PMG: “WE HAVE TO APPROACH THE BUSINESS IN A WHOLE NEW WAY”

Customers at National PCC Day event in Napa, CA.

Postmaster General John Potter has cautioned mailers about the severity of the current economic climate and urged them to create new growth opportunities.

In remarks during National Postal Customer Council Day Sept. 17, Potter cited fluctuating oil prices, inflation in paper prices and the strife in the financial markets. He described challenging economic conditions as the most difficult time since the 1960s. The additional move of hardcopy messages to the Internet and questions about mail’s environmental impact have led to a volume decline of 9 billion pieces this year.

Despite the tough times, Potter called on the mailing industry to seek new sources of growth.

“We have to approach the business in a whole new way,” Potter said. “We have to develop new ways for the American people and American business to use the mail.”

Potter said he remains confident in the strength and commitment of the Postal Service and the mailing industry as a whole.

“Once the economic storm passes, our industry will rebound,” Potter said. “If we remain focused on the fundamentals of our industry and if we reach out to new audiences, we will again reach new heights.”

One of these goals is to continue to improve record-setting levels of service. Working with the mailing industry and the Postal Regulatory Commission, the Postal Service has developed a new set of modern service standards for each class of mail and will begin measuring performance against these standards this year. In addition, improvements in customer satisfaction, scan rates, network effectiveness and the Postal Service’s website, usps.com, will be top priorities moving forward, Potter said.

“Service is what we’re all about. It is our franchise, the very reason for our existence,” he said.

Potter also called on the mailing industry to adapt to the changing marketplace and invest in the future. The Intelligent Mail® barcode is one way the Postal Service is leveraging technology to provide greater value and ease to business mailers, he said. Storing three times the amount of data of current barcodes, the Intelligent Mail barcode helps customers manage mail flow by uniquely identifying every piece in a mailing. The technology allows mailers to sort, track and receive address correction, all from one barcode.

Affordable prices that deliver value are a key element to retain and grow business, Potter said. The agency has reduced costs $1 billion or more for each of the past seven years and, through creative business solutions, absorbed the $700 million rise in fuel costs last year so that these costs were not passed on to customers as fuel surcharges.

“The price you see is the price you pay,” Potter said.

Reduction in costs alone will not be enough to overcome difficult economic times, he said, identifying several opportunities for growth through innovative new products, including a new Priority Mail Large Flat Rate Box and using the mail for recycling and product take-back programs.

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