One further note, PBBI will be running weekly live webinars starting in October and running through to the end of 2010.  Topics include postal requirements, best practices and compliance issues.  For further information please feel free to drop me an email at:  cynthia.williams@pb.com.

WEBINARS: MIGRATING TO IMb To date, mailers have deposited more than 50 billion mailpieces with Intelligent Mail^{® barcodes. If you haven’t already come onboard, we’d like to remind you that beginning in May 2011, to be eligible for automation discounts on your letter-size and flat-size mailpieces, you’ll need to start using the IMb™ in place of the POSTNET™ barcode. In May 2011, the POSTNET barcode will be ineligible for automation prices and the IMb must be used to claim automation prices with either the Full-Service option or the Basic option.}

Migrating to IMb during September, 2010. The six sessions are listed below with illustrated WebEx instruction that. EVENT TITLE: Migration to IMb

Where do you fit in the 4 stages of address quality concern?

1. Postal Compliance. At the most basic level, some organizations tackle address quality strictly as it relates to USPS mandates.  Here the goal is simple: maximize postal discounts.  When considering new technologies, decisions are based solely on whether the added postal savings exceed the cost of any new software or service.
2. Returned Mail.  Other mailers have come to understand the true cost of returned mail.  On top of the waste and redundant efforts, organizations incur additional expenses to reprint, remail and repost communications—with estimates ranging from $3 to $7 to piece. In this light, dealing with poor address quality takes on a heightened level of importance.
3. Failed Connections. The cost of poor address quality, however, expands beyond the mailroom. For marketing departments, it equates to lost sales and lost revenues. For customer care, it leads to phone calls (where is my mail?) and customer dissatisfaction. Collections managers invest resources following-up with people who never received the original bill.  And fraud managers must constantly track down high-value communications (such as credit cards) that never reached their intended destination.  Organizations at this stage of understanding do have an advantage, in that they can engage multiple departments in the task of improving address quality.  While print and mail managers can update addresses on envelopes, it takes the participation of multiple business units to correct address data at the source.
4. Poor Business Decisions.  The most advanced discussions, however, occur with people who understand that address quality drives so much more than mail.

More than 70% of all business records contain a location element.  Every day, organizations make thousands of critical business decisions based on location data—decisions that impact virtually every aspect of an enterprise.  For example:

• Market analysis. Population trends in key geographies, including incomes, demographics and purchasing behaviors, can make or break a new product launch.
• Risk assessment. The ability to pinpoint the distance between a property and a fault line, for example, can help ensure that a deal is underwritten at the proper price.
• Effective targeting. Finding hidden pockets of opportunity in neighborhoods—including consumers who will pay more for convenience—can turn poor performers into market leaders.
• Network investments. The placement and management of strategic assets such as power plants, cell towers, ATMs, commercial facilities or retail branches often require multi-million dollar investments—with long-term implications.
• Portfolio management. On a macro-level, organizations must understand exposure beyond traditional boundaries and across location-based factors such as economic conditions, weather, tax jurisdictions and market demographics.

Organizations that understand the power of an address – and how this information can drive business decisions across an enterprise – will tend to deal with address quality as an organizational imperative.

Where do you fit in the 4 stages of address quality concern?  If you are not sure, you can learn a lot simply by looking at who in your organization is responsible for fixing the problem.  When the burden falls mostly on those in print and mail management, there’s a good chance you are at stage 1 or 2 – stages that only begin the deal with today’s challenges and opportunities.

This recent article from directmag.com contains the USPS response to the Affordable Mail Alliance’s motion.

On July 6^th, 2010 the USPS filed an exigency rate case with the PRC.  The PRC has until October 4^th, 2010 to respond and can approve as is, deny the request, or approve based on recommended changes.  The USPS is requesting that the proposed changes go into effect January 2, 2011. 

 With a revenue shortfall of an estimated $7.0 billion for 2011, the USPS is taking a multi-pronged approach.  The proposed Exigency rate increase will add approximately $2.3 billion in new revenue for the USPS, but still leaves $4.7 billion in shortfall. 

For the longer-term fix to the USPS’ financial issues, The USPS will also continue their efforts to encourage Congress changing, and in some cases removing legislation that prevents the USPS from “right-sizing” their business.   

As noted, the proposed Exigency rate increase not only includes rate changes, but also adds a couple on incentives to grow mail, new mail classifications and regulations changes. 

Now that we have a better understanding as to why the USPS submitted this proposed Exigency rate increase, let’s focus on the actual changes proposed

 Proposed Price Increase:

The average proposed price increase across mailing products is 5.6% (generally running 4 – 6% but there are some exceptions). 

 First Class:

• Letter – price increase range 4.5 – 6.3%
• Flat – price increase range 4.5 – 16%
• Parcel – price increase range 32 – 53.3%

–        Parcels (same price for 0 – 3oz)

–        Split FCM parcels into two categories

• Retail FCM parcels
• Commercial FCM parcels

Standard Class:

• Average price increase of 6.2%

–        Price Increase ranges 4.4 to 23.3%

–        Flats average increase of 5.1%

–        Not Flat Machinable (NFM) category goes away

• NFM/Parcels become Standard Parcels

–        Fulfillment Parcels

–        Marketing Parcels

• Heavy Automation Letters

–        New formula to pay flats piece and pound rate with discount tied to the non-dropshipped entry point and applicable density tier

• Standard Mail Flats

–        Automation prices for rigid flats is eliminated

Package Services:

• Average price increase of 6.8%

–        Bound Printed Matter (BPM) flats proposed increase of 5%

–        BPM parcels, single piece Parcel Post and Media/Library mail at 7%

–        Elimination of half-pound pricing for nonpresorted BPM parcels

–        BPM single piece weights rounded off to two decimals verses the current 4 decimals

Periodicals:

• Average price increase of 8.0%
• Proposed Periodicals Origin Pallets increase of 21%

Special Services:

• Confirm

–        Proposed increase of Platinum level of 25.6%

–        Proposed increase of Bronze and Silver levels of 4.0%

• Elimination of Stamped Envelopes bearing a Standard Mail stamp
• Changes to the PO Box handling Fee

Incentives:

• Reply Rides Free

–        BRM and CRM included in envelopes up to 1.2 ounces ride free

• Qualifying pieces must be automation First-Class letters
• Must use the Full-Service IMb
• Mailer will pay the 2oz rate and be credited the 2nd oz charge for qualifying pieces

–        2011 Saturation and High Density Mail

–        Discount / Credit on pieces exceeding volume thresholds

–        Commercial Saturation letters and flats – 22%

–        High density letters and flats – 13%

–        Non profit letters and flats  – 8%

Move Update:

• Move Update Performance Based Verification (PBV) Threshold Tolerance

–        Reduce from 30% to 25%

• $.07 per piece fee for failed pieces

The campaign, “Getting Started in Catalogs,” includes an instructional DVD and a free live webinar series that show how catalogs — when used as an extension of a company’s Internet-shopping portal — can increase online purchases.

 The DVD features testimonials from widely recognized companies such as Dell and Zappo’s, businesses that became leaders by adding catalogs to their marketing mixes.

 The first of the 3 free webinars will be tomorrow, with tutorials on catalog production and the smartest and most cost-efficient ways to produce a catalog. Additional webinars will be held July 28 and Aug. 24. Follow-up support from USPS sales personnel also will be available for customers.

 Please remind your fellow PCC members and local retailers about the campaign. Customers interested in growing their businesses through the use of catalogs can click here to learn more about the catalog campaign, order the free DVD and register for upcoming webinars.

 We all know catalogs are a proven medium for driving transactions and increasing customer loyalty. We want to be sure every retail business owner knows that as well.

Postal Open Forum- Reviewing the Proposed Changes of the Mailing Standards

Register Now!

I’ve not had time to review these items in-depth, but wanted to pass along this information to our readers:

http://pe.usps.gov/prices/Prices_Jan2011.xls

 http://pe.usps.gov/FederalRegisterNotices.asp

This pricing is proposed for January 2011. As soon as we know more, I’ll post that information.

Here  is the link to the Federal Register Notice for the proposed mailing standards submitted to the PRC by the USPS today. 

 http://www.gpo.gov/fdsys/pkg/FR-2010-07-09/html/2010-16810.htm

SUMMARY: In July 2010, the Postal Service filed a notice of mailing services price adjustments with the Postal Regulatory Commission (PRC), effective in January 2011. This proposed rule provides the mailing standards that would accompany the new prices in 2011.

 DATES: Comments must be received on or before August 9, 2010.

In my email yesterday regarding USPS’s proposed changes – one of the things I mentioned was the “Reply Rides Free” incentive. I thought I would provide a bit more insight as to what this is and what it means to us.

 The “Reply Rides Free” program provides an incentive for mailers to include more content in their Automation First-Class Mail letters by providing a postage credit for the extra weight. A mailer who include Business Reply or Courtesy Reply Envelopes or Cards in their First Class Mail piece would be able to add 2/10’s of an ounce – FREE. Mailers would pay for the First Ounce and, basically, USPS would pay for the price of the mailing the Reply Mail and/or promo piece  (the additional 2/10 oz.).

 Although this new program, “Reply Rides Free”, is generally in context with Reply Mail as the “Free 2/10 oz.”, mailers could also use it to Promote Products (Transpromo), provide additional information to customers or to Cross Promote. With additional room for Promotional or Advertising Messages, mailers can turn a business expense into a Profit Center by selling the Inserts to other advertisers.

 Now besides USPS promoting First Class Mail volume with this incentive – one of the “requirements” that can promote our MAIL360 is that the credit applies to First-Class Mail letters mailed under “Full-Service” IMb!

 At fist read – the requirements seem a little ambiguous – as in one place USPS talks about using the 2/10 oz. for promotional inserts and then in another they say that a BRM/CRM has to be included in the outbound mailpiece ??? What I believe they are saying – and it does have a bit of logic to it – is that as long as their is a BRM/CRM envelope included, which many mailers already include today – and mailers typically stay within/under the 1 oz. – then the mailer can use the additional “Free” weight for the promotional insert, etc.

 The USPS “Reply Rides Free” Requirements:

 1)    First-Class Mail Letters mailed under Full-Service Intelligent Mail

2)    Weighing more than 1 ounce up to 1.2 ounces qualify for 1 ounce price

3)    Include a Courtesy or Business Reply, Card or Envelope. The reply piece may be in the format of a reusable envelope.

4)    Meet threshold based on previous year’s volume

5)    Permit Reply Mail is not eligible for this program.

6)    The “Reply Rides Free” program will run from 1/2/2011 through 12/31/2011.

 Now there is a slight caveat to this – USPS is going to “Credit” the customer “after” the mailing. So at the time of mailing, the mailer pays the applicable 2 oz. price for these mailed pieces. And then credit back the amount paid for the 2nd oz. and mailpieces mailed during the 2011 calendar year when the Mailer’s Volume of Commercial Automation Letter-Size First-Class Mail meets a “pre-determined volume threshold”. All letter-size volume counts towards meeting the overall mail volume; however, only those letters mailed under Full-Service Intelligent Mail will be eligible for postage credit.

 I’m not clear on what the “pre-determined volume threshold” means but the “win-win” logic for the USPS by adding the requirement that the mailpiece has a BRM/CRM included is that USPS will get additional, incremental postage when the Reply Mail is sent back by the customer.

 Note: This is how “I” understand the  “Reply Rides Free” program however I’m sure as the year goes on – we’ll hear a lot more about this and as well as the other “proposed” 2011 changes.

~ Maura Betler – July 2, 2010

After a rough start to 2010, the USPS® has earned some serious bragging rights. According to this press release, the Postal Service is the most trusted governmental agency in the United States.

Ponemon Institute surveyed 9,000 Americans about perceptions of how the U.S. government collects and uses information gathered about its citizens. The survey included questions about whether we think that the government takes necessary steps to protect our privacy rights.

“While overall trust in the government declined this year, trust in the U.S. Postal Service remains at an all-time high,” said the institute’s chairman, Larry Ponemon, chairman and founder of the Ponemon Institute. 

The USPS®, reports to handle “40 percent of the world’s card and letter volume and delivers more mail to more addresses in a larger geographical area than any other post in the world.” 

That’s a lot of information to protect.