Glenn GoodingPresidentiDrive LogisticsGlenn@iDriveLogistics.com(678) 567-6847

Priority Mail vs. SurePost/SmartPost:Cost, Customer Experience, Branding and Execution

Presented by

www.iDriveLogistics.com

Optimizing the Customer ExperienceThings to consider moving forward

Understanding the MarketDiscuss the implications of rapid ecommerce growth

The Amazon EffectHow customer expectations have shifted

The Brand Advantage Customer experience with Priority Mail vs. SurePost/SmartPost

Objectives

UNDERSTANDING THE MARKET

UNDERSTANDING THE MARKET

Amazon Walmart Target

No Membership Free over $35 Free over $35 Free over $25

With Membership Free with Prime None needed Free with REDCard

Shipping Speed 2-day 2-day 3-5 day

Customers now expect

Free 2-day shipping

THE AMAZON EFFECT

77% abandon cart due to

shipping concerns

(61% cost, 16% time-in-transit)

THE AMAZON EFFECT

How do you meet customer expectations and provide

FREE 2-DAY SHIPPING without breaking the bank?

It’s a Catch 22

THE AMAZON EFFECT Higher

shipping rates

Higher carrier costs

More residential shipments

More ecommerce

sales

FedEx SmartPost, UPS SurePost are the brand-name economy ground options.

Low price, so they solve the FREE expectation

…but not the 2-DAY expectation.

Option 1: SurePost/SmartPost

THE BRAND ADVANTAGE

THE BRAND ADVANTAGE

Nearly half abandon their cart due to slow

time-in-transit

1 in 3 choose a different marketplace because of slower time-in-transit

How do customers feel about shipping speed?

THE BRAND ADVANTAGE

USPS PM aligns beautifully with customer expectations and provides a “Premium customer experience”

THE BRAND ADVANTAGE

Priority Mail SmartPost/SurePost

Cost $$$$$ $$$$$

Time-in-Transit 1-3 calendar days 2-6 business days

Weekend Deliveries Yes Yes (via USPS)

Tracking Visibility Cohesive Awkward handoff

Option 2: USPS Priority Mail

30%

38%

11%14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

E-commerce vs. Small Parcel Volume Growth

(‘13-’16):THE BRAND ADVANTAGE

Priority Mail for Better

Customer Service

Daily Home Deliveries

Growing faster than ecommerce

Seamless, Cohesive Tracking

Fastest Economy Shipping

Free Packing

Materials

Simpler Billing

THE BRAND ADVANTAGE

Similar Shipper B - Priority Mail

Transit DaysNumber of Packages % of Total

1 1,905 18.1%

2 6,427 61.0%

3 1,576 15.0%

4 372 3.5%

5 102 1.0%

6 54 0.5%

7+ 92 0.8%

Total 10,528 100.0%

Shipper A - SmartPost

Transit DaysNumber of Packages % of Total

1 26 0.2%

2 1,601 15.2%

3 3,201 30.4%

4 2,557 24.3%

5 1,385 13.2%

6 953 9.1%

7+ 805 7.7%

Total 10,528 100.0%

54.1% Shipments

Delivered in 4 days or more

94.1% Shipments

Delivered in 3 days or less

Fast Order-to-Fulfillment, Slow Time-in-Transit

• % of consumers who will buy something again if returns are easy92%

• FedEx/UPS returns – customer has to find a drop-off site, time it right, etc.

Tricky

• Returns are easy with USPS: place in your mailbox and voila

The Easy-Return Edge

THE BRAND ADVANTAGE

Best-in-class experience

CUSTOMER EXPERIENCE

Priority Mail

Express Service

SurePostSmartPost

Customer expectations should guide your service

Brand Visibility Depends on Contact Point

CUSTOMER EXPERIENCE

USPS seen as carrier

Left in mailboxHanded to customer

Direct contact w/ carrier

Visible FedEx/UPS brand

Left at doorGiven to front desk

Delivered to mailroom

USPS is the final-mile deliverer for SurePost/SmartPost

Avoid breaking the bankStay afloat with fast, economic USPS shipping

Align with customer expectationsThrive under new customer shipping expectations

Capitalize on brand advantage Deliver premium brand experience

CUSTOMER EXPERIENCE

• It’s not always cut-and-dry

• Consider the impact to your existing contracts • Terms

• Conditions

• Performance language

• Be strategic

How do I switch to Priority Mail?

CUSTOMER EXPERIENCE

Not so cut-and-dry. Consider:

How do I switch to Priority Mail?

CUSTOMER EXPERIENCE

Terms ● Performance Language ● Conditions

Impact to your existing contracts

Strategy in your approach

QUESTIONS? www.iDriveLogistics.com

iDrive Speakers at NPF | Don’t Miss Out

Shaun Rothwell (Founder & CEO)Shaun@iDriveLogistics.com

(801) 492-1850

Carl Hutchinson (COO)Carl@iDriveLogistics.com

(385) 336-6402

Glenn Gooding (President)Glenn@iDriveLogistics.com

(678) 567-6847

Monday—May 22 @ 11am-12pmUsing the USPS to Enhance the E-Commerce Customer Experience

Tuesday—May23 @ 2:45pm – 3:45pmPriority Mail vs SurePost/SmartPost: Costs, Customer Experience & Branding

Tuesday—May 23 @ 11am-12pmUSPS Shipping: Debunking the Myths