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Chapter 2 Postal Operations
of solutions at the federal level to defeat the growing threat of identity theft.
The Postal Service worked with Louisiana state election officials to validate the security of ballot mailings. Reviews were conducted to ensure integrity of the mailings through volume data provided by the CONFIRM service. Inspectors picked up ballots from the state and verified that the mailings were logged in at the processing plant.
Additional work was performed with other stakeholders to evaluate security risks associated with Post Office box locks. The Inspection Service conducted facility reviews at 907 facilities and made recommendations for noted security deficiencies. The Inspection Service continues to work with major mailers to ensure mail security concerns are addressed and to coordinate collection and sharing of intelligence data.
1. Stamp Program
The Postal Service issued 21 new commemorative stamps. Subjects included a tribute to the amazing Wonders of America; a salute to classic motorcycles; big league baseball sluggers; the artistic beauty of handmade quilts from Gee’s Bend, Alabama; distinguished American diplomats; and a collection of DC Comic Super Heroes. A number of prominent individuals were also featured in the commemorative program. They included boxer Sugar Ray Robinson, Hollywood legend Judy Garland, American icon Benjamin Franklin, author Katherine Ann Porter and actress Hattie McDaniel. The Postal Service’s Amber Alert stamp was issued throughout the country to raise awareness about missing and exploited children.
2. Production Activities
Production costs for all stamps, including those needed for the January 2006 rate increase, were $75.6 million. Of the 35 billion stamps produced in 2006, approximately 1.6 billion, or 4.6%, were for the commemorative stamp program.
3. Stamp Fulfillment Services Activities
Stamp Fulfillment Services processes stamp and philatelic orders received primarily by telephone and through the Internet. Orders grew by 74%. Since 2002 orders have grown from 1.2 million to 4.4 million per year with annual sales surpassing $311 million in 2006.
Officially-licensed merchandise is merchandise that displays Postal Service trademarks, stamps, and images that were granted permission for reproduction. Through licensing, the Postal Service protects, manages, and develops the intellectual properties and opportunities that best represent the Postal Service brand. The program experienced a growth of 90% in 2006, $1.7 million in net income. This increase can be attributed to the streamlining of workflow and the reduction of costs.
I. Commercial Customer Service
1. Commercial Sales
The Postal Service continued to manage one-to-one relationships with more than 35,000 large customers in 2006. The organization refined its standardized sales management process, realigned sales management, expanded skills training, and increased effective sales support tools. Field sales teams are better equipped than ever before to target opportunities, have effective engagements, and close sales. Commercial revenue performance, customer satisfaction, and field sales readiness assessment performance have continued to improve. More and more businesses choose the Postal Service as part of their integrated business strategy to attract new and repeat customers, build their brand in the mailbox, communicate with key customer segments, and ship their merchandise and important business documents.
2. Business Service Network
The Business Service Network (BSN) provides customer service to the Postal Service’s largest business customers, which represent more than $41.7 billion in total revenue for National and Premier Accounts, or 57.7% of total revenue. The BSN redesigned its Headquarters and field structure. The new model provides BSN service from the area office to those accounts with multiple sites and highly complex issues. District BSN resources will continue to handle accounts with less complex issues. A Service Improvement Team was added at Headquarters to identify and resolve systemic issues. The BSN encouraged user adoption of the customer relationship management (CRM) application, improved data quality, and increased customer satisfaction. The number of customers registered to use the online service increased to 26.1%. BSN results exceeded the prior year’s Customer Satisfaction Index for National and Premier Account customers.
3. Customer Relationship Management
Three additional customer information systems were integrated within a common postal customer identification system, enhancing the completeness and accuracy of customer information. Through the use of technology and the application of standards, the Postal Service continued to improve the overall quality of data leading to better customer service and cost savings opportunities. Customer Registration, which gives large mail volume customers access to online postal services with a single logon ID, was expanded to include additional online services. This expansion makes it easier and more convenient for the largest customers to do business with the Postal Service.
4. Engaging Employees to Grow Revenue
The Customer Connect and Business Connect programs have successfully encouraged employees to identify and develop new business opportunities. Promotion of these programs enhancing employee participation remains the focus.
Customer Connect asks carriers to help identify small businesses that could benefit by increasing their use of postal services. Carrier referrals are provided to sales employees who then meet face to face with customers to better understand their needs and recommend the right mix