Over the past months we have heard a fair amount of buzz about the USPS moving to a 5 day work week to their continued efforts in cost cutting. As a marketer, I have to admit not loving the idea – particularly with the new tracking that IMB can now provide – the business to consumer model of planning campaigns to hit homes about a certain sale, promotion, event….on the week-end – providing a certain optimal driver. However, I am sure that is not what comes to the minds of those focused on the bottom line – driven to see the color black sometime before retirement.
Over the past few days I read an article featured in DMNews titled ‘ Despite Budget, USPS CFO Backs 5 Day Week’. Evidently in Obama’s 2011 budget report it makes mention of the traditional six day delivery week, and according to the Postal Service’s CFO – this appears to be nothing more than ‘routine language’. http://www.dmnews.com/despite-budget-usps-cfo-backs-5-day-week/article/163693/
Capitol Hill appear to be thinking differently and continues to suggest taking alternative action to cut overhead and costs – and many in Congress feel this may well end up impacting the USPS even more negatively as key consumer marketeers are driven to explore alternative marketing methods to support integrated week-end campaigns. … And the general public view on never having to hold the barking dogs back as the postal carrier climbs the porch to deliver the Saturday post.
John Potter, Postmaster General, continues to keep an open mind to the alternatives and while determined not to increase postal rates – balances the impact of rate increases – to that of a shorter delivery week. Given these two options, a rate increase may end up driving postal volumes towards a continued downhill spiral – but are they really at the core of it all? OK Mr. Potter, I realize email marketing, online bill payment and social media have all taken their toll on mail volumes – but how many of us delete promo based emails immediately as that appear, and while I may be a ‘fan’ of various retailers on Facebook – can this ever take the place of a personalized direct mail piece? More and more marketers are moving back to basics – direct mail may never be utilized for the mass mailings of yesteryear – but First class and standard class mailings with postal discouunts are a pretty good runner up for revenue….and yes, while the USPS may never see the volumes prior to the internet – there is still plenty of us pulling for you to succeed and allocating on-going budget for direct mail.
I would love to hear any perspectives from our major mailers – do you have any strong thoughts for or against the reduced delivery week?….and if the alternative is higher postage…then it may be that there is little choice. By the way, I am planning on attending Friday’s USPS web conference discussing the 5 Day Delivery Week with an open mind…and will provide an update about that next week for those of you unable to attend.