• on Apr 20th, 2015 in Delivery & Collection | 0 comments

    Are all mailboxes equal? Not when it comes to advertising mail, which seems to invoke three critical factors normally associated with real estate – location, location, location.

    It costs the U.S. Postal Service less to deliver mail to curbside mailboxes or neighborhood cluster boxes than to your door. That’s why there’s been talk of possibly eliminating door-to-door delivery as Canada Post has recently announced. But the move could cut more than costs; it could also cut the effectiveness of ad mail, which provides about $16 billion of revenue annually to the Postal Service.

    We worked with the market research firm InfoTrends in surveying 5,000 households across the country to determine how much people engage with advertising mail. What we found was intriguing: People with to-the-door delivery had a much higher “read-and-response” rate to ad mail than people with curbside or cluster box delivery. A related trend: People with to-the-door delivery are less likely to throw their ad mail away than those who collect their mail at the curb or cluster box.

    It’s all detailed in our new white paper, Modes of Delivery and Customer Engagement with Advertising Mail, in which we suggest that the Postal Service and ad mailers work together to understand these delivery trends, which could have a critical impact on how much mail advertisers continue to send.

    In the meantime, tell us your experience: Do you have to-the-door, curbside, or cluster box delivery, and how much time would you say you spend with ad mail? If you have experienced a change from one type of delivery receptacle to another, did your behavior change? If so, how?

  • on Nov 17th, 2014 in Delivery & Collection | 25 comments

    Most people probably don’t know what a universal service obligation is, much less that the Postal Service is bound by one. But a USO, as it’s commonly called, is essential to ensuring that everyone receives the mail service they need. And the Postal Service’s USO is long overdue for updating and clarification, as you can see in our new white paper, Guiding Principles for a New Universal Service Obligation.

    In general, a USO is a collection of requirements that ensure everyone in the country receives a minimum level of mail service at a reasonable price. The Postal Service’s USO includes a requirement to provide mail services to everyone, regardless of where they live, and for at least one mail product, at a uniform price. Other features of the USO are understood to include frequency of delivery, a range of product offerings, access to mail services, and quality of service. For instance, delivering your mail 6 days a week is part of the USO.

    But frequency of delivery is the only obligation that is clearly articulated in the Postal Service’s current USO. In fact, the USO is based on a hodgepodge of various legal requirements and regulations that, in most cases, provide only broad guidance. For example, while public access to postal services is another important component of the USO, there’s nothing about how many access points, such as collection boxes or post offices, must exist.

    The big question: What exact services do policy makers and the American public (both senders and receivers of the mail) now need the Postal Service to provide? Our paper provides six guidelines the Postal Service and its many stakeholders can use to frame the discussion about the USO and try to answer that basic question. For instance, we say a new USO should be clearly defined while also being flexible enough to adapt to future changes.

    Do you agree the USO should be updated to reflect the changing nature of communications? How have your mail needs changed in the last decade? Do we still need 6-day-a-week delivery? How do you think the American public would benefit from a more clearly defined USO that included, for example, a minimum requirement for the number of access points? 

  • on Nov 3rd, 2014 in Delivery & Collection | 10 comments

    For the major express companies, preparation for the next holiday season started right after the last one ended. If you’re one of the many Americans whose packages arrived after Santa did last year, you are undoubtedly glad to hear this. In 2013, an unexpected surge in online orders, combined with winter storms and sparse airplane capacity, resulted in FedEx and UPS missing deliveries for Christmas.

    While online retailers certainly share some of the blame – they promised more than was reasonable – UPS and FedEx are investing heavily this year to avoid a repeat of last year. For the first time, UPS will operate a full domestic air and ground network on the day after Thanksgiving (not just its air network). It’s also adding 95,000 seasonal workers and 6,000 package delivery cars, plus increasing its available aircraft. FedEx recently announced a sharp increase in its number of seasonal workers.

    Retailers are also making some changes, including in-store pick-up options and better “distributive fulfillment” efforts, which lets them ship from their brick-and-mortar stores rather than distribution centers. These offerings reduce the distances packages travel.

    The U.S. Postal Service came out of last year’s holiday season smelling sweet. A Business Week article called the Postal Service’s performance stellar, noting that it made adjustments throughout December – including adding deliveries on three Sundays in the month – to accommodate package surges. Of course, the Postal Service doesn’t operate its own fleet of airplanes like UPS and FedEx. So it’s not necessarily the carrier of choice for overnight deliveries.

    Still, many pundits believe the Postal Service could win some new customers this holiday season due to its strong performance last year. The Postmaster General recently told USA Today the Postal Service expects an 8 percent increase in packages over last year. Further, the Postal Service’s recent lowering of commercial Priority Mail prices may have already convinced some companies to switch. However, unpredictable weather close to Christmas and increased volume could pose challenges similar to last year. Would a less-than-stellar holiday performance from the Postal Service hurt its potential in the coveted commercial package market? How can the Postal Service prepare for these potential challenges? Will the changes retailers are making help? 

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