1. Royal Mail Group:
Testing and Innovation Incentive

2. What is the Testing & Innovation Incentive?
Royal Mail is offering two new incentivise to encourage the Testing and Innovation (TIS) of mail applications. One incentive will be for advertising mail applications, and the second incentive will be for business mail applications.
These two new incentives are designed to encourage customers to use mail for a business purpose in a way that they have not used mail before, to help them deliver even greater results. For example, applicants may want to test the introduction of a loyalty mailing to their highest value customers, or introduce a ‘welcome pack’ to encourage retention, or add new messages to their customer statements.
For qualifying mail we’re offering customers:
Business Mail TIS
c. 30% discount off the Access price for Business Mail tests over a 6 month period
Where Business Mail tests are rolled out immediately following the tests Royal Mail will support this activity for a further 6 months with a c.10% discount off the Access price
Advertising Mail TIS
c. 15% discount off the Access price for Advertising Mail tests over a 6 month period
We’re offering discounts in the form of postage credits regardless of whether the postings are made through Royal Mail, an Access Operator or another postal delivery provider. 1

3. Draft for the purposes of discussion
How does Business Mail TIS work?
Business Mail TIS is for tests of new business mail applications. To qualify for TIS the customer must not have used that particular type of mail application for at least 12 months .
You’ll need to plan a series of mailings over the 6 months testing period and put in place a suitable process to measure impact and performance
Royal Mail will award a c.30% discount off the Access price payable as a postage credit for qualifying test activity over the 6 month test period
We’re keen to learn how your testing went and would therefore welcome any results you can share with us
We expect that subject to successful testing activity the new mailing activity will be rolled out
For mailing activities which are rolled out immediately after the test period Royal Mail will award a c. 10% discount off the Access price payable as a postage credit for a further 6 months. This is known as the roll out period.
Minimum and maximum volumes
During each of the test period and the roll out period you must post a minimum of ten thousand (10,000) items up to a maximum of ten million (10,000,000) items 2

4. How does Advertising Mail TIS work?
Advertising Mail TIS is for tests of new advertising mail applications. To qualify for TIS the customer must not have used that particular type of application for at least 12 months .
You’ll need to plan a mailing or series of mailings over the 6 months testing period and put in place a suitable process to measure impact and performance
Royal Mail will award a c. 15% discount off the Access price payable as a postage credit for qualifying test activity over the 6 month test period
As part of the incentive you may be asked to share test results
Subject to successful testing activity the expectation is that the new mailing activity will be rolled out
Minimum and maximum volumes
During each of the test period, and for Business Mail (TIS), the roll out period, you must post a minimum of ten thousand (10,000) items up to a maximum of one million (1,000,000) items 3

5. Draft for the purposes of discussion
Value of postage credits
2017 Business Mail TIS
2017 Advertising Mail TIS
*Please see the full list of products and discounts available on the Royal Mail Wholesale website:
Royal Mail product description
Format
Weight
Test Period
Discount (pence)
Roll out Period Discount (pence)
Business Mail* 70 Mailmark
Letter
0-100g
6.5
2.2
Large Letter
8.5
3.0 g
11.5
3.9 g
15.0
5.0 g
23.0
7.7
Royal Mail product description
Format
Weight
Discount (pence)
Advertising Mail 70 Mailmark
Letter
0-100g
2.5
Responsible Mail (ENT/INT) 70 Mailmark
Advertising Mail 1400 Manual
2.8
Responsible Mail (ENT/INT) 1400 Manual
Large Letter
3.3
Responsible Mail (ENT) 1400 Manual
Responsible Mail (INT) 1400 Manual g
4.6 g
5.7 4

6. Draft for the purposes of discussion
What services are eligible for the TIS Incentive
The value of a postage credit depends on the mailing item format and weight and, if posting with Royal Mail, the service/product used for the test mailings.
Format:
* Maximum thickness is 10mm for Business Mail TIS
Mailmark®:
Both the Business Mail TIS and Advertising Mail TIS incentives are available with Mailmark® services. You can send machine-readable letters and large letters using Royal Mail Mailmark® if you are set up with your own participant ID.
Users of the Advertising Mail TIS may also send non-machineable Large Letter and Letter format items (e.g. Poly-wrapped C5 letters).
   Format
Max weight
Max length
Max width
Max depth
Letter
100g
24cm
16.5cm
5mm
Large
750g
35.3cm
25cm
25mm* 5

7. Draft for the purposes of discussion
How we will measure your TIS mailing volume Postage credits are applicable to the actual volume posted on the TIS incentive . When posting your test mail items you must ensure that you apply a unique reference number to the Mailmark e-manifest to ensure we are able to accurately identify your test mail items. Royal Mail and/ or your mailing partner will help you with this. Postage Credit Application We will calculate your postage credits at the end of the test period and also, in the case of the Business Mail TIS, again at the end of he roll out period. Within six (6) months of the last posting date of your test period you must complete a claim for postage credit using a TIS Credit Application Form containing details of the TIS postings. This is so that your postage credit can be calculated. Within six (6) months of the last posting date of your roll out period (Business Mail TIS only) you must complete another claim for postage credit using a TIS Credit Application Form containing details of the TIS postings. We will provide the postage credits to you in the form of a posting certificate which contains a unique voucher code (a Postage Credit Voucher) or, if you prefer, directly into any account you may hold with Royal Mail. 6

8. Draft for the purposes of discussion
Application form You must complete an application form to be accepted on to the TIS incentive. Supply Chain Details: On your application we ask for details of your supply chains e.g. whether you post with Royal Mail , either directly or through an Access Operator, or with an alternative delivery provider. Volume: On your application we ask that you provide a forecast of the dates and number of items you intend to send . Format and Weight of items: Your application will also ask that you indicate the format, and weight, of the items that you intend to send . Performance Measurement: We will ask you to indicate on your application form what measures you will be implementing in order to indicate to you at the end of the test how successful the test has been 7

9. Draft for the purposes of discussion
How to Apply
To participate in the TIS Incentive you will need to complete an application form that will ask for the following details:
Your company name;
An overview of the test and what you expect to achieve from the activities (Key Performance Indicators);
Details of your supply chain including your:
Mailmark Participant ID and names of the postal providers you use;
A list of any credit account numbers you hold with Royal Mail (only applicable to customers posting through Royal Mail Retail)
Your Unique Customer Identifier (UCID) numbers (only applicable to customer posting through Access);
Your expected volume and posting dates
You should discuss your application with your postal service provider. You may ask them to submit and manage your application on your behalf 8

10. What is the customer trying to learn through testing?
When verifying the Testing & Innovation Scheme application form we look for 3 key pieces of information:
Background – Why test?
What is the customer trying to learn through testing?
Is there a problem the customer is trying to address, what are the key assumptions/findings that lead them to believe they can achieve a different result with the test?
The test- what are they testing?
What direct marketing approach are they testing and what (activity/product) is being tested?
Are there specific audiences they are trying to reach - is it new customers or are they trying to increase recency, frequency or value of existing customer spend?
What are the goals of the test?
Is there a control cell (or any geo-demographic considerations)?
Results - how will they measure success?
What are the proposed KPIs - Response rates/Sales £/ Conversion rates/ Return on investment /Average order values/ Social media uplift e.g. people talking about it/ Drive to web results
How will they measure the impact – what does good look like? 9

11. STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
Steps to earning your test incentive
STEP 1
Plan your test - Royal Mail and/ or your mail provider will help you to complete and submit the application form
STEP 2
Send your application - we will review it and on approval you will receive an confirmation of acceptance
STEP 3
Send test mail - Royal Mail will measure your test volume using a the mailing reference in the Mailmark e-manifest
STEP 4
Claim postage credits – Royal Mail will help you to submit a simple postage credit form in order to claim your 30% credit
STEP 5
Redeem postage credits – present to your mail provider in full or part payment of a future posting 10

12. Draft for the purposes of discussion
Q&A:
Q: Why are you offering postage credit discounts for testing new mail applications?
A: We are offering this incentive to support customers in the testing of new mail applications. It is designed to help customers to discover how they could make their business mail and advertising mail deliver even greater results. 
Q: Will you perform any checks to make sure my volume is incremental?
A: No, the purpose of this scheme is purely to encourage you to test new mail applications with a view to rolling out the new mail application should the tests prove successful. We may run some checks to satisfy ourselves that this is a genuine new use of mail.
Q: I don’t currently use Mailmark, can I still apply for the Scheme?
A: Yes, if you are not Mailmark® enabled at the time of application you may still be eligible to apply provided that you commit to using Mailmark for your machine readable TIS postings.
Q: I send manual mail items that don’t qualify for Mailmark, can I still apply for the Scheme?
A: You do need to use Mailmark to post test mailings using the Business Mail TIS. However, you do not need to use Mailmark for Advertising Mail TIS test mailings that are Large Letter format or non-machine readable Letter format (e.g. Poly- wrapped C5 letters). 11

13. Draft for the purposes of discussion
Q&A:
Q: What will happen if I intend to send more than 10,000 test mail items in my TIS but my actual TIS volume is less than 10,000 items?
A: You will not receive any postage credit if your actual TIS volume is less than 10,000 mailing items.
Q: Is there a maximum volume that can be posted in each TIS mailing?
A: Yes, the maximum volume for Business Mail TIS is 10 (ten) million items. The maximum volume for Advertising TIS is 1 (one) million items.
Q: With Business Mail TIS can I send the maximum volume during the test period and the roll out period?
A: Yes, with Business Mail TIS you can send up to 10 (ten) million items in the test period and you can also send up to 10 (ten) million items during the roll our period
Q: Why is there a roll out period for Business Mail TIS?
A: We understand that is can sometimes be harder to derive conclusive results from testing of a new business mail application, even at the end of a 6 month test. We are therefore offering an additional incentive to customers to encourage a continuation and roll out of the test for a further 6 months 12

14. Draft for the purposes of discussion
Q&A:
Q: What if my company uses a certain type of mail application but a brand or department within my company has not sent that particular type of mail application in the last 12 months?
A: With this scheme Royal Mail is seeking to encourage testing of new mail applications and therefore will consider applications from companies that use a certain mail application even where it is clear that there is a brand or department that has used that mail application in the previous 12 months.
Q: What additional information might you need during the application stage?
A: In some cases we may request information relating to your historic use of mail to help us verify that you have not used this type of mail application in the previous 12 months
Q: How do I claim my postage credit?
A: Within 6 months of the end date of your test mailing, you must complete a Postage Credit Application detailing your TIS advertising campaign postings and send it to and write ‘Postage Credit Application’ in the subject bar.
Royal Mail will check that all payments of invoices relating to your TIS postings have been made and will notify you of the amount of postage credits (if any) to be awarded to you within 45 working days of Royal Mail’s receipt of your Postage Credit Application. 13

15. Draft for the purposes of discussion
Q: How will I receive my postage credit? A: Postage Credits will be awarded to you via in the form of a posting certificate which contains a unique voucher code. Or we can pay the credit directly into an account you hold with Royal Mail if you would prefer this and you state this on your credit application form. Q: How long will my postage credit vouchers be valid for? A: Postage credit vouchers are valid for 12 months from date of issue. Q: What denominations will postage credit vouchers be issued in, and must I redeem them all at once? A: You may receive multiple vouchers depending on the size of the credit earned. Postage credit vouchers will be issued in denominations determined by Royal Mail’. Q: I am looking to change mail provider in the next 12 months, will I be able to continue earning credits with my new provider? A: Yes, the postage credit vouchers can be earned with any participating mail provider and can also be redeemed with any participating provider. Q: 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? A: Yes, the postage credit vouchers can be redeemed with any participating mail provider. 14

16. Draft for the purposes of discussion
Q: How do I redeem a postage credit? A: You may use the postage credit towards payment of an invoice for any future posting. Postage Credit vouchers may be redeemed either: (a) directly with Royal Mail Retail; or (b) with a mailing house who has signed a Voucher Redemption and Reimbursement Agreement with us and is participating in the Scheme; or (c) directly with Royal Mail Wholesale; or (d) with an Access operator who has signed a Voucher Redemption and Reimbursement Agreement with us and is participating in the Scheme; or (e) with a mailing house of a participating Access operator; or (f) with any other postal delivery provider who has signed a Voucher Redemption and Reimbursement Agreement with us and is participating in the Scheme. Your postage credit voucher will contain a unique voucher code and the redemption form will contain further instructions about how to redeem the voucher. To redeem the voucher you will need to complete the redemption form in full and it to your chosen postal provide. Q: How long is this scheme open for? A: Royal Mail is accepting applications to operate under the TIS incentive from 1st February 2017 until 31st January 2018 15