

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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 and 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
• Support development of the USPS OneCode Vision

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Intelligent Mail and Address Quality Status

• USPS Progress
• Testing 4-state Customer Barcode on USPS Mail
• Implementing Enhanced Distribution Label (EDL)
  beginning Summer 2005
• Specifications for Information-Based Indicia
  (IBI)
• Growth of NCOALink and Improved Match Rate
• Growth of Internet Change of Address (ICOA)
• Introducing Address Element Correction Phase II
  (AEC II)

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Intelligent Mail and Address Quality Status

• Four Key Initiatives
• Use INTELLIGENT MAIL codes to trigger Address
  Quality Services
• Pilot test - Summer 05
• Develop improved Address Quality Feedback Loop
• Plan release of AEC II - Spring 05
• Develop certification process for mailing list
  quality
• Proposal development complete - Summer 05
• Use INTELLIGENT MAIL codes to help automate
  processing of returned mail

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Intelligent Mail and Address Quality Example

• Use INTELLIGENT MAIL to provide additional
• business benefits and value
• Collaborative Work
• Looked for opportunities not already articulated
  by USPS
• Focused on synergy of intelligent mail and
  address quality
• Automating Returned Mail
• Some companies use own barcodes or other data
• Decentralized return mail operations

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Intelligent Mail and Address Quality Example

• Identified Additional Opportunities
• Improved Electronic UAA Notification
• Provide Address Element Correction based on
  4-state code
• Assist large companies in managing addressing
  issues at a corporate level by automating
  processing and data collection
• Track and analyze reasons for UAA (both for
  mailers USPS)

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Pricing and Payment

• Judy MarksPresidentLockheed Martin Distribution
  Technologies
• Robert PedersenVice President, TreasurerUnited
  States Postal Service
• Steve KearneyVice President, Pricing
  Classification
• United States Postal Service

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Pricing and Payment Current USPS Pricing
Experiments
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Pricing and Payment Pricing Experiments

• Co-Palletization
• Encourage efficiency in periodicals
• Over 2.1 million sacks eliminated, 95.5 million
  pieces moved to pallets
• Parcel Return Services
• Simplify the process of returning packages
• Millions of packages returned
• Priority Mail Flat Rate Box
• Simplify package shipment options
• Over 2 million boxes shipped
• Repositionable Notes
• Customize ability to send Messages that Stick
• Premium Forwarding Services
• Simplify life for households that relocate

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Pricing and Payment Negotiated Service Agreements

• Establish customized pricing for specialized
  mailers
• Encourage First-Class Mail for customer
  acquisitions
• Encourage electronic Address Change Service
• First agreement added 21.7 million to USPS
  bottom line
• Need a more streamlined, less costly process

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Pricing and Payment Consistency in Mailing
Standards

• New organization and business model
• PCSC in New York City
• Binding decisions before mailings entered
• New DMM
• State of the art communications for customers
• Reliable decision pathways based on what
  customers want to have the USPS do for them
• Improved usps.com
• Clear mailing standards
• Standard Mail eligibility effective June 1
• Customer support rulings
• Clear communications
• Over 2,000 customers using DMM Advisory

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Pricing and Payment Price Change Predictability

• Try to avoid rate shock caused by large
  increases with uncertain timing
• 3 plus years of stability have helped the
  mailing industry
• Across the board proposal could be the start of
  smaller, more predictable price changes
• Reform could lead to annual price-capped
  adjustments

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Pricing and Payment PostalOne! Update

• Completed national deployment in support
  of Postal users
• Electronic Mail Improvement Reporting (eMIR)
  system has been successfully deployed
• Next release of the system scheduled in April of
  this year

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New Products, Servicesand Gateway

• Yvonne FurthPresident and COODraft Worldwide
• Nick BarrancaVice President, Product
  DevelopmentUnited States Postal Service

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New Products, Services, and Gateway Update

• Made progress with Tier I Initiatives
• Premium Forwarding Service Filed with Postal
  Rate Commission
• Direct Mail Business Environment Assessment
  Study Completed
• Total Relationship View Charts completed
• Reply Mail Improvement Plan Web site launched
• Reinforce the Value of Mail to Consumers
  Completed Mail Moment Research
• Retail Overnight Discussing pilot with
  potential participants

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New Products, Services, and Gateway Update

• Estimated Value - 300 million over five years

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New Products, Services, and Gateway Update

• Establishing List of Tier II Initiatives
• Developers Tools
• Solution Center for Small Mailers
• Opt-in Capabilities
• Delivery Preferences for Packages
• Post Offices as Returns Center
• Customized Postage

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New Products, Services, and Gateway Featured
Initiative
Retail Overnight
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New Products, Services, and Gateway Next Steps

• Continue Recruiting Participants in Retail
  Overnight Pilot
• Explore Opportunities from Total Relationship
  View Charts
• Begin Moving Forward on Tier II Initiatives

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Innovation Incubator

• Progress Report

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Innovation Incubator

• Innovation Outreach
• USPS Innovation Challenge
• Industry segment summits
• Thunderbird Innovation Challenge
• WWW.INNOVATIONCHALLENGE.NET

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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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Innovation Outreach

• Provide one or two ways that use of the mail
  could help your company or industry grow in
  revenue. What is keeping your company/industry
  from using mail in this way?
• Is there a business challenge that your
  company/industry faces that the use of the mail
  could help to overcome? What is keeping your
  company/industry from using the mail for this
  purpose?

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Innovation Outreach

• What, in your view, is the biggest obstacle to
  increasing use of mail to help companies grow
  their business and/or increase customer
  satisfaction? Is it (check one)
• ? Lack of knowledge about USPS/Industry products
  and services currently available?
• ? Lack of knowledge about the power of mail?
• ? Gaps in the USPS's product line?
• ? Issues with ease of use?
• ? Other?

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CV03-1347 (USPS) KCY 8/29/03 EP setup PC ppt
2000 USPS 40949-30
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• Mailing Industry Task Force
• 2005 Progress Report