Promotions, Incentives & Direct Mail Strategies for 2013

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1 Promotions, Incentives & Direct Mail Strategies for 2013 Steven Booker HQ Business Alliances Manager Agenda Direct Mail Overview New Technology Overview of 2013 Promotions IMB- Full Service Technology Credit Question & Answer 2 1

2 Direct Mail Overview New Technology 3 Overview Insight: Mail is still highly valued 80% look at their mail daily as a valuable news resource 75% like to see what s in the mail 63% of mail is kept at least 2 days Source: USPS Mail Moment Survey 2

3 Strategy Source: Target Marketing 2012 Annual Media Usage Survey Direct Mail delivers strongest ROI for acquisition, contact, and retention 5 Market Share Total 2012 media spend = $173 B (estimated) 6 3

4 The Media Explosion! mobile radio web television texts social media People are bombarded with media messages and ads! Avg. person is exposed to 2,904 media messages, pays attention to 52, and remembers 4* Avg. household gets 2 pieces of Direct Mail vs s daily Direct Mail breaks through the clutter! 7 Millward Brown Neuroscience on digital image vs. mail Little blue dot: brain processing digital Surface level visual images Big red space: brain processing mail Deeper emotions and richer feelings are stored Your Brain on Digital - Your Brain on Mail 8 4

5 Mobility Trends Devices are rapidly shrinking in size while the number of mobile connections per person rises dramatically B people 500M connected devices 0.08 devices per person B people 12.5B connected devices 1.84 devices per person B people 25B connected devices 3.47 devices per person B people 50B connected devices 6.58 devices per person Devices have gone from movable to mobile to pocketable Source: Cisco, DigiTimes 2013 Calendar, Promotions & Incentives 10 5

6 Mobile Coupon & Click-To-Call Registration Period Jan 15 April 30 Promotion Period March 1 April 30 Overview Mobile Coupon: Mail contains mobile technology that delivers a coupon redeemable in-store or online when scanned Click-To-Call: Mail links directly to a mobile optimized website with a click-to-call or brings up a phone number automatically in the users phone Upfront 2% postage discount Eligible Mail Standard Mail letters and Flats First-Class Mail commercial letters, cards and flats 11 Mobile Coupon Requirements Mailers with Retail Locations 2 1 Recipient can bring in mailpiece to redeem offer Offer is unique to mailpiece recipients 5 Recipient can bring in mobile phone to redeem offer 3 Mailpiece contains barcode that when scanned, leads to mobile coupon 4 Directional copy provides instruction about scanning and information about offer 12 6

7 Click to Call Example - Pass Directional Copy instructs recipient to scan and describes landing site Mobile Barcode (QR codes qualify as eligible barcode) Barcode goes to webpage or screen that allows recipient to make a phone call (phone number is pre-populated) 13 Earned Value Reply Mail Registration Period Jan 15 March 31 Promotion Period April 1 June 30 Overview Mailers earn credit for BRM and CRM pieces counted Credit = 2 cents/piece Register permits and Mailer IDs Registration closes March 31st Credit applied post-promotion to account for future mailing 14 7

8 Earned Value Reply Mail: Benefits Registration Period Jan 15 March 31 Promotion Period April 1 June 30 Easily Apply Credit Credit applied post-promotion to selected account Permit Imprint (PI) Precancelled Stamp Permit (PC) OMAS Permit (OI) Meter Permit (MT) OMAS Meter (OM) Flexible Can be combined with other incentive promotions to further increase savings Mailer can apply earned credit to mailings of Standard Mail letters and flats and FCM automation and presort letters, cards and flats 15 Promotion Period Aug 1 Sept 30 August September Promotions - Product Samples Promotion - Picture Permit Promotion - Emerging Technologies Promotion 16 8

9 Product Samples Registration Period May 1 Sept 30 Promotion Period Aug 1 Sept 30 Eligible Mail Benefits Standard Mail Marketing parcels Upfront discount of 5% off eligible postage to reduce cost of sending samples Utilize new simple samples offering 17 Picture Permit Registration Period June 1 Sept 30 Promotion Period Aug 1 Sept 30 Customized commercial mail permit indicia for First-Class Mail and Standard Mail Eligible Mail Standard Mail letters First-Class Mail letters Regular Fee Overview 2 /piece - Standard Mail letters 1 /piece - First-Class Mail letters 18 9

10 Emerging Technologies Registration Period June 15 Sept 30 Promotion Period Aug 1 Sept 30 Overview Near Field Communication (NFC): Mail contains NFC smart tag or RFID chip enabling info transmission to mobile devices Augmented Reality: Mail facilitates a user experience combining virtual & real time interactive, registered in 2-D or 3-D Authentication Component: Mail enables user to complete identity/authentication process Eligible Mail Standard Mail letters and flats First-Class Mail commercial letters, cards and flats 2% discount off eligible postage 19 Mobile Buy-It-Now Registration Period Sept 15 Dec 31 Promotion Period Nov 1 Dec 31 Overview Mobile barcode or similar print technology takes consumer to mobile optimized site for product purchase Customer sent to mobile optimized site Directional text on mailpiece Eligible Mail Standard Mail letters and flats First-Class Mail commercial letters, cards and flats 20 10

11 Intelligent Mail Intelligent Mail Barcode Process Used on Letters and Flats FROM THIS Traditional ACS Participant Code Optional Keyline for Traditional ACS POSTNET barcode TO THIS 11

12 Materials Requiring Barcode Cards, Letters and Flats Requiring a Barcode First-Class Mail Cards, Letters and Flats Standard Mail Letters and Flats Periodicals Letters and Flats Bound Printed Matter Flats Federal Register Notice Basic Service (2013) Full Service (2014) Intelligent Mail barcode for automation discounts Unique Intelligent Mail barcode, Tray Label and Container label Barcode uniqueness not necessary Electronic documentation Note: Basic IMB required to receive automation rates. All barcodes must be unique for 45 days this is from the date the mailing is received by the U.S. Postal Service Appointment scheduling (FAST) Address Correction Information Start-the-Clock Note: Full Service IMB required in 2014 to receive automation rates 12

13 Intelligent Mail Benefits Mailers who participate in Full-Service will receive the Full-Service postage discount: First-Class Mail Letters, Cards, and Flats: Subtract $0.003 for each automation piece Standard Mail Regular and Nonprofit Letters: Subtract $0.001 for each letter Standard Mail Regular and Nonprofit Flats: Subtract $0.001 for each flat (not available for saturation) Automated Address Correction at no charge Start-the-Clock Information Full-Service Technology Credit Background What is a Tech Credit? A one-time credit available to a qualified business location s Customer Registration ID (CRID), which can redeemed as a postage credit Why is the Tech Credit being offered? To facilitate the adoption of Full-Service mailing standards 13

14 Full-Service Technology Credit Eligibility Criteria Mail Classes The following Full-Service-eligible mail products will be considered as qualifying mail volume: First-Class Mail Automation Letters, Cards, & Flats Standard Mail Automation Letters & Flats Includes Automation ECR Letters & ECR HD, Basic Flats Does not include Saturation Flats Periodicals Automation/Barcoded Letters & Flats Includes ECR Letters & Flats Bound Printed Matter (BPM) Barcoded Flats NOTE: The qualifying mail volume count will include both Full-Service pieces and pieces that could be mailed Full-Service Full-Service Technology Credit How Do I Know if I'm Qualified? Notification letters were mailed during March 2013 to qualifying business locations at the addresses the Postal Service has onfile. For specific information regarding your business location's eligibility status, please use one of the following options: Call the PostalOne! Help Desk at and select the "Tech Credit" prompt. the PostalOne! Help Desk at Note: No mailer needs to opt-in or register for the Tech Credit program. USPS will consider all permits and all CRIDs 14

15 Full-Service Technology Credit Full-Service Technology Credit Redemption Process Permit Types The permit used to redeem the Tech Credit must be one of the following types: Permit Imprint (PI) Additional Postage (ADDPOS) Precanceled Stamps (PC) Metered (MT) OMAS Imprint (OI) OMAS Metered (OM) Periodicals Account (PE) NOTE: Tech Credit will only apply to additional postage when a PC,MT, or OM permit type is used on an eligible statement 15

16 Full-Service Technology Credit Redemption The Tech Credit redemption period is currently proposed to run from June 1, 2013 through May 31, During this period, a qualified business location may redeem its Tech Credit amount as a postage credit on a postage statement that meets the following criteria: The Permit Holder permit, or paying permit, is linked to a qualified business location. The postage statement contains 90%-or-more Full-Service pieces. The postage statement submission type is Mail.dat or Mail.XML. Any unused Tech Credit amounts will expire on June 1, Full-Service Technology Credit 16

17 Steven Booker

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