Recommendation Recap

The Mailing Industry Task Force concluded that additional revenue growth would result from the Postal Service using intelligent mail to improve its ability to provide predictable and accurate mail delivery. The Task Force’s committee on intelligent mail crafted a strategy that proposes intelligent mail programs be developed and implemented based upon whether they provide customer value, use currently-available technology, minimize additional costs to mailers, consumers and the Postal Service, and address privacy and security issues.

In April, development of intelligent mail was included as a growth strategy in the Postal Service’s Transformation Plan. “With the commitment to intelligent mail as a driver of transformation,” said Task Force co-chairman Michael Critelli, “the Postal Service has not only validated the Task Force’s analysis, it has taken a significant step towards more reliable and measurable service, better security, and improved data and performance.”

The CONFIRM rate case settlement — CONFIRM provides electronic tracking information from mail entry through the automated processing environment for letter and flat mail — was concluded in July. The service was implemented in September. CONFIRM can tell its subscribers when mail is about to be delivered. Benefit of such knowledge will include enabling mailers to advise their customers on when to staff telephone banks in response to a mailing’s content and messages, and when best to launch other marketing efforts in support of the mailing. CONFIRM can also tell mailers how consumers are responding to their marketing initiatives. This will allow mailers to accelerate, moderate or otherwise adjust a plan, in real time, based on CONFIRM data. Further, a mailer can report if a “check is timely in the mail.” This knowledge will benefit both businesses and individual consumers by anticipating cash flow, stopping dunning notices or avoiding unnecessary termination of service. The Task Force concluded that CONFIRM’s benefits provide examples of the improved customer relationship management and enhanced mailing response that intelligent mail products and services will deliver.

CONFIRM data is available electronically 24 hours a day, seven days a week, 365 days a year. The program subscribers’ shared reports are available on the Web at the Planetcodes.com site.

Intelligent Mail Focus Groups. The Postal Service marketing team has conducted nine customer focus groups to determine customer requirements for intelligent mail, and how they might translate into potential revenue streams. The groups represented different customer segments and a range of geographic regions. Results from the focus groups’ deliberations will be presented at the fall National Postal Forum by the Task Force committee members.

Privacy Working Group. The USPS Chief Privacy Officer, a member of the Task Force, set up a privacy working group to examine and incorporate privacy considerations into intelligent mail programs. The group identified data collection and privacy statutes and policies for the Postal Service and the industry. The group also catalogued the benefits of intelligent mail. For next steps, the group will draft a white paper for internal review, solicit input from privacy advocates, and develop a set of recommendations for the Task Force and its constituents.

Barcode Data Content Assessment. The Task Force, working with the Postal Service, initiated a review
of two-dimensional barcodes currently used by the Postal Service and opportunities for expanding the data on an envelope. The Postal Service has concluded that this is technically feasible, but would require additional investment in software, hardware and possibly network bandwidth as well. The Task Force concluded that customer research will help determine whether there is a market willing to pay for these enhanced capabilities. Within current information-based indicia (IBI) programs, there is little excess data carrying capacity in the codes. In addition, the wide-field-of-view (WFOV) cameras currently in deployment at processing plants will recognize the two currently used IBI formats when applied as postage. Among alternative two-dimensional barcodes examined by the Task Force, a modified PDF 417 code, which can approximate the size of a Planet code, seemed most promising. However, Task Force members discussed the need to test mailer ability to print a 2D code at production speed and whether additional data capture and communication would drive increased costs.

Technological Capabilities Analysis. In discussing the potential data content of address blocks read by postal scanning equipment, the Task Force noted that a major limitation is the data network wiring in processing plants. While WFOV cameras could theoretically deliver information in real-time, the wiring cannot carry as much data as can be read. Another concern shared by members was that if data content were to be increased dramatically, the speed at which scanning equipment could handle that data might compromise mail processing rates. Deployment of the WFOV cameras will conclude in December 2003. The Task Force also observed that the upgrading of integrated data servers at 325 facilities would provide more information at a faster rate, strengthening the platform upon which the enhanced services and products are built.

• Implementation by the Postal Service of its intelligent mail strategy.

• Continue to assist the Postal Service in assessing code contents versus database contents, appropriate symbologies, the impact of intelligent mail on current operating equipment, and the impact of intelligent mail on the Service’s information technology infrastructure.

• Continue to promote Postal Service solicitation of intelligent mail samples from mailers, perform pilot tests on intelligent mail, and assist in validation of its cost/benefit value.

• Assess focus group results to determine an attractive cost/benefit value.

• Support USPS deployment of updated equipment and implementation of an enhanced intelligent mail program.

• Work with the privacy work group to study how to enhance the privacy and security associated with mail.

• Promote publication of coding standards within the ISO framework and coordination of these codes with the Universal Postal Union (UPU).

• Ensure that value and investment are balanced and appropriately staged.

• Support development of communications and marketing plans for intelligent mail.