1. Improve the Value of Mailing Services

Develop New Markets for First-Class Mail and Standard Mail

First-Class Mail and Standard Mail combined represent 94 percent of all mail volume and 83 percent of revenue. No realistic revenue strategy can succeed without growth from both products. Among longstanding customers, the features and benefits of these two products are generally well known. To potential new customers, however, the advantages of mail over other media are not known, particularly in the areas of privacy, security, and response rates. In the next year, the Postal Service will take several steps to strengthen its brands and improve customer understanding of the respective benefits of specific products. A foundation was set with the launch of a new brand positioning statement — Today‘s Mail — that relates the benefits of mail to contemporary lifestyles and business needs.

The features of First-Class Mail, particularly security and reliability, make it an ideal medium for financial transactions versus other media. While alternatives to mail, such as direct debit and online bill payment may be appealing to a growing segment of postal customers, the benefits of mail for conveying secure financial information and building on customer relationships remain compelling. A hardcopy statement can serve as a tangible reminder that a bill is due, it can announce the appreciation of an investment, and it can provide a convenient record of payments and deposits. Hardcopy mail also serves as a customer touch-point for information beyond bills and statements.

Intelligent Mail will add the important new dimension of visibility that will further increase the value of mail. Visibility will allow customers to pinpoint when a statement or bill is delivered and a payment is deposited into the mail stream. With increased visibility, customers can pinpoint when a statement or bill is delivered, and businesses will know for certain that “the check is in the mail.”

The Postal Service will continue to promote how mail complements other media. Research shows that recipients of advertising mail and catalogs are more likely to purchase items online than shoppers who do not receive this mail. Market research has shown that those receiving mailpieces typically buy more items and spend more money. In fact, a revenue lift of 163 percent was reported for Web sites supported by catalogs as opposed to those that were not. The Postal Service will also step up efforts with the direct mail industry to improve the quality of mail and mailing lists. Better targeted mail protects the viability of the mail as an advertising and communications channel and increases the return on investment of mail relative to other media.

Perceptions on the effectiveness of mail for advertising vary significantly between those who use it and those who do not. The current preparation complexity of Standard Mail, however, deters many businesses from even considering mail for advertising. With a simplified Standard Mail option, more mailers could benefit from the targeted value that direct mail offers for acquiring and retaining customers. The Postal Service will conduct market tests in 2008 to determine which Standard Mail features and prices most attract business advertising dollars.