MEMO TO MAILERS - OCTOBER 2005 (text)
UNITED STATES POSTAL SERVICE
VOLUME 40 NUMBER 10
OCTOBER 2005

WHAT'S INSIDE
TRANSFORMATION PLAN
AFTER THE STORMS
DIRECT MAIL
HOLD FOR PICKUP
KEEPING POSTED

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TRANSFORM!
The U.S. Postal Service is taking its next step in transformation guided by a vision to be the best value for customers, the best-run communications and delivery operation, and the best place to work.

Postal Service Board of Governors approved the Strategic Transformation Plan 2006-2010, initiating the agency’s next strategic phase, building on the successes of the original Transformation Plan, introduced in 2002.

“Transformation became the watchword of the Postal Service in 2002,” said Postmaster General John E. Potter. “Our goal was to position the Postal Service to navigate a dynamic market environment and communications landscape successfully. The results speak for themselves.”

He noted that postal product and service offerings are marked by innovation, ease-of-use, and accessibility.

Potter said, “We have reduced costs and increased productivity. Our people, the men and women of the Postal Service, have brought service performance and customer satisfaction to record levels.”

During the next five years, the Postal Service will remain focused on its core business and those strategies that produce results, he said.

“We will promote growth by creating more value for every customer. We will continue to reduce costs by improving efficiency in all our operational and business processes. We will bring service performance to even higher levels. We will use the best technology to make the mail a rich source of information both for our customers and our operations managers. We will achieve all this with an energized, customer-focused workforce,” said Potter.

Board Chairman Jim Miller noted how today’s business environment changes daily and its effect on the Postal Service as technology advances.

“We cannot predict how events halfway around the world — or in our own backyard — will affect our costs. We cannot predict the final form of postal reform legislation — or even if it will occur. But we can do our best to prepare for the impact of these external factors. We understand that our plan must be dynamic and adaptable. It must help us manage and succeed through periods of uncertainty,” said Miller.

The plan outlines a blueprint for the future to prepare the organization to respond to changing customer needs, market requirements, technological developments and legal requirements.

Postal Service leadership is committed to transforming the Postal Service with the goal of making certain that the Postal Service can provide affordable, high-quality mail service to everyone in America — today and well into the future.

Details of the plan can be found at www.usps.com/strategicplanning/transform.htm.

> Strategy:
Foster growth through customer value
Create more customer value in core products and services to increase mail volume and revenue that will allow USPS to continue financing universal service and the growing delivery network. Value includes making products and services easier to use, more accessible and more reliable — predictable performance at affordable prices.

> Strategy:
Improve operational efficiency
Expand standardization and process control. Focus on major cost drivers, especially delivery operations. Take advantage of improved equipment and technology, and target new investments to further drive productivity gains. Examine facility capacities to consolidate operations and build an integrated multi-product network. Develop new, low-cost forms of customer access.

> Strategy:
Engage and motivate the workforce
Achieve results with a customer-focused performance-based culture. Our employees will be fully focused on serving our customers and growing the business.

> Strategy:
Provide timely, reliable delivery, and improved customer service across all access points
Improve the quality of postal services by continuing to focus on the end-to-end service performance of all mail. Ensure that postal products and services are designed and delivered to meet customer expectations. Customer services and forms of access will be responsive, consistent and easy to use.

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AFTER THE STORMS
Respond. Reconnect. Re-establish. This was the focus of the Postal Service in the aftermath of Hurricanes Katrina and Rita. The Postal Service worked to respond to the needs of customers, reconnect residents with their mail and restore mail service in the storm-damaged Gulf Coast region.

Displaced residents were urged to file Change-of-Address forms ­— online at www.usps.com, by phone at 1-800-ASK-USPS or at the nearest Post Office — so they would get their mail wherever they were relocated. Tens of thousands of residents affected by the disaster did just that.

Delivery resumed in storm-damaged areas when and where it was safe to do so, and USPS used generators to power facilities without electricity and used mobile buildings where Post Offices were damaged.

“The rebuilding efforts from Hurricane Katrina will be monumental,” said Postmaster General John E. Potter, “but our nation has always met difficult challenges, and we in the Postal Service will do our part to make sure the recovery occurs.”

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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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CREDIT GOES TO DIRECT MAIL
Today’s online credit card applicants are more plugged into what’s in their mailbox than what’s in their inbox, according to a national report.

Despite developing trends in online marketing, the findings of a recent study conducted by comScore Networks for the U.S. Postal Service reveal that most consumers still prefer and respond more strongly to one of the oldest, most traditional forms of marketing — Direct Mail.

According to the 2005 “Multi-Channel Credit Card Acquisition Study,” Direct Mail is a key factor in determining the online behavior of consumers and mail is the No. 1 driver of traffic to online credit card applications. CIBC World Markets, a research firm specializing in corporate, government and institutional investor clients, reported that mail was responsible for more than 13 million of the nearly 35 million online credit card applications last year — over one-third of all online applications.

“The financial services industry has been very successful in developing an online credit card application model and our new study provides some great examples of how mail and the Internet work extremely well together in multi-channel marketing,” says USPS Chief Marketing Officer and Executive Vice President Anita Bizzotto. “In our recent multi-channel catalog study, we learned that catalogs drive online sales. Now we have verification that other Direct Mail has a positive effect on Internet sales as well.”

ComScore Networks observed the behavior of more than 1 million consumers and administered a pop-up survey to more than 2,400 online credit card applicants at various credit card company websites. The study was designed to quantify the benefits of Direct Mail versus online marketing tools such as e-mail and banner ads, measure consumer attitudes about Direct Mail and online marketing, and assess the impact of Direct Mail credit card solicitations on the quality, loyalty and volume of online credit card applicants.

“This research clearly shows that there is a powerful correlation between the marketing messages that consumers receive in the mailbox and their resulting online behavior,” said Linda Abraham, executive vice president of comScore Networks. “Mail is the most effective marketing medium in terms of influencing consumers to apply for a credit card online and the Internet provides a strong fulfillment channel.”

Other highlights from the Multi-Channel Credit Card Acquisition Study:

Consumers have a stated preference for mail
Seventy percent of all consumers, 69 percent of prospects and 74 percent of existing customers open and read a credit card offer when delivered by mail.
> Consumers (including customers and prospects) prefer to receive credit card offers in the mail rather than electronically, over the Internet.
> Of all consumers, existing customers are most likely to open and read a credit card offer.

Sixty-five percent of consumers read more of the credit card offers they receive in their mailbox than those they receive over the Internet.
> Consumers (including customers and prospects) are most likely to open and read credit card offers that are received through the mail.

Mail delivers higher-quality, more-committed applicants
Mail drives the most credit card application initiations and consumers influenced by mail have the highest application conversion rate.
> Consumers receiving mail are more likely to submit an online application.
> Consumers receiving mail are less likely to competitively shop for other offers.

Mail prompts consumers to action
In 2004, Direct Mail drove more than 13 million prospects to an application and 77 percent of these prospects completed and submitted the application online.
> Mail is even more influential among prospects and non-shoppers than current customers.
> Mail drives non-customers to the online channel and influences prospects to complete the credit card application more than online marketing media.

Sixty-one percent of consumers respond more to credit card offers they receive in their mailbox than over the Internet.
> Consumers respond more to credit card offers received by mail.
> Regardless of credit risk segment or income level, the majority of consumers driven to apply for a credit card online are responding to mail.

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HOLD FOR PICKUP
Sometimes customers are home for a package delivery — sometimes they’re not. Maybe they’re at work or school — or just away on business or pleasure. How about giving your customers the option of picking up that important package — particularly a high-value item — at the Post Office at their convenience?

The Postal Service is now offering its Parcel Select shippers a new endorsement called “Hold For Pickup.” It’s designed for merchants that ship high-value and heavyweight packages and want to avoid multiple delivery attempts, improve security and enhance customer convenience. This endorsement also will be used by merchants for items they do not want left at the recipient’s door.

“We are responding to the needs of customers who have been asking for this delivery option,” says USPS Chief Marketing Officer and Executive Vice President Anita Bizzotto. “Our unsurpassed retail presence is a valuable asset for direct-to-consumer shippers, and we anticipate expanding the option to all package products where it meets the convenience needs of our customers.”

How does it work? Packages with the Hold For Pickup endorsement are drop shipped to a designated postal facility. The shipper is responsible for notifying the customer that the package has arrived and is available for pickup at that location. The customer has 10 calendar days to pick up the package before it’s returned to the sender.

Not all Post Offices will be designated as Hold For Pickup facilities. Participating merchants and shippers will be provided with a list of offices that are Hold For Pickup locations.

The Parcel Select Hold For Pickup endorsement is another way the Postal Service is transforming to meet the changing needs of its customers.

Go to www.usps.com for more information about Parcel Select.

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NATIONAL POSTAL FORUM
RAISING-THE-BAR WORKSHOPS
Can you add value to workshops presented annually at the National Postal Forum (NPF), the country’s premier educational event and tradeshow for mail professionals? Submit your topics and they could be featured at the 2006 NPF in Orlando, FL.

Workshop topics and speakers for the next NPF will be selected and approved through a new “Call for Presentations” designed to improve quality and relevance. “We’re following the lead of other successful events such as the Direct Marketing Association Conference,” says Heidi Cherry, USPS program manager for mailer education. “We think this will ‘raise the bar’ for the Forum workshops.”

The 2006 National Postal Forum is scheduled for April 2-5 at the Gaylord Palms Resort and Convention Center in Orlando, FL.

Current plans call for approximately 100 hour-long workshops, presented Sunday through Wednesday. Presentations will focus on Mail Application and Mail Execution value chains, and workshop topics will reflect how the Postal Service provides value to current customers and new customers.

The Mail Application Value Chain category includes topics such as customer acquisition, customer retention and fulfillment. The Mail Execution Value Chain category includes Acceptance and Induction, Service Measurement and Performance, and Address Accuracy.
Interested presenters should submit information as soon as possible. NPF will review the submissions and select the topics that best reflect the interests of mail customers. All potential presenters will be notified of their submission status by Oct. 31.

Presenters are asked to provide the following information:
Speaker contact information (name, job title, company, address, phone numbers, e-mail)
Speaker biography (50-75 words)
Title of session
Session description (75-100 words)
Abstract (200-300 words, including outline of the contents, objectives, scope, methods, results, conclusion and recommendations; description of speaker experience and knowledge of the subject matter)
Session level (All levels/introductory/intermediate/advanced)
Speaker type (Analyst/consultant/service provider/user/end customer/vendor)

PowerPoint presentations and handouts will be required for all workshops. If a copy of the PowerPoint presentation and the handouts that will be distributed are not included with the proposal, these will be required by Feb. 3. The NPF will make copies of all presentation materials.

For more information, send e-mail to: heidi.cherry@usps.gov.

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

BUILDING BUSINESS TOGETHER
The United States Postal Service remains committed to keeping service performance high and costs down, Postmaster General John E. Potter told a national satellite television audience of thousands of Postal Customer Council (PCC) members at over 200 venues.

The Postmaster General’s remarks highlighted the 2005 National PCC Day, an annual celebration of the partnership between the Postal Service and its PCCs. The broadcast originated live from the Lakeland Mailing Expo in Madison, WI.

Postal Customer Councils are a national network with more than 120,000 business members who help the Postal Service add value and make the mail work better for customers.

“We will build on the successes we achieved with the transformation plan we implemented in 2002,” the Postmaster General said, “and transform the Postal Service into a customer-focused, service-oriented and technologically advanced delivery service in the years ahead.”

Potter addressed topics of particular concern to business customers and identified a number of products and services designed to streamline mail service processes.

A single 4-State barcode soon will replace the more than 30 barcodes and labels mailers now use to sort and track mail, Potter said. He promised that PCC members will be the first to learn about new products for mailing to improve the cost effectiveness of Direct Mail.

Potter urged PCC members to stay engaged and reach out to other businesses in their communities. “The only way we will succeed in building this industry is for us to work together and build this business together,” he said.

Potter also announced PCCs in the Dallas/Fort Worth, TX, area will host the 2006 National PCC Day and its nationwide broadcast.

Postmaster General John E. Potter praised USPS employees and the mailing community for their response to the Hurricane Katrina disaster.

He said many postal employees came to work even though their own homes were destroyed or severely damaged. “They did so because they understood the importance of putting in place methods to deliver Social Security, retirement checks and public assistance checks wherever Gulf residents had been relocated,” he said.

Potter also thanked PCC members for sending donations and contributions to the Postal Employees Relief Fund (PERF) and other relief organizations providing aid and shelter to survivors along the Gulf Coast.

For more information about PERF, go to www.postalrelief.com.

PCC RECOGNITION
National PCC Day showcases the work of PCCs and recognizes the best performers through a series of awards.

Winning the PCC of the Year award was the Miami-Dade County PCC. Accepting the award were co-chairs Susan Reed of Florida Power and Light and Miami Postmaster Jesus Galvez.

Gale Sprouse-Hudson, a Customer Relations Coordinator in Fort Worth, TX, was the Postal Member of the Year.

Kim Waltz, President of the Fred Waltz Company in Providence, RI, received the Industry Member of the Year Award.

Other award winners included:
Membership Gold Award: Dallas PCC
Membership Silver Award: Fort Worth PCC
Membership Bronze Award: West Michigan PCC
Joint Meetings/Vendor Shows Gold Award: Greater Boston, Central Massachusetts, Northeastern Massachusetts, Western Massachusetts, Southeastern Massachusetts and Providence PCCs
Joint Meetings/Vendor Shows Silver Award: Dallas and Fort Worth PCCs
Joint Meetings/Vendor Shows Bronze Award: Cincinnati, Dayton, and Central Ohio PCCs
Planning Gold Award: New York City PCC
Planning Silver Award: Central Ohio PCC
Planning Bronze Award: Dallas PCC
Education Gold Award: Cincinnati PCC
Education Silver Award: West Michigan PCC
Education Bronze Award: Dallas PCC
Financial Management Gold Award: Fort Worth PCC
Financial Management Silver Award: Twin Cities PCC
Financial Management Bronze Award: New York City PCC
Database Management Gold Award: Fort Worth PCC
Database Management Silver Award: Utah PCC
Database Management Bronze Award: Tampa/Pinellas PCC

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POSTAL NEWS BRIEFS

2005 INTERNATIONAL AND MILITARY HOLIDAY MAILING DATES
Beat the last-minute rush! For delivery of holiday cards and packages by Dec. 25 to international or military addresses, the Postal Service suggests mail be entered by these recommended mailing dates:

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OCTOBER: NATIONAL STAMP COLLECTING MONTH
Wish upon a star with the Postal Service’s dangler mobile featuring Leo, Pegasus, Lyra and Orion Constellation stamps.

The $12.95 mobile is approximately 15" x 24" with the earth spinning separately in its center. On one side of the dangler is a printed enlargement of the stamp art of each Constellation, along with an area to affix and save the actual stamp. The four Constellation stamps are included.

Hang in a classroom, child’s room or family playroom — and celebrate the wonders of the night sky.

Customers can purchase the mobile at The Postal Store at www.usps.com/shop or by calling 1-800-STAMP 24 (1-800-782-6724).

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MEMO TO MAILERS
Volume 40 Number 10

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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