The Postal Service™ has over 20 million PO Boxes installed nationwide, which have generated $929 million of revenue in fiscal year (FY) 10. A renewed focus on selling and marketing PO Boxes resulted in an $18 million increase in revenue over the same period last year (SPLY), with an 87-cent contribution for every dollar of new revenue. This nationwide effort culminated in the September launch of an advertising test campaign in four major markets. If successful, this campaign will be expanded to additional markets in FY 11.
The PO Boxes Online solution enables new customers to search for available boxes near their home or business and pay online. Existing customers may also manage their PO Box™ accounts online. Besides improving convenience, these options reduce late payments and unintended box closures. In 2010, over 600,000 customers completed PO Box transactions online, a 44 percent increase from 2009.
In 2010, the Postal Regulatory Commission (PRC) approved the transfer of 32,000 PO Boxes from the market dominant to the competitive products category. The boxes are in 49 metro and suburban locations where competitive alternatives are readily available. The change, which allows for more flexibility in product and service offerings, gives the Postal Service the ability to respond more rapidly to the changing market. PO Box enhancements include the following:
n Signature on File service for certain types of signature-required mail.
n “Baker’s Dozen” promotion for new customers (13 months of service for a 12-month PO Box payment).
n No key deposit required for the first two keys for new customers.
n Expanded and earlier lobby access at select offices.
As always, PO Boxes offer a great value. Customers can pick up mail at their convenience. Customers also obtain a stable address, allowing more control over their business and personal correspondence, even if their physical address changes. PO Box service is truly a win-win proposition for the Postal Service and its customers.
— Special Services,
Retail Products and Services, 1-13-11
