major mailers association october 4, 2012
DESCRIPTION
Major Mailers Association October 4, 2012. Gary Reblin Vice President Domestic Products U.S. Postal Service. USPS Product Performance. 8.6%. 8.1%. $10.4B. $2.5B. First Class Mail. Marketing Mail. Total. Shipping Services. International. -0.8%. $26.7B. $16.8B. -3.6%. -3.9%. - PowerPoint PPT PresentationTRANSCRIPT
Major Mailers AssociationOctober 4, 2012
Gary ReblinVice President
Domestic ProductsU.S. Postal Service
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USPS Product Performance
FY12 August YTD Revenue–Variation to SPLY (%)Notes:International Mail includes all In/Outbound Mail and International Ancillary/Special Services.Some First-Class Mail and Marketing products have been included under Shipping Services on this chart.
-3.6% -3.9%
8.6%8.1%
-0.8%
First Class Mail Marketing Mail
Shipping Services International
Total
$26.7B $16.8B
$10.4B$2.5B
- 0.4% 1.5%- 3.3%
0.4% 0.1%- 3.3% - 2.8%
5.5%
- 2.0% - 1.5%- 5.9%
- 18.8%
- 12.4%- 8.9%
- 13.7%
- 7.3%
- 14.1%- 17.4%
- 7.4%
- 22.8%
- 15.0%
- 5.5%
- 25%- 20%- 15%- 10%- 5%0%5%
10%15%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
First-Class Mail Volume(% Change over SPLY)
Total Presort Letters and Cards Total Single- Piece Letters and CardsLinear (Total Presort Letters and Cards) Linear (Total Single- Piece Letters and Cards)
Volume Trends of Single-Piece and Presort are IMPROVING!
First-Class Mail
Transaction Mail
Transaction Mail
25.5
12.07.5
22.0
8.15.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Bills/Stats (-14%) Bill Payments (-33%) Other (-22%)
Billi
ons
of P
iece
s
2002 2010
Statements = less than half the rate of decline compared with bill payments!
75% of consumers request bills and statements in print First-Class Transaction Mail 95% open rate
5.9% 5.5% 4.9%
17.7%
14.2%
2.6%
10.1%11.2%
4.5%
15.1%
- 0.6%
7.9%
- 5%
0%
5%
10%
15%
20%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Total
Standard Mail Saturation and Simplified FlatsFY12 / FY11 % Change (Revenue)
Saturation and Simplified Flats
+$108M Incremental Revenue so far in FY’12…
18.3%14.5%
20.2%19.7%
32.8%
24.6%
19.7%21.0%
13.0%16.9%
19.9%20.0%
0%
5%
10%
15%
20%
25%
30%
35%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Total
Lightweight Portfolio Revenue Performance(% Change over SPLY)
Lightweight Shipping
+$354M Incremental Revenue so far in FY’12
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Mail Evolving & Adapting
DigitalDiversion
MobileExplosion
Ecommerce Growth
Small Business
• 80% look at their mail daily – as a valuable news resource
• 75% like to see what’s in the mail• 63% of mail is kept at least 2 days
Insight:
Mail is still highly valued
Source: USPS 2011-2012 Mail Moment Survey
People are bombarded with media messages and ads! Avg. person is exposed to
2,904 media messages, pays attention to 52, and remembers 4*
Avg. household gets 2 pieces of Direct Mail vs. 157 emails daily
e-mailradioso
cial
med
iate
xts
webmob
ileThe Media Explosion!
television9
10
Mail breaks through the
clutter!
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Mailing & Shipping Strategies
Shape the Future
First-Class Mail
Marketing Mail
Shipping Services
•Slow diversion by differentiating hard copy from digital
•Embrace new opportunities from digital and social media
• Simplify using marketing mail
• Promote emerging technologies
•Develop solutions for growing ecommerce market
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2nd Ounce Free!
Permanent price change Strengthen customer
relations Advertise brand Sell additional services Turn mail from cost
to profit center
Building New Value
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Commercial Single-Piece Rate
Establish rate for commercial Single-Piece non-automation letters up to 2 ounces
Responds to feedback from First-Class Mail customers on 2nd Ounce Free
Designed to simplify preparation for residual First-Class Mail letters
Under consideration for January 2013
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Digital-to-print apps Apple Card mobile app (iPhone, iPad) SendOut Cards 5M pieces Facebook
Picture Permit Imprint Indicia Prime “real estate” Advertise, build brand Product live June 24
Hallmark Alternate Postage pilot Payment triggered w/IMb scan
Harnessing Digital/Social
Permit No. 1234City, State, Zip Code
US POSTAGE PAID
FIRST-CLASS MAIL PRESORTED
New TechnologyCreating Opportunity& Excitement
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In the US: 8.2% Internet traffic driven by
non-computer devices 25% web users are mobile only More smartphones purchased
than PCs in 2011
DesktopMobile
US mobile internet users will grow at a rate of
16.6% between 2010 and 2015
Mobility Trends
Sources: On Device Research via MobiThinking, comScore Device Essentials Dec 2011 and IDC Worldwide New Media Market Model, MobileFuture 16
Mobility Trends
Source: Cisco, DigiTimes
Devices are rapidly shrinking in size while the number of mobile connections per person rises dramatically
20036.3B people
500M connected devices
0.08 devices per person
20106.8B people
12.5B connected devices
1.84 devices per person
20157.2B people
25B connected devices
3.47 devices per person
20207.6B people
50B connected devices
6.58 devices per person
Devices have gone from “movable” to “mobile” to
“pocketable”
U.S. Market ‘Mobilizing’
45% use mobile marketing 70% say mobile budgets will increase Most popular applications:
Quick response codes (79%) Mobile websites (70%) Mobile applications (55%)
StrongMail April 2012 18
Survey 800 Executives
Mobile Barcodes
Opens web page when scanned by mobile device equipped with reader application:
Open-sourced barcodes (QR Code®, Datamatrix) Proprietary barcode or tag (SnapTags, MS Tags) Image embedded with a digital watermark Image utilizing intelligent print recognition
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NFC
Near Field Communications (NFC) enabled devices (smartphones)
Mailers encode “tags” or “chips” to deliver information Tap mailpiece to download coupons Use mailpiece in to activate personalized offers Track responses
201210-15%
devices enabled
20111%
devices enabled
Authentication
Picture / Face
Voice
Iris
Fingerprints
Veins, Hands, etc.
DNA
AreCell Phones
Pin GenerationTokens
Digital Certificates
Smart Cards
HaveUser Names
Passwords
Shared Secrets
“Out of Wallet”
Know
Level of Security
Mobile phones can serve as a method of authentication by confirming something you:
Choosing the right level of authentication depends on…
Population Cost/Benefit Security Support Publicity Privacy/Policy
• New Promotions• New Products• New Pricing
Creating Opportunity& Excitement
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Embrace technology, encourage mail integration
Drive long-term product valueRelevanceEffectiveness/ResponseEngagement
Drive InnovationAccelerate best practices
Drive awareness andengagement
ConsumersResidents
MarketersBusiness
Gov.
USPS Strategy
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Call to Action Capture
Mobile-on-Mail
Mobile-on-Mail campaigns requires a call-to-action, specific technologies to capture it, and a value added result
ScanQR Code, SnapTag, Watermark
TapNFC
DialPhone Number, Star-Star Dial
Feature Phone Dialer, SMS
Smart Phone/ TabletCamera, Applications (3rd Party, Retailer or USPS)
LearnInstructions, Reviews, Information, Augmented Reality
SaveCoupon, Loyalty Card
ShareSocial Media, Blogs, Email, Pinterest
TextShort Code
Next Gen DeviceNFC Chip, In2Pay iCAISSE
Pay Purchase, Bill Pay, Donation, Postage
ContactCustomer Service, Confirm Receipt of MailPlaySweepstakes, Games
AuthenticateSignature, Account Login
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2012 Holiday Mobile Shopping
Short-term promotion Nov. 7-21, 2012 Build mobile-on-mail connection
during holiday shopping season Lead to Black Friday, Small Business
Saturday, Cyber Monday Two opportunities to save:
1. 2% discount on First-Class and Standard Mail with mobile barcode enabling mobile shopping
2. Retailers using Priority Mail to deliver merchandise may receive additional 1% discount on mail (not parcels)
US Mobile Commerce
sales will grow 98.6%
over 2011 to reach
$20.85B
Internet Retailer Sept ‘12
Lead Industry & Encourage Best Practices
2013 Promotions Calendar*
APRIL-JUNEEarned Value Reply Mail -Financials, Catalogers, Publishers
MARCH-APRIL• Mobile Coupons
-Local & national retailers & businesses
• Click-to-Call -Insurance, Financial
NOVEMBER-DECEMBER• Mobile Buy-It-Now - Retailers, e-tailers & catalogers
AUGUST-SEPTEMBER• Emerging Technologies -Retailers, e-tailers & catalogers• Product Samples -CPGs, Retailers• Picture Permit -Existing customers
26*PRC approval pending
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Mobile Coupon and Click to Call*
Mobile Coupon: Mail contains mobile technology that delivers a coupon redeemable in-store or online when scanned
Click-to-call: Mail links directly to a mobile optimized website with a “click to call” or brings up a phone number automatically in the users phone
Registration Period: Jan. 15 - April 30, 2013 Program Period: March 1 - April 30, 2013 Discount: Upfront 2 % postage
*PRC approval pending (all dates subject to change)
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Earned Value Reply Mail*
Mailers earn credit for BRM and CRM counted during normal mail processing
Registered permits and Mailer IDs required Credit applied post-promotion to Permit Imprint account for
future mailing Registration Period: Jan. 1, 2013 - March 31, 2013 Program Period: April 1 - June 30, 2013 Credit Amount: $0.02 per mailpiece scanned
*PRC approval pending (all dates subject to change)
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Emerging Technologies*
Near-Field Communication: Mail contains NFC smart tag or RFID chip enabling info transmission to mobile device
Augmented Reality: Mail facilitates a user experience combining virtual & real time interactive, registered in 3-D
Identification Component: Mail enables user to complete identity/authentication process
Registration Begins: June 1, 2013 Program Period: Aug. 1 – Sept. 30, 2013 Discount Amount: 2% of eligible postage
*PRC approval pending (all dates subject to change)
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Picture Permit*
Mail contains customized permit indicia area with company logos, trademarks or brands (color images only)
Pre-testing and design approval required Registration Begins: June 1, 2013 Program Period: Aug. 1 – Sept. 30, 2013 Discount Amount: Per piece fee waived
*PRC approval pending (all dates subject to change)
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Product Samples*
Standard Mail® regular and Nonprofit marketing parcels containing product samples
Trial size product (or other item) to incite recipients to purchase a product/service, form a belief/opinion, or take an action
Registration Begins: June 1, 2013 Program Period: Aug. 1 – Sept. 30, 2013 Discount Amount: 5% off eligible postage
*PRC approval pending, promotion will include new Product Samples offering available Jan. 2013 (all dates subject to change)
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Mobile Buy It Now*
Mobile barcode or similar print technology takes consumer to mobile optimized site for product purchase
Tangible items that can be shipped via USPS products (delivery by the USPS not required).
Registration Begins: September 15, 2013 Program Period: Nov. 1 – Dec. 31, 2013 Discount Amount: 2% off total postage
*PRC approval pending (all dates subject to change)
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“The USPS seems to have changed the way merchants look at QR codes as a part of their
marketing campaigns.”
MultiChannel Merchant, Outlook 2012-13: Ecommerce
Thank you!
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