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Improve Service

Retail Service through Alternative Outlets
To supplement its network of Post Offices, the Postal Service continues to expand alternative outlets for limited retail services. There are now 8,000 more supermarkets, drug stores, and convenience stores selling stamps (49,553 stamps-only outlets overall). To help customers learn about the new outlets, the Postal Service kept up a continuing effort to increase awareness, including improvements to the usps.com Locator (providing locations of Post Offices and other service locations), posting Buy Stamps Here logos in participating stores, and other customized in-store signage in partner and postal outlets.

Enhancements were also made in the contract postal unit (CPU) program to improve effectiveness. Performance-based contracts now account for nearly one-third of CPU agreements. To qualify, businesses must adhere to more stringent service and accounting requirements and must purchase postage up-front and resell at Post Office prices. This format reduces postal inventory costs and ensures higher quality service to customers. By the end of 2006, there were more than 4,000 CPU locations.

Private mail and package stores have long sold competitive shipping services. They also resell postage and accept U.S. mail from customers which is later tendered to the local Post Office. In this model, Postal Service products are poorly represented, rates inflated, and, most importantly, package screening for hazardous materials is not done. The Postal Service responded by creating the Approved Shipper Program. To qualify, a store must follow postal Hazardous Materials and Aviation Mail Security guidelines for packages, and must accept all prepaid mail including Click-N-Ship and eBay items. In return, the Postal Service provides the store with signs and product information, training on package acceptance procedures, and reliable daily mail collection. The stores receive no compensation from the Postal Service. They may continue to add a service fee to mail as long as it is clear to customers that the store has added the charge, not the Postal Service. By the end of 2006, more than 700 stores joined the program.

The Postal Service announced the retirement of the current line of self-service vending machines. Approximately 5,900 stamp vending machines will be removed from service in each of the next 4 years until nearly all 23,000 are retired. The costs to maintain these aging machines and custom-package stamps, the scarcity of parts, and the availability of multiple alternatives all factored into the decision. The plan is to eliminate the lowest performing machines in 2007, salvaging parts to extend the life of better performing machines. The machines targeted to be removed this year only account for 1.7 percent of total vending revenue. Messaging to customers about other convenient stamp purchase options will coincide with removal of the machines.

To maximize usage, redeployment of next-generation self-service equipment, the Automated Postal Center (APC), was completed this year. The strategy to integrate the self-service APC with the retail counter is modeled after airline industry efforts to increase self-service acceptance. The model proved successful in initial testing, where some machines took in revenues 35 percent higher than the national average. Relocation of APCs began in selected sites before the 2006 holiday season.

Upgrades to the APCs include the addition of the Priority Mail Flat-Rate Box option. Point-ofpurchase signage has been refreshed to reflect new service offerings. The usps.com Locator has also been updated with APC locations. Nationally, the APCs are diverting about 20 percent of possible transactions from retail counters, which gives retail associates more time to assist customers with more complex transactions.

Enhancing Support for Customers and Employees
The Postal Service provides customers with many ways to get information. When contacting the Postal Service, customers want to reach someone who can help them and they expect to receive a quick accurate response. Customer satisfaction data related to customer access to information show significant improvements. The increases in ratings were the result of many improvements implemented to enhance the speed and quality of customer contacts.