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Mailing Industry Task Force. 2005 Progress Report. Task Force Co-Chairs. Michael Critelli Chairman and Chief Executive Officer Pitney Bowes John Nolan Deputy Postmaster General United States Postal Service. Steering Committee. Charles Morgan, Company Leader Acxiom

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mailing industry task force

Mailing Industry Task Force

2005 Progress Report

slide2

Task Force Co-Chairs

Michael Critelli

Chairman and Chief Executive Officer

Pitney Bowes

John Nolan

Deputy Postmaster General

United States Postal Service

steering committee
Steering Committee

Charles Morgan, Company Leader Acxiom

Scott Harding, CEO and Director ADVO, Inc.

Donald Treis, Chief Executive Officer Arandell Corporation

Richard Daly, Group Co-President Automatic Data Processing

Paul Reilly, President & CEO Cenveo, Inc.

Michael Sherman, Vice Chairman Crosstown Traders, Inc.

Yvonne Furth, President & COO Draft Worldwide

Jeff Jurick, President & CEO Fala DM Group

Judy Marks, President Lockheed Martin Distribution Technologies

Douglas Denton, Vice Chairman & CTO MBNA America

Hamilton Davison, President & CEO Cardsmart/Paramount Cards

David Sable, Vice Chairman Wunderman

overview
Overview
  • Phase 2 Strategy
    • Intelligent Mail/Address Quality
    • Pricing/Payment
    • New Products, Services and Gateway
    • Innovation Incubator Initiative
overview1
Overview
  • Phase 2 Process
    • Collaborative
    • Assess/Plan/Implement
    • Use Communication to Build Awareness
intelligent mail and address quality

Intelligent Mail andAddress Quality

Michael CritelliCEOPitney Bowes

Charles MorganCompany LeaderAcxiom

Charles BravoSr. Vice President, Intelligent Mail and Address QualityUnited States Postal Service

slide7

Intelligent Mail and Address Quality

Status

Goals

  • Increase the use of Intelligent Mail products by delivering value for all stakeholders
  • Increase the value of mail by increasing deliverability through improved quality of address information used by mailers
  • Support development of the USPS OneCode Vision™
slide8

Intelligent Mail and Address Quality

Status

  • USPS Progress
    • Testing 4-state Customer Barcode on USPS Mail
    • Implementing Enhanced Distribution Label (EDL) beginning Summer 2005
    • Specifications for Information-Based Indicia (IBI)
    • Growth of NCOALink and Improved Match Rate
    • Growth of Internet Change of Address (ICOA)
    • Introducing Address Element Correction Phase II (AEC II)
slide9

Intelligent Mail and Address Quality

Status

Four Key Initiatives:

  • Use INTELLIGENT MAIL codes to trigger Address Quality Services
    • Pilot test - Summer ‘05
  • Develop improved Address Quality Feedback Loop
    • Plan release of AEC II - Spring ’05
  • Develop certification process for mailing list quality
    • Proposal development complete - Summer ‘05
  • Use INTELLIGENT MAIL codes to help automate processing of returned mail
slide10

Intelligent Mail and Address Quality

Example

Use INTELLIGENT MAIL to provide additional

business benefits and value

  • Collaborative Work
    • Looked for opportunities not already articulated by USPS
    • Focused on synergy of intelligent mail and address quality
  • Automating Returned Mail
    • Some companies use own barcodes or other data
    • Decentralized return mail operations
slide11

Intelligent Mail and Address Quality

Example

  • Identified Additional Opportunities
    • Improved Electronic UAA Notification
    • Provide Address Element Correction based on 4-state code
    • Assist large companies in managing addressing issues at a corporate level by automating processing and data collection
    • Track and analyze reasons for UAA (both for mailers & USPS)
pricing and payment

Pricing and Payment

Judy MarksPresidentLockheed Martin Distribution Technologies

Robert PedersenVice President, TreasurerUnited States Postal Service

Steve KearneyVice President, Pricing& Classification

United States Postal Service

pricing and payment pricing experiments
Pricing and PaymentPricing Experiments
  • Co-Palletization
    • Encourage efficiency in periodicals
    • Over 2.1 million sacks eliminated, 95.5 million pieces moved to pallets
  • Parcel Return Services
    • Simplify the process of returning packages
    • Millions of packages returned
  • Priority Mail Flat Rate Box
    • Simplify package shipment options
    • Over 2 million boxes shipped
  • Repositionable Notes
    • Customize ability to send “Messages that Stick”
  • Premium Forwarding Services
    • Simplify life for households that relocate
pricing and payment negotiated service agreements
Pricing and PaymentNegotiated Service Agreements
  • Establish customized pricing for specialized mailers
  • Encourage First-Class Mail for customer acquisitions
  • Encourage electronic Address Change Service
  • First agreement added $21.7 million to USPS bottom line
  • Need a more streamlined, less costly process
pricing and payment consistency in mailing standards
Pricing and PaymentConsistency in Mailing Standards
  • New organization and business model
    • PCSC in New York City
    • Binding decisions before mailings entered
  • New DMM
    • State of the art communications for customers
    • Reliable decision pathways based on what customers want to have the USPS do for them
    • Improved usps.com
  • Clear mailing standards
    • Standard Mail eligibility effective June 1
    • Customer support rulings
  • Clear communications
    • Over 2,000 customers using DMM Advisory
pricing and payment price change predictability
Pricing and PaymentPrice Change Predictability
  • Try to avoid “rate shock” caused by large increases with uncertain timing
  • 3 plus years of stability have helped the mailing industry
  • Across the board proposal could be the start of smaller, more predictable price changes
  • Reform could lead to annual price-capped adjustments
pricing and payment postalone update
Pricing and PaymentPostalOne! Update
  • Completed national deployment in support of Postal users
  • Electronic Mail Improvement Reporting (eMIR) system has been successfully deployed
  • Next release of the system scheduled in April of this year
new products services and gateway

New Products, Servicesand Gateway

Yvonne FurthPresident and COODraft Worldwide

Nick BarrancaVice President, Product DevelopmentUnited States Postal Service

slide20

New Products, Services, and Gateway

Update

  • Made progress with Tier I Initiatives
    • Premium Forwarding Service – Filed with Postal Rate Commission
    • Direct Mail – Business Environment Assessment – Study Completed
    • Total Relationship View – Charts completed
    • Reply Mail Improvement Plan – Web site launched
    • Reinforce the Value of Mail to Consumers – Completed Mail Moment Research
    • Retail Overnight – Discussing pilot with potential participants
slide21

New Products, Services, and Gateway

Update

Estimated Value - $300 million over five years

slide22

New Products, Services, and Gateway

Update

  • Establishing List of Tier II Initiatives
    • Developers Tools
    • Solution Center for Small Mailers
    • Opt-in Capabilities
    • Delivery Preferences for Packages
    • Post Offices as Returns Center
    • Customized Postage
slide23

New Products, Services, and Gateway

Featured Initiative

Retail Overnight

slide24

New Products, Services, and Gateway

Next Steps

  • Continue Recruiting Participants in Retail Overnight Pilot
  • Explore Opportunities from Total Relationship View Charts
  • Begin Moving Forward on Tier II Initiatives
innovation incubator
Innovation Incubator
  • Progress Report
innovation incubator1
Innovation Incubator
  • Innovation Outreach
    • USPS Innovation Challenge
    • Industry segment summits
    • Thunderbird Innovation Challenge
      • WWW.INNOVATIONCHALLENGE.NET
mailing industry task force going forward
Mailing Industry Task ForceGoing Forward
  • Continue to develop innovative concepts
  • Follow through on action plans in all 3 areas
  • Sustain an effective USPS/Industry collaboration
innovation outreach
Innovation Outreach
  • Provide one or two ways that use of the mail could help your company or industry grow in revenue. What is keeping your company/industry from using mail in this way?
  • Is there a business challenge that your company/industry faces that the use of the mail could help to overcome? What is keeping your company/industry from using the mail for this purpose?
innovation outreach1
Innovation Outreach
  • What, in your view, is the biggest obstacle to increasing use of mail to help companies grow their business and/or increase customer satisfaction? Is it (check one):

❑ Lack of knowledge about USPS/Industry products and services currently available?

❑ Lack of knowledge about the “power of mail”?

❑ Gaps in the USPS's product line?

❑ Issues with ease of use?

❑ Other?

mailing industry task force 2005 progress report
Mailing Industry Task Force

2005 Progress Report