5. Retail Alternative Access

During 2005 the Postal Service continued communications efforts designed to build customer awareness of the many convenient options that exist for buying stamps and performing other basic retail transactions. Conducting postal business online or by self-service helps control postal operating costs and greatly enhances customer convenience by expanding the times and locations that service is available.

A. USPS.COM

The Internet has enabled the Postal Service to transform communication and business processes and create opportunities to improve efficiency, enhance relationships, and create new customer solutions. In 2005 the Postal Service continued to use Internet technology to provide products and services that meet the varied needs of business and consumer customers.

The Postal Service's Web site, usps.com, has grown into a vital business channel, broadening access to products, services, and information. In 2005 usps.com received 278 million visits, 9 percent more than 2004. Continued growth in visits and transactions helped the channel reach, $272 million, which amounts to 1.6 percent of retail revenue. usps.com also contributed an estimated $498 million in cost avoidance and indirect revenue (sales enabled by usps.com but recorded elsewhere). Much of the Web site's growth can be attributed to efforts to make shipping online easier. Enhancements to the homepage and customer segmented doorways have driven growth by making it easier for customers to find products, services, and information.

B. AUTOMATED POSTAL CENTER

The Automated Postal Center (APC) is a low-cost kiosk alternative to the retail counter that provides customers with convenient access to postal services that retail customers most frequently buy. Most APCs are available 24 hours a day, 7 days a week. The Postal Service deployed 2,500 APCs in postal locations between April and November 2004. During 2005 approximately 1.6 percent of retail revenue was generated by APCs. Retail sites with APCs have been able to reduce wait time in line and have slightly higher CSM scores. In 2006 the Postal Service will test various configurations and will continue to move some machines to sites with more opportunity.

C. STAMPS BY MAIL

Many customers use Stamps by Mail to order postage and have it delivered right to their mailbox. In 2005 Stamps by Mail sales were $235 million. Although this program has been in existence for many years, customer awareness is still relatively low. The Postal Service will continue to feature the advantages and convenience of Stamp by Mail.

D. STAMPS ON CONSIGNMENT

Approximately five percent of the Postal Service's total retail revenue is generated from the stamps on consignment program, which makes First-Class Mail stamp booklets available in commercial venues such as ATMs and supermarkets. The program benefits retailers by generating customer traffic while allowing customers to combine common tasks in one trip. Future plans include expansion of this convenient service to other retailers who have not formerly considered making stamps available to their customers.

E. CONTRACT POSTAL UNITS

Contract postal units (CPUs) allow the Postal Service to reach customers at times when a trip to a Post Office is not possible or convenient. Typical CPU host locations are drug stores and supermarkets, and many feature evening, weekend, and holiday hours. The convenience store industry is the fastest growing segment of the CPU program with over 100 locations in operation in 2005. Contract Postal Unit Technology (CPUT) is a new Web-based system that now contains information on all CPU contracts and facilitates contract payments. CPUT records and tracks sales and will interface with the Postal Service's Retail Data Mart. A new weighing and rating system that automates the selling of postal services is now allowing postal managers to obtain transactional level data from the over 150 CPUs now using this equipment.

F. POSTAL SERVICE APPROVED SHIPPER

During 2005 the Postal Service developed the Approved Shipper program to improve the quality of postal information given to customers by third-party retail establishments. Unlike CPUs, these retailers do not provide services under contract with the Postal Service and receive no compensation. However, they routinely accept letters and packages and tender them to the local Post Office on behalf of their customers. The Approved Shipper program provides participating retailers with standard product information and signage, which helps protect the Postal Service brand, improve compliance with aviation security procedures, and minimize the incidence of inaccurate information on postal services and prices. To participate in the program, retailers must sign a license agreement defining terms and conditions. Participation is subject to the approval of the local Postal Service district. The Postal Service began a pilot of the Approved Shipper program at 30 sites in the Southwest Area in 2005. National roll-out is scheduled for 2006.

G. POSTAGE TECHNOLOGY INITIATIVES AND SECURE ELECTRONIC SERVICES

Postage meters and PC Postage products offered by commercial providers provide an alternative access channel for all customers - from households to national accounts. These products make it more convenient for customers to mail with the Postal Service by integrating services such as insurance and Delivery Confirmation with postage payment, and by making it easier to print shipping labels and account for postage paid.