New Products & Innovation 2016

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Presentation transcript:

New Products & Innovation 2016 Coakley Workman, Manager, Mail Innovation

ECommerce is Changing the Shipping Environment Forecast to Keep Growing Cyber Monday 2015 A record $3B in sales - 16 % over SPLY1 26% from mobile devices Projected to be 11% of total retail sales1 by 2018 (Today 8%) More nimble warehousing2 Smaller warehouses Ship from store Same-Day Delivery more common 204  1Source: Adobe Dec 2015 2Source: Quora.com

Delivery Expectations are Changing Source: Walker Sands’ 2015 Future of Retail Study

USPS is Adapting to Changing Expectations Sunday Delivery Growing our overall package business 77M packages delivered in FY 15 Same Day Delivery Breaking barriers to the fastest e-commerce deliveries Over 90M same day deliveries in FY 15 Ship From Store Helping offline retailers compete in the new world of e-commerce 12.7M packages to over 20,000 retail locations Opening New Markets (Grocery Delivery) New customer Schwan’s 724K totes and 159K households 8K tote pickup’s

USPS is Adapting to Changing Needs Next Generation Mailbox Engineering and NPI partnership Enables secure delivery of USPS product mix Over 400 boxes installed Suburban Phase 2: Work with Big Box Stores for Distribution Phase out smaller box

USPS is making Returns easier Available now… Pay on scan by sorters New tools: Merchant Returns Cloud Tool (API for USPS returns labels) Combine Permit for Outbound and Returns Coming Soon… Weigh on fly Returns Scan, Weigh and Pay(Spring)

Developing tools for the Ecommerce Marketplace Continue Integration with New Channels Expand Number of Software Integrations Streamline Software Offerings for Shipping Over $242M from Ecommerce platforms FY 15 ePostage: $164M Scan Based Payment: $74M CNSBPro: $4M

Enhancing My USPS to drive demand and improve consumer control Site already allows consumer to give delivery instructions: Where to leave Package or redirect Continue Customer Recruiting 5.4M Registered Integrate Informed Delivery in NY Metro Develop Change of Address Solution Launch Mobile App Sherri

Expanding Web tools Capabilities Continue to Expand Web Tools Capabilities My USPS Capabilities (i.e. delivery instructions) Enable ecommerce shopping carts with USPS: Prices Products Shipping labels Create Bundles of Services

A simple, Consistent Mobile Experience Over 33 million visitors to our mobile website Incorporating Ecommerce features onto the mobile website. Ability to buy stamps Create and print shipping labels Responsive Design for USPS.com Applications 1 applications for mobile site, Android app and iOS app

Conduct Larger Beacons Test Develop RFI for Industry Collaborate with other Postal Stakeholders Engineering Inspection Service Conduct Focus Groups Develop Business Case Execute Small Consumer Pilot

FY 2016 HIGHLIGHTS MAIL

Mailing Promotions Keeps Mail Relevant Strategy: Evolve the mail for long term growth Approach: Incentivize and provide a discount to companies that innovate in the mail New techniques to drive hardcopy to a mobile experience New printing techniques and inks to better engage the consumer

= Results 2011-2015 Program Totals (2011 – 2015) 21.8 billion pieces Over $7 billion revenue/$160 million discounts/rebates 9,476 participants FY13 6 promotions 5.3 billion pieces $1 billion revenue FY14 7 promotions 7.8 billion pieces $1.8 billion revenue 1,487 participating customers Over $48 million in discounts received by participating customers FY15 4 promotions (6 month duration) 8.1 billion pieces $3.2 billion revenue 1,276 participating customers Over $66 million in discounts received by participating customers = For FY13, Promotional Standard Mail volume was ~ 15% of total Standard Mail volume (RPW) during the promotion periods

2016 Promotions 15 Expedited Mail United States Postal Service

Emerging and Advanced Technology 2016 Promotions Augmented Reality NFC Emerging and Advanced Technology Encourage Direct Mailers to incorporate interactive technology (2% Discount) Eligible mailpieces can incorporate: NFC technology “Enhanced” Augmented Reality experiences, New this year! Video in Print iBeacon/Beacon Technology. A/B testing option Program Requirements available at: https://ribbs.usps.gov/mailingpromotions/documents/tech_guides/2016EmergingandAdvancedTechnologyPromotion.pdf 16

Emerging and Advanced Technology 2016 Promotions Augmented Reality NFC Emerging and Advanced Technology A/B testing option This option requires that at least 90% of the mail volume (Design A) within a specific mailing meet all the published 2016 Emerging and Advanced Technology/Video in Print promotion requirements. Design “B” allows up to 10% of the mailing to be entered with an alternate creative design or no treatment at all. “Design B” does not need to meet the incentive requirements. 17

Tactile, Sensory & Interactive Mailpiece Engagement (2% Discount) 2016 Promotions Tactile, Sensory & Interactive Mailpiece Engagement (2% Discount) Inks may include: -Conductive inks: become part of a circuit and activate a device -Leuco Dyes: change color with variations in temperature -Hydrochromics: change color upon contact with liquid -Photochromics: change color with UV light exposure Textural: paper surfaces may be coated, laminated, or made of unique materials (ex: “turf” paper, sandpaper, velvet finish, fuzzy touch, etc) - Scented: paper infused with scent (ex: catnip, fresh bread) - Sound: paper that incorporates sound chip/speakers (ex: car sound) - Visual: special effects with filters, holographics, lenticular Interactive mailpieces - 3-Dimensional, pop-ups, infinite folding, etc. 18 Expedited Mail United States Postal Service

2016 Promotions Earned Value Encourage FCM mailers to use Business Reply Mail (BRM) and Courtesy Reply Mail (CRM)   Earned Value Credits: $0.02 per BRM or CRM pieces counted for first time participants or those who did not meet their threshold. $0.03 per BRM and CRM pieces counted if the total number of CRM and BRM pieces meets or exceeds the total number of a mailer’s CRM and BRM pieces counted as part of the 2015 Earned Value promotion. This is done on a MID basis Credits are available for their use once they have been released to the respective permit(s). Expiration Date for Credits: December 31, 2016 Program Requirements available at: https://ribbs.usps.gov/mailingpromotions/documents/tech_guides/2016EarnedValuePromotion.pdf 19

Personalized Color Transpromo Promotion 2016 Promotions Personalized Color Transpromo Promotion Encourage FCM mailers to use Personalized Color Transpromo messaging on bills or statements Registration Period: May 15 – December31 Program Period: July 1 – December 31 Eligible Mail: First-Class Mail commercial letters (sent in IMb full-service mailings) Discount: Upfront 2% postage discount Key change from 2015 Color Transpromo Promotion "Personalization" is information that the recipient would deem personal or relevant in nature. To learn more please review promotion requirements at: https://ribbs.usps.gov/mailingpromotions/documents/tech_guides/2016ColorTranspromoPromotion.pdf 20 Expedited Mail United States Postal Service

2016 Promotions Mobile Shopping Promotes use of technology platforms to go from the mailpiece directly to an online shopping experience. Eligible Triggers: Quick Response (QR) Codes, Snap Tags, Watermarks and other advanced technologies Discount: Upfront 2% postage discount Key change from 2015 Mail Drives Mobile Engagement Promotion “Buy Now” features available on social media have been added as an additional eligible shopping purchase path. To learn more please review promotion requirements at: https://ribbs.usps.gov/mailingpromotions/documents/tech_guides/2016MobileShoppingPromotion.pdf 21 Expedited Mail United States Postal Service

2016 Promotions Individual Promotion emailboxes E & A Tech/Mobile Shopping - Mailingpromotions@usps.gov Earned Value – Earnedvalue@usps.gov Personalized ColorTranspromo – FCMColorPromotion@usps.gov Tactile, Sensory & Interactive - tactilesensorypromo@usps.gov Do you have great samples of mailpieces from the 2015 Promotions or samples that you did not use in the Promotions 2015 Promotion surveys 2017 Promotion Suggestions Forms MailingInnovations@usps.gov

For More Information Program Office contact:   For More Information   Program Office contact: Email: mailingpromotions@usps.gov Facsimile: 202-268-0238 Mail: US Postal Service Post Office Box 23282 Washington, DC 20026-3282 Program Requirements & Documents https://ribbs.usps.gov/index.cfm?page=mailingpromotions https://www.usps.com/business/promotions-and-incentives.htm Registration https://gateway.usps.com PostalOne Help Desk: (800) 522-9085 or postalone@email.usps.gov Proposals for 2017 promotions can be sent to: MailingInnovations@usps.gov Follow USPS: http://usps.com/news, https://twitter.com/USPS, http://www.linkedin.com/usps, https://www.facebook.com/USPS, http://www.pinterest.com/uspsstamps/, https://www.youtube.com/usps 23 United States Postal Service

Next IRRESITABLE MAIL™ Catalog : Build upon tools & technology encouraged through Mailing Promotions Showcase customer: Examples of actual mailpieces Best practices Expedited Mail United States Postal Service

Re-launch/Re-brand Alternate Postage Share Mail Enable Customers to Promote Business Uses the mail piece counts to debit the company’s Centralized Automated Processing System (CAPS) account. 25

Refreshing mail with new concepts What is the Tracer Stamp? This stamp is conveniently available via USPS.com or USPS Mobile App. What is the Tracer Stamp? The Tracer Stamp is a special extra service to help satisfy customers with 24/7 mail tracking. The Stamp ID is seamlessly integrated into the stamp that customers already know and love. The unique Stamp ID allows customers to know where their letter is every step of the way.

Evolving the physical address Intelligent Addressing Pilot Enable sending mail via “modern address book” Delivery addresses connected to email and mobile contact information Pilot with National Direct Mailers Create a bridge to allow prospecting where physical address information is not available

What’s Next for Informed Delivery*? Expedited Mail United States Postal Service What’s Next for Informed Delivery*? NY Metro Expansion Rollout Schedule Commercial Interest We already tackled the nation’s Capital, now we’re taking it to the Big Apple! NY Metro Zip Codes Include: 066, 069, 100 - 119 Live as of November 18th Over 2300 Active Users Marketing: Email blast to 60k began December 5 Direct Mail to 60k –December 28 Goal >100k Users Over 40 direct mailers and catalogers are interested in participating *Previously known as Real Mail

We also made it into the Washington Post Dec. 7, an answer to a clue! Read all about it! “The US Postal Service is expanding its Informed Delivery service that emails you scans of the mail you’ll be getting in your physical mailbox each day.” “Mail delivery: the next area for disruptors…Neither snow nor rain nor heat nor gloom of night nor your own laziness will stop the United States Postal Service from delivering your mail.” We also made it into the Washington Post Dec. 7, an answer to a clue! “…get a preview of what you can expect to come home to at the end of the day, in case you’re waiting on edge for some crucially important piece of mail.” “USPS rolls out 'Informed Delivery' service that lets New Yorkers digitally preview mail.”

Informed Delivery Key Success Metrics Consumers Response Rate to our Marketing Users Acquired User Behavior: Frequency checking alerts When in the day Qualitative feedback (Survey) Retention Rate of Users Frequency for checking Mailbox Mailers Direct Mail Response Users vs. Non-Users Click-throughs Mailer Testing Mailer Feedback Industry Use Cases

Questions