Business Mail Test and Innovation Scheme

In this presentation… The incentive defined Requirements Types of tests supported Examples of approved tests Types of tests not supported Postage credits The application process Completing the application Receiving postage credits FAQs 3 4 5 6 7 8 9 10 11 12

99% Business Mail TIS Incentive 30% Test new ways of using Business Mail to improve results… See the results that Business Mail can provide to your company by testing changes to your existing mailings or use Business Mail for a new purpose of business mail is engaged with* …and enjoy the added reward of postage credits You can earn up to 30% per item in postage credits simply by testing out a new way to use Business Mail or improving your existing communications 30% *Source: JICMAIL, Kantar TNS, Q2 2017 - Q1 2018.

Requirements Test addressed Letters or Large Letter format items sent using Business Mail services. Put in place a suitable process to measure the performance of the test and be able to share the results with us so that we can understand whether tests we invest in achieve their objectives. We will award postage credits to support a suitable test whether it’s a one off campaign, or a series of mailings over a 6 month period. . Send items using Royal Mail Mailmark® using the Mail Originators participant ID Post a minimum of 10,000 test items to qualify (up to a maximum of 10 million items). If your test is successful and you decide to roll the mailing out beyond the 6 moth test period then we will support certain tests with further postage credits for an additional 6 months.

Types of tests we support We will support a variety of tests and innovations. As a guide here are some examples of tests that we have supported with the TIS incentive in the past: Welcome Integration of mail with other media Self Serve Bills/statements effectiveness Creative effectiveness Service messages not previously mailed New Information Newsletters Follow ups Inbound – Call centres – clearer comms Payment Patterns T&Cs not previously mailed

Real Examples A company testing mail instead of email to notify its customers of a change to their terms. Despite having 88% of customers signed up to receive email, they wanted to test whether mail improved engagement rates. A company testing changes to the format of their bill to reduce customer queries. They changed bill imagery, tone of voice and positioning of messaging. A publisher testing the sending of an existing publication to a new target audience that had not requested it, to achieve growth and improve the reputation of the publication.

Types of tests not supported There are some tests that do not need investment from Royal Mail and that we are unable to support with an incentive. Examples of tests that we do not support are: Changing the commercial offer e.g. adding a discount code Tests that reduce the cost of postage Digital Stamp

Postage Credits 2019 Postage credit rates vary depending on the type of test you undertake. Only exceptional tests will qualify for Higher Rate Postage Credit: Standard Postage Credit Rate Higher Postage Credit Rate Roll-Out Postage Credit Rate* Standard Tests 2.5p NA Exceptional Tests c. 30% c. 10% *Only tests that qualify for the Higher Postage Credit Rate can qualify for the Roll-out postage credits Exceptional tests that qualify for the Higher Postage Credit Rate are: Exceptional tests Examples A brand new or incremental mailing A brand new communication using mail that you have not tried before or an extension of an existing mailed communication to reach a brand new audience Increase to your postage costs Increasing the size of your item from Letter to Large Letter format or increased weight as a result of additional pages Major changes to the design of your existing mailpack Radical overhaul of content

Application process Decide Apply Post Speak to your account manager or mail provider to discuss which incentive is best for you Look at the requirements of the incentives on royalmailwholesale.com Apply On the incentive page on royalmailwholesale.com click on the link ‘apply online’ Complete the application form online and submit Post You will be contacted by the group incentive team to discuss your application Your application will be confirmed and you can then start posting under the incentive Please complete an application form using the link at royalmail.com/TIS-Business-Mail-application

Completing the Application form Key information we look for on your application form: Tell us why you are testing In relation to the campaign you are testing, how do you currently communicate with your customers? Is there a particular problem or opportunity you are trying to address? What are you hoping to learn through testing? Provide details of the test What are you testing? What specific audiences are you hoping to reach? What are the goals of the test and do you have a control? If it is a change to an existing mailpack explain in detail what changes you are making Have you provided a full description of the changes you want to make to an existing mailing? If the test is a change to the creative have you provided us with an example of the old and new creative, along with a description of the changes? Include your measures of success and what success will look like What are the proposed KPIs? Response rate / sales £ / ROI / Conversion rates How will you measure the impact? What does good look like? What are your target results?

Receiving postage credits Notification At the end of your incentive complete and submit your postage credit application form on the incentive page at royalmailwholesale.com Receive You can choose to receive your credit as a voucher or have it paid into any Royal Mail postage account you hold. Credit vouchers are valid for 12 months Redeem Redeem credits against any future posting. Simply complete the redemption form and send this to your mail provider

What happens when an agent applies on my behalf? FAQs When can I apply? You can apply today using the online application form royalmail.com/TIS-Advertising-Mail-application Please ensure that application forms are completed at least two weeks before the proposed test date How do I apply? You or you agent can complete the online application form. Royal Mail will check the form and contact you and your nominated agent to confirm acceptance or if there are any questions What happens when an agent applies on my behalf? You and the agent will receive an acknowledgement email once the application form is submitted. Royal Mail will check the form and contact the agent if there are any questions. Once checks are complete Royal Mail sends the application form to you to confirm you have read and understood the terms and conditions.

FAQs What is the roll out period for Business TIS? We understand that it can sometimes be hard to derive conclusive results from testing a new business mail application, even at the end of a 6 month test. For customers who qualify for the ‘exceptional tests’ we offer the additional incentive to encourage the continuation of the test mail for a further 6 months after the initial test period has ended What will happen if my actual TIS volume is less than 10,000 items? You will not receive any postage credit if your actual TIS volume is less than 10,000 mailing items. Is there a maximum volume that can be posted in each TIS mailing? Yes, the maximum volume for Business Mail TIS is 10 (ten) million items. Can I send manual mail items and qualify for postage credits? No, you do need to use Mailmark to post test mailings using the Business Mail TIS

How long will my postage credit vouchers be valid for? FAQs I am looking to change mail provider in the next 12 months, will I be able to continue earning credits with my new provider? Yes, eligible items can be sent using any participating mail provider. I’m looking to change mail provider next year, will I be able to use credits earned with my current provider with my new provider? Yes, the postage credit vouchers can be redeemed with any participating mail provider. How long will my postage credit vouchers be valid for? Postage credit vouchers are valid for 12 months from date of issue.

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