• on Feb 3rd, 2014 in Products & Services | 17 comments

    Most postal pundits agree the U.S. Postal Service can’t cut its way to prosperity. It needs to generate new revenue to succeed over the long run. But whose job is it to sell the steak as well as the sizzle? The postmaster general? The Postal Service sales staff? Postmasters, clerks, carriers? Yes, yes, and yes. It would seem everyone has a role to play in reaching out to potential new customers.

    Think about it. No one knows the Postal Service’s products and services better than postal workers. They also have daily contact with customers and they know their local communities extremely well. These factors present a huge opportunity to tap burgeoning markets, such as the 23 million small businesses in the country, as our audit indicates.

    The Postal Service has established a variety of initiatives to target small businesses, such as Every Door Direct Mail, the No Business Too Small online portal, and Business Connect. Every Door Direct, which encourages mom-and-pop stores to use mail to expand their customer base, has been extremely successful. On the other hand, Business Connect, an effort to harness postmasters’ knowledge and connections in their communities to generate sales, has had a harder time gaining traction. Our work suggests there’s a lot of potential for revenue growth from Business Connect that has yet to materialize.

    One problem could be incentives, or the lack of them. Postal employees, like most workers, are probably more likely to prioritize their tasks based on what their managers emphasize and reward. In that respect, many postmasters feel enormous pressure to keep workhours and costs down while keeping service up. So this might be their primary focus. Without the right incentives to encourage sales and customer outreach, motivation might be lacking.

    Another problem could be training, or the lack of it. Many employees have never been trained in sales and still others are probably not particularly comfortable with that role. Is the Postal Service providing employees with the training and skills they need when they are asked to reach out to customers in programs such as Business Connect?

    Selling the business is to the advantage of everyone who works for it. But if the Postal Service wants to institutionalize this responsibility and require that its employees reach certain targets, then proper incentives, training and support are critical.

    Should postal workers be required to “sell” the Postal Service? Would a system of financial incentives, such as those used in the private sector, work best, or would another type of reward be more effective? 

  • on Jun 4th, 2012 in Products & Services | 14 comments
    Following the success of the Priority Mail ® Flat Rate Box® advertising campaign, the U.S. Postal Service has decided to use the “If it fits, it ships” letter carrier (actor and comedian Mike Bradecich) as the public face for one of its newest products, Every Door Direct Mail (EDDM). The campaign’s new tag line, “Every home, every address, every time” describes the new product’s main advantage: small businesses can target every address in their local area without having to provide every name and address. EDDM is a different product than the Flat Rate Box because it’s geared toward small business customers. The Flat Rate Box is intended for both individuals and businesses. One of the new television commercials points out the value of direct mail for small businesses over other types of advertising options like billboards. This message is intended to appeal to local businesses, like restaurants and doctor’s offices, which may not advertise much to begin with and face tough decisions about where to put their limited advertising dollars. It remains to be seen whether a mass media advertising campaign is the best way to bring these small businesses into direct mail, even if supplemented with direct mail and online advertising. Check out two of the new television advertisements: Official USPS Chicken Commercial Official USPS Billboard Commercial The main message in the campaign is simplicity. Businesses no longer need mailing lists, and they can drop off their mail (up to 5,000 pieces) at their local post office instead of Business Mail Entry Units. Given the smaller audience and the larger cost for this product, it remains to be seen if EDDM will be as well received as Priority Mail, but the Postal Service appears to believe this product has potential. Revenues for EDDM since April 2011 (when the product was introduced) have grown rapidly and could increase as the economy continues to improve. The advertisements began running in April on TV and the campaign will include print, radio, and direct mail. So, tell us what you think about this new advertising campaign. Have you seen the new advertisements? How do you think this advertising campaign compares to the Priority Mail campaign? Does it do a good job of addressing the needs of small businesses?