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Pacific Area Focus Group. Revenue Generation Opportunity. 1. Growing Direct Mail – The Challenge. Today’s Challenge Keeping mail relevant in an online world. 2. Growing Direct Mail – The Challenge. Relevant USPS Solutions for Today’s Challenge.

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Pacific Area Focus Group

Revenue Generation

Opportunity

1


Growing Direct Mail – The Challenge

Today’s Challenge

Keeping mail relevant in an online world

2


Growing Direct Mail – The Challenge

Relevant USPS Solutions for Today’s Challenge

  • Mobile Technology – Scan codes on direct mail

  • Data Breach – Communicating during crisis

  • Political Mail – Campaign and fundraise using mail

  • Affordable Care Act – Communicate requirements

  • Every Door Direct Mail – Affordable, local targeting

3


Growing Direct Mail – The Challenge

Direct Mail is Relevant!

Studies have shown that using direct mail and email in integrated campaigns creates synergies that boost response over using either medium alone. One study showed that using direct mail with email increased response by nearly 30% over direct mail alone.

4


Mobile Commerce

  • Online sales grew over 26% over 2012

  • Mobile commerce sales increased 68% in 2013 to nearly $42 billion

  • 1/3 of all online sales are made on mobile devices

  • By 2017, 77% of digital buyers in the US will purchase via smartphone or tablet

Source: IBM, Dec. 2013

Source: eMarketer, Sept. 2013

Source: IBM, Dec. 2013

Source: eMarketer, Apr. 2013

5


Mobile Commerce

Mobile Technology Helping Drive Long-Term Value

  • Smartphones and tablets interact with the printed page

  • Catalog becomes “catalyst” for mobile commence

  • Catalog integration with technology increases:

    • Relevance

    • Effectiveness

    • Convenience

    • Responsiveness

    • Engagement

NFC

Mobile Barcode

Image Recognition

Augmented Reality

6


Addressing the Challenge

  • Political Mail Strategy – Mail drives online and offline donations and provides confidential message to voters - Pacific Area $5.7M in new revenue from political mail YTD

7


Addressing the Challenge

Affordable Care Act – Pacific Area – $9.3M in new revenue YTD

At a Glance: The Law and the Mail Opportunity

Uninsured or

Individuals

Individuals

Individuals

individuals that

already

with

planning long

-

buy their own

term care

Insured

Medicare

insurance

8


Addressing the Challenge

Every Door Direct Mail – Demographic data enhancement – more targetable and relevantPacific Area sold 331 sales; $14M in new revenue

from Every Door Direct Mail sales YTD

9



Revenue Growth Opportunity

Opportunity in

Packages

Building a World Class

Package Platform

11


E-Commerce Continues to Grow Rapidly

Need market share NOW

grow with hyper-growth of market

12


The Future of Packages

  • As ecommerce grows, expectations are being redefined

    • Free shipping is the new consumer expectation

    • Faster shipping at the lowest cost is the retailer

      expectation (Transit times for ground have reduced to 2 to 3 days)

    • Customers desire later entry times, faster delivery, and delivery on the first attempt

    • Same-Day and Next-Day delivery are the new frontier

13


USPS Growth Strategy

  • Our package growth efforts are focused on leveraging the strength of our network to market needs and wants

  • Meet rising customer expectations in package service and innovation in a rapidly evolving e-commerce world

  • Capitalize on the power of the mail, package delivery and returns combination

  • Build a World Class Package Platform

14


Major FY 2014 Initiative

Building a World Class Package Platform

Objective

Build a World Class Package Platform by building a parcel processing and delivery network that supports package growth, weekend and same day delivery, and enhances the customer experience.

ELT Sponsor – Megan Brennan

Initiative Lead – Dave Williams

Gary

Reblin

Roadmap

Roadmap Owner

Roadmap

Roadmap Owner

Improve Customer Pickup

6

Kelly

Sigmon

Integrated Package Network

Plan

Dave Williams

1

experience

Simplified onboarding & Flexible

7

Pritha

Mehra

Product Development Plan

2

Brent Raney /

Payment Solutions

Giselle Valera

3

8

Customer Development Plan

Cliff Rucker

Package Delivery Optimization

Ed Phelan

Plan

Next Generation Equipment

Mike Amato

100% Package Visibility

Robert Cintron

4

9

International Package Processing

5

Plan


Build a World Class Package Platform

  • Price

  • Service

  • Information

  • Payment

  • Acceptance

  • Network Processing

  • Network Transportation

  • Intelligent Delivery

  • Improved Delivery Experience

  • Grow the business

  • Build a network to meet delivery expectations while handling growth

  • Innovate and improve delivery

  • Improve customer experience

16


Requirements to Compete

Building a World Class Package Platform

Build a World Class Package Platform by building a parcel processing and delivery network that supports package growth, weekend and same day delivery, and enhances the customer experience.

  • World-class service performance

  • World-class scanning performance

  • Forward-looking workforce structure

17


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