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

2. 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

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

4. 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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. 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

11. 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

12. FY 2016 HIGHLIGHTS
MAIL

13. 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

14. = 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

15. 2016 Promotions 15
Expedited Mail United States Postal Service

16. 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: 16

17. 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

18. 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

19. 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: 19

20. 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: 20
Expedited Mail United States Postal Service

21. 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: 21
Expedited Mail United States Postal Service

22. 2016 Promotions Individual Promotion emailboxes
E & A Tech/Mobile Shopping -
Earned Value –
Personalized ColorTranspromo –
Tactile, Sensory & Interactive -
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

23. For More Information Program Office contact:
For More Information
Program Office contact:
Facsimile:
Mail: US Postal Service
Post Office Box 23282
Washington, DC
Program Requirements & Documents
Registration
PostalOne Help Desk:
(800) or
Proposals for 2017 promotions can be sent to:
Follow USPS: 23
United States Postal Service

24. 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

25. 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

26. 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.

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

28. 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,
Live as of November 18th
Over 2300 Active Users
Marketing:
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

29. 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 s 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.”

30. 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

31. Questions