Scheme for Growth Pilot IMPORTANT ! This guide is only for internal use by companies that have been admitted to the Scheme Royal Mail Group: Scheme for Growth Pilot Sales Guide

Contents: What is the Scheme for Growth …………........................................... 2 How does it work? …………………………………………………………….…….. 3 The Customer Value Proposition ……………………………………..………. 4 How Your Customers Can Use Mail to Grow Their Business ……………...……… Illustration of Use …………………………………………………………….……… 5 Sales collateral and Documentation ………………………………………… 6 Enquiries and further information ………………………………………….. 1

What is the Scheme for Growth? The Scheme for Growth is an industry-wide scheme to incentivise the use of mail over a 12 month period by providing a discount off the Royal Mail price on all new incremental advertising mail posted above a “baseline” volume*. Discounts start from 2.5p per item for machine readable letters rising to 10.5p for heavy Large Letters. New incremental advertising mail can qualify for the Scheme regardless of whether it is posted via an Access Operator, a mailing house, Royal Mail (Wholesale or Retail) or an alternative end-to-end delivery provider. *The baseline volume is determined by Royal Mail, based on customers’ historic advertising mail volumes. 2

How does it work? The mailing industry has worked together to bring you this Scheme. Some of the key features are: The Scheme is available for any new, incremental advertising mail volume of 250k items or more that is sent over a 12 month period from the customer’s chosen start date A discount rate of 2.5p (for machine readable letters) to 10.5p (for heavy Large Letters) off the Royal Mail price for all incremental mail posted above the baseline Fixed Discount off the Royal Mail price ensures all customers have the same opportunity regardless of which postal service provider they use for their advertising mail postings The Scheme can be used over the course of 12 months so that all advertising mail posted above the agreed baseline during that 12 month period will receive the discount via postage credit This is an industry-wide scheme meaning that postings will qualify regardless of who you posted with provided mail volume is made visible to Royal Mail for verification purposes The Scheme is applicable to advertisers at overall legal entity, specific customer, brand e.g. ABC, or sub brand e.g. ABC Soap. 3

The Customer Value Proposition Growing your business with mail and helping you get the most out of mail has never been easier. Our Scheme for Growth improves your return on investment by giving you the opportunity to significantly cut your postage costs for certain types of mailing items. It works by giving you a postage credit on your new, incremental mail and reducing the cost for you to test and do more of your most valuable mail.   Adding mail to your marketing mix is a powerful, cost effective tool to get more revenue from your current customers, reactivate your previous customers and grow your business. How Your Customers Can Use Mail to Grow Their Business Mail information of new launches to their customers - Give their customers the best opportunity to consider and buy their new products or services Targeting new customers to grow their customer base - Find customers with similar profiles to sell more products or services Entice previous customers with special offers - Encouraging the best types of customers to come back is more cost effective than finding new ones Mail customers to stop them from going to the competition - Customers are more likely to remember messages sent by mail Mail exclusive offers to their best customers - Mailing customers makes them feel valued and increases their spend and loyalty Carry out test and learn activity to improve their Return on Investment - New audiences, messaging, frequency, formatting or media integration to increase mail effectiveness Mail catalogues / brochures to their customers - Customers, who are mailed catalogues, spend more, buy more and buy more frequently. 4

Illustration of use: If your customer has a Scheme baseline of 1 million items for the next 12 months and they mail 320,000 additional incremental items during their 12 month incentive period, all of these 320,000 incremental items would qualify under the scheme. Assuming your customer used Access Advertising Mail 70 Mailmark for their 320,000 incremental items, that could mean a postage credit of £12,200 that they could use on their next mailing. This postage credit could be used to reach a further 30,000 customers. If your customers mailing had just a 2% response rate, that’s 600 extra leads they could get as a result of the promotion. 5

Sales collateral and Documentation   Further detail on the various elements of the scheme, along with all support materials and sales collateral are available on the Royal Mail website www.royalmailwholesale.com/schemeforgrowth Support materials include: Sales Presenter – containing further information and ideas to share with your customers about how mail can be used to grow their business A Simple Guide – guidelines for Advertisers explaining how the scheme works These support materials and sales collateral documents will enable you to start promoting the Scheme to your customers immediately. However, this list is not exhaustive, and the page will be updated regularly with new information regarding the Scheme so be sure to bookmark the page and re-visit regularly for the latest details. Enquiries and further information: If you have any questions, or require further information regarding the Scheme for Growth Pilot, please contact us either: By email: groupincentive@royalmail.com, or visit us online at: www.royalmailwholesale.com/schemeforgrowth 6