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Mailing Industry Task Force

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  1. Mailing Industry Task Force 2005 Progress Report

  2. Task Force Co-Chairs Michael Critelli Chairman and Chief Executive Officer Pitney Bowes John Nolan Deputy Postmaster General United States Postal Service

  3. 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

  4. Overview • Phase 2 Strategy • Intelligent Mail/Address Quality • Pricing/Payment • New Products, Services and Gateway • Innovation Incubator Initiative

  5. Overview • Phase 2 Process • Collaborative • Assess/Plan/Implement • Use Communication to Build Awareness

  6. Intelligent Mail andAddress Quality Michael CritelliCEOPitney Bowes Charles MorganCompany LeaderAcxiom Charles BravoSr. Vice President, Intelligent Mail and Address QualityUnited States Postal Service

  7. 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™

  8. 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)

  9. 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

  10. 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

  11. 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)

  12. Pricing and Payment Judy MarksPresidentLockheed Martin Distribution Technologies Robert PedersenVice President, TreasurerUnited States Postal Service Steve KearneyVice President, Pricing& Classification United States Postal Service

  13. March 2005 Pricing and PaymentCurrent USPS Pricing Experiments

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. New Products, Servicesand Gateway Yvonne FurthPresident and COODraft Worldwide Nick BarrancaVice President, Product DevelopmentUnited States Postal Service

  20. 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

  21. New Products, Services, and Gateway Update Estimated Value - $300 million over five years

  22. 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

  23. New Products, Services, and Gateway Featured Initiative Retail Overnight

  24. 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

  25. Innovation Incubator • Progress Report

  26. Innovation Incubator • Innovation Outreach • USPS Innovation Challenge • Industry segment summits • Thunderbird Innovation Challenge • WWW.INNOVATIONCHALLENGE.NET

  27. 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

  28. 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?

  29. 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?

  30. CV#03-1347 (USPS) KCY 8/29/03 EP setup PC ppt 2000 USPS 40949-30

  31. Mailing Industry Task Force 2005 Progress Report