1. MTAC MTAC May 5, 2004 Zoë Strickland Chief Privacy Officer USPS

2. 2 Outline USPS Privacy Program USPS Privacy Program External Trends External Trends - Legislative - Legislative - Private Sector / Marketing - Private Sector / Marketing - Public Sector - Public Sector

3. 3 Privacy Program Overview Mission – Trusted Brand Mission – Trusted Brand Principles – usps.com Principles – usps.com –OMB –FTC Approach Approach –customer value –organizational value USPS PRIVACY PROGRAM

4. 4 Bird’s Eye View PEOPLE PEOPLEPOLICIESPROCESSESPUBLICATIONMAINTENANCE Records Office Records Office Questions / Inquiries Questions / Inquiries BIAs BIAs Enterprise Data Warehouse Web Strategy & Registration Comm.’s Information Security processes Meter industry Workgroup Human Capital Steering Committee Intelligent Mail Government Industry CPOs AdvocatesOrganizationsProjects PROGRAM INTERNAL SUPPORT EXTERNAL INTEGRATION

5. 5 INTEGRATION 2004-2005 ACTIVITIES INTERNAL INTERNAL - Marketing Policies - Marketing Policies - EDW EAB/Registration - EDW EAB/Registration - Human Capital - Human Capital EXTERNAL EXTERNAL - Layered Notice - Layered Notice - Technology - Technology - Association Working Groups - Association Working Groups BIA – eGov’t Act BIA – eGov’t Act Training Training eFOIA System eFOIA System Employee SOR’s Employee SOR’s Records Management Records Management Consumer Policies Consumer Policies USPS PRIVACY PROGRAM PROGRAMS

6. 6 Policy Posted – March ‘04 Policy Posted – March ‘04 –www.usps.com/privacyoffice/intelligentmail.htm –https://mailtracking.usps.com/mtr/common/index.pge Key Aspects Key Aspects – Mail / Reply Mail – Mailers – Law Enforcement and Security Intelligent Mail USPS PRIVACY PROGRAM

7. 7 Legislative / Regulatory Current Laws  GLB  HIPPA  DMV  COPPA  Privacy Act  E-Government EXTERNAL TRENDS Upcoming  Federal  State  International

8. 8 Do-Not-Contact Initiatives Do-Not-Call Do-Not-Call –Enforcement –Marketing Impacts Do-Not-Email Do-Not-Email –Enforcement –Regulations –Email trends Do-Not-Mail Do-Not-Mail –Bills –Activities EXTERNAL TRENDS

9. 9 Layered Notices EXTERNAL TRENDS

10. 10 Marketing – USPS Studies National Accounts National Accounts State Laws State Laws Focus Groups Focus Groups EXTERNAL TRENDS

11. 11  In the next three years, do you think marketing’s effectiveness will increase, stay the same, or decrease in each of the following media? PERMISSION MARKETING Characterization of Mail Behavior for Two Groups of Consumers: Those that See Mail as Mainly Junk vs. Those who Find it Interesting Total Sampl e Perceptions of Mailbox Mail (Percent Top Two Box*) Mainly useless informatio n Interesti ng Attitudes reflecting the consumer–pull for mail I sort the mail when I receive it, I don't let it pile up71%69%76% I like to go through the mail the moment it arrives686076 I love to hunt for bargains676271 I like to clip coupons646069 I never put off bringing in the mail and sorting it right away605968 I enjoy taking the time to browse through catalogs, flyers and other material I receive in the mail594771 Base2,6067101,177 Source: Searching For Digital Marketing’s Growth Forrester Research, Inc., October 2003 DecreaseStay the sameIncrease Base: 95 US marketers Web sites Online ads Email Direct Mail TelevisionRadioOutdoorMagazineNewspaper 0%20%40%60%80%100% Companies Will Spend More On Marketing

12. 12 Perceptions Can Influence Consumer Pull for Mail TotalSample(%) Mainly useless (%) Perceptions of Mailbox Mail (% Top Two Box*) The consumer-pull for mail PERMISSION MARKETING Characterization of Mail Behavior for Two Groups of Consumers: Those that See Mail as Mainly Junk vs. Those who Find it Interesting Total Sampl e Perceptions of Mailbox Mail (Percent Top Two Box*) Mainly useless informatio n Interesti ng Attitudes reflecting the consumer–pull for mail I sort the mail when I receive it, I don't let it pile up71%69%76% I like to go through the mail the moment it arrives686076 I love to hunt for bargains676271 I like to clip coupons646069 I never put off bringing in the mail and sorting it right away605968 I enjoy taking the time to browse through catalogs, flyers and other material I receive in the mail594771 Base2,6067101,177 *Scale used in questionnaire: Describes Completely=5 & Does Not Describe at All=1. Top Box Score = 4 or 5. Characterization of Mail Behavior for 2 Groups of Consumers: “Those that See Mail as Mainly Useless Information” vs. “Those who Find it Interesting Information” I sort the mail when I receive it, I don't let it pile up I like to go through the mail the moment it arrives I love to hunt for bargains I like to clip coupons I never put off bringing in the mail & sorting it right away I enjoy taking the time to browse through catalogs, flyers and other material I receive in the mail 71686764605969606260597676716968 Useful Info (%) ATTITUDES REFLECTING THE CONSUMER–PULL FOR MAIL 7147

13. 13 Public Sector Issues EXTERNAL TRENDS Privacy Impact Assessments (PIA) Privacy Impact Assessments (PIA) Information Security Information Security Homeland Security Homeland Security

14. 14 CONCLUSION Marketing & Technology Evolving Marketing & Technology Evolving Direct Marketing Direct Marketing –More Sophisticated –Channels Interconnecting Awareness and Understanding are Needed Awareness and Understanding are Needed

15. 15 Contact Information Chief Privacy Officer Zoe Strickland zoe.c.strickland@usps.govprivacy@usps.com PRIVACY OFFICE US POSTAL SERVICE 475 LENFANT PLZ SW RM 10407 WASHINGTON DC 20260- 2200