Increase Those "Mail Moments"
Like the USPS, use technology, marketing and innovation to increase mail volume, which directly benefits the HVTO industry.
By Scott Gerschwer, OutputLinks
The high volume transaction output industry (HVTO) needs a healthy postal system in order to maximize the value of its communications. Studies indicate that a healthy mail stream enhances the value of multi-channel documents because the channels complement one another; the channels work better in concert than they do in isolation, with each performing a role that differs in a subtle yet important way.
It is therefore in our best interests as an industry to keep postal mail inexpensive and healthy. It is unfortunate that this channel---so vital to the economy, so useful for mailers and so welcome by recipients---gets neglected to the point where its overall health is almost constantly in danger.
It's encouraging that the USPS announced a cool new product just last month, called Postage Paid Greetings. The postal service can now use the Intelligent Mail barcode (IMb) to place pre-paid postage directly on the envelope of some Hallmark cards. When you buy the card you buy the postage. The IMb allows the USPS to charge back Hallmark for the postage when the envelope is processed.
This innovation eliminates a major pain point for people who want to use the mail, the need to find a stamp. It’s encouraging that the USPS continues to innovate their product mix. But more needs to be done.
Postmaster General Jack Potter recently announced an action plan for the next decade, entitled Ensuring a Vital Postal Service for America: An Action Plan for the Future.
The Postal Service reached out to some experts for assistance in researching and writing the report. The Boston Consulting Group (BCG) provided forecasting expertise, Accenture provided an analysis of the revenue generation diversification strategies used by foreign posts, and McKinsey & Company provided an analysis of the feasibility and impact of a multitude of cost-reducing and revenue-generating options.
The report indicated that the USPS will face a cumulative shortfall of $238 billion by 2020 and outlines a number of action items---new pricing models, innovative new products---that could save as much as $123 billion in savings during that ten year period.
One omission is glaring.
Mail volume is projected to fall from 177 billion in 2009 to 150 billion in 2020. This represents a 37 percent decline in First-Class Mail alone. Revenue contributed by First-Class Mail will plummet from 51 percent today to about 35 percent in 2020.
This is an unacceptable loss in volume---specifically in first class volume---that by admission and the tone of the paper, the USPS seems ready to accept.
How can the USPS be ready to lose that volume without putting up a fight?
The truth is that people LOVE to get mail. Especially mail from friends and family. Anyone who has ever had a pen pal when they were a kid, who has served in the military (where mail call is still a big deal) or who ever really corresponded with someone in a meaningful way that can’t be captured via email or text---understands the value of mail.
We love getting mail but hate sending it. But, as mother always told us, you don’t get mail unless you send mail. So the key is for the USPS to figure why we hate to send mail---what are the pain points (such as finding and affixing a stamp, as stated above) and then do something about it (as they did with Postage Paid Greetings).
Induction of mail via the web, for example. Having someone else deal with the printing and inserting and franking all for one low price, for another. Employing more hybrid mail and tying mail to social networking to make it fun for young people are all worthy ideas.
Technology can help increase mail volume. Marketing has a role to play. Making mail fun to send and receive is an achievable goal. The USPS should not allow volume to erode without exploring new ways to make mail enjoyable and cool. The mailbox can be meaningful again. The “mail moment” can be nurtured.
Another report of interest has to do with the Social Value of Mail. Social benefits are difficult to quantify but contribute to a general sense of individual or community well-being, and therefore have value.
The research took a broad view of the many benefits of postal services and post offices, considering the perspectives of individual consumers, businesses, and nonprofit organizations.
The authors from the Urban Institute reviewed literature on postal history, welfare economics, and community development. They also conducted interviews with PRC Commissioners and staff, USPS officials, and leaders of organizations including those representing postmasters, letter carriers, publishers, advertisers, and nonprofit organizations. Also interviewed were economists and researchers specializing in regulatory economics, postal history and operations, and community and economic development. The benefits identified are clustered around the following eight broad categories:
- Consumer
- Business
- Safety and Security
- Environmental
- Delivery of Other Government Services
- Information Exchange
- Social Linkage
- Civic Pride and Patriotism
A copy of the report can be obtained by following this link:
http://www.postinsight.com/files/Final_Report_Social_Value-Mail_Framework.pdf
The potential for a revival is clear. Writing a letter can be a great personal indulgence, a way to communicate with greater depth and honesty than one can on the telephone, via email or text, or even in person. The value of this---although greatly under-used---can be promoted via social networks, word of mouth, and greater use. Once started, it can turn into an avalanche. And with that, the volumes increase.
A personal note: 10 years ago this month, I was hired by docSense, a high tech start-up that was to mitigate the loss of postage revenue for Pitney Bowes by becoming the leader in electronic bill presentment and payment.
At our first Customer Conference, an analyst from Forrester Research predicted that when information flowed into households like electricity and water, people would migrate from paper to electronic communication.
That eventuality occurred during the ten-year period since docSense was formed. And, sure enough, mail volume has declined in the past ten years. But the next ten can see those volumes increase. The role of postal mail may change, the many substitute channels proliferate, yet postal mail can have a bright future if it adapts to play a new role in our society.
HVTO professionals continue to rely on postal mail as the key component in the communication mix that also includes email, web and mobile communications. Finding new ways to increase mail volume directly benefits this industry, is important for a healthy economy, and can continue to be of benefit to the public. Transpromo, integrated multi-channel communication, developing applications for QR codes and other innovations are a priority for the HVTO industry and increases the usefulness of mail as a communication channel.
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