Under tremendous pressure to reduce its deficits, the USPS has decided to increase postage rates while substantially reducing the speed of delivery for most first class mail. The postage rate increase is scheduled to go into effect on January 22, 2012, and now today, the USPS released its recommendations to slow down first class mail.
Does this make sense? It just seems counterintuitive for the USPS to say to its customers “We’re going to offer you an inferior product, but charge you more.”
While most organizations have been forced to reevaluate their business plans in light of a changing economy, I can’t think of another organization brazen enough to do something like this. It certainly seems like an invitation for USPS customers to use competitors or come up with alternatives that do not involve the USPS.
As a bulk mail professional, I’m heavily committed to direct mail marketing. It’s a cornerstone of my clients’ marketing, so I’m certainly not ready to abandon it. While I’m very discouraged by this latest turn of events, ironically, there are some genuinely positive steps that the USPS has taken over the course of the last 12 months.
So is the USPS making any positive changes?
• Introduction of Every Door Direct Mail (EDDM)
Recognizing that the direct mail market for small businesses in the United States was largely untapped, the USPS took a step in the right direction with the introduction of EDDM. This simplified bulk mail program removes many of the barriers and complexities associated with traditional direct mail.
No mailing permit is required for Every Door Direct Mail Retail, postage can be paid for with a credit card and mailings can be dropped directly at the retail counter instead of the Business Mail Unit.
Additionally, the postage for Every Door Direct Mail is substantially less than traditional bulk mail; it’s just 18.3 cents apiece.
Every Door Direct Mail and its rollout were certainly not perfect, but this program does represent a huge step in the right direction.
• Pushing back adoption of the Intelligent Mail Barcode
Raise your hand if you think the USPS is too difficult to do business with.
Any steps the USPS can take to reduce red tape and simplify the bulk mail process will only result in more satisfied customers and ultimately, more business.
By removing the requirement for the adoption of the Intelligent Mail Barcode, the USPS helped business mailers who didn’t want to deal with the expense and complexity associated with this change. This decision shows that the USPS is capable of making choices based on what’s easiest for their customers as opposed to what’s easiest for the USPS.
• Discounted postage for bulk mail that includes a QR Code
In the Summer of 2011, the USPS launched a campaign that offered a 3% postage discount for bulk mail that contained a QR Code. The program was relatively easy to understand, and it was a very positive way to create some buzz around direct mail in the business community.
I liked this program, but wish that the USPS would have extended the discount indefinitely. I sincerely hope that they experiment with other discounted product offerings in 2012.
What will the future hold for mail marketers in the US?
In my opinion the key to the future success of the United States Postal Service is to adjust its product offering to reflect what consumers truly want. This is no different than what any other successful organization does to survive.
It’s clear the USPS is capable of taking positive steps when looking at the examples above. Unfortunately, it’s also capable of making bad decisions like raising rates while reducing service.
For the benefit of all of us who rely on direct mail marketing to sustain our business, I sincerely hope that the decisions made by the USPS in 2012 have customers’ best interest in mind. This is critical for the profitability and survival of the USPS, and for the ongoing success of direct mail marketing.
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What do you think? Am I being too critical of the USPS? Am I being too soft? Please add to the conversation and share your comments below.
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