Memo to Mailers
- December 2002 (Text)
UNITED STATES POSTAL SERVICE
VOLUME 37 NUMBER 12
DECEMBER 2002

WHAT'S INSIDE
ADDRESS QUALITY
HELPING protect MAILERS
HIGH-TECH SERVICE
POSTAL NEWS BRIEFS
FRIEND-TO-FRIEND
FORMULAS FOR MAILING
SUCCESS
Want to know what the Postal Service is doing to position mail as a key communications
and customer relationship tool? Ever heard of Simple Formulas? It's a collection
of idea starters, tips, tricks and trade secrets designed to use the mail to
grow business. Developed by the Postal Service for use primarily by small- to
mid-sized business customers, Simple Formulas provides a response to the growth
and value-based strategy in the USPS Transformation Plan.
The 18 easy-to-read brochures help businesses of any size acquire and retain
customers by using the mail in creative and effective ways. From "12 ways
to drive traffic to your store" to "Turn a good customer into a loyal
customer in 7 steps," these proven best practices have been receiving rave
reviews.
"Simple Formulas is a great way to speak 'in plain English' to our customers
about ways mail can help them achieve their business objectives," says
Nick Barranca, vice president of USPS Product Development.
A recent survey of 3,000 businesses across the nation provided significant feedback
on the usefulness of Simple Formulas. An amazing 81 percent of those reading
these brochures indicated that they are now likely to increase advertising through
the mail. More than 83 percent were so impressed with the kit that they shared
the information with colleagues. And as for "staying power," more
than 91 percent plan to keep the Simple Formulas kit on hand for future reference.
Not surprisingly, 90 percent of those surveyed indicated that they want to receive
more Simple Formulas publications to help them grow their business! That's good
news for the Postal Service and good news for the mailing industry.
Simple Formulas' "no postal jargon" ideas for the small- and medium-sized
business customer have immense appeal. Postmasters, small business specialists,
business service network managers, account managers, customer relations coordinators
and postal customer councils are requesting Simple Formulas at a record pace.
The brochures are used for trade shows, training programs, open houses, presentations
and as sales support material to assist businesses grow their business.
Requests for these business tools have also come from universities, vendors
and notably from Hattie Bryant, creator of Small Business School, the weekly
series on PBS stations. "We made Simple Formulas available from our exhibit
at the Association of Small Business Development Centers Conference," says
Bryant. "Attendees were so excited about the content they asked for more
copies. These men and women spend all of their time working with small business
owners, and they recognized the teaching power in the materials. They are anxious
to pass the information on to their clients."
The response has been so enthusiastic that more than 100,000 businesses have
requested Simple Formulas.
Gene A. Del Polito, president of the Association for Postal Commerce, noted
in the November issue of Direct magazine that Simple Formulas contains simply
written pieces that convey the "Get 'em to nibble at the bait … then
hook 'em and reel 'em in" kind of approach.
If Simple Formulas has the "nibble at the bait" approach, the next
series, Simple Formulas II, is the "hook 'em and reel 'em in" series.
Simple Formulas II will supply businesses with transactional and call-to-action
information on using the mail to acquire new customers, increase sales and create
customer loyalty.
Also, in the works are Simple Formulas editions for Package Services, a Spanish
version of the original 18 brochures and new direct marketing services, such
as Confirm, Friend-to-Friend Mail, Micropayments and Repositionable Notes. Stay
tuned!
To order your copy of our Simple Formulas kit call 1-800-THE-USPS (1-800-843-8777),
ext. AD4433.
INDUSTRY, USPS
CONCUR: CONFIRM LAUNCHES THE INTELLIGENT MAIL FUTURE
At a Mailing Industry Task Force meeting Nov. 21 in Stamford, CT, Pitney Bowes
CEO Michael Critelli and United States Postal Service Chief Technology Officer
Charles Bravo endorsed Confirm, USPS's new track-and-report service for letters
and flats, as an important first step in the development of "intelligent
mail."
Confirm, officially launched last September, is already used by nearly 100 business
mailers. Focus groups conducted last October in Chicago and other cities indicate
that both large and small mailers see significant value and potential in the
Confirm service. "What we are hearing," said Critelli, who has chaired
both the task force and its committee on intelligent mail since the group's
inception in the spring of 2001, "is that Confirm will deliver benefits
for customers in marketing, in fulfilment, and in financial services."
"The task force is convinced," Critelli told members of the committee
on intelligent mail, "that this service is a major step forward towards
achieving the task force recommendation that intelligent mail products be developed
in order to make mail more valuable to its customers and more competitive with
other communications channels."
Confirm is a mail tracking service that provides valuable electronic information
to USPS customers about their First-Class Mail, Standard Mail and Periodicals,
letter-size and flat-size mail.
Confirm provides advance delivery information about both incoming hard-copy
reply mail ("Origin Confirm" in service terms) and outbound mail ("Destination
Confirm"). Currently 98 percent of letter mail is successfully scanned
for Confirm reporting. The scan rate for flats is somewhat less than letters
because half of the flats entering the system bypass the flat-sorting machines
where the barcodes are scanned. USPS is planning to address that situation by
putting barcodes on bundles so flats can be tracked even if the individual pieces
don't go through a machine.
"We're very pleased that the Mailing Industry Task Force shares our view
that Confirm has tremendous potential and customer value," noted USPS Senior
Vice President Charles Bravo. "We're using Confirm information ourselves
to improve service. In fact, the Postal Service is applying PLANET Codes to
much of the mail it generates, such as pay checks and change of address notifications."

Confirm uses a combination of the POSTNET Code and PLANET Code to track a customer's
piece of mail. As the mailpiece progresses to its destination, the mail is scanned
at the different USPS processing facilities it passes through. These scans are
sent to a centralized network service, which collects the scan data and packages
it for use by customers. These files are then electronically transferred from
the centralized network and are available as both raw data and in reports shared
by customers and the Postal Service.
Confirm customers can view their data by either accessing the PLANET Codes site
or by having the files sent to them electronically.
USPS Vice President of Product Development Nick Barranca said one customer indicated
"Confirm is like getting time in a bottle, because we know who is responding
to our clients' direct mail campaigns and how. We can start on the next finely
tuned campaign, instead of waiting for the actual response pieces from the first
one to arrive. We can also be more proactive in fulfilling customer requests
through the mail by not having to wait for the hard-copy reply device.
"Mailers now receive near real-time information from the mail stream,"
added Barranca, "and that brings tremendous value to our customers. By
integrating Confirm into their business processes, customers can improve order
fulfilment, customer support staffing, cash management and their ability to
measure the effectiveness of advertising campaigns."
"Confirm is a powerful tool," said task force chairman Critelli. "Our
job will be to raise awareness about it and how it can help our industry grow
and prosper."
ADDRESS QUALITY
IMPROVEMENTS UNDERWAY
USPS LAUNCHES ACS CODE INITIATIVE TO BROADEN MAILPIECE PLACEMENT OPTIONS
Less than two months after the Postal Service and the Mailing Industry Task
Force announced support of new address quality initiatives, USPS officials introduced
expanded options for mailers who preprint address correction service (ACS) participant
codes on mailpieces.
Mailers and the task force had concluded that restricting the participant code
to the address block was both confining and costly. The new initiative, launched
Oct. 3, allows an ACS code to be placed on the mailpiece or an address label,
with or without a barcode, as long as certain requirements are met. The Domestic
Mail Manual M013 has been updated to reflect the change.
"Working with our customers, we continue to find opportunities to improve
both the address quality of industry and Postal Service databases, and the ways
in which the databases are used," says Deputy Postmaster General John Nolan,
co-chairman of the task force.
"The new option provides mailers with the opportunity to improve customer
service by maintaining accurate and current address files, while having the
potential to save time and effort in re-programming address print files"
adds Charles Morgan, Company Leader of Acxiom and co-chair of the task force's
subcommittee on address quality.
"Address quality is a key element of our core products," says USPS
Vice President of Product Development Nick Barranca, "and the Postal Service
anticipates that more mailers will be able to participate in the ACS program
and reduce their fees when receiving change-of-address information as a result
of the ACS participant code initiative."
"We're continuing to use the input from our customers to make changes that
add value for both mailers and ourselves," says USPS Chief Technology Officer
Charles Bravo, the Postal Service's task force representative on address quality.
"At its core, this is what transformation is about."
The optional location is authorized for both letter-size machine-ready pieces
and flat mail, as long both types meet the following requirements:

    The ACS participant 
      code must be printed directly below the ancillary service endorsement, left 
      justified, when the endorsement is placed directly above the address block. 
      
    If mailer keyline 
      information is used, it must be the top line of the address block. (Bar codes 
      must not be printed above the mailer keyline.)
    If a window 
      envelope is used, the clearance between the top line (mailer keyline) of the 
      address block and the top edge of the address window must be at least 1/25 
      inch. This clearance must be maintained during the range of movement of the 
      insert in the envelope.
    If an address 
      label is used, the clearance between the top line (mailer keyline) of the 
      address block and the top edge of the address label must be at least 1/25 
      inch.
    The ACS participant 
      code and ancillary service endorsement must be printed in a non-narrow variant 
      of Helvetica or Arial sans serif font in the range of 10 to 12 points.

The new ACS participant
code requirements were first published in Postal Bulletin 22086, Oct. 3, 2002.
For more information, please call the Address Change Service Department at the
National Customer Support Center at 800-331-5746.
FYI
The Aviation Mail Security and Hazardous Materials Programs represent the Postal
Service's commitment to provide a safe environment for customers, employees
and the traveling public. Visit the website at www.usps.com/aviationsecurity.
WWW.USPS.COM
Put your mail on hold online. Whether you're on vacation or an unexpected business
trip, you can rest easy knowing your mail is safely held for you at your local
post office. Check out Hold Mail Service at www.usps.com. Click on Mail Delivery.
POSTAL INSPECTORS:
FRAUD INVESTIGATIONS HELP PROTECT MAILERS
A four-year investigation by postal inspectors of American Presort Inc. (API),
the largest mail preparation company in the New York area, concluded this past
year with the criminal sentencing of three former owners, four managers and
five supervisors.
A former postal supervisor was convicted of accepting bribes. He cooperated
with the investigation and testified at trial against API and its management.
He was sentenced to probation.
API's customers were some of New York City's largest and most prominent banks,
insurance companies, brokerage houses, utilities and corporations. API submitted
more than 50 postage statements and about 2 million pieces of mail to the Postal
Service every day. Its mail was dispatched directly from API's Manhattan facility
to the Postal Service's Morgan Processing and Distribution Center as well as
to other nearby processing and distribution centers, the Bronx Hub and Spoke
Program, the Amtrak Train Station, and LaGuardia, JFK and Newark airports.
Inspectors estimated that API defrauded the Postal Service of over $25 million
in postage through a variety of postage schemes, including meter tampering and
claiming workshare discounts not earned. API also defrauded its clients by inflating
invoices.
Two of the former owners received prison sentences of 42 and 50 months and signed
forfeiture agreements for $5 million each. A third owner was sentenced to 60
months in prison. He refused to sign a forfeiture agreement and is liable for
a $20.7 million judgment. Four managers involved in the scheme received prison
sentences ranging from 30 to 37 months and each was ordered to pay restitution
of $17 million.
"Protecting the Postal Service is one of our primary missions, but postage
fraud investigations like the API case help protect not just the Postal Service,
but all mailers," remarked Chief Postal Inspector Lee R. Heath. "API
was driving out legitimate businesses. Its competitors couldn't keep up. During
the two-and-a-half year period we documented the scheme, the three API owners
collectively pocketed $15 million in salary and bonuses. Plus, they got $25
million for the sale of the company. They got that money because they cheated
us, not because they ran a highly efficient operation. When we go after crooks
like this, it keeps the playing field level, and when the Postal Service gets
the money it's due, rates are kept stable."
POSTAL INSPECTORS
WARN, 'TIS THE SEASON TO BE CAREFUL
According to an ancient proverb, it is better to give than to receive - that
is, unless you are giving to a con artist, warns Chief Postal Inspector Lee
Heath.
"Swindlers know that people tend to be in a more giving mood during the
holidays," says Heath. "So among the solicitations you receive this
year from legitimate charities, expect to find some that are misrepresentations,
or outright fraud."
To guard against falling prey to a phony charity, Heath offers these suggestions:

    If you are unfamiliar 
      with the charity asking for donations, request its annual report and financial 
      statement.
    Check out unfamiliar 
      organizations by contacting the Better Business Bureau.
    Make checks 
      payable to an organization, not an individual.
    Be suspicious 
      about requests for assistance that accept cash donations only.

Individuals who
wish to do a more extensive background check of a charitable organization may
also contact the Wise Giving Alliance, Council of Better Business Bureaus, 4200
Wilson Blvd., Arlington, VA 22203, or visit its website at http://www.give.org.
To learn more, or to report fraud online, visit the U.S. Postal Inspection Service
website at http://www.usps.com/postalinspectors.
HIGH-TECH CASH
REGISTER SPEEDS SERVICE
The Postal Service will soon complete the national rollout of a state-of-the-art
cash register expected to reduce by about 10 percent the amount of time customers
spend waiting at the counter. POS (point of service) ONE is a fully integrated
network that provides an accounting, marketing, payroll and sales office on
a small counter space.
The Postal Service's Board of Governors approved funding to complete installation
of POS ONE retail terminals among post offices that bring in more than 90 percent
of retail revenue. Once deployment is completed in mid-2005, there will be more
than 63,000 POS ONE terminals at about 15,000 post offices.
"POS ONE plays a major role in reaching our goals of improving customer
service and ensuring that our employees have the tools they need to efficiently
and easily provide postal services to our customers," explained Henry Pankey,
vice president, Delivery and Retail.
POS ONE replaces current integrated retail terminals with state-of-the-art hardware
and software with a fully networked system that extends many of the benefits
of information technology to post office counters. POS ONE began replacing outdated
integrated retail terminals in 1998. Today, more than 10,000 post offices use
this technology to account for 74 percent of walk-in revenue. POS ONE cuts transaction
time by nearly 10 percent by enabling retail associates to instantaneously access
options and costs to help customers make quick, informed decisions.
It also serves as an effective communications vehicle. "Retail associates
receive consistent information on a daily basis to keep them up-to-date on corporate
direction, promotions, and new product and service offerings," Pankey adds,
"as well as keeping them abreast of immediate changes in policies. POS
ONE eliminates the need for a separate machine to process credit and debit card
authorizations."
Beyond serving as the primary source for retail accounting, POS ONE will offer
the ability to offer customers value-added services to provide new revenue opportunities.
Pankey said the remaining post offices will use inexpensive hand-held data collection
devices now used for Express Mail and Priority Mail scanning. These enhanced
scanners, now under development, will incorporate and transmit daily financial
summary data.
THEY'VE HELPED
THE INDUSTRY GROW
Postmaster General John E. Potter recognized retiring Mailers' Technical Advisory
Committee (MTAC) members Leonard Bartels and Russ Shores for their contribution
to growth in the mailing industry.
"Thank you for helping bring change to the Postal Service," said Potter
at a recent MTAC meeting. "You've played a vital role in improving our
products, reducing costs and using technology to improve service and efficiency
- key components of our Transformation Plan."
Both Bartels and Shores will retire this year.
POSTAL NEWS BRIEFS
USPS VICE PRESIDENT RECEIVES MARKETING HONOR
The USPS Marketing Advisory Board has honored John Wargo, vice president, Service
and Market Development, for his efforts to bring "the voice and perspective
of the customer to the forefront of any business discussion" within the
Postal Service.
Wargo received the Martin Michael Excellence Award for 2002 from the board,
which serves as an advisory group for USPS's marketing management team. Its
members have included executives from such companies as DuPont, Citibank, IBM,
Wal-Mart and McDonald's.
In announcing the award, the board said Wargo's "personal example has helped
many people to speak out for the customer and to understand how to truly serve
them."
The board also recognized Wargo for exemplifying the entrepreneurial spirit,
creativity, passion and commitment of the board's founder, Martin Michael.
Michael helped the Postal Service establish the board in 1989 at the request
of Postmaster
General Anthony Frank. Previous winners were Kaye DeShields for her management
of in-store promotions in post offices and Christine Ray for her management
of the development and market introduction of USPS eBillPay.
MAILING MADE EASY
The new USPS publication, A Customer's Guide to Mailing, is proving to be a
big hit with American households.
More than 10,000 people responded to a Gallup survey in the back of the newly
released guide, with 95.3 percent of them saying the guide overall is useful.
In addition, 95.1 percent said it is helpful in choosing a service for mailing.
And, 82 percent said it has just the right amount of information.
A Customer's Guide to Mailing is available at Post Offices across the country
or at www.usps.com.
USPS WELCOMES POSTAL
COMMISSION
Postmaster General John E. Potter hailed the creation of a presidential commission
on the future of the Postal Service, noting, "The commission is good news
coming at the right time . . . We look forward to assisting in every way possible."
The Bush administration announced Dec. 11 creation of the nine-member bipartisan
Commission on the U.S. Postal Service. It will "identify the operational,
structural and financial challenges facing the Postal Service; examine potential
solutions; and recommend legislative and administrative steps to ensure the
long-term viability of postal service in the United States," said a Treasury
Department statement.
Potter cited the impressive qualifications of those who have been selected to
serve, noting that they will bring a "valuable new perspective to the challenging
and complex issue of postal reform." The commission will be co-chaired
by former Fannie Mae chief executive James Johnson and Hughes Electronics board
chairman Harry Pearce.
A similar commission, the Kappel Commission, resulted in the business model
of today's Postal Service, which was embodied in the Postal Reorganization Act
of 1970 that created the Postal Service in 1971. That commission established
a model that has served the country well for the past 30 years with unprecedented
improvements in service and efficiency. But times have changed. The 1970s business
model that is based on continuous mail growth is no longer valid. Growth in
mail volume is at risk from competition and new technologies. The number of
addresses continues to grow.
"The nation cannot afford a postal crisis. Mail is simply too important
to the life of our nation," says Potter. "The Postal Service is the
foundation of a $900 billion industry that employs 9 million people."
Potter says the commission has "a historic opportunity to offer recommendations
guaranteeing a postal system as effective and dependable as today's - for many
years to come."
The PMG said the commission is consistent with - and complementary to - the
USPS Transformation Plan, to which Potter said the Postal Service remains committed.

Volume 37 Number
12
Ilze Sella, Editorial Services
Frank Papandrea, Art Director
David Ostroff, Designer
Alan Valsi, Purchasing Specialist
John E. Potter, Postmaster General and CEO
Azeezaly S. Jaffer, Vice President, Public Affairs and Communications
MEMO TO MAILERS is published by U.S. Postal Service Public Affairs and Communications.

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EVERYBODY'S GOT
FRIENDS
Your friends generally pay attention to what you have to say. That's why they're
friends, right? So it makes sense that a person would pay more attention to
a mailpiece sent by a friend, and that's what the Postal Service's Friend-to-Friend
Mail service is all about.
Friend-to-Friend Mail is an innovative new way for advertisers to deliver their
messages and reach new customers through their current customer base. Advertisers
create Friend-to-Friend postcards and distribute them to their regular customers
who read the advertisers' messages and then send the postcard to their friends.
Since it has been sent personally, as a referral, by a friend, family member
or colleague, the impact of the mailpiece is increased.
With Friend-to-Friend Mail, existing customers can introduce products and services
to the people who really listen. It allows advertisers to leverage the excellent
relationship they have developed with their current customers to find and keep
new ones.
It's an inexpensive, easy to use and convenient service and advertisers are
charged for postage only when a piece is mailed between friends.
In addition to acquiring new customers, Friend-to-Friend Mail can be used for
thank-you notes, recruiting, meeting notices, or travel and hotel information.

Want more information on Friend-to-Friend Mail service? Contact your local postal
representative or e-mail f2friend@email.usps.com.