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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.

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mail innovations and usps promotions
MailInnovations and USPS Promotions

Northeast Area Focus Group

October 3, 2013

Tom Foti

Direct Mail & PeriodicalsNew Products & Innovation

agenda
Agenda
  • The Value of Mail
  • Future of Mail: Mail and Mobile Connections
  • USPS Promotions
  • Questions

2

mail is valued
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
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
Mail as a Marketing Tool

Benefits

  • Targeted advertising to customers
  • Cost effective
  • Interactive solutions through technology
  • Easily measured effectiveness
mail delivers results
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
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 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

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
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.

slide11

Mail That Works For You

USPS Promotes mail innovations

Enhanced mailpiece

Increased ROI

Improved consumer engagement

Enhanced customer acquisition

Greater response rate

11

slide12

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
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

slide16

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

slide17

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

slide19
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

standard mail augmented reality
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

slide24

Mobile Buy It Now Promotion

Email: mobilebarcode@usps.gov

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

objectives

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
slide28

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
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 ideas1
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 ideas2
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 ideas3
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.

slide33

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
Program Contact Information

For further information:

Email: mobilebarcode@usps.gov

earnedvalue@usps.gov(Earned Value Promotion)

picturepermit@usps.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
What’s Next ?

Gartner’s 2013 Emerging Technology Hype Cycle

slide36

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.