Memo to Mailers - May 2002 (Text)
UNITED STATES POSTAL SERVICE
VOLUME 37 NUMBER 5
MAY 2002

WHAT'S INSIDE
MAIL CENTER MANAGER
NPF AWARDS
IDEA FORUM
CONFIRM
POSTAL NEWS BRIEFS
NEW RATES, NEW STAMPS

CONSENSUS IS KEY
The Postal Service's Transformation Plan is not about the needs of USPS, says
Postmaster General John E. Potter. It's about the nine million people who work
in the nation's mailing industry, and it's about the people both USPS and mailers
serve - the customers.
"If we don't accomplish transformation now, the universal mail service
that your businesses and the mailing public rely on will be in jeopardy,"
he told mailers at the National Postal Forum (NPF) held April 21-24 at San Diego.
"You and your business cannot afford to let that happen to you."
Potter, delivering the keynote address, urged the $900 billion mailing industry
to support the Postal Service's transformation efforts. "We all have a
stake in securing the future of universal mail service in this country,"
he said.
The plan examines possible business models and presents options that will require
national debate.
Potter said some steps already are being taken to begin the process of transformation,
including lifting a self-imposed moratorium on closing post offices and evaluating
the existing mail processing network to strengthen service performance and reduce
costs. He said USPS is working with the Postal Rate Commission to convene a
joint summit of mailing industry stakeholders to discuss ideas for modernizing
the rate-making process.
While near-term operational and performance-based strategies will generate $5
billion in savings and cost avoidance through 2006, Potter said long-term reform
is essential.
"We need the help of our policy-makers to legislate postal reforms,"
said Potter. "If they cannot reach consensus on a business model for the
Postal Service, then we will have allowed a valuable national asset to erode
and ultimately fail and be wasted."

PARTNERS IN MAIL
The work of the Mailing Industry Task Force, comprised of representatives from
all segments of the mailing industry, served as important input to the Postal
Service's Transformation Plan, say postal officials.
"In order to succeed in the future, the Postal Service requires a commitment
to innovation and efficiency both from its own workforce and from its partners
in the mail," says Deputy Postmaster General John Nolan, co-chair of the
task force. "The task force initiatives reflect how well that partnership
can work."
At the NPF in San Diego, the task force outlined its progress. It was formed
in May 2001 to unite the industry and deliver new products and service improvements
that better meet evolving customer needs. Its initiatives include a pilot track
and trace solution, a strategy to develop an intelligent mail system on the
existing USPS infrastructure, a USPS self-service retail pilot offering round-the-clock
access and enhanced merchandise return, new credit and financing options, submission
of a Federal Register notice to enhance address quality, and a world-class network
integration model.
"I am very pleased with the progress we've made to date," said Pitney
Bowes Chairman and CEO Michael J. Critelli, co-chair of the task force. "Our
goal is to revitalize the mail channel into a medium that's easier to use, more
flexible, data-enhanced and relevant to today's customer needs. The mail is
important to individuals and critical to business. By enhancing its value and
flexibility we will ensure its future viability."
To unify the industry and underscore the vital role that mail plays in today's
economy, the industry, apart from USPS, created an advertising campaign that
will run in target cities around the country.
For more information on the Mailing Industry Task Force and its latest update,
visit the USPS website at www.usps.com/strategicdirection/mitf.htm.

HONORED FOR MENTORING
At the NPF, the Postal Service recognized 12 mailers for their mentoring programs.
Johns Hopkins University, 3M, Allstate, Compaq Computer, State Farm, Citigroup,
Discover Financial Services, McGraw-Hill, USAA, American Express, Bank of America
and Verizon received the special awards from Postmaster General John E. Potter.
In January, USPS began highlighting the subject by issuing the "Mentoring
A Child" commemorative postage stamp as its social awareness stamp for
the year.
"We are pleased to honor these mailers for the outstanding mentoring programs
they have implemented," said Potter. "These organizations are a good
representation of the $900 billion mailing industry. Not only do they have a
strong impact on our economy but also, through programs such as mentoring, they
make a significant social contribution to our country."

FYI
Attended by more than 7,000 people, the National Postal Forum is the mailing
industry's premier educational and networking event for mailing industry professionals
to help them keep pace with changes in the mailing industry.
Make plans to attend the next NPF Sept. 22-25 in Boston.

GETTING TO KNOW
MERLIN
The Postal Service is offering customers a training class on MERLIN (Mailing
Evaluation Readability and Lookup Instrument) as it implements several changes
to ease the nationwide transition to this new mail quality tool.
MERLIN enables the Business Mail Entry process to use technology to review letter-
and
flat-size mailings for barcode quality, address accuracy, mail makeup and mailpiece
characteristics. Last month, USPS agreed to act on recommendations from a Mailers'
Technical Advisory Committee (MTAC) workgroup related to MERLIN deployment,
including expanded training for postal
employees and readiness reviews at MERLIN sites.
In addition, on June 1, 2002, USPS will lift the moratorium for assessing postage
adjustments
due to barcode readability errors detected by MERLIN on flat-size pieces. Effective
June 1, the 60-day grace period will commence at all activated MERLIN sites.
The earliest any postage adjustments will be assessed for barcode readability
errors that fall below an 80 percent threshold for flats will be
Aug. 1, 2002.
Due to many requests for information on how MERLIN works and its benefits to
customers, USPS is offering customers a four-day training class at the National
Center for Employee Development in Norman, OK. Topics covered will include MERLIN's
purpose and function, system operation, mail evaluation, interpreting reports
and questions and answers. To enroll, please call Tom Myers at 703-292-3544
or Byron Jacobson at 405-366-4639. The fee for this course is $950 per student,
which includes lodging, meals and all course materials.
CONGRATULATIONS

National Postal
Forum, San Diego, CA, April 21-24
Spring 2002 Award Winners

Partnership for
Progress
Hallmark
Kansas City, MO
James Pierce Myers
Executive Vice President and Counsel
Parcel Shippers Association
Washington, DC
Postal Rate Commission
Washington, DC
Mail Center Manager
Gordon (Gordy)
Adamski
Supervisor of Receiving and Transportation
LexisNexis
Charlottesville, VA
Kevin Burr
Manager of Operations and Mail Center
Mystic Color Lab
Mystic, CT
Arnie Cohen
Manager of Mailing Services
Modern Postcard
Carlsbad, CA
Jim Goff
Bindery Manager
Vertis Inc.
Saugerties, NY
Peter R. Grottini
Director of Postal Affairs
Bookspan
Mechanicsburg, PA
Sam Medure
General Manager
Eckerd Health Services
Express Pharmacy Services
Largo, FL
Dalynnda Odom
Mail Center Service Manager
UICI Insurance Center
North Richland Hills, TX
Peggy Smith
Manager of Mail Services
Washington University
St. Louis, MO
Ed Talley
Manager of Postal Services
Northern Arizona University
Flagstaff, AZ
Special Achievement
Maynard H. Benjamin
President
Envelope Manufacturer's Association
Alexandria, VA
Martin A. Bernstein
Media Transportation/Small Package and Postal Relations Manager
JCPenney Corp. Inc.
Plano, TX
Capital One Financial
Services
Falls Church, VA
Accepting: Patrick Gemmell
Group Manager of Card and Document Services
Rick Chlebos
Director of Mailing Operations
RGC Communications
Roselle, IL
John R. DePiazza
Vice President of Postal Relations
DST Output
Sacramento, CA
Len Ellis
Executive Vice President of Enterprise Strategy
Wunderman
New York, NY
Dennis Farley
Senior Manager of Distribution
ESPN The Magazine
New York, NY
Mark E. Graydon
Director of Office of Publications Management
Social Security Administration
Baltimore, MD
Tom Johnson
Manager of Mail and Delivery Services
Boston Financial Data
Services Inc.
Braintree, MA
Wayne Johnson
Manager of Support Services
Pentagon Federal Credit Union
Alexandria, VA
H. Don Landis
Vice President of Postal Affairs
Arandell Corp.
Menomonee Falls, WI
Michael Martinez
Senior Manager of Logistics
HSN
St. Petersburg, FL
James M. Prevost
Senior Vice President
DST Output
Kansas City, MO
Joseph Schick
Director of Postal Affairs
Quad/Graphics
Pewaukee, WI
Sue Taylor
Manager of Presort Operations and Postal Liaison
Prudential Financial
Millville, NJ
William Terry
Senior Manager
Domestic Logistics
Distribution Fulfillment Services Inc.
Groveport, OH
Lillian Vernon
President/CEO
Lillian Vernon Corp.
Rye, NY
SPRING 2002 IDEA
FORUM
Call them the dynamic dozen. At the NPF in San Diego, the Postal Service recognized
12 companies and their representatives with its Idea Forum award.
The award recognizes individuals or corporations who have successfully implemented
significant technological or mail-related innovations in their companies to
enhance the value of mail as a strategy to generate revenue or reduce costs.
The Idea Forum award categories and postal customers recognized for their accomplishments
are:
Customer Relationship Management
Strengthening the relationship between a company and its customers is key to
customer retention and acquisition. Recognized for using new technology, best
practices and the mail to improve customer relationships and grow their
businesses were: Neil R. Herron, director, Federal CRM Applications, Oracle
Corporation, Reston, VA; Mike C. Overly, director, Worldwide CRM Implementation,
Hewlett Packard, Denver, CO; and Daphne Y. Lee, Relationship Marketing Manager
for Jaguar Cars, Irvine, CA.
Implementing Mail Center Best Practices
Long recognized as an innovator in the mailing industry, Mail Services Manager
Randy Thompson of Allied Insurance in Des Moines, IA, knows that controlling
costs is essential to increasing profitability. As a result, he focused on three
specific mail center improvements.
First, he created an efficient solution to provide "proof of mailing"
for thousands of notices and cancellations sent daily by insurance companies.
Cost savings will exceed $100,000 a year.
Second, he focused on presort discounts and improved address accuracy and deliverability
via a multi-line optical character reader with Fast Forward.
And finally, he is heading up a project using PLANET Codes for CONFIRM on origin/remittance
mail to keep Allied Insurance in the forefront of customer service in the insurance
industry.

Mail Preparation
Quality
To maximize profits and control costs, mailers using letter and flat mail need
to prepare their mailings correctly the first time, every time. That means taking
advantage of new and existing postal programs, services and procedures.
Recognized for their efforts to help the mailing industry improve quality in
all mailer production units under the new Mail Preparation Total Quality Management
Program are: Richard W. Pavely, president, Corporate Management & Marketing
Consultants Inc., Randolph, NJ; and Robert Scott Hatton, Quality Enhancement
Support Specialist, Capital One Services Inc., Glen Allen, VA.
Other companies whose mailing sites are certified under the Postal Service's
Mail Preparation Total Quality Management program include:

Mail-piece design:
Advertising mail at work
Following the Sept. 11 attacks last year, Judith E. Antisdel, president of Anne-
Tisdale and Associates Inc., believed there was a need to reinforce the fact
among the company's clients that, more than ever, they could continue to take
advantage of the "Power of the Mail" to deliver their advertising
messages.
Taking the initiative, the company created an 8-by-10-inch
ad-mail self-mailer titled "Is it time to stop advertising your business?"
The mail piece reminded customers of the value of ad mail and the reasons they
could rely on ad mail to remain successful.
More than 2,000 of the self-mailers with the message to
continue advertising were sent to clients and prospective business customers.
As a result, Anne-Tisdale & Associates Inc., saw a minimal drop in seasonal
mailings and received numerous inquiries about their mailpiece design.
The company saw a 35 percent increase in the use of postcards and self-mailers
and continues to demonstrate that mail remains a vital advertising tool, even
during the most stressful times in mailing industry history.
Kentucky Lottery
Corporation - Everyone deserves a Second Chance
A new way has emerged for a state lottery to "touch its customers"
with the Kentucky Lottery Corporation (KLC) in Louisville, KY - working in conjunction
with the Postal Service - unveiling a totally new "Second Chance"
direct mail marketing campaign.
Led by KLC Promotions Manager Lisa Ion and Production Manager Rhonda Goodwin,
the unique response device for consumers to respond back to KLC was established
in partnership with a USPS Kentuckiana District team headed by Account Manager
Pamela Simms and Sales
Specialist Diana Maines. It allows lottery customers to enter a non-winning
ticket into a second chance drawing.
The unique "Second Chance" program could very well become an industry
standard and expand to applications beyond state lotteries.

Genesis Direct
- Reaching the customer in three seconds
Realizing that most customers decide within seconds which direct ad mail piece
will receive their attention, Marketing Vice President B.J. Ryan of Genesis
Direct in Oldsmar, FL, created a personalized one-to-one direct marketing campaign
that provided high "open" and "read" rates, unique tools
embedded in the direct mail pieces to measure the return on investment for clients,
and a cost-effective method to facilitate her customers' marketing needs.
Personalization used in the message and on the response cards increased response
rates 7 percent. The success of these campaigns has heightened her clients'
confidence in the use of direct mail as the advertising medium of choice, and
has resulted in many customers increasing their direct mail budgets by more
than 50 percent.

Sharing Ideas to
Build Success - Improving mail quality
Improved mailpiece design and address quality can help reduce company mailing
costs and improve customer service. Leading the way are three companies that
recognize the benefits from improved mail quality made possible through the
mail preparation diagnostics and analysis provided via MERLIN.
These companies and their representatives were recognized with Idea Forum awards
for their work in helping to educate mailers about improved mail quality, increased
efficiency of Postal
Service mail processing and delivery, and greater customer satisfaction through
the use of MERLIN. They are: Lynn Chandley, director of Postal Affairs for Total
System Services Inc. of Columbus, GA; Harry Stephens, president of DATAMATX
Inc., in Atlanta, GA; and Robert O'Brien, vice president of DM List Services
and Postal Distribution Policy for Time Customer Service Inc., in Tampa, FL.

REVOLUTIONARY PRICING
STRUCTURE
Mailers who turn to CONFIRM to track their letters and flats through the Postal
Service system will use a subscription service with a threetiered pricing structure.
What's more, customers will have additional options to expand usage, according
to a new mail classification and flexible pricing proposal filed with the independent
Postal Rate Commission.
"We're really excited about CONFIRM," says Stephen Kearney, vice president,
Pricing and Classification. "It's a great product and it's also a great
example of how the Postal Service worked with customers to provide a service
they needed at a price that's right."
Kearney says CONFIRM is a tangible example of market-based pricing by USPS -
an important element of the Transformation Plan. "CONFIRM's revolutionary
new pricing structure - subscription service rather than per transaction charges
- represents real value for the Postal Service and real value for mailers,"
he says. The subscription system allows customers to purchase a general level
of service rather than pay for each individual transaction.
CONFIRM uses PLANET codes to uniquely identify each mailpiece. This technology
provides mailers with near real-time information about where their letters or
flats are in the mailstream, and USPS gets important operations and delivery
performance data. The information is available to mailers electronically via
the Internet or by direct download into their computer systems.
CONFIRM both utilizes technology to add value to the mail and products, and
offers prices that meet specific customer needs.
"As the largest user of CONFIRM for flats, we've realized considerable
benefits for both our clients and our company," says Anita Pursley, vice
president, Postal Affairs, Quebecor World Logistics, one of the customers who
participated in the CONFIRM pilot test.
"Our catalog clients are using planet code data to manage their fulfillment
and call center resources more effectively and are realizing significant cost
savings. Internally, Quebecor World Logistics uses this data to more effectively
achieve our clients' in-home delivery expectations.
"Truly, CONFIRM is an excellent example of adding value to Postal Service
products and services."
It's good to share… information
The CONFIRM program now offers online customer reports that enable USPS and
mailers to work together "off the same page" to identify, monitor
and resolve mail performance issues. Three new shared customer reports are available
to CONFIRM customers at www.planetcodes.com. They are:
Entry Scan Performance Report. Indicates when a customer's shipment received
an entry scan and where the scan occurred.
Shipment Delivery Performance Report. Indicates the number of days from the
date the shipment was entered until the mail pieces were finalized for delivery.
Mail Piece Summary Report. Displays - in a viewer-friendly fashion - PLANET
barcode data generated from processing of individual mailpieces on mail processing
equipment.
All three reports can be downloaded into a spreadsheet, if needed.
To gain access to information about their mailings, customers can use their
existing website username and password. For questions about viewing CONFIRM
reports online, contact CONFIRM Customer Support at 800-238-3150.

BRIEFS
CUSTOMER SATISFACTION
Ninety-three percent of households nationwide reported having a positive view
of the Postal Service, according to the most recent Gallup survey. In addition,
External First-Class (EXFC) service performance scores have reached or exceeded
93 percent for the 18th consecutive quarter.
The EXFC results, independently measured by PricewaterhouseCoopers, cover overnight
delivery service performance for the period of Dec. 1, 2001, through Feb. 22,
2002.
EXFC externally measures collection box-to-mailbox delivery performance, continuously
testing a panel of 463 ZIP Code areas selected on the basis of geographic and
volume density from which 90 percent of First-Class volume originates and 80
percent destinates. EXFC is not a system-wide measurement of all First-Class
Mail performance.

IT'S ABOUT CONVENIENCE
Online Pickup service is the newest addition to the Shipping center site on
www.usps.com. This service allows customers to request same-day or future pickup
of their Express Mail, Priority Mail, Global Express Guaranteed® and Parcel Post
prepaid articles at their home or office. The fee is $10.25.
As always, there's no charge to customers who hand their prepaid items to their
letter carrier at the time of regular delivery. Also, on-call pickup is still
available at 800-222-1811.

Volume 37 Number
5
Ilze Sella, Editorial Services
Frank Papandrea, Art Director
David Ostroff, Designer
Jim Fisher, Printing Specialist
John E. Potter, Postmaster General and CEO
Deborah K. Willhite, Senior Vice President, Government Relations and Public
Policy
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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A FLAG. A STAR.
FOUR ANTIQUE TOYS
Look for new postage stamps ahead of the June 30 rate changes. In mid-June,
USPS plans to issue five non-denominated stamps good for the 37-cent First-Class
rate - the U.S. Flag stamp and a set of four Antique Toys stamps, depicting
a mail wagon, steam locomotive, taxicab and fire engine.
Also scheduled for mid-June is a 3-cent make-up rate stamp featuring a star
highlighted in red, white and blue. This stamp will make it convenient for customers
to use any remaining 34-cent stamps they may have on hand.
Denominated versions of the U.S. Flag and Antique Toy stamps, all bearing the
37-cent rate, are scheduled to be issued in late July.