World Mail Express Americas Conference A Customer

World Mail & Express Americas Conference A Customer Viewpoint on the Future of the USPS 9 February 2011 Jody Berenblatt

Who are We ? 2 2

Postal Customers • Citizen & Business customers changed – Smaller / Leaner Organizations – less $ – More Targeting • Customers need the best Postal Service they can afford – Trust (Engagement is different than Compliance) – Co-create, collaborate, innovate – Customized Pricing based on “whole” Customer 3

Postal Service Stakeholders • Industry Leaders in postal relationship management: Periodicals class – Maintain regular contact at ALL levels – Operational Dialogue: feedback – Active in legislation and regulation – ECSI (Educational, Cultural, Scientific, Informational) Pricing • High Profile Relationships: Banks, Hallmark – NSA’s; Growth Target(s) 4

“ we have no choice but to play a more active role…” At IPC’s 2010 Shop@Home Conference, ebay CEO John Donahoe said, 5

Mature Mail Monopoly & Competitive Shipping Services (US) Leverage the Globe European Union Law requires Full Market Opening in Postal Sector 6

January 7 th 2011 7

USPS Board Of Governors Customers calling for BOG to increase transparency Monthly Board Meeting: Patrick Donahoe Postmaster General Wednesday, February 9 at 8: 30 a. m. (Open) 1. Approval of Minutes of Previous Meetings. 2. Remarks of the Chairman of the Board. 3. Remarks of the Postmaster General and CEO. 4. Appointment of Committee Members and Committee Reports. 5. Quarterly Report on Financial Performance. 6. Quarterly Report on Service Performance. 7. Tentative Agenda for the March 21 -22, 2011, meeting in Washington, DC. Louis J. Giuliano Chairman Thurgood Marshall Jr. Vice Chairman Bush /December 2014. Clinton/December 8, 2011 Julie S. Moore Secretary Ellen C. Williams Bush/December 8, 2014 James C. Miller III Bush/December 2010 Alan C. Kessler Obama/December 2015 Dennis J. Toner Mickey D. Barnett Obama/December 2012 Bush/December 8, 2013. James H. Bilbray Bush/December 8, 2015. 8

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112 th Congress House of Representatives Subcommittee on Federal Workforce, U. S. Postal Service and Labor Policy Chair: Dennis Ross, FL Eleanor Holmes Norton, DC Stephen F. Lynch, MA Jim Jordan, Ohio Trey Gowdy, SC Ranking Minority Member Connie Mack, Fl Gerry Connolly, VA Danny Davis, IL Jason Chaffetz, UT Tim Walberg, Michigan Vice Chair: Justin Amash Michigan

112 th Congress The Senate Committee on Homeland Security and Government Affairs Actively engaged in Postal Affairs Burris- D Voinovich R Susan Collins, ME-R Mark Pryor, AR-D Daniel Akaka, Hawaii John Ensign, NV -R John Mc. Cain, Claire Mc. Caskill, MO-R AZ-R Tom Coburn, OK-R Joe Lieberman, CT-D Tom Carper, Carl Levin, Delaware MI-D

Addressing as Identity • Managing Customer Information: Name and Addresses. – Does the USPS have good enough business customer contact data? – Approximately 70% of citizens keep USPS informed about their current address • How can USPS leverage its status “most trusted” government agency ? 12

Service Measurement • About 359, 000 residential and 345, 000 business customers responded to USPS surveys in 2010. – 14. 7% of the residential customers responded – 9. 1% of businesses responded • Required by 2006 U. S. law (PAEA) – Rather than the RFID system used by the IPC and others, USPS embarked on Intelligent Mail Program to include mail quality control, mail costing systems and service performance measurement. 13

Pricing that makes business sense • USPS Exigency Case filed July 6, 2010 • Affordable Mailers Alliance > 1, 000 members • USPS CPI Price change filed January 13, 2011 • The Whole Customer Pricing Strategy – Total spend with USPS – Multiple mail classes (1 st class, advertising, parcels) 14

Recommendations • • Know Thy Customer Provide Predictable Service Establish Availability of Credit Customized Pricing – Bundle Products based on whole customer • Rightsize the Postal Network • Modernize Postal Culture 15

• Thank you for the opportunity to share views Jody. Berenblatt@directbrands. com One Penn Plaza, New York • 212 -596 -2531 office • 917 -328 -4411 mobile 16

For reference… • "The U. S. Postal Service and Six-Day Delivery: Issues for Congress. " • http: //postcom. org/public/2011/CRS%20 report%20 on %20 The-U-S-Postal-Service-and-Six-Day-Delivery-Issues -for-Congress[1]. pdf • Senator Collins legislation • http: //postcom. org/public/2011/Senator%20 Collins's% 20 FECA%20 Bill, %20 As%20 Introduced. pdf 17

For Fun • http: //www. slideshare. net/Media. Front/2011 things-to-think-about-for-brands-andmarketers – Ted. com (slide 22) • http: //www. slideshare. net/polarpaul/creative -direct-mail • http: //Dead. Tree. Edition. blogspot. com 18

USPS retail staff granted freedom of speech Monday, January 3 rd, 2011 • • • Retail staff at the US Postal Service will no longer be forced to stick to a management-approved script when dealing with customers mailing packages from this month. The USPS is abandoning its “Perfect Transaction Method”, which required window clerks to ask a series of pre-written questions explaining products and services available, even for regular customers. However, under changes to the Retail Customer Experience Program, a more flexible approach is being adopted. In a letter sent to unions last week, the USPS said based on its “confidence” in the product knowledge of its retail associates, it would no longer score its staff on specific product offerings and explanations in mystery shopper tests. The tests involve management representatives posing as customers to assess retail staff against various criteria. The new system will still require staff to ask a set question on whether packages contain hazardous materials, but otherwise assessments will have more of an emphasis on image, customer waiting times and general promotion and merchandising activity than on asking scripted product offerings. The changes were warmly welcomed by the American Postal Workers Union, which said there had been years of frustration for window clerks and the public alike regarding the scripted customer service format. APWU Clerk Craft Director Rob Strunk said: “Finally, a manager with authority has realized that our Sales and Service Associates can determine on their own an appropriate method for communicating with our customers. “The Mystery Shopper program has been misused, abused, and violated in so many ways, ” he said. “We can go forward now demonstrating our professionalism. ” » Source: James Cartledge, Post & Parcel 19

Vision 2013 and Customers • • • Focus on What Matters Most to Customers Start with Customer Needs Provide Excellent Customer Experiences Build on Trusted Relationships Communicate Effectively • Published in 2008 20