Yesterday we looked at the urgency of passing postal reform legislation as well as upcoming changes to the USPS processing network. Today we’ll examine the recent rule change surrounding automation discounts and preview upcoming promotions being considered for 2013.

Intelligent Mail Barcodes Required for Automation Discounts

The Postal Service has published its final rule discontinuing the use of POSTNET barcodes to claim automation discounts. Beginning January 28, 2013, mailpieces must carry an Intelligent Mail barcode (IMb) to qualify for these discounts. Those mailpieces can carry either Basic or Full-Service IMb, but beginning in January 2014, only Full-Service IMb will qualify for automation discounts.

IWCO Direct fully supports Full-Service IMb today. If you haven’t yet transitioned from POSTNET to IMb, now is the perfect time to begin the process – your IWCO Direct sales executive or account manager can help you get started. Don’t forget – the requirement to transition to IMb includes Business Reply Mail as well. So check your stock and plan ahead! You’ll want to be sure to exhaust any BRE or BRC stock with POSTNET barcodes before January 28 so you can continue to take advantage of automation discounts.

Not only does the Full-Service IMb provide access to discounts, it’s also becoming the “table stakes” to participate in more USPS programs and initiatives such as this summer’s Mobile Barcode promotion. The Postal Service is also using the Full-Service IMb’s enhanced visibility to pieces, trays and pallets to improve its service performance and keep mail moving on schedule throughout its processing network. Recently released second quarter performance numbers show significant improvement in the percent of on-time mail, which is largely the result of the visibility provided through Full-Service IMb.

Postal Service Offers Preview of 2013 Promotions

Tom Foti, USPS manager of marketing mail, provided a high-level preview of pricing initiatives being considered for 2013 during the IDEAlliance Print Distribution Conference. He told the group that the promotions would be targeted to build the value of mail as much as to spur incremental volume growth. A promotions calendar for the coming year will be released this fall when the Postal Service submits its January 2013 pricing proposal to the Postal Regulatory Commission. Among the promotions being considered are:

• February/March: Coupons (social platform/mobile redemption);
• May/July: Earned value CRM/BRM promotion to encourage use of mailed reply pieces;
• August/September: Samples, emerging technology (augmented reality, etc.);
• November/December: “Buy It Now” – the next iteration of mobile shopping promotions

The Postal Service also said it is considering seasonal, two-tier pricing for Standard Mail, with one level of pricing for spring, summer and winter, and a second level of pricing available in the fall to help generate volume during the lighter mailing seasons.

We will continue to monitor the status of these programs and other developments at the USPS. Check back regularly to SpeakingDirect or subscribe today to receive our weekly updates delivered directly to your inbox via email.

-Kurt Ruppel
Marketing Services Manager

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.

It’s been a busy month in the postal world as the USPS works to address a variety of unique challenges. With so much going on, we decided to break our recap into two parts, so make sure to look for Part 2 tomorrow morning. Here are just some of the issues we are tracking:

Continuing Postal Service Losses Stress Need for Legislative Reform

The Postal Service ended the first half of its fiscal year (Oct. – Mar.) with a net loss of $6.5 billion. Although most of this amount, $6.1 billion, was driven by accruals for scheduled prepayments into its Retiree Health Benefit Fund, declining mail volumes for both First-Class and Standard Mail were also factors in the loss. The Postal Service continues to pursue the comprehensive business plan proposed earlier this year, but many of the changes needed to bring cost and revenue into alignment require legislative changes from Congress. The Senate recently passed its version of reform, while the House is considering whether to take up the Senate bill or pursue a separate measure proposed by Reps. Darrell Issa (R-CA) and Dennis Ross (R-FL).

While both the House and Senate bills would provide the Postal Service with short-term relief, neither provides for long-term financial viability. We urge Congress to act swiftly to provide the Postal Service with the flexibility to adapt to the changing realities of its marketplace.

Network Changes Become Clearer

The Postal Service has said it will publish the final rules defining new service standards by the end of May, with the changes taking effect in early July. Specific facility changes will be announced, and implementation will begin at the same time. The Postal Service says no widespread facility closures are planned for 2012. But facility changes likely to be accomplished in 2012 include operational adjustments and centralization within existing facilities to reflect new service standards. The bulk of these changes will occur during July and August. No network rationalization changes will be made from September through December to minimize disruption during the “fall mailing season” and around the election.

We are hearing that the Postal Service will announce more details on these changes later this week. We will post an update once that announcement is made.

That’s all for today, so make sure to stop by tomorrow and read the rest of our postal update. We’ll cover the latest rule change surrounding automation discounts and the requirement of Intelligent Mail barcodes (IMb). We’ll also preview potential industry promotions being considered for 2013.

-Kurt Ruppel
Marketing Services Manager

Speaking Direct is a blog about building customer acquisition, customer loyalty and customer engagement using direct mail and digital marketing programs. We also discuss postal rates, regulations and how to reduce postage costs.