Mail Innovations and USPS Promotions. Northeast Area Focus Group October 3, 2013. Tom Foti Direct Mail & Periodicals New Products & Innovation. Agenda. The Value of Mail Future of Mail: Mail and Mobile Connections USPS Promotions Questions. 2. Mail is Valued.
MailInnovations and USPS Promotions Northeast Area Focus Group October 3, 2013 Tom Foti Direct Mail & PeriodicalsNew Products & Innovation
Agenda The Value of Mail Future of Mail: Mail and Mobile Connections USPS Promotions Questions 2
Mail is Valued 80% look at their mail daily as a valuable news source Mail is highly valued 75% like to see what’s in the mail 63% of mail is kept at least 2 days Source: Mail Moment Survey 2012
Mail is Relevant Youth Attitudes 79% sort the mail at the first opportunity 72% would like to receive more personal mail 67% scan the mail looking for important/interesting mail 4
Mail as a Marketing Tool Benefits Targeted advertising to customers Cost effective Interactive solutions through technology Easily measured effectiveness
Mail Delivers Results Better Return On Investment 65% of consumers have made a purchase as a result of direct mail 37.5% say direct mail is best for customer retention 31.3% say direct mail is best for customer acquisition Source: Target Marketing Annual Media Usage Forecast, March 2013; Exact Target 2012 Channel Preferences Survey, February 2012; Mail Moment Survey, USPS 2011-2012 6
Mail Connects with a “Mobile Society” Changing Marketplace PC shipments down nearly 14% in Q1 2013-- IDC, Jan 2013 Mobile Commerce on the Rise 1.2 billion smartphone and tablet sales predicted worldwide for 2013--Gartner, Nov. 2012 Mobile commerce sales increased 81% in 2012, to nearly $25 billion--eMarketer, Jan. 2013 By 2017, 77.1% of digital buyers in the U.S. will purchase via smartphone or tablet--eMarketer, Apr. 2013 7
Mail as a Platform for Mobile Purchases Mail and Mobile: An Optimum Connection Provides a ‘jumping off point’ Ideally, customer lands on: Mobile coupon Mobile-optimized website Responsive Web Site dynamically adapt both its content and layout to fit a multi-screen world. Tailor content to device type
Keys for Successful Mobile on Mail Keys for Successful Mobile on Mail Capture Call to Action Resulting Action Mobile-on-Mail campaigns require a call to action, mobile technology to capture the offer, and a resulting consumer action.
Technology Enabling New Mail Experiences Sample Technologies Image Recognition NFC Mobile Barcode Augmented Reality Link NFC enabled mobile device Identifies digital watermarks and printed images Barcodes containing links, video, coupons, etc. Interactive 3-D experience These technologies are widely available and affordable in the marketplace.
Mail That Works For You USPS Promotes mail innovations Enhanced mailpiece Increased ROI Improved consumer engagement Enhanced customer acquisition Greater response rate 11
Promotion Strategy Embrace technology, encourage mail integration. Strategy Targets Lead innovation Accecelerate best practices Marketers and business customers Drive long-term product value Relevance Effectiveness Responsiveness Engagement Promote awareness and engagement Consumers
Past Mail Promotions 2012 Holiday Mobile Shopping Promotion 2013 Promotional Calendar 2012 Mobile Commerce and Personalization Promotion 2011 Mobile Barcode Promotion July-Aug 2011 July-Aug 2012 Nov 2012 2013 Program Learnings and Growth: Mailers need time to prepare Increasing emphasis on best practices Encourage different uses of mobile technology integration Encourage mailers to try new things 13 13
2013 Promotional Calendar 14
2013 Promotions Calendar
Direct Mail Mobile Coupon & Click-to-Call Preliminary Promotion Results March 1- April 30 550 customers participated Over 60,500 mailings 2.6 B mailpieces received discount Over $11.4 M in discounts Nearly 20% of Standard Mail volume participated in promotion Majority of customers participated with Click-to-Call technology 16
Direct Mail Mobile Coupon & Click-to-Call Promotion Survey Results Promotion Period: March 1- April 30 35% Response Rate 80% used the Click To Call component 13% had never used mobile barcodes 50% of respondents measured barcode responses 48% had improved image of Postal Service 17
2013 Promotions Calendar
639 customers enrolled Approx. 533 million CRM and BRM pieces were counted (April 1 – June 30); total credit: $10.7 million CRM represented 89% of total number of pieces counted; BRM was 11% of total Nearly all customers have agreed and credits have been issued Earned Value 2013 - Results 19
2013 Promotions Calendar
Standard Mail--Augmented Reality Instructions in the catalog to download the Ikea app. Directional copy in the catalog which says “Scan this page with your mobile device to see more”. With app on your mobile device you scan the pages with the image and create augmented reality experience. 21 21
2013 Promotions Calendar
Mobile Buy It Now 23
Mobile Buy It Now Promotion Email: firstname.lastname@example.org Web: https://ribbs.usps.gov/index.cfm?page=mobilebarcode (Recorded webinar available) Promotion Registration: https://gateway.usps.com/bcg/login.htm Promotion RegistrationDates: September 15 – December 31, 2013 PromotionDates: November 1 – December 31, 2013 24
Future of Mail
2014 Promotional Calendar Objectives Mobile Technology Integration Build upon previous promotions and continue strategy to encourage mailers to integrate direct mail with mobile technology Technology Drives Relevance Leverage the value of innovative direct mail techniques that are effective but less widely used Leverage Value of First-Class Mail Promotions intended to slow the declining volume trends and ensure reply mail and FCM advertising remain a relevant part of the FCM mix New Customer Acquisition Program to provide incentive for new small business customers to try direct mail
2014 Promotional Calendar Ideas Branded/ Customized Mobile Technology Encourage marketers to move beyond basic QR code and develop mailpieces that add marketing and creative value and encourage mobile engagement. Mail Drives Mobile Commerce Promotion Encourage holiday shopping by encouraging marketers and retailers to utilize state of the art mobile purchasing technology with direct mail and catalogs to facilitate purchases. All promotions and dates are tentative and subject to final USPS & PRC approval.
2014 Promotional Calendar Ideas Emerging Technology Promotion Emerging Technology Promotion. Potential existing or new technologies to highlight are: Near Field Communication (NFC) Augmented Reality New paper/printing technologieseReply Mail Promotion All promotions and dates are tentative and subject to final USPS & PRC approval.
2014 Promotional Calendar Ideas Mail & Digital Personalization Promotion Encourage mailers to utilize customer information and variable data printing technology to create personalized mail pieces and digital experiences that increase relevance and response rates. Colorization of Bills and Statements Encourage FCM mailers to utilize color ink on onserts with bills and statements, which can produce greater connection and response from consumers. All promotions and dates are tentative and subject to final USPS & PRC approval.
2014 Promotional Calendar Ideas Premium Advertising Product Promotion Encourage marketers and advertisers to use First-Class Mail by offering a discount on First-Class Mail presort postage to mailers who send advertising content via First-Class Mail. Earned Value Reply Mail Promotion Encourage USPS customers to continue to provide Business Reply Mail® (BRM) and Courtesy Reply Mail™ (CRM) as options for consumers to communicate with them. All promotions and dates are tentative and subject to final USPS & PRC approval.
2014 Promotional Calendar Ideas Small Business Direct Mail Coupon Encourage small businesses to leverage direct mail as a way to build a more robust relationship with customers by enabling the use of a coupon for them to try direct mail. All promotions and dates are tentative and subject to final USPS & PRC approval.
Proposed 2014 Promotions APRIL – MAY - JUNE JULY – AUG - SEPT OCT – NOV - DEC JAN – FEB - MARCH FIRST-CLASS MAIL Earned Value Color Print in First-Class Mail Transactions STANDARD AND FIRST-CLASS MAIL Mail & Digital Personalization Branded Color Mobile Technology Premium Advertising *mail prepared/ presented as FCM STANDARD MAIL Emerging Tech featuring NFC Mail Drives Mobile Commerce EDDM MAIL Small Business Coupon Program All promotions and dates are tentative and subject to final USPS & PRC approval.
Program Contact Information For further information: Email: email@example.com firstname.lastname@example.org(Earned Value Promotion) email@example.com(Picture Permit Promotion) Facsimile: 202-268-0238 Mail: US Postal Service Attn: Promotions and Incentives Post Office Box 23282 Washington, DC 20026-3282 Websites:https://ribbs.usps.gov/index.cfm?page=mobilebarcode https://www.usps.com/business/promotions-and-incentives.htm
What’s Next ? Gartner’s 2013 Emerging Technology Hype Cycle
Potential 2014 Saturation & High Density Incentive A year-long Saturation & High Density Incentive program will take place during calendar year 2014 designed to encourage programmed or recurring mailers to increase their frequency of mailing in existing markets and expand their reach into new markets. Incentive Eligibility Requirements: Eligible Products: Saturation, High Density Plus, and High Density letters & flats paid for with a postage permit. Eligible mailers must have mailed at least 6 times in FY2013 (Oct2012-Sept2013) Establish Volume Threshold based on CY2013 performance = SPLY + 2% The postage credit on incremental volume above each mailer threshold will vary by product: Regular Saturation Letters & Flats = 20% Regular High Density/High Density Plus Letters & Flats = 15% All Non Profit Saturation High Density & High Density Plus = 5% Credit applied to Permit Imprint account in Q2 of FY 2015. 36 Subject to final USPS & PRC approval.