Innovative Direct Mail Strategies to Grow Your Business Slide 1: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Direct Mail Strategies to Grow Your Business The words included are: Your name Your title Date of event Name of event City, State. Notes: Good morning/afternoon, My name is x x x , and I am here today to speak with you about the power of Direct Mail and how it can enhance your overall Advertising Campaign and help you grow your business. End of Slide 1. Slide 2: Image Information: United States Postal Service Logo in the far left top corner. A row of mailboxes sitting on a board. End of Image information. Has the heading: Innovative Strategies Agenda The words included are: (arrow used for bullet)Media Trends (arrow used for bullet)The Value of Mail (arrow used for bullet)Address Quality (arrow used for bullet)Direct Mail Innovations Notes: Our focus will be on why Direct Mail should be included as part of any good multi-channel marketing/advertising campaign and what the benefits are. We will discuss the current media landscape, some recent trends in media, industry projections and new innovations in Direct Mail. I will also touch on the importance of Address Quality in any good Direct Mail campaign. I will provide you with research examples to exemplify the power of Direct Mail, along with recommendations and tips that will help you make sound business decisions when using Direct Mail as part of your multi-channel marketing mix. So let’s get started! End of Slide 2. Slide 3: Image Information: United States Postal Service Logo in the far left top corner. A row of mailboxes sitting on a board. End of Image information. Has the heading: Today’s Media World Image: An image of the globe. End of image information. The words included are: What about Mail? Table: Has 2 columns and 18 rows. Row 1: Column 1: (Header)Traditional Channels Column 2: Blank Row 2: Column 1: (Header)TV Column 2: Channel 4, CBS Logo ET Logo NBC Logo Fox Logo Row 3: Column 1: (Header)Radio Column 2: Star 107.7 Logo XM Logo CBS (eye) Radio Logo Row 4: Column 1: (Header)Magazines Column 2: Men's Health Logo Ladies Home Journal Logo Business Week Logo Row 5: Column 1: (Header)Newspapers Column 2: Chicago Tribune Logo USA Today Logo The New York Times Logo Row 6: Column 1: (Header)New Channels Column 2: Blank Row 7: Column 1: (Header)News Media Sites Column 2: Cnn Logo boston.com Logo Slate Logo Row 8: Column 1: (Header)Web Sites Column 2: iVillage Logo About.com Logo Style.com Logo Row 9: Column 1: (Header)Blogosphere Column 2: Boingboing Logo Gizmodo Logo GAWKER Logo Row 10: Column 1: (Header)Community Forums Column 2: Yahoo Finance Message Boards Logo Google Logo Row 11: Column 1: (Header)Instant Messaging Column 2: AOL Logo Yahoo! Logo msn Logo Row 12: Column 1: (Header)MP3 Players Column 2: An image of what appears to be a Mac Ipod. An image of a different kind of mp players. An image of a different kind of mp plyaers. Row 13: Column 1: (Header)Word of Mouth Column 2: Image of a persons mouth Image of a person whispering in someones ear. Row 14: Column 1: (Header)Social Networking Sites Column 2: MySpace.com Logo YouTube Logo Bebo Logo Row 15: Column 1: (Header)Wireless Channels Column 2: Blank Row 16: Column 1: (Header)Cell Phones Column 2: Image of a cell phone. Image of a different cell phone. Row 17: Column 1: (Header)PDAs Column 2: Image of a Blackberry Image of a Laptop computer Image of a different Blackberry Row 18: Column 1: (Header)Portable Media Players Column 2: Image of a portable DVD player Image of a different kind of player. Notes: We know the media landscape and communications channels are changing. With the increasing fragmentation of media, today’s corporate marketers—including the U.S. Postal Service—are as concerned as ever about their company’s bottom line. We are bombarded with ads in every form imaginable. And it will only increase as technological advances improve the methods of communication. Then of course there is the Internet, pretty much anything you need you can find online. But the bottom line here is that Direct Mail is still one of the most powerful direct marketing media around and marketers are using it more and more. End of Slide 3. Slide 4: Image Information: United States Postal Service Logo in the far left top corner. A cartoon image of a television with a table in front of it. End of Image information. Has the heading: Innovative Strategies Direct Marketing Alternatives The words included are: TELEVISION + Powerful mix of imagery, sound, color (high impact). Emotional. - Increasingly fragmented & impacted by technology RADIO + Less expensive, distinct targeting, uses sound, short lead time. - Impacted by growth of Satellite Radio & On-Demand Music INTERNET + Cheap, quick, targeted, interactive, trackable, quick to implement. - Unsolicited and unknown emails are deleted. MAGAZINES + Targets niche or mass audiences, longer life, strong imagery. - Becoming more specialized and Custom Publications are a growth area. Image of a cartoon radion in black and white in the far left corner at the bottom of the slide. Notes: Let’s address each medium’s strengths and the challenges they face. TV – increasingly fragmented & impacted by technology (TiVo, DVRs) (bullet)Once there were only 3 channels. Advertisers had a pretty good chance that their message would be viewed by a wide audience. (bullet)Today, there are hundreds of channels. This fragmentation reduces the number of possible viewers. Radio – increasingly impacted by growth of satellite radio & on-demand music (Sirius and XM radio) (bullet)Technology is allowing consumers to listen to only the music that they want and avoid advertising messages. Internet – Growing in importance & changing the business model for all advertising media. (bullet)However, think of your own experience, when you receive an unsolicited email, and sometimes even one from a known company, what do you do? Hit the delete button. Email advertising is not very effective & many feel that it is an invasion of their privacy. (bullet)Technological advancements will address many advertiser’s desires to reach the consumer as well as consumer’s desires to avoid the ads. Magazines – Becoming more specialized and custom publications are a growth area. This is another medium where fragmentation is reducing the number of possible viewers. Specialization and targeting of the audience is critical. End of Slide 4. Slide 5: Image Information: United States Postal Service Logo in the far left top corner. A cartoon image of a newspaper. End of Image information. Has the heading: Innovative Strategies Direct Marketing Alternatives The words included are: NEWSPAPERS + Like magazines, affordable, frequent, established shopping medium. - Losing market share OUTDOOR / IN-STORE + Strong branding, lots of eyeballs, low cost. - Overwhelming and invasive Yellow Pages + Mainstay for small business, ease of use - Advertising along side competition, localized & costly Image of a lady sitting down reading the newspaper in the far left corner at the bottom of the slide. Notes: Newspapers – losing market share (bullet)This industry is working hard to find ways to keep consumers. Websites have not worked well. Future technological advancements like the epaper may help. (bullet)The epaper is a plastic sheet that wirelessly downloads & updates the news/information/ads on a regular basis & is portable like the current newspaper. Outdoor/in-store – an explosive growth area that is becoming more interactive & dynamic due to technological advancements. (bullet)Everyone has seen the LCD billboards that light up and change like a giant computer screen. (bullet)There are buses that have GPS billboards on the side that will display a message about a business that the bus is passing at that moment. (bullet)Cell phones/Ipods will beep and display a message about a product available in the shop that you are near in the mall or on the street. (bullet)Ads are on eggs, in bathrooms, on the back of your ticket (to anything) (bullet)No place or item will be safe from a potential ad; either static or audio. Yellow Pages – continues to be a mainstay for small businesses (bullet)One drawback is that your ad is alongside & competes directly with your competitors when the consumer opens to your page in the book. (bullet)Online yellow pages is having good success, though general Internet search does often lead potential customers to sponsored ads that may be too costly for a small business. End of Slide 5. Slide 6: Image Information: United States Postal Service Logo in the far left top corner. A row of mailboxes sitting on a board. End of Image information. Has the heading: Innovative Strategies 2007 Advertising Spend* Total US Advertising Expenditure Projected 2007* = $292 B The words at the very bottom of the slide included are: Projected Direct Mail Share of Total Advertising Spend 2007 is 21.5% *Projected; Source: Robert Coen, Insider’s Report December 2006 There is a pie chart: From right to left (there is a line drawn from color to text): Tan: Network TV 6% Maroon: Spot TV 3.7% Purple: Cable TV 6.8% Burgandy: Syndicated TV 1.4% Gold: Local Spot TV 5.2% Lime Green: National & Local Radio 6.6% Teal: Magazines 4.7% Red: National & Local Newspapers 16.2% Royal Blue: National & Local Yellow Pages 4.2% Green: Direct Mail 21.5% Orange: Internet 3.6% Yellow: Other National 13.1% Blue: Other Local 6.2% End of pie chart. At the far right is a box with the words "Combined TV advertising spend is 23.1% ". At the far left is a box with the words "Direct Mail is second only to TV in total Advertising spend!". End of Slide 6. Slide 7: Image Information: United States Postal Service Logo in the far left top corner. Postal worker working in Postal Office at the far right. A couple reading mail at the far left. A mailbox with the flag raised inside of a Computer Monitor at the bottom. End of Image information. Has the heading: Innovative Strategies Why Mail? The words included are: (arrow used for bullet)Enhances Multi-Channel Marketing Notes: One of mail’s key strengths is its ability to work with other media. You can no longer reach your audience through one medium. Multi-channel marketing is key. Mail helps you integrate your multiple media channels because it complements your Print, TV, Radio, Internet and outdoor advertising vehicles. End of Slide 7. Slide 8: Image Information: United States Postal Service Logo in the far left top corner. Three girls outside reading mail at the far right bottom corner. End of Image information. Has the heading: Innovative Strategies Why Mail? The words included are: (arrow used for bullet)Businesses can track and increase profitability (arrow used for bullet)Keeps customers informed with relevant materials (arrow used for bullet)Mail creates satisfied and loyal customers (arrow used for bullet)Mail targets and builds relationships (arrow used for bullet)ROI Is Easily Measured Notes: Mail works because – - It has a great ROI, (return on investment) - You can target your audience, - And it helps you build relationships and loyalty…. (bullet)Customer relationships are important and mail can help you establish and maintain those relationships End of Slide 8. Slide 9: Image Information: United States Postal Service Logo in the far left top corner. A row of mailboxes sitting on a board. End of Image information. Has the heading: Innovative Strategies Direct Mail can be used in ANY and EVERY Point of the Brand Preference Cycle The words included are: Direct Mail Works hard In Any Role In the Brand Contact/ Preference/ Reaction Continuum Image information: There is an image of different colors of arrows connecting to forma circle and each has a word on it. In the middle of the circle is a image of stack of dollar bills. Colors of arrows and words: Blue: Awareness Red: Consideration Navy Blue: Preference Green: Purchase Orange: Satisfication Brown: Loyalty Purple: Advocacy End of Image information. Notes: Direct Mail is a valuable tool in every stage of the cycle customers go through on the way to building brand preferences. Direct Mail works because it’s flexible, efficient, cost effective and targeted!! (bullet)(underlined)Awareness(end of underlined) – DM provides marketers with a unique and efficient way to create awareness for their products and services. (bullet)(underlined)Consideration(end of underlined) – DM fosters an atmosphere of customer consideration if the offer or service is targeted and relevant. (bullet)(underlined)Preference(end of underlined) – DM provides marketers with the ability to meet their customer’s specific preferences and needs through personalization and data research. (bullet)(underlined)Purchases(end of underlined) – DM provides recipients with the means to make educated and cost effective purchases. (bullet)(underlined)Satisfaction(end of underlined) – DM enhances customer satisfaction by providing offers and services to recipients that suit their specific wants, needs and buying habits. (bullet)(underlined)Loyalty(end of underlined) – DM helps to create customer loyalty through brand awareness. (bullet)(underlined)Advocacy(end of underlined) – DM creates a sense of customer advocacy as long as it remains consistent in its relevancy and benefit promotion. End of Slide 9. Slide 10: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Growing Evidence that Mail Works Image Information: There are four (4) images with words under each. They are as follows: Image one: A lady smiling with her head in her hand and what appears to be a label on her forehead. Words under are: Mail Moment Image two: A house. Words under are: Household Diary Image three: A woman sitting and looking through a catalog, with a laptop computer by her. Words under are: Catalog Research Image four: A cartoon image of a postal workers hand pointing to the left with the words 'Returned to Sender' on the hand. Words under are: UAA Cost Study End of Image information. Notes: 4 Major Research Efforts The Value of Mail/Mail Moment Household Diary Multi-Channel Catalog Research UAA (Undeliverable As Addressed) Cost Study USPS researches what consumers respond to and what our commercial customers need: (underlined)Mail Moment Research(end of underlined) (bullet)Mail is built into the daily routines of households (bullet)98% of mail brought into the household the day it is delivered (bullet)We see blocking techniques being developed in other media (bullet)DVRs (Tivo) (bullet)Anti SPAM software (bullet)Do Not Call/Do Not Fax legislation (bullet)There has not been a major “Do Not Mail” campaign in the US. (bullet)People LIKE their mail (bullet)Mail is a good tool to help manage the household (underlined)Multichannel Catalog Research(end of underlined) (bullet)Hardcopy Catalogs are still relevant in the digital age (bullet)Research shows that consumers who receive catalogs are more valuable online customers (bullet)Internet buyers are GREATLY influenced by hardcopy catalogs (underlined)Household Diary Study(end of underlined) (bullet)Focuses on mail going into home (bullet)Identifies volumes processed by different classes of mail (bullet)Focuses on what people receive in the mail and their reactions (underlined)UAA Cost Study(end of underlined) Will be discussed later in this presentation End of Slide 10. Slide 11: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies The Mail Moment: People Do It Every Day! The words included are: (arrow used for bullet)98% of consumers bring their mail into the home the same day it is delivered (arrow used for bullet)72% of consumers bring the mail in at the first opportunity, when they first get home or when the mail arrives (arrow used for bullet)77% of consumers sort their mail immediately (arrow used for bullet)75% value the privacy of mail (arrow used for bullet)63% said an interesting-looking piece caused them to open and read it. “CEO” of The Mail Source: USPS 2004 Mail Moment Research Study Notes: (bullet)98% of consumers viewed DM in the home the day it is delivered (bullet)There is a CEO of the Mail in the household (bullet)This person makes most of the purchases in the home and controls the finances! (bullet)While only 57% of households check e-mails on a weekly basis. End of Slide 11. Slide 12: Image Information: United States Postal Service Logo in the far left top corner. An cartoon alarm clock at the far left bottom corner. End of Image information. Has the heading: Innovative Strategies The Mail Moment: People Do It Every Day! The words included are: (arrow used for bullet)Routine/Ritual (arrow used for bullet)Portable (arrow used for bullet)Tangible (arrow used for bullet)Non-Intrusive Performs 3 Basic Jobs (arrow used for bullet)Browse for Consumption / Entertainment (arrow used for bullet)Manage Household Operations (arrow used for bullet)Manage Household Budgets 7 Minutes a Day – Sorting 30 Minutes a Day – Reading /Browsing Source: USPS 2004 Mail Moment Research Study Notes: The Mail Moment – mail enhances peoples’ lives and helps them make decisions. People like mail! (bullet)It’s Routine (bullet)It’s Portable (bullet)It’s Tangible (bullet)And, it’s non-intrusive Performs 3 Basic Jobs: (bullet)Browse for Consumption (bullet)Manage Household Operations (bullet)Manage Household Budgets (bullet)Consumers spend 7 minutes a day sorting (bullet)They spend another 30 minutes a day reading and browsing through their DM, magazines, catalogs and advertisements End of Slide 12. Slide 13: Image Information: United States Postal Service Logo in the far left top corner. Three different catalogs at the far left. A woman sitting and looking through a catalog, with a laptop computer by her, at the far right. End of Image information. Has the heading: Innovative Strategies Catalog Research: Direct Mail Sells! The words included are: (arrow used for bullet)comScore: (bullet)Global Information Provider (bullet)Diverse Panel (bullet)Real Time Data Capture (arrow used for bullet)Quantifies Statistical Data (arrow used for bullet)Mail drives traffic to your web sites Source: USPS 2004 Multi-Channel Catalog Research Notes: (bullet)Multi-Channel Catalog Research (bullet)comScore (bullet)Global information provider (bullet)Diverse Panel (bullet)Real Time Data Capture (bullet)Statistically quantified the relevance of catalogs in the Internet Age (bullet)Catalogs complement the Internet (bullet)The web takes the place of the phone in ordering (bullet)Catalogs drive more Web Traffic End of Slide 13. Slide 14: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Catalog Research: Hardcopy Sells! The words included are: (arrow used for bullet)63% of consumers enjoy browsing through catalogs (arrow used for bullet)64% of consumers ordered from catalog rec’d in last 30 days (arrow used for bullet)88% of consumers more likely to buy Recipients: (arrow used for bullet)Spend twice as much as those who don’t (arrow used for bullet)Account for 22% of web site traffic (arrow used for bullet)Account for 37% of its e-commerce dollars (arrow used for bullet)Increase online visits by 16% (arrow used for bullet)View 22% more pages (arrow used for bullet)Spend 15% more time at retailer’s site (arrow used for bullet)Purchases result in 16% spending increase (arrow used for bullet)Over 2/3 of Gen X & Y – used offers sent via Direct Mail! Source: USPS 2004 Multi-Channel Catalog Research Notes: But the most important information that the research has shown is: (bullet)Recipients who receive a catalog: (bullet)Browse More – 63% (bullet)Ordered More – 64% (bullet)Are more likely to buy – 88% (bullet)Spend twice as much as those who don’t receive catalogs (bullet)Account for 22% of web site traffic (bullet)Account for 37% of its e-commerce dollars (bullet)Increased online visits by 16% (bullet)View 22% more pages (bullet)Spend 15% more time at retailer’s site (bullet)Purchases result in 16% spending increase (bullet)Gen X & Gen Y: (bullet)Gen X 28-40 years old, Born 1965-1976 (bullet)Gen Y 11-27 years old, Born 1977-1994 (bullet)Gen Z? (at times even young children ask their parents if there is anything for them when they are with the parent getting the mail) End of Slide 14. Slide 15: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies The Household Diary: It Gets People’s Attention! The words included are: (arrow used for bullet)21% of total Advertising dollars are spent on Direct Mail advertising (arrow used for bullet)46% of households read the Direct Mail they received (arrow used for bullet)39% of households find Direct Mail interesting (arrow used for bullet)5.5% increase in Direct Mail households received Attracted to unique pieces having Impact and Differentiation! Source: Household Diary Study, FY 2006 Notes: According to the 2006 Household Diary Study: (bullet)21% of total ad spend is spent on direct mail (bullet)46% of households read the direct mail they received (bullet)39% of households find advertising interesting (bullet)5.5% increase in advertising mail households receive from 2002 to 2004 Consumers like mail and they are attracted to unique pieces with IMPACT & Differentiation! End of Slide 15. Slide 16: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies The Household Diary: It Gets People’s Attention! The words included are: (arrow used for bullet)Media Trends (arrow used for bullet)The Value of Mail (arrow used for bullet)Address Quality (arrow used for bullet)Direct Mail Innovations A chart thatis made to look like a table and has 4 rows and 5 columns: Row 1: Column 1: Advertising Mail Behavior Column 2: 1987 Column 3: 2002 Column 4: 2003 Column 5: 2006 Row 2: Column 1: Read Column 2: 49% Column 3: 42% Column 4: 43% Column 5: 46% Row 3: Column 1: Scan Column 2: 40% Column 3: 37% Column 4: 38% Column 5: 35% Row 4: Column 1: Don't Read Column 2: 9% Column 3: 19% Column 4: 18% Column 5: 16% Source: Household Diary Study, FY 2006 Notes: Here’s a chart showing the trend of how consumers behaved toward direct mail from 1987 – 2006: As you can see, in 1987, the percentage of consumers who either read, or at least scan, the direct mail pieces they received was high…49% & 40% respectively, with the “Don’t Read” percentage being only 9%. In 2002 & 2003 we saw a slight decline in the “Read” or “Scan” categories, and a sizeable increase in the “Don’t Read” category, which could possibly be attributed to the proliferation of the Internet into mainstream America. But keeping in line with the current trend, as marketers become more savvy in their creativity, and targeting, we began to see an up-swing in the “Read” category vs. a decline in the “Don’t Read” category. A testament to the fact that when mail has Impact, Differentiation & is Targeted… It Gets People’s Attention!!! End of Slide 16. Slide 17: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Undeliverable As Addressed Cost Study The words included are: 1998 – UAA Cost Study (Price Waterhouse) (bullet)9.3 Billion pieces 2004 – UAA Cost Study (Christensen & Associates) (bullet)9.7 Billion Pieces (bullet)1.2 B – Single Piece / Other (bullet)8.5 B – Work share Cost per piece: (bullet)Forwarding cost per piece – 21.3˘ (bullet)Return cost per piece – 51.3˘ (bullet)Waste cost per piece – 4.4˘ Notes: The Postal Service conducted a Cost Study on Undeliverable-as-Addressed Mail - or UAA as it’s called. 1998 – UAA Cost Study (Price Waterhouse) 9.3 Billion pieces 2004 – UAA Cost Study (Christensen & Associates) 9.7 Billion Pieces Our initial findings: (bullet)Major challenges to address quality still exist (bullet)Move-Related UAA appears to be the big contributor (bullet)But, physical address accuracy is still a major issue (bullet)The results so far support our Address Quality strategies. If mail cannot be delivered to the address on the piece, it may be: Forwarded cost per piece – 21.3˘ Returned cost per piece – 51.3˘ Wasted cost per piece – 4.4˘ End of Slide 17. Slide 18: Image Information: United States Postal Service Logo in the far left top corner. A gray image of a map of the United States. Image of the Los Angles Lakers playing basketball. A color coded bar, starting with red and ending with gray. End of Image information. Has the heading: Innovative Strategies America is on the Move and Growing! The words included are: 145 million total addresses 41 million Americans move 1.8 million new addresses www.theodora.com/maps Color coded: Red: New York Orange: Pennsylvania Green: New Jersey Notes: So why is this so important to you and to the Postal Service? There are great challenges facing mailers – America is on the move. (bullet)41+ Million Americans move each year! (bullet)2.3+ Million businesses move each year as well! (bullet)On average mailing lists deteriorate over 1% a month. If a list has not been updated recently, a sizable number of addresses in the database may not be accurate, contributing to the overall UAA problem. Perspective - Over 41 million Americans move every year – that’s more than the combined populations of the states of New Jersey, New York, and Pennsylvania! Delivery - Postal Service delivers to 145+ million addresses each day and adds more than 1.8 million new delivery points each year. Perspective - That’s like adding the number of delivery points that exist in the city of Los Angeles – EVERY YEAR! So What Should You Be Doing to address this problem? End of Slide 18. Slide 19: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Direct Mail Costs The words included are: DMA Statistical Fact Book 2006 There is a pie chart and the chart can color are as follows: Blue (this color and pie slice is slightly raised up: Postage .24˘ Lime Green: Creative 11.25˘ Yellow: Art & Preparation 9.75˘ Orange: Printing Production 23.43˘ Maroon: Mailing Lists 12.35˘ Brown: Computer Processing 2.32˘ Green: Lettershop Production 4.02˘ Red: Allocated Fees 13.55˘ End of Pie Chart. Notes: (bullet)The cost factors for the chart you see here came from the Direct Marketing Association (DMA) Statistical Fact Book for 2006 and the most recently published USPS rate schedule for Standard Letter mail. (bullet)As you can see from all of the various components that go into the creation and mailing of a direct mail campaign, postage accounts for about 24˘ or 24% of the total costs for Mailing. (bullet)Again as significant as it is, postage is only one piece of the pie as shown on this pie chart. (bullet)Based on the DMA’s 2006 Fact Book, out of every dollar spent on direct mail, a mailer can expect to spend: (bullet)Over 11˘ on Creative (bullet)Over 9˘ on Art & Preparation (bullet)Almost 24˘ on Printing Production (bullet)About 12˘ on Mailing Lists (bullet)About 2˘ on Computer Processing (bullet)About 4˘ on Lettershop Production (bullet)A little more than 13˘ on Other Allocated Fees Overall Postage – at about 24˘ postage is only a part of the pie! Less than a quarter of the overall cost of getting that message to the consumer. But ALL of these costs are wasted IF mail is not deliverable due to POOR address quality. So What Should You Be Doing to address this problem? End of Slide 19. Slide 20: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies What Should You Be Doing? The words included are: Update Correction Validate Standardize There an image of a cone like pyramid and it has the words and colors as follows, starting with the base going up to the peak: almost black blue: CASS™ZIP+4® Codes dark blue: LACSLink blue: DPV light blue: AEC / AEC II dark gray: NCOALink gray: ANKLink light gray: ACS Notes: First and foremost, we recommend that you develop a comprehensive Address Management strategy because Address Quality can only be achieved through a multi-step process to standardize, validate, and update your address database. Many different Address Quality products and services are offered through licensed service providers to help business mailers resolve addressing problems, keep postage budgets in line, and attain address quality. This is how the USPS views address quality. Seen as building blocks (bullet)Step 1: Standardize – Basically means a “complete address” (bullet)Step 2: Validate – Not just correct addresses but a valid point of delivery for the Postal Service (bullet)Step 3: Update – Helps you keep up with moving customers and ensures that the customer and the address are current These three steps mean nothing in your pursuit of address quality if regular and routine updates are not performed to incorporate the new knowledge and data back into your address list, so utilize the available Addressing products & services and insist on high standards from your suppliers. End of Slide 20. Slide 21: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies How Can You Succeed? The words included are: For more information on USPS Addressing products (arrow used for bullet)http://ribbs.usps.gov RIBBS - NCSC Products, Services & Publications (arrow used for bullet)http://www.usps.com/ncsc usps.com – Address Quality Page (arrow used for bullet)http://ribbs.usps.gov/files/mtac/annual Address Quality Methodologies - Best Practices Contact the USPS National Customer Support Center @ 1-800-238-3150 Go to www.usps.com Notes: To obtain more information on our core Addressing products, reference and informational aids, which many of you may not even know exist, go to the WEB under the Products & Services Tab on USPS.COM or contact the good people at our National Customer Support Center at the number shown. http://ribbs.usps.gov RIBBS – NCSC Products, Services & Publications http://usps.com/ncsc/ usps.com – Address Quality Page http://ribbs.usps.gov/files/mtac/annual Address Quality Methodologies – Best Practices Contact the USPS National Customer Support Center @ 1-800-238-3150 Go to www.usps.com End of Slide 21. Slide 22: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Research Findings The words included are: (arrow used for bullet)Differentiation - Stand Out in the Mailbox (arrow used for bullet)Impact - Grab Attention Quickly (arrow used for bullet)Easy Targeting - Right Audience Right Message (arrow used for bullet)Measurability - Predict In-Home Delivery Dates (arrow used for bullet)Accurate Delvy - Get EVERY Message to the Customer (arrow used for bullet)Ease-of-Use - Convenient Ways to Make Mail Source: Various Research; USPS House Hold Diary Study, Mail Moment, Multi-Channel Catalog Research, DMA Response Rates Notes: You can see here a summary of the key findings of our research… But how do you take advantage of Direct Mail? What are your options? End of Slide 22. Slide 23: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies USPS Product Innovations Notes: The Postal Service is continually adding value to Direct mail by creating ways for you to stand out in the mailbox and grab your customers’ attention quickly. Now, I would like to show you some of our exciting innovations. End of Slide 23. Slide 24: Image Information: United States Postal Service Logo in the far left top corner. At the far right is an image of a box of donuts. At the far right is an image of a stuffed Christmas Teddy Bear with a package. At the far right is an image of a government building. End of Image information. Has the heading: Innovative Strategies Customized MarketMail® The words included are: Impact in the Mailbox (arrow used for bullet)Odd-Shaped, Die-Cut Pieces (arrow used for bullet)Conveys messages in unique manner (arrow used for bullet)Jumps Out in the Mailbox! (arrow used for bullet)Flexible/Creative (arrow used for bullet)Cutouts (arrow used for bullet)Attachments/Pockets/Coupons (arrow used for bullet)Magnets (arrow used for bullet)Perforations Notes: CMM gives advertisers options they never had before. You can mail images and shapes that reinforce your key message, company logo or product! The Postal Service introduced CMM in response to advertiser demands to be able to distinguish their messages in the marketplace and “step out of the mailbox.” CMM is a great tool for advertisers that are trying to get noticed by their potential customers. The unique designs and creativity possible through CMM can help advertisers achieve greater response from their promotions. Creative pieces that are highly-targeted can enhance response rates and generate more business. This provides a valuable service to both the advertising community and end-users You can even attach magnets or include coupons. CMM pieces achieve a response rate 3 to 4 times greater than a typical Direct Mailing. CMM pieces cannot be processed on Postal automation equipment and must be drop shipped to the delivery units. End of Slide 24. Slide 25: Image Information: United States Postal Service Logo in the far left top corner. Image of a golf ball at the bottom left. Image of a palm tree with an elephant standing on its back legs begind the trunk of the palm tree. End of Image information. Has the heading: Innovative Strategies Customized MarketMail The words included are: (bullet)Impact in the Mailbox (bullet)Differentiation Notes: CMM – is an innovative option in Direct Mail Think outside the box using dimensional mail pieces that create Impact & Differentiation in the mailbox. Direct Mail works on many levels You can be 'creative' in the mailbox End of Slide 25. Slide 26: Image Information: United States Postal Service Logo in the far left top corner. A image of a machine used for processing mail. End of Image information. Has the heading: Innovative Strategies Customized MarketMail® The words included are: (arrow used for bullet)New Rates for FY07 (bullet)Standard Mail Regular rate - 46 cents 24% (A image of a light blue arrow pointing down next to this number.) (bullet)Standard Mail Nonprofit rate - 33.4 cents 30% (A image of a light blue arrow pointing down next to this number.) (arrow used for bullet)Exploring Machineable Option (bullet)Conducting Tests (bullet)Identified Initial Shapes Notes: There have been some recent price decreases for CMM. CMM costs consist of three components – production, per piece postage, and the cost of drop shipping to the delivery unit. In the omnibus rate case that was implemented May 14, 2007, CMM rates were reduced by 24 cents for CMM regular Standard Mail with the rate going from 60.5 cents to 46 cents each. CMM nonprofit rates were reduced by 30% from 47.9 cents to 33.4 cents each. Mailers still have to pay the fees for drop shipping their CMM to the delivery units. USPS Marketing and Engineering are working together to test whether procedures can be developed that would allow dimensionally-shaped mail pieces to be processed on Postal Service flats automation equipment. The goal is to identify specific shapes that would be compatible with flats automation equipment. This would allow the CMM mailer to avoid the cost and effort of drop-shipping their CMM mail pieces to the delivery unit. These tests are still ongoing and the specifications have not been finalized but there is optimism that in the near future CMM mailers will have the additional option of mailing automation-compatible CMM pieces. End of Slide 26. Slide 27: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Repositionable Notes The words included are: (underlined)Value(end of underlined): (arrow used for bullet)Actionable messaging (arrow used for bullet)Lives beyond the life of host piece (arrow used for bullet)Repositions to computer, telephone, refrigerator (underlined)Possibilities(end of underlined): (arrow used for bullet)Increased Open-Read Rates (arrow used for bullet)Increased Response Rates (arrow used for bullet)Increased ROI (underlined)Applications(end of underlined): (arrow used for bullet)Customer Acquisition/Retention (arrow used for bullet)Customer Relationship Management (arrow used for bullet)Customer Up-Selling At the far right is an image of two letters. One letter has the words: Your Message Here and the other letter has the words: Your Message Here. At the far right is an image of a Forbes magazine with the words: Call 1-800 My-Forbes . At the far right is an image of a Antigue magazine with the words: See page 84 for FREE Antiques. Notes: Another option for making an impact is Repositionable Notes or RPNs for short. RPN’s gives you the ability to capture your audience by placing your message on the outside of the envelope and gives your message staying power. It gives you the opportunity to do targeted advertising & marketing of your products and services RPN’s will allow you to target your customers as broadly or narrowly as your database and creativity permit. You can create a mailing to reach either thousands with the same message or segmented groups with several messages, using different ink colors and font size, based on individual subscriber needs. RPNs are available for all letter and flat-size mailpieces including large envelopes, magazines, catalogs and newspapers (bullet)First-Class (bullet)Periodicals (bullet)Standard Mail® (bullet)(Now cover the talking points on the slide) End of Slide 27. Slide 28: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Repositionable Notes The words included are: (arrow used for bullet)Sticky-type notes (arrow used for bullet)Provides a significant and flexible marketing tool (arrow used for bullet)Enhances Brand Awareness (arrow used for bullet)Additional Promotional Impact There is an image of a magazine with the word 'Flats' above it. There is the word 'Your message here!' on the magazine image. There is an image of a letter with the word 'Letters' above it. There is the word 'Your message here!' on the letter image. Impact www.usps.com/repositionablenotes Notes: The notes are sticky so that your customer can affix them to a desk, telephone, computer screen, refrigerator or any place that’s handy to them. They provide you with a significant and flexible marketing tool that will enhance your Brand Awareness and provide additional Promotional Impact Repositionable Notes are 3 x 3 self adhesive notes with ľ of an inch adhesive on the back that must be machine applied For additional information on RPN’s (success stories, FAQ’s, vendors) please go to the RPN web site shown on this slide. End of Slide 28. Slide 29: Image Information: United States Postal Service Logo in the far left top corner. At the far right bottom corner is a image of a box holding different types of mail like magazines, letters, and a cd. End of Image information. Has the heading: Innovative Strategies Easy Targeting Ride-Along for Periodicals The words included are: (arrow used for bullet)Piggy-Back on an established vehicle (arrow used for bullet)Take advantage of existing relationships (arrow used for bullet)Preferred placement for your message (arrow used for bullet)Added value for subscribers (arrow used for bullet)Low postage costs Notes: Now I’d like to talk about Ride-Along – a truly high impact medium (bullet)Ride-Along advertisements deliver a memorable message that can’t be missed. (bullet)As a direct marketer, you want your message to get noticed so why not ride on the front seat of a nationally published magazine to do just that! (bullet)Get personal. Customize specific Ride-Along messages by industry or subscriber interests. (bullet)Make your message stand out. Send a product sample, a multimedia piece and much more. End of Slide 29. Slide 30: Image Information: United States Postal Service Logo in the far left top corner. At the far right bottom corner is a image of magazine and what appears to be product sample. End of Image information. Has the heading: Innovative Strategies Ride-Along Value The words included are: (arrow used for bullet)Grab your customers’ attention (arrow used for bullet)Target your market locally, regionally, nationally (arrow used for bullet)Add new dimension to your message (arrow used for bullet)Include: Catalogs, CD’s, Product Samples (arrow used for bullet)Up to 3.3 oz. (arrow used for bullet)15.5 ˘ per piece (as of July 15, 2007) Notes: Allows you to target right down to the individual subscriber level. Select specific geographic locations to reach specific customers with the appropriate message. Enhance the value of your message. Your customers will associate the high esteem they hold for their Periodicals subscriptions with your Ride-Along piece. Cost-Effective Ride-Along is truly one of the most cost-effective and high-impact marketing mediums available today. (bullet)Up to 3.3 oz – Catalogs, CD’s, or Product Samples (bullet)Current rate – $13.1 cents (bullet)New rate – $15.5 cents (effective July 15, 2007) For additional information please go to the Ride-Along web site @ http://www.usps.com/ridealong/ End of Slide 30. Slide 31: Image Information: United States Postal Service Logo in the far left top corner. At the far right is an image of a letter pointing out the PLANET bar code and the POSTNET bar code.. End of Image information. Has the heading: Innovative Strategies Measurability CONFIRM The words included are: (arrow used for bullet)Predict in-home Dates (arrow used for bullet)Time Multi-Channel Campaigns (arrow used for bullet)Track return mail (arrow used for bullet)Manage cash flow (arrow used for bullet)Manage future Mailings (arrow used for bullet)Manage fulfillment Trackability/Measurability Notes: (underlined)Confirm(end of underlined) (bullet)Customers love to measure delivery performance (bullet)Auto Equipment passively scans (bullet)Origin Confirm (bullet)Destination Confirm (bullet)Time multi-channel campaigns (bullet)Just-in-Time Inventory (bullet)Cash Flow (bullet)Staffing Up In-bound Telemarketing Staffs End of Slide 31. Slide 32: Image Information: United States Postal Service Logo in the far left top corner. End of Image information. Has the heading: Innovative Strategies Measurability CONFIRM There are a series of five (5) images with arrows running from one image and pointing to the next image. They are as follows: Image one: A person using a laptop computer. It has the words 'Mailer Applies PLANET Codes®, Submits ASN'under the image. Arrow pointing to image two. Image two: A person using a handheld object to enter the mail. It has the words 'Mailer Enters Mail, USPS® Scans Form, Starts Clock'under the image. Arrow pointing to image three. Image three: A machine that is scanning the mail. It has the words 'USPS® Equipment Scan'under the image. Arrow pointing to image four. Image four: An image of dollar bills laying down and a clock in the middle of the money. It has the words 'USPS® Equipment Scan, Stops Clock'under the image. Arrow pointing to image five. Image five: A person sitting at a desk using a desktop computer. It has the words 'Mailer Accesses Delivery Data via mailtracking.usps.com'under the image. End of series of five images. Notes: (bullet)It begins with the mailer applying Postnet and PLANET Codes to the mailpieces, and electronically submitting an Advanced Shipping Notice to the Postal Service prior to mailing. (bullet)When the mail is physically entered, the Postal Service scans it at the point of induction and electronically registers the date and time. We refer to this event as starting the clock.” (bullet)This provides a standardized, controlled method for capturing the “induction point in time” of a mailing into our mail stream. This process supplements performance measurements and ensures timely processing of your mail. (bullet)As PLANET Coded pieces are run on automation equipment, the Confirm data is collected and sent to a centralized repository. (bullet)From this repository, we provide data to mailers within hours after PLANET Coded pieces have been run on automation. (bullet)By providing report data to include location, time of day, and the appropriate codes for the sort operations, the Postal Service is able to provide the mailers with an “indication of pending delivery.” End of Slide 32. Slide 33: Image Information: United States Postal Service Logo in the far left top corner. At the far right is a image of a mailbox with the flag raised inside of a Computer Monitor. End of Image information. Has the heading: Innovative Strategies Ease-of-Use NetPost® Services The words included are: (arrow used for bullet)Direct Mail campaigns designed, created, paid for, and mailed from your home or office. (bullet)Mailing Online (bullet)Premium Postcards (bullet)Card Store (arrow used for bullet)Cards, letters, brochures, greeting cards, gift cards, newsletters, all from the convenience of your own computer. Notes: Mailing Online (MOL) / Premium Postcards/ Cardstore (bullet)You can send traditional hard copy mail, letters, flats, self-mailers, newsletters, flyers, and postcards, premium postcards, and greeting cards with a gift card from your computer. (bullet)Thousands of consumers and businesses have taken full advantage of this service producing millions of pieces of mail. (bullet)Customers have found this service to be a faster, easier, and a more affordable way to send their personal and business mailings. (bullet)The power and ease of the Internet enables you to take advantage of mailing services from your computer in your home or office. (bullet)It’s really just that simple! (bullet)You decide what you want to do. (bullet)You select the right NetPost Service for you online (bullet)Follow the instructions and prompts (bullet)WE do the rest! We print, prepare, complete any necessary forms, apply postage, and deliver your mail. (bullet)Just think of all the time and money you’ve just saved! End of Slide 33. Slide 34: Image Information: United States Postal Service Logo in the far left top corner. At the far right is a image of a keyboard. End of Image information. Has the heading: Innovative Strategies What NetPost® Means for You The words included are: (arrow used for bullet)Increased access (24/7) (arrow used for bullet)Creative License (arrow used for bullet)Manage campaigns from your desktop (arrow used for bullet)Discounted postage rates – no volume minimums (arrow used for bullet)Security of information and data (arrow used for bullet)Choice of convenient payment options (arrow used for bullet)Customer support Simple, Easy & Convenient Notes: Let me talk about some of the REAL benefits. (bullet)Access is available 24 hours a day, 7 days a week, and 365 days a year. You don’t have to worry about whether or not the Post Office is open, .the Internet never closes! (bullet)We take care of all the steps after you have sent your data or document. Time and money spent on the traditional way, can now be put to use on other important business matters. (bullet)And it’s all automated! Your mail is produced as automation compatible mail and addresses are Standardized so that they can be processed more efficiently. (bullet)You can rely on the Postal Service like you’ve done for the past two hundred years to ensure proper security of your information and data. Our service has the stamp of approval from the US Postal Inspection service, guaranteeing the privacy of your information. (bullet)To make it easy, there are several payment options offered. (bullet)Knowledgeable and friendly customer support will assist you with your specific mailing needs across all 3 NetPost Services. (bullet)There are no volume minimums, so these services work well with today’s highly targeted and segmented mailings. End of Slide 34. Slide 35: Image Information: United States Postal Service Logo in the far left top corner. At the far right is a image of a couple holding letters and smiling. End of Image information. Has the heading: Innovative Strategies The Key Takeaways The words included are: (arrow used for bullet)America Likes Direct Mail (bullet)It helps households stay informed (bullet)It helps businesses market products & services (arrow used for bullet)Direct Mail Delivers (bullet)Value, Trust, Security, Privacy (bullet)It gets recipient’s attention (arrow used for bullet)Direct Mail Is Growing by Design (bullet)5% growth for the next 5 years (bullet)Reach will increase in value over time (bullet)DM compliments emerging technologies Don’t forget, it all starts with a clean address! Notes: Customers like the mail! (bullet)It helps the CEO of the household perform important functions: (bullet)Entertainment (bullet)Stay Informed (bullet)Help make informed purchases (bullet)Customers Value Mail: (bullet)Private (bullet)Secure (bullet)Trusted (bullet)2nd largest ad media in the U.S.- Because it works! But don’t forget, it all starts with a clean address! End of Slide 35. Slide 36: Image Information: United States Postal Service Logo in the far left top corner. At the far right is a image of a man looking up at 100 dollar bills falling down on him and a umbrella catching the money. End of Image information. Has the heading: Innovative Strategies The Key Takeaways The words included are: Products: (bullet)Customized MarketMail® – Creativity (arrow used for bullet)Repositionable Notes – Impact (arrow used for bullet)Ride-Along – Targetability (arrow used for bullet)Confirm – Measurability (arrow used for bullet)NetPost® Services – Ease-of-Use Notes: Consumers respond to Creativity, Impact, & Differentiation! (bullet)CMM (bullet)RPNs They like receiving mail that is targeted, tailored, and timely! (bullet)Ride-Along (bullet)Confirm They also appreciate ease-of-use and cost effectiveness (bullet)NetPost But remember, again, it all starts with a clean address. None of the above programs or services matter if your mail piece never reaches its intended audience! End of Slide 36. Slide 37: Image Information: United States Postal Service Logo in the far left top corner. A snapshot of the USPS website. End of Image information. Has the heading: Innovative Strategies Agenda The words included are: Direct Mail Makes the Connection Notes: For additional information please visit our Web Site @ http://www.usps.com/directmail Talk with our USPS, Account Managers, Sales Specialists and Small Business Specialists Read the various USPS Publications Network with Current Users Try using the mail… and see for yourself! End of Slide 37.