DOMESTIC PRODUCTS USPS DOMESTIC PRODUCTS Mail & Mobile Commerce Making the Connection

USPS DOMESTIC PRODUCTS 2 2 CONTENTS USPS Mailing strategy Growth of mobile commerce Use of mobile barcodes The mail-mobile connection 2012 Holiday Mobile Shopping Promotion – November 7-21, 2012

USPS DOMESTIC PRODUCTS USPS MAILING & SHIPPING STRATEGY First-Class Mail Marketing Mail Shipping Services Slow diversion by differentiating hard copy from digital Embrace new opportunities from digital and social media Simplify using marketing mail Promote emerging technologies Develop solutions for growing ecommerce market

USPS DOMESTIC PRODUCTS 4 4 Direct mail — as effective as ever Target Marketing 2012 Annual Media Usage Survey As a B2C channel, direct mail delivers strongest ROI for customer acquisition and retention

USPS DOMESTIC PRODUCTS 5 U.S. market ‘mobilizing’ Survey of 800 business executives –45% do mobile marketing –70% say mobile budgets will increase –Most popular applications: Mobile websites (70%) Mobile applications (55%) Quick response codes (79%) StrongMail April 2012 Rapid adoption mobile devices –Half of all cell phones are smart phones –1/5 of U.S. (60M consumers) will own tablets by end of year Shop.org/Forrester Research Inc. 2012

USPS DOMESTIC PRODUCTS 6 6 Mail-mobile connection Mail is a platform for mobile purchase Provides a ‘jumping off point’ Ideally, customer lands on mobile-optimized website

USPS DOMESTIC PRODUCTS 7 7 Mobile activation adds value Coupons Purchases Personalize Sweepstakes Find store Videos Data capture Branded pages Sign-ups/share/follow

USPS DOMESTIC PRODUCTS 8 8 Mobile technologies are evolving

USPS DOMESTIC PRODUCTS 9 9 Mobile purchasing on the rise Second fastest growing mobile activity Doubled from 5.5% of e-commerce sales 2010 to 11% in 2011 Prediction: Within 5 years, 50% of U.S. shoppers will shop on mobile devices Projected growth to $163B worldwide, 2015 MarketingProfs 2012 Mashable 2011 comScore 2012 ABI Research 2010

USPS DOMESTIC PRODUCTS 10 Mobile barcode use growing 48 percent of U.S. mobile subscribers own a smartphone 75 percent of U.S. retailers offer 2D technology & barcode scanning options 1 in 5 U.S. smartphone owners have scanned a QR code Shop.org/Forrester Research Survey 2012 MarketingProfs 2012

USPS DOMESTIC PRODUCTS 11 A mobile barcode, when scanned from a mailpiece, brings customers directly to your website or destination — vs. a random search Connect through barcodes

USPS DOMESTIC PRODUCTS 12 A personalized URL (PURL) connects your customers to a personalized message — on a mobile optimized site — that is just for them 12 Connect through PURLs USPS DOMESTIC PRODUCTS

13 Personalization also gets results Integration of personalization and mobile –Response rates up to 5% vs. typical industry averages of 2%-3%* –Easy analytics: marketer knows exactly who responded *eMarketing & Commerce, “Why Marketers use PURLS”

USPS DOMESTIC PRODUCTS 14 Optional Messaging with personalized URL EXAMPLE OF:

USPS DOMESTIC PRODUCTS 15 Huge impact ahead “Half of U.S. shoppers will shop regularly on mobile devices within the next 5 years. Now is the time for retailers and brands to ensure that they meet the needs of the new mobile consumer, and are ready to compete in this new marketplace.” Mashable 2011

USPS DOMESTIC PRODUCTS Holiday Mobile Shopping Promotion Incent mail-mobile technologies Link to promotional offers, coupons & catalogs in time for year’s busiest shopping days Upfront 2% discount, presort STD & FCM –Mobile-optimized purchasing November 7-21, 2012 –Registration opens Sept. 15

USPS DOMESTIC PRODUCTS 17 Mobile barcodes — expanded definition Technology that opens a web page when scanned by a mobile device equipped with reader application, including: –Open-sourced barcodes (such as a QR Code® or Datamatrix code) –A proprietary barcode or tag (such as SnapTags or MS Tags) – An image embedded with a digital watermark – An image utilizing intelligent print recognition

USPS DOMESTIC PRODUCTS 18 Program requirements Must include: Two-dimensional (2-D) barcode or print/mobile technology that can be read or scanned by a mobile device Recipient must be able to purchase a product (sales of services do not qualify) The entire purchase and checkout experience must be mobile optimized

USPS DOMESTIC PRODUCTS 19 Mobile optimized purchasing site You can access the vendor’s website, enter your payment & shipping info, and finalize your purchase from your mobile device

USPS DOMESTIC PRODUCTS 20 Financial transaction requirements Must be able to complete the purchase through mobile Internet browser using: Electronic payment (credit, debit or prepaid card) Person-to-person payment (e.g., PayPal) Invoicing triggered at a later date (e.g., with order delivery) Charge added to recurring bill once order is placed

USPS DOMESTIC PRODUCTS 21 Definition of “product” Tangible and physical item that can be shipped via USPS (note: delivery by the Postal Service is not required) Ineligible: – Services – Product in exchange for a donation – Product shipped to another business location (e.g. online ordering for in-store pickup).

USPS DOMESTIC PRODUCTS 22 Ineligible transactions Sign up for: –Mailing list, list or text messages –Online billing or paperless statement –Newsletter (electronic or hard copy) –Nonmonetary donation or pledge Download coupon View a video Enter contest or sweepstakes Apply for loan, credit card or insurance

USPS DOMESTIC PRODUCTS 23 Additional requirements Mobile barcode best practices must be used: –Directional copy required –Must link to mobile-optimized site –Must link to site relevant to content of mailpiece –Recommend use of software platform to track responses

USPS DOMESTIC PRODUCTS 24 Registration & terms Standard Mail and First-Class Mail letters, flats and cards (presort and automation) Register on Business Customer Gateway via the Incentive Program service: Agree to promotion terms at least 2 hrs. prior to presenting the first qualifying mailing –Specify which permits and/or CRIDs will be participating in the promotion –Agree to complete a survey on the Business Customer Gateway at end (mailers only)

USPS DOMESTIC PRODUCTS 25 Resources Program information on RIBBS arcode arcode Register on Business Customer Gateway Questions to USPS Program Office

USPS DOMESTIC PRODUCTS 26 Program information on RIBBS at