USPS® Delivers the Customer Journey

National PCC Week | September 23-27, 2019

Thank you for your Partnership& Your Business

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INDUSTRY SUPPLY CHAIN

®

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BINDING THE NATION

Physical Infrastructure

®

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BINDING THE NATION

Digital Infrastructure

®

®

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COMPETING FOR BUSINESS EVERYDAY

COMPETITION INEVERY PRODUCT &

EVERY MILE(FIRST, MIDDLE,

& LAST)

First-ClassMail®

Shipping/Packages

Marketing Mail/Periodicals

DeliveryService

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MAIL

First-Class Mail® and USPS® Marketing Mail together account for 61% of total USPS revenue and 89% of total volume

Marketing Mail51%First Class Mail

38%

Other8%

Packaging Services

3%

Percent of Volume

Marketing Mail24%

First Class Mail37%

Other10%

Packaging Services29%

Percent of Revenue

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VALUE OF MAIL

78% of households still prefer receiving at least one of their bills by mail

• Trust• Reminder• Record-Keeping

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VALUE OF MAIL

77% of consumers check their mail at least 5 days a week*

*Source: Market Research & Insights – Mail Moments Spring 2019

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VALUE OF MAIL

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VALUE OF MAIL

56% tried a new business after receiving Marketing Mail*

56%*Source: Market Research & Insights – Mail Moments Spring 2019

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VALUE OF MAIL

Today’s political campaigns look more like marketing campaigns.

Nearly 80% of surveyed voters received political mail at least once a week.

Source: “Survey Offers Key Insights on Political Mail in Florida, Ohio Midterm Elections,” The United States Postal Service, February 2019.

Voters are interacting with mail more than ever.

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VALUE OF MAIL

Nearly half of the voters surveyed (47%) agreed that

the most memorable form of political advertising I received during the midterm elections was mail.“

Source: “Survey Offers Key Insights on Political Mail in Florida, Ohio Midterm Elections,” The United States Postal Service, February 2019.

People interact with mail from the moment they see it.

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MAIL REPOSITIONING

Marketing dollars are going elsewhere

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60

80

100

120

140

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2009 2011 2013 2015 2017 2019 2021 2023

Revenue Linear (Revenue)

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5,000

10,000

15,000

20,000

25,000

2007 2009 2011 2013 2015 2017 2019 2021 2023

Revenue Linear (Revenue)

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Direct Mail Digital Advertising($ Revenue in millions, excluding Political Mail) ($ Revenue in Billions)

MAIL REPOSITIONING

Integrating with Digital

PhilosophicalShift

Tested with Marketers

Gathered Expert

Industry Insights

Innovations Introduced

From “Direct Mail (DM) is better than digital” to “DM + digital are smarter together”

7 Concept AreasFocus Group

Research

Improved Solutions were Needed

Strength in the Omni-channel Model

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MAIL’S ROLE ACROSS THE CUSTOMER JOURNEY

Leads Sales Repeat SalesConsiderationTurn interest intoactive evaluation.

Turn leads intopaying customers.

Turn a single sale into a repeat customer.

Turn prospects into valuable leads.

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MAIL’S NEW JOURNEY TOOLS

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MAIL REPOSITIONING

Innovations have Transformed Mail

DIGITALLY ENHANCED MAIL

(Formerly Irresistible Mail)

INFORMEDVISIBILITY®

RETARGETED DIRECT MAIL

(Automated Direct Mail)

INFORMED DELIVERY®

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INFORMED DELIVERY® – BY THE NUMBERS

19,200Campaigns Completed

2,756Brands

Represented

19.0M+Registered

Users

13.9MEmail-enabled

Users

208K+Weekly User Registrations

62.3%Average Email

Open Rate

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INFORMED DELIVERY

12.0%National

Saturation of Eligible Deliveries

62.3%Average Email

Open Rate

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INFORMED DELIVERY ®

Informed Delivery provides organizations with aggregate pre- and post-campaign data, which offer insights into campaign reach and results.

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INFORMED DELIVERY®

The conversion rate of interactive advertisements on Informed Delivery is high, frequently resulting in a purchase or planned purchase

M_R_I ∞ Market Research & Insights

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INFORMED DELIVERY® CALCULATOR

Informed Delivery Informeddelivery.usps.com

Informed Delivery Calculatorwww.usps.com/idcalculator

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INFORMED DELIVERY®

Next Up

• Informed Delivery Promotion• Reporting through Informed Delivery• Package Campaigns• Informed Delivery Reengineering• Sign-up Enhancements

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Informed Delivery Collateral– Automotive– Telecommunications– Finance– Retail

INFORMED DELIVERY®

Promotional Materials

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INFORMED DELIVERY®

ID Campaign Tutorial (Live Sept)– Business Customer Gateway– Postal Pro– ID for Business Mailers site

Mail Repositioning Content USPSdelivers.com

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INFORMED DELIVERY®

Holiday Tax Season Summer Travel Back to School PO Box

November

March

June September

August

Growing the Consumer Base

Continuing our wave approach, each mailing is testing ways to evolve our marketing and messaging to target consumers 28

RETARGETED DIRECT MAIL

Supporting articles• Best Practices for Automated Direct Mail• Understanding Multi-touch Attribution• Combine Power of DM with Email

USPSDelivers.com

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INFORMED VISIBILITY®

Real-Time Insights

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INFORMED VISIBILITY®

Acceptance

Depart BMEU

Arrive at Processing

Processing

Depart Processing

Transportation

Arrive at Destination

Depart Destination

Arrive at Unit

Out for Delivery

Delivered

End-to-End Visibility

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INFORMED VISIBILITY®

Easy to Share & Receive Data

Flexible Data Provisioning & Delegation

End-to-End Visibility

Omni-Channel Marketing Opportunities

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INFORMED VISIBILITY®

• Informed Visibility

Uspsdelivers.com content

Fact Sheets

o IV for Business Mailers

o IV for Political (Jan 2020)

IV included in promotional campaigns

Marketing Strategy

USPSDelivers.com Content

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DIGITALLY ENHANCED MAIL

Informed Delivery® Personalized InvitationTactile Assembly

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2018 NEXT GENERATION AWARD FINALIST

Hayneedle was a finalist for the 2018 USPS® Next Generation Award for their beautifully designed mailpiece coupled with an enticing Informed Delivery® interactive campaign.

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Mobile Shopping

MARKETING MAIL

MARKETING MAIL AND FIRST-CLASS MAIL

Personalized Color TranspromoRegistration

May 15 - Dec 31Promotion Period (6 months)

July 1 – December 31

RegistrationJan 15 – Aug 31

Promotion Period (6 months)March 1 – August 31

Emerging & Advanced Technology

RegistrationDec 15 – July 31

Promotion Period (6 months)February 1 – July 31

Tactile, Sensory & Interactive Engagement

RegistrationJune 15 – Dec 31

JAN – FEB – MARCH APRIL – MAY – JUNE OCT – NOV – DEC

Promotion Period (5 months)August 1 – December 31)

Earned Value Promotion Period (3 months)

April 1 – June 30

*registration closes Mar 31, 2019

RegistrationFeb 15 -

Mar 31, 2019FIRST-CLASS MAIL®

Informed Delivery®

RegistrationJuly 15 – Nov 30

Promotion Period (3 months)September 1 – November 30

2019 MAILING PROMOTIONS CALENDAR

JULY – AUG – SEPT

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ACADEMIC OUTREACH: PROGRAM STATUS

This content is intended for USPS® internal and PCC use only. Not for distribution. Logos as of July 2019, for normative use only.

• 60+ schools using curriculum!

• Nationwide representation

• New schools signing on every week

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ACADEMIC OUTREACH: PROFESSOR RAUDE NAGAISHI

Honolulu Community College

“The material is well-organized, thorough, and segmented in such a way that an instructor can easily choose which topics to cover and at what depth, depending on their student’s backgrounds…My appreciation for direct mail in my agency work has increased considerably.”

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ACADEMIC OUTREACH: GET INVOLVED

• PCC Handbooks distributed to each PCC

• Webinar recording and resources available on PostalPro

• Great opportunities to engage with colleges/universities, professors and students, and help shape direct mail knowledge and use for future marketers, designers and all kinds of businesses

• Materials at: https://postalpro.usps.com/directeffect

Reach out to the HQ support team at: DirectEffect@usps.gov

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SHIPPING BUSINESS FACTORS

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SHIPPING – POWERFUL POINT OF ENGAGEMENT

Increase

15%FROM 2017

2018

$517BSPENT ONLINE

w/ U.S. Merchants1

RECEIVE

27E-COMMERCE DELIVERIESPER YEAR2

26%AMERICANS RECEIVE

DELIVERIESONCE A WEEK2

1 www.digitalcommerce360.com/article/us-ecommerce-sales 2 Business Wire – Package Theft Report 2016.

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CUSTOMER EXPERIENCE IS THE DIFFERENTIATOR

USPS® delivers the most e-commerce packages to homes in America… over 5 billion packages delivered in 2018

Retail Ground Parcel Select® Parcel Return Service

Priority Mail Express® Priority Mail® First Class Package Service®

Value Pricing

FlexibleOfferings

BundledSolutions

ReliableService

Access to our

ubiquitous network

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ACCESS POINTS

Post Office™ Locations Self Service Kiosks Approved Shippers Contract Postal Units & Village Post Offices Collection Boxes

33K 3K 6K 3K 142K

USPS® has over 140 million pickup points nationwide 43

The United States Postal Service® is the most trusted government agency and is customer focused with more than 187,000 access points.

RETURNS BUSINESS

Viewed as a Competitive Differentiator

VS.

1 Exploring the Next Generation of Consumer Returns (Slide 6)

$113 - $132B OF E-COMMERCE PURCHASES WERE RETURNED IN FY 18

Over 25% return rate for

online purchases

3% return ratefor in-storepurchases

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RETURNS EXPERIENCE

40%Of shopper will complete

purchase if returns are easy1

95%Of customers will purchase again if satisfied w/ returns2

1 Global Web Index - Social Commerce Trend Report, 2019. 2 Narvar - Making Returns a Competitive Advantage Consumer Report, 2018. 45

RETURNS SOLUTIONS BUILT ON USPS® ACCESS POINTS

RETAIL LABEL BROKER™ Print labels via QR

code on phone

PACKAGE-LESSRETURNS (TEST) Testing partnership

in 53 USPS retail locations in Dallas

QR CODE ON RETURNLABEL FOR PACKAGE PICKUP Scan to Schedule Pickup

END TO END Automated Returns

API enables printinglabel through call center or online

OVER 33,000 RETAIL LOCATIONS!

INFORMED DELIVERY® FOR PACKAGES COMING SOON

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USPS® – INDUSTRY COLLABORATION

Committed to Collaboration/Communication

Exchange Ideas & Preempt Issues

Drive Innovation and Adopt Technology

Areas Inspiring Mail Groups Mailers' Technical Advisory Committee Postal Customer Council Meetings National Postal Forum

Areas Inspiring Mail Focus Groups – Calendar by Areahttp://postalpro.usps.com/industry-forum/area-mailing-industry-focus-group/calendar

NPF 2020 – Orlando, FL April 26-29http://www.npf.org

https://postalpro.usps.gov MTAC – Meet Quarterly

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GROW YOUR BUSINESS

• Identify the value that mail brings to the customer journey in order to grow your business.

• Maximize the value of your mail with Informed Delivery® campaigns.

• Use Postal Service™ shipping products and services to your competitive advantage.

• Get further involved in your PCC to bring these elements into your business.

• Participate in your local Academic Outreach efforts.

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USPS® BRAND

INVESTMENTS IN…

Proud ToDeliver For You

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Thank You