MEMO TO MAILERS - NOVEMBER 2005 (text)
UNITED STATES POSTAL SERVICE
VOLUME 40 NUMBER 11
NOVEMBER 2005

WHAT'S INSIDE
WORLDWIDE REACH
PACIFIC RIM SOLUTION
POSTAL FORUM
KEEPING POSTED
POSTAL NEWS BRIEFS

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MAIL: THEY GET IT
Want to connect with the younger generation? Try mail.

Research for the U.S. Postal Service examined the attitudes of Gen Xers and Gen Yers — those generations born between 1965–1976 and 1977–1994 respectively — and found them just as likely to read and respond to mail as their older counterparts.

Gen Xers make up roughly 17 percent of the population. And Gen Yers about a quarter of the population.

Gen Yers represent the next big wave after Baby Boomers. And while they may use electronic media more than their elders, they still appreciate what’s in their mailbox every day, and they’re receptive to the hard-copy marketing messages they receive.
According to recent research, 70 percent of Gen Xers and 82 percent of Gen Yers sort through their mail immediately. Sixty-seven percent of Gen Xers and 66 percent of Gen Yers read advertising mail every week.

When you consider that these groups typically receive fewer pieces of mail, marketers have a better chance of grabbing their attention. The research shows Gen Yers are more likely than consumers age 30–59 to sort their mail immediately. And Gen Yers are much more likely to read and respond to advertising, printed material, flyers, circulars, catalogs and newsletters immediately and find them useful.

The mail is tangible, personal, private and secure. Young consumers rate 75 percent of the mail they receive as valuable. Forty-nine percent of Gen Xers and 55 percent of Gen Yers keep catalogs for an extended time and browse through them repeatedly.
And while these two groups grew up with online technology, 58 percent of Gen Xers and 66 percent of Gen Yers prefer mailed bills to manage finances. In households headed by consumers aged 25–34, the number of bills paid by mail is nearly six times the number paid by the Internet.

If you’re a marketer, consider that fact that Generations X and Y pay more attention to retail mail than any other type of advertising mail – 74 percent of Gen X and 68 percent Gen Y Direct Mail readers read retail advertising mail, and 68 percent of Gen X and 73 percent of Gen Y retail Direct Mail readers have used mailed coupons.

Both groups prefer offers, especially for financial services, through the mail. Fifty-five percent of Gen Xers and 60 percent of Gen Yers who shop for credit cards online are more likely to respond to mail offers than e-offers. And 70 percent of Gens X and Y are more likely to open and read credit card offers in the mail than by e-mail.

In a nutshell, mail spans the generations, even if they look at it differently. So the next time you see young people with a cell phones in their pockets, earphones dangling from their heads and a laptop computer on their knees, know that they’re “into it.” They, too, connect with the mail.

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WORLDWIDE REACH
Foreign posts and commercial shippers are awakening to the advantages of Postal Service shipping solutions and the quality of its “last mile” delivery.

Starting this month, Britain’s Parcelforce Worldwide, as part of a new strategy to target high-volume exporters, has begun shipping into the United States for The Folio Society, a book club specializing in high-quality collectors’ editions.

“We surveyed our business clients to find out their preference for shipping packages into the United States,” says Guy Fischer, regional director for Parcelforce. “They told us that their customers trusted the reliable and convenient service of the United States Postal Service.”

“American companies are already taking advantage of the value and customer convenience of Postal Service shipping solutions,” says USPS Package Services Manager Jim Cochrane. “It stands to reason that International shippers who are tapping into U.S. markets are choosing our products and services as well.”

The multi-million dollar inbound package delivery business presents a tremendous opportunity for the Postal Service. “By
partnering with international shippers, we have opened up our delivery asset to a whole new market,” says Jane Dyer, manager of Global Business Development for the Postal Service.

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PACIFIC RIM SOLUTION
Business mailers can now benefit by using a date-certain, guaranteed delivery service to the Pacific Rim provided through the cooperative efforts of the U.S. Postal Service and five other world posts.

Global Express Mail service with guarantee, which became available to non-commercial mailers last July, was launched in an historic agreement among postal administrations for Australia, China, Hong Kong, Japan, South Korea and the United States.

The introduction of this guarantee feature was an enhancement to the existing Global Express Mail service and was available, until now, to non-commercial mailers only.

“Global Express Mail with guarantee is an ideal solution for business mailers,” said Jim Wade, vice president of international business for the U.S. Postal Service. “It can help these commercial shippers conduct transactions in the Pacific Rim, an arena which continues to experience unprecedented growth in international trade.”

This five-day guaranteed delivery service, which has proven to be popular among lower volume shippers, has no hidden surcharges and offers the security and safety customers have come to expect from the U.S. Postal Service.

Global Express Mail with guarantee is available at all Post Offices in all 50 states, as well as Puerto Rico and the U.S. Virgin Islands. Customers can track a shipment’s progress online at www.usps.com or by calling 1-800-222-1811.

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MTAC: CELEBRATING 40 YEARS OF ACHIEVEMENT
From ZIP Codes to barcodes, the Mailers Technical Advisory Committee (MTAC) has worked with the U.S. Postal Service to transform the mailing industry through the adoption of new technologies and solutions that make the mail work better for customers. Celebrating 40 years of achievement, MTAC’s impact is evident throughout the entire mailing cycle – from entry and acceptance to processing and delivery.

“For four decades, the partnership between MTAC and the Postal Service has been instrumental in helping to make the mail work better for our customers,” says Postmaster General John E. Potter. “When we work together to enhance the value of the mail, the entire industry benefits. We share a common goal – building a strong future for our business.”

MTAC is a joint effort between the Postal Service and the mailing industry to share technical information, advice and recommendations about mail-related products and services. Its members include valued customers, mail associations and other organizations who work closely with their postal counterparts in work groups and through other efforts to expand the use of products and services that benefit both mailers and the Postal Service.

When MTAC was established in 1965, the ZIP Code had been recently introduced and USPS was moving toward its wider acceptance. MTAC helped business mailers adapt to its use.

This early effort between MTAC and the Postal Service has grown, and the successes are many. MTAC work groups have played instrumental roles as the Postal Service has successfully applied automation to mail processing. MTAC supported worksharing programs that have generated $14 billion in annual cost savings.

As USPS works to make mail more “intelligent,” using barcodes to provide data about where mail is in the system and when delivery is expected, MTAC will be at the forefront of advancing the adoption of new technologies.

Together, USPS and MTAC have worked to strengthen a mailing industry that contributes billions of dollars in economic growth for America’s businesses and citizens. And as they enter the next decade, both remain dedicated to keeping the mailing industry strong well into the future.

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INFO@USPS
SMALL BUSINESS TOOLS
Get new customers.
Meet customer demands.
Around town or around the world.
www.usps.com

SIMPLE FORMULAS
Use the mail to grow your business.
Order a Simple Formulas kit.
800-THE-USPS, ext. AD4433

SEND MAIL FROM YOUR PC
Send postcards, letters,
flyers, booklets or greeting cards.
www.usps.com/netpost

THE POSTAL STORE ONLINE
Open 24/7. Stamps.
Subscription services.
Digital scales.
www.usps.com/shop
SHIPPING INFORMATION
Express Mail, Priority Mail
and package support line.
800-222-1811

PRINT POSTAGE ONLINE
Your shipping label is just a Click-N-Ship away.
www.usps.com/clicknship

CARRIER PICKUP
From your home or office.
www.usps.com/pickup

QUESTIONS?
We have the answers.
Rates and mailing information.
ZIP Codes. Post Office location.
Much, much more.
800-ASK-USPS

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KEEPING POSTED
News from and for Postal Customer Councils - www.usps.com/nationalpcc

HELPING CUSTOMERS GROW BUSINESS WITH MAIL
A new “workshop-in-a-box” designed to show customers how they can grow their businesses with mail has been sent to Postal Customer Council (PCC) co-chairs and Postal Service area marketing managers. “Simple Formulas” is the sixth CD in the Business Seminar Series and is based on the USPS hard-copy brochure series with the same title.

The next workshop, co-branded with the Direct Mail Marketing Association (DMA) and scheduled for distribution later this year, will be a five-part seminar called “Direct Mail Made Easy.” It will include information about planning a campaign, targeting and list management, mailpiece design, printing and production, and post-mailing analysis and the “profit picture.”

The Business Seminar Series was developed by USPS Customer and Industry Marketing as an innovative way to deliver educational content to mailing customers throughout the country through regularly scheduled meetings at local PCCs.

NATIONAL PCC NETWORK PROGRAM UPDATES
PCC dues, contributions and donations must now be managed by a designated PCC treasurer and deposited into a separate PCC bank account. Postal Service trust accounts are no longer authorized for PCC funds; therefore, payment for membership, registration, meeting and other fees should be submitted to the local designated PCC treasurer to be deposited into the PCC bank account.

The PCC Model Unit Program is expected to be announced in early 2006. The program is designed to maximize the performance of all PCCs, regardless of their size.

An effort is under way to bring more structure to the PCC Advisory Committee, including the establishment of bylaws, etc.

With all-new workshops as a highlight, the annual PCC Leadership Conference will be held at the Orlando, FL, National Postal Forum. Register today — PCC members receive an affiliation discount of 10 percent.

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FYI
Online international shipping labels save time. The Postal Service now lets customers pay postage and print Global Priority Mail and Global Airmail Parcel Post labels online through Click-N-Ship on usps.com. These new international online shipping labels combine mailing address, postage payment and customs form information in a single label — eliminating the need for preparing a separate customs form. Go to usps.com and look under “Shipping Tools” for the link to Click-N-Ship.

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SERVICE PERFORMANCE THAT COUNTS
The U.S. Postal Service keeps on delivering a high level of service performance. Its on-time overnight delivery of First-Class Mail earned a 95 percent performance score as measured independently by IBM Consulting Services.

This accomplishment marks the 11th consecutive measurement period in which USPS has scored 95 percent or better for on-time overnight delivery of First-Class Mail.

This fourth quarter measurement for fiscal year 2005 also cites two-day service performance at 91 percent and three-day, which is carried by air and can be subject to delays, at 90 percent once again, up from 83 percent in the second quarter.

This report provides an independent assessment of the time it takes First-Class Mail, once it’s deposited into collection boxes, to be delivered to homes, businesses and Post Office boxes nationwide.

During the same period, customer satisfaction was at 94 percent, up from 93 percent the previous quarter.

Hurricane-affected ZIP Codes 700, 701 and 395 were not tested in the later portion of this measurement period. EXFC externally measures collection box to mailbox delivery performance. EXFC continuously tests a panel of 463 ZIP Code areas selected on the basis of geographic and volume density from which 90% of First-Class Mail volume originates and 80% destinates. EXFC is not a system-wide measurement of all First-Class Mail performance.

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POSTAL NEWS BRIEFS

NEW RATES GO INTO EFFECT JAN. 8
The Governors of the U.S. Postal Service voted to accept the Postal Rate Commission’s recommendations to increase most postal rates and fees by approximately 5.4 percent across-the-board, to take effect Jan. 8.

This rate increase — the first since 2002 — is needed to fulfill the requirement of a federal law passed in 2003. That law requires the Postal Service to establish a $3.1 billion escrow account, with use of the funds to be determined by Congress at a later date. Without this federal mandate, it would not have been necessary to raise rates in 2006.

Among the rate adjustments, the single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by 1 cent to 24 cents. The Board of Governors of the Postal Service set Jan. 8, 2006, as the effective date for the changes.

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INTERNATIONAL SHIPPING LABELS AVAILABLE ON EBAY
U.S. Postal Service international shipping labels can now be printed from eBay’s website. “This means the best products, the best service and the best value are now just a click away for eBay’s international shippers,” says Nick Barranca, vice president of USPS Product Development.

Global shipping with the Postal Service is quick, easy and convenient. Through a single transaction, customers can pay with their PayPal accounts and print labels containing customs forms for the Postal Service’s Global Express Mail, starting at $15.50; Global Priority Mail, starting at $7; and Global Airmail Parcel Post, starting at $13.25. The streamlined labels containing customs forms allow customers to combine what had been three steps into a single transaction. As an added convenience, customers can arrange through Carrier Pickup Online Notification to have these shipments picked up by the letter carriers who come to their homes and offices each day.

Earlier this month, the Postal Service made online international shipping labels available on its Click-N-Ship website at usps.com/clicknship.

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MEMO TO MAILERS
Volume 40 Number 11

Ilze Sella
Editorial Services

David Ostroff
Designer

Betty Shelton
Purchasing Specialist

John E. Potter
Postmaster General and CEO

Thomas G. Day
Senior Vice President, Government Relations

Azeezaly S. Jaffer
Vice President, Public Affairs and Communications

Memo to Mailers
is published by U.S. Postal Service
Public Affairs and Communications.
USPS eagle symbol and logotype are
registered marks of the
United States Postal Service.

© 2005 United States Postal Service. The following are among the many trademarks owned by the United States Postal Service: USPS®, U.S. Postal Service®, United States Postal Service®, Postal Service™, Post Office™, Priority Mail®, Express Mail®, Standard Mail™, First-Class Mail®, Registered Mail™, Certified Mail™, Delivery Confirmation™, Signature Confirmation™, ZIP Code™, Click-N-Ship®, NetPost® and The Postal Store®. This list is not a comprehensive list of all Postal Service marks.

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