Chapter 2 Postal Operations

A. REPLY MAIL

Reply Mail allows businesses to provide preaddressed letters and postcards, with or without postage, to encourage customer responses. The Reply Mail Web page on usps.com provides customers with information on how to use Courtesy Reply Mail (CRM) and Business Reply Mail (BRM) effectively and increases customer ease-of-use by reducing the time and effort required to apply for and obtain a BRM permit and ZIP+4 code. BRM and CRM customers can design letters and postcards, obtain a unique ZIP+4 code, and create camera-ready artwork that meets automation compatibility requirements.

B. REMITTANCE MAIL

Remittance Mail is the segment of First-Class Mail service comprised of payments typically enclosed in Courtesy Reply envelopes. When combined with outgoing bills and statements, bill and remittance mail accounts for an estimated 54 billion pieces or 55% of First-Class Mail. The Postal Service has developed a program to track remittance nationally using PLANET Codes. The program will seed mail pieces, evaluate performance, and identify areas of improvement. Testing is scheduled to begin in the spring 2007 and to continue through the calendar year. The Postal Service formed the Remittance Mail Advisory Committee (RMAC) with key industry leaders to recommend actions for improving performance and adding value to Remittance Mail.

C. ELECTION MAIL

Official Election Mail allows state and local jurisdictions to initiate “no excuse needed” absentee voting. Twenty-nine states currently allow such voting. Postal Service representatives collaborated this year with election officials nationwide to respond to the growing need for “Vote by Mail”. Based on the collaboration several key initiatives were completed. Training and the APO/FPO Express Program were added to the Election Officials’ Resource Center on usps.com Web site. A national training program for election officials was established and election mail related workshops were conducted at the National Postal Forum. Two publications were released (Publication 631, Official Election Mail — Graphic Guidelines and Logos, and Publication 632, State and Local Election Mail Users Guide) to assist election officials. In addition, a national taskforce comprised of election officials and postal service representatives was established in an effort to identify additional improvement opportunities.

2. Direct Mail

Direct mail is a content-rich advertising medium recognized for its effectiveness and measurement capability. A significant source of revenue for the Postal Service, direct mail consists mostly of items sent by Standard Mail, but also includes a sizeable amount of Bound Printed Matter and First-Class Mail. Research shows that most recipients believe that direct mail is the most convenient method for staying informed of goods and services to help manage their home or business.

Direct mail revenue grew almost 5% and volume almost 2%. This growth was based on factors such as the targetability and measurability of direct mail, response rates, and return on investment which is among the highest of all advertising media. Some growth can also be credited to a continuing trend to block spam e-mails and telemarketing calls, and the availability of innovative products such as Customized MarketMail, Repositionable Notes, and Ride-Along for Periodicals.

A. PROMOTION

The Postal Service is raising awareness about direct mail with advertising agencies and large and small advertisers through customized publications such as Deliver, a bi-monthly magazine designed in case-study format to profile Fortune 500 organizations and leading minds in the industry. Research shows the magazine has influenced almost half of the respondents to increase their use of direct mail. Meetings with senior advertising agency executives were held to discuss the advantages of direct mail and explore opportunities for greater and more effective use of the mail. A customer feedback mechanism was also added to the Postal Service’s Direct Mail Web site at usps.com/directmail.

For small businesses Grow Your Business Days promoted the ease and speed of Web-to-mail products using NetPost Services to design and implement direct mail campaigns from the convenience of the customers’ computer. An educational program called the Direct Mail Institute used industry experts to train representatives to help medium- to large-size customers understand the value and power of the mail.

B. RESEARCH

The Multi-Channel Catalog Study highlighted and quantified the increased traffic and sales generated on Web sites when hardcopy catalogs are used in a marketing campaign. Other information provided to the mailing industry concerned the impact of direct mail on online credit card applications. The study demonstrated that mail is the overwhelming source for consumers going online to apply for a credit card because it provides the information needed to decide if an offer is useful and relevant.

The Postal Service’s Mail Moment research shows that Americans value and look forward to receiving mail. The Mail Moment lasts 30 minutes on the average and involves consumers bringing their mail into the home and sorting, reviewing, and acting upon it. An amazing 98% of Americans bring in their mail from their mailbox every day. Mail provides information that supports the household CEO to do things needed to keep their household running — shopping, maintaining relationships, and managing bills and payments. Businesses use mail to do the same jobs. Follow-up research, the Business-to-Business Mail Moment study, indicated hardcopy mail gives almost universal access to the individual that senders are trying to reach. The research shows that mail plays a fundamental role in supporting decision-making, and is easy and safe for receivers to use.

3. Value-Added and Special Services

Value-added and Special Services are a unique set of products that can be purchased for a fee, either separately or as a feature added to services such as First-Class Mail, Express Mail, and Priority Mail. Special Services are an essential cornerstone of the strategy to increase usage of other core mail products. They add value primarily by providing security with benefits that permit customers to verify mail receipt and delivery, obtain signatures, insure mail contents, and register mail for additional protection. Customers can also track letters and flats through CONFIRM service and receive delivery information for flats and packages using Delivery Confirmation and Signature Confirmation Services. Post Office boxes and Caller Service offer alternatives for receiving mail.