MTAC Innovation Symposium August 11, 2010

1. The Future of the USPS and Mail are Not Exactly the Same Presented by: Maynard Benjamin  eServices  Consumer –create secure linked to physical address  Create a secure certification service  Create secure postal box  Business-create known sender/receiver verification service  Develop identity authentication and address verification service  Develop hybrid mail service/system open to business  Improve Ad/DM ROI by linking addresses and enabling multi-channel marketing  Retail Footprint Expansion  Provide banking, financial services, payment services  Provide other government services (e.g. social security, dmv)  Enable other retailers to use post office locations and manage post offices in ther locations  Create a communications / community hub with wi-fi, desks, starbucks, etc.  Leverage “Last Mile” and delivery capability  Deliver/pick-up other goods and services, recycling  Grant license for other firms to use mailbox  Census, other government agencies

2. Extending the Role of USPS in Payments System Presented by: Charles Howard (Harte-Hanks)  Create Electronic Payment and Presentment  Similar to Paypal model  Micropayments  Hybrid Services  Postal Scanning Center  Unique personal ID  Notification to consumers  USPS eReaders – portable mailbox  Split FCM into FCM “lite” (commercial vs. consumer)  Kiosk: flat rate envelope or box  Drop ship commercial  Fractional pricing – preserves consumer FCM

3.Leveraging Data to Create Solutions and Value Presented by: Bob Rosser, IWCO Direct  Sell New Data Sources  Leverage value of information surrounding the mail stream  Customer Profile Information  Operational Data  IMb Innovation  Adding delivery confirmation to letters & flats; Certified mail to “ the next level”  Leveraging USPS as “trusted source”  Digital inbox  IMb app developer’s toolkit; outside sources drive innovation  Customization  Service based pricing  Corporate wide view of Customers – reward corporation based on total value of portfolio  Customer scorecard per vertical/industry; benchmarking success

4. Apply Technology to Improve Effectiveness Presented by: David Robison, Pitney Bowes Lee Garvey, Click2Mail Challenge: USPS Needs to Rebrand  Cross link physical and electronic address; Leverage USPS as the trusted agency (secure)  Leverage richness of Imb information, ie. Secure destruction of UAA mail, appeals to customers.  Increase business: remove postal barriers; Leverage technology to increase mail; customer engagement

5. Restructuring the Postal Retail Network and Improving Alternate Access Presented by: Ernie Rojas  Broadening the USPS Retail Role in Parcels  Return solution  Parcel lockers  “Doorman”  Access to PO boxes to FedEx and UPS  Rent Out Retail Space  Utility companies  Government agencies – Federal, state and local  Cell phone tower locations  USPS Franchiser  Control Cost  Control Service  Expand Service ** Must have the communications/education/marketing for any of these ideas to be successful.

6. Improving Partnerships Presented by: Wanda Senne  Create a new product development organization that engages industry and creates customer-centric growth initiatives  Create a USPS “geek squad” (sales) organization that will create tools and resources that industry can use to sell mail  Create a program that develops and sustains enterprise-wide understanding of the mailing industry supply chain.

7. The Package Market – Growth & Market Share Presented by: Jody Berenblatt  “Fun & Easy”  Remove ridiculous rules and regulations (when do you want to get it there ? perfume hazmat)  Market to the next generation and to business  Everyone else offers payments terms/invoices – close the gap to compete  Create consistency in implementing shipper release options  Brand Management – Communicate postal strengths (we love our postwoman)  We could go on … but we won’t  Bundle front-end promotion with backend fulfillment across all existing USPS mail products  Cataloguer agrees to use USPS to fulfill orders – offer an incentive  Launch Green Initiatives – Recycling Product Offerings  Small consumer electronics (Cell phones), ink cartridges  Rebate program  Flat rate box or bag protective for recycling

8. The Future of the USPS and Mail are Not Exactly the Same Presented by: Steve Lopez  Collaboration for Public/Private Partnerships (PPP)  (transportation, gov’t services/retail)  Direct Mail (DM) Growth  (targeted to include digital to physical and physical to digital, more two-way communication, recipient creates demand for DM, focus on parcels, focus on Flats growth, creative formats cut bureaucratic process for new ideas)  Customer Total Value  (USPS value prop to new clients, use technology to drive personalized messages on USPS website, & all product classes – price by total value to the USPS,)  Parcels  (Saturday delivery, negotiated pricing, total wave of the future – “New Mail Moment”)

9. Enhancing the Mail Moment by Delivering what Customers Want Presented by: Dennis Farley, Red Tag News  Advertising campaign to describe unique advantages of mail vs. alternatives (IPost)  Leverage physical and online retail space to generate mail volume (Best Buy kiosk; periodicals/catalog kiosk)  Offer prospecting rates

10. Improving Innovation at USPS Presented by: Chuck Chamberlain & Ty Taylor Idea : Create a culture of innovation at USPS

Innovation (Components of Culture) Organization Structure Process Community Involvement -Employee -Customer -Partner Empowerment Metrics/Measurements -Rewards -Recognition Accept Risk Benchmarking Identify & Eliminate Barriers ToolsVisibility