MEMO TO MAILERS - APRIL 2006 (text)
UNITED STATES POSTAL SERVICE
VOLUME 41 NUMBER 4
APRIL 2006

WHAT'S INSIDE
DATA-PACKED BARCODE
NPF HONORS
PARCEL RETURN
MAILING ONLINE
POSTAL NEWS BRIEFS

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THE MAIL WORKS!
The forecast for the U.S. Postal Service and the mailing industry is very good.

That’s the message Postmaster General John E. Potter delivered to more than 6,500 mailers and advertisers at the National Postal Forum in Orlando, FL. It’s a forecast based on a transformed Postal Service that will see a growth in Direct Mail as well as advances in technology that will track Postal Service performance and reduce costs.

“It wasn’t long ago that some of the pundits thought that total mail volume would be in steep decline by 2006, as hard-copy mail became obsolete,” said Potter. “They were wrong.”

Mail volume last year reached a record 212 billion pieces. Marketers have found that using the mail, along with the Internet, has resulted in significantly larger orders than if they had relied on Internet advertising alone, added Potter. “The public and the marketplace have spoken loudly,” he said. “The mail works.”

Potter also discussed the Postal Service’s high levels of customer satisfaction, elimination of $11 billion in debt and productivity increases six years in a row.

“Last year, we unveiled our 2006-2010 Strategic Transformation Plan,” he said. “It was the logical next step in advancing change and it builds on the progress we made in the 2002 Transformation Plan. The new Strategic Transformation Plan is full of bold initiatives that will require the industry and the Postal Service to work closer than ever to be successful. It's our roadmap for the future, and when we are successful, we will have driven an additional $5 billion in costs out of our base.

“I feel confident about the future,” Potter said. “We have enormous challenges. But we have the ideas to grow this business. I know that we can be more successful than ever.”

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DELIVERING A DATA-PACKED BARCODE
The Postal Service’s new 4-state barcode will provide a rich source of data to manage mail, track performance and create value, says Postmaster General John E. Potter. “It’s the barcode that will carry us for years to come,” he told the National Postal Forum.

Because it’s made up of four distinct, vertical bar types, the 4-state barcode can carry more information than previous postal barcodes.

“A number of companies have been assisting us by testing the 4-state barcode on live mail,” says Potter. “The results have been great and I fully expect the new codes to go live for all letter mail by September.”

Right now, a piece of mail can have several barcodes on the envelope, says Charlie Bravo, the Postal Service’s senior vice president of Intelligent Mail and Address Quality. “But because the 4-state barcode can hold up to three times more information than other kinds of postal barcodes, only one barcode will be needed on a mail piece. This will make it easier for our customers to do business with us as well as make the mail a more valuable business tool by freeing up space on the envelope for marketing messages.”

This development in technology will enable business mailers to track up to a billion pieces of mail at a time as well as to more easily request special services, such as address correction. The new technology will also enable the Postal Service to process and deliver mail more efficiently.

The 4-state barcode is part of the Postal Service’s Intelligent Mail effort, which is designed to provide much more information about the mail as it moves through the system.

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PLANNING A POLITICAL CAMPAIGN MAILING THIS ELECTION YEAR?
Learn everything you need to know now — and the resources available — by reading “Political Campaign Mail Season Is Here” in the March/April 2006 Mailers Companion. Go to usps.com/mailerscompanion and click “March/April2006.” If you would like to begin receiving Mailers Companion, send an e-mail to mncsc@usps.com and include your name, title, company name and complete delivery address.

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BEST IN CLASS
OUT OF THE BOX
Looking at things and asking, “But what if we did it this way?” Being creative in finding new ways to use the mail is what these award winners have done. These “out of the box” winners used the mail in new and different ways to help them meet their companies’ business objectives. The Postal Service appreciates these companies for taking calculated risks with a high probability of success.

Assurity
Steve Hawkins
Vice President Direct Marketing
Lincoln, NE

Gap, Inc./Banana Republic
Janet Irvine
Director of Production & Relationship Marketing
San Francisco, CA

Hasbro, Inc.
Doreen Mars
Director of Consumer Affairs
Pawtucket, RI

Heifer International
Steve Ficklin
Director of Donor Services
Little Rock, AR

HintonHill
Don Hill
President
Frederick, MD

Jewelry Television
Kathy Smith
Shipping Department Manager
Knoxville, TN

Kimberly-Clark
Susan Schmalz
Manager, Postal Affairs
Neenah, WI

New York Life Insurance Company
Linda Rao
AVP NYL/AARP
Marketing Production
Tampa, FL

R.J. Reynolds Tobacco Co.
Joyce Bagby
Postal Logistics Manager
Winston Salem, NC

INNOVATION
This group of award winners took the next step of implementing new technologies and best practices to maximize efficiencies in the mail value chain. These companies employed innovative technologies and automation in their mail operations to improve productivity and meet increasing demands of their customers. The Postal Service honors these winners who epitomize the title of this award.

CIGNA
Ronald Goglia
Assistant Vice President CIGNA IT,
Output Distribution Services
Easton, PA

GameFly
Steve Brown
Senior Vice President, Operations
Los Angeles, CA

Gatorade-Targetbase, Inc. (A Division of PepsiCo, Inc.)
Julia Ford
Senior Print Production Supervisor
Chicago, IL

Internal Revenue Service
Alfred Johnson
Director, Distribution Media and Publications
Washington, DC

Mailing Service, Department of Management & Budget, State of Michigan
Rose Wilson
Director, Agency Services
Lansing, MI

Neiman Marcus Group
Debbie Wood
Director Sales Promotion Planning & Circulation
Dallas, TX

Noridian Mutual Insurance Company
Annie Wilcox
Print and Mail Manager
Fargo, ND

The Home Depot
Shelly Nandkeolyar
President, Home Depot Direct Brands
Atlanta, GA

Xerox North America
Michael H. Guerin
Services Marketing Manager
Rochester, NY

INDUSTRY STAR
The recipients of this award have demonstrated their commitment to a relationship that produced winning results. These award winners are recognized for their business partnership with the Postal Service to enhance the value of services and products that the Postal Service offers to all of its customers. The scope of these partnerships ranged from training to cost saving opportunities.

Amazon.com Inc.
Girish Lakshman
Director and General Manager, Transportation
Seattle, WA

Erie Insurance Group
Jack Gorman
Manager, Distribution Services
Erie, PA

Fairrington
James Reifenberg
Vice President and Chief Marketing Officer
Bolingbrook, IL

HSBC North America Holdings, Inc.
Phil Yee
Manager, Purchasing
Salinas, CA

Postal Products Unlimited, Inc.
Brian Nelson
President and Chief Executive Officer
Milwaukee, WI

Social Security Administration
Jo Anne Barnhart
Commissioner of Social Security
Washington, DC

Stamps.com
Ken McBride
President and Chief Executive Officer
Los Angeles, CA

Time Inc.
Scott Lorenz
Director of Postal Operations and Systems
New York, NY

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USPS EARNS AWARD FOR MARKETING RESEARCH
The Postal Service has been awarded the advertising industry’s highest honor for research that results in high-impact marketing. The 2006 Grand Ogilvy Award was accepted by Postal Service representatives for the organization’s “Access” campaign, which increased awareness of USPS package shipping products and services.

“We knew our small business customers would take advantage of the convenience of our services through USPS.com, but the challenge was building awareness,” said Chief Marketing Officer and Executive Vice President Anita Bizzotto. “We successfully did that.”

The effort included television, print, radio and Web advertising, as well as employee awareness efforts. Perhaps most memorable was “Angie,” the woman in the TV commercial who bails out her co-workers as they pile on packages for her to mail. The Access campaign features the Postal Service's Carrier Pickup Online Notification and other offerings available at USPS.com.

The research, developed in cooperation with the Postal Service’s advertising agency Campbell-Ewald and other partners, was the driving force behind the creative work.

The Advertising Research Foundation Ogilvy Awards are named after legendary advertising executive David Ogilvy who believed that behind every great advertising campaign is great research.

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FYI
The Postal Service Board of Governors approved a recommendation from the Postal Rate Commission extending the expiration date for the Repositionable Notes (RPNs) provisional service by one year. RPNs are sticky notes that can be placed on envelopes, catalogs, magazines or newspapers to highlight important information or a special offer. Since the notes can be easily removed from the envelope, the recipient can place them somewhere handy as a reminder of the offer.

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PARCEL RETURN SERVICE IS HERE TO STAY
It’s a keeper! Parcel Return Service, the easy and economical way to return merchandise through the mail, is now a permanent mailing option.

The U.S. Postal Service Board of Governors approved a recommendation from the Postal Rate Commission and voted to make the change effective April 2.

Launched as a two-year experiment in October 2003, the service offers a cost-effective way for merchants to obtain items their customers choose to return. It provides added convenience to customers through a specially designed, prepaid return label that can be included in the original packages, mailed to customers or made available for a customer to download via the Internet.

Merchants, or their parcel consolidators, who have been approved as participants for the Parcel Return Service program can choose to pick up returned merchandise at a Post Office delivery unit or Bulk Mail Center. This lowers processing and transportation costs for the Postal Service, which results in lower prices for merchants. Customers need only place the pre-printed, postage-paid label on the package they wish to return, give it to a letter carrier, drop it in a collection box or bring it to a Post Office.

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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
at no extra charge.
www.usps.com/pickup

ONLINE SHORTCUT
One-click access.
www.usps.com/smartbusiness

QUESTIONS?
800-ASK-USPS

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MAILING ONLINE GOES GLOBAL
Customers using NetPost’s Mailing Online now can send mail internationally.

Mailing Online, a powerful printing and mailing service, combines the speed of the Internet with the effectiveness of traditional mail. Mailing Online offers an array of printing and mailing options to customize orders. With a few clicks of the mouse, customers can upload their document and address list and Mailing Online takes care of the rest: printing, folding, inserting, addressing and applying the postage to each piece. Each piece is professionally prepared and mailed the next business day, if submitted by 1:30 p.m. (ET).

This year, the U.S. Postal Service expanded delivery options for Mailing Online to include international addresses. Delivery had been limited to domestic addresses. Customers now only have to add a “country field” to their address lists before submitting the final mailpiece and complete address database.

“Many small business owners are expanding into foreign markets or offering products overseas. Giving customers the option of sending the direct mail pieces they create through Mailing Online overseas is one more way the Postal Service is responding to the needs of our customers,” says Nick Barranca, vice president, Product Development.

Mailing Online is quick, easy and convenient. Customers log on to USPS.com at a time that’s convenient for them and create direct mail pieces from their laptops and work or home computers. With this service, a mailing can be scheduled up to a month in advance and can be sent using First-Class Mail, Standard Mail and Nonprofit Mail (for qualified mailers and materials) and now at international rates.

Every piece of mail for domestic addresses also gets a discounted postage rate, as they are presorted and qualify for mixed Automated Area Distribution Center rates. The types of mailpieces available through Mailing Online include booklets, postcards, letters, newsletters and self-mailers. Graphics and photos also can be added to each piece for higher effect. Color printing options also are available with full color highlights in red, blue, green and magenta, as well as black and white.

“No matter what your mailing needs might be, the Postal Service has a quick and easy solution available online for our customers,” says Barranca.

Users can also send important documents via Certified Mail. Certified Mail features enable a customer to choose Return Receipt and Restricted Delivery options. Return Receipt is one way to confirm proof of delivery, requiring the recipient to sign for the mail. Restricted Delivery limits delivery to only the addressee, and usually is used for the delivery of private or classified documents.

For more information or to sign up as a Mailing Online customer, go to usps.com/netpost or contact Customer Care at 866-665-2787.

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KEEP YOUR SHIPPING PROMISES TO KEEP YOUR CUSTOMERS
A delivery promise made to a customer is a promise delivered when retailers turn to the U.S. Postal Service to ship their goods through Parcel Select service.

With Parcel Select, shippers enter packages at a Post Office or plant near the point of delivery. Because the packages bypass steps in handling and transportation, the Postal Service can offer customers an attractive price, while the efficient postal delivery network is able to ensure reliable, predictable delivery.

Offered in partnership with package consolidators, Parcel Select has been popular for fulfillment with catalog and online retailers. As more and more consumers shop at home, the number of catalog/Internet parcels destined to residential neighborhoods continues to grow.

And who offers an extremely efficient gateway to connect shippers with consumers from coast to coast? The Postal Service, of course.

“Parcel Select has been a good experience for JCPenney due to the efforts of the Postal Service and the consolidators who have focused on consistent delivery service that has been critical to the success of the program,” says Martin Bernstein, director of Carrier Relations/Postal Affairs for the retailer.

“Meeting the delivery requirements of the owners of the packages, which is JCPenney, ultimately gets it to the customer on time. And that is what we are all trying to do. The consumer is who we are trying to please, and if they are happy, that’s good for us, it’s good for the Postal Service, and it drives more business,” says Bernstein.

Postal Service package competitors are using the product as well, because they recognize that the Postal Service is able to deliver to residential and rural addresses more cost-effectively than they can deliver themselves.

Gaining a customer is the first step. Keeping them as a customer means ensuring online and catalog shoppers get what they ordered on time.

Learn more about Parcel Select at USPS.com or by e-mailing PackageServices@usps.com.

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POSTAL NEWS BRIEFS
FLORIDA POSTMASTER HONORED BY NEWSPAPER PUBLISHERS
William “Jack” Gentry, a dedicated Florida Postmaster praised for his efforts to ensure timely delivery of newspapers, is this year’s winner of the Benjamin Franklin Community Newspaper and Postal Partnership Award of Excellence.

The award was presented by Postmaster General John E. Potter during the National Newspaper Association (NNA) conference in Washington, DC.

The Benjamin Franklin Award of Excellence is presented to the Postal Service employee who best exemplifies the spirit of Benjamin Franklin. Franklin, the nation’s first Postmaster General, was a newspaper publisher and statesman who viewed delivering newspapers through the mail as a critical link in the communication chain that binds the nation together. Gentry shares this vision and dedication.

Potter says Gentry, Postmaster in Chiefland, FL, “is an example of what the Postal Service is accomplishing nationally, providing our customers with superior service every day.”

Gentry was nominated by Dale Bowen, publisher of the Chiefland Citizen, who said, “Jack goes above and beyond the call of duty to correct any and all problems including personally driving sacks of newspapers to area Post Offices. He suggests processes that make my job easier and save the company money too. Jack is very responsive and pleasant, making him a joy to work with — he keeps customers satisfied.”

USPS SEEKS NEW NEGOTIATED SERVICE AGREEMENT
Washington Mutual Bank is the latest Postal Service customer to take advantage of an innovative pricing tool that continues to gain in popularity with high-volume mailers.

The Postal Service has filed a Negotiated Service Agreement (NSA) request with the Postal Rate Commission (PRC), which, if approved, would result in a three-year NSA with Washington Mutual Bank for First-Class Mail in the bank’s credit card business.

An NSA is a contractual agreement between USPS and a company whose mail use is an integral part of its business strategy. The NSA provides customized pricing incentives based on the company’s mail operations.

The changes in rates and mail classification needed to implement the NSA must first be reviewed and recommended by the Postal Rate Commission and then approved by the USPS Board of Governors.

“These agreements allow mailers to see better returns on their investments in Direct Mail,” says Stephen Kearney, vice president of USPS Pricing and Classification.

NSAs give the Postal Service a way to customize rates and services to accommodate the unique mailing needs of specialized business customers and to encourage cost-efficient mail preparation for accurate sorting and distribution.

The Governors previously have approved NSAs with HSBC North America Holdings Inc., Capital One Service Inc., Bank One (now JPMorgan Chase) and Discover Financial Services Inc., all for First-Class Mail. The PRC has not yet ruled on a proposed NSA for Standard Mail with Bookspan book clubs.

“The volume and contribution incentives that we can create through NSAs are the real innovation for our customers and clients,” Kearney says. “These agreements allow us to help our clients and customers grow their business through Direct Mail programs.”

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MEMO TO MAILERS
Volume 41 Number 4

Ilze Sella
Editorial Services

David Ostroff
Designer

George Huelsman
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.

© 2006 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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