1 Restricted and Confidential—Internal Use Only Growth Initiatives Gary Reblin MTAC May 26, 2011.

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Presentation transcript:

1 Restricted and Confidential—Internal Use Only Growth Initiatives Gary Reblin MTAC May 26, 2011

2 Agenda 1. Drivers of Growth  Trends  Customer Needs 2. Opportunities 3. Progress

3 Electronic Diversion -8.7% -6.5% -4.8% -7.8% -3.5% -1.5% -10.4% -9.8% -8.3% YTD -7.9% YTD -4.9% YTD -12.5% First-Class Mail Volume (000’s) Total First-Class Mail Presort Letters & Cards Single-Piece Letters & Cards Add Value Proposition – 2 nd oz.

4 Key Opportunity: Digital  Add value to the mail by enabling physical mailpiece integration with digital experience / advertising Mobile Barcode Promotion  Build awareness of value in integrating technology with DM More Information  IMB

5 E-Commerce & B2C Growth Estimated Quarterly US Retail E-commerce Sales as Percent of Total Quarterly Retail Sales – Q1, 2001 through Q2, 2010 More Opportunity

6 Total Market 58% of shipping volume in Zones 1-3 Local - Zone 2 & US Shipping Volume by Length of Haul Source: Colography, 2011

7 Free Shipping Source: ComScore, %

8 Key Opportunity: B2C Shipping  B2C shipping now represents 27% of all shipping volume 6.8M boxes ordered through supply center (as of 5/20) Priority Mail Regional Rate Boxes Parcel Select Regional Ground First-Class Mail Parcels Launched 4/17! First-Class parcel revenue up 5.8% year-to-date

9 Opportunity Areas within Markets  Documents are a $15 billion/yr business  Cost cutting with Flat Rate options, 2-day delivery  New products target B2B & B2C shipping 10M NEW Legal and Padded Flat Rate envelopes ordered from supply center (as of 5/20) Priority Mail EnvelopesExpress EnvelopesCritical Mail 1.7M NEW Legal envelopes ordered from supply center 15 customers on-boarding, over 160k envelopes ordered from supply center

10 Other Forums for Feedback  USPS Sales and Employees  Customers  National Postal Forum  MTAC –  Work Groups  Pulse of the industry  Innovation Symposiums

11 Future of Mail …Future of mail depends on smart growth!  Add value to each mailpiece and increase revenue through:  New products  New technology  New ideas