• on Jan 28th, 2015 in Products & Services | 5 comments

    The sometimes elusive concept of “brand” is very real and useful to businesses and organizations of all kinds and sizes. A brand encompasses an array of tangible and intangible elements, from a company’s name and logo to consumers’ expectations of a particular product or service. For instance, the names and logos of Mercedes Benz and Lexus usually make people think of reliable, well-built, luxury cars. Wal-Mart and Target are most often associated with large inventories of everyday goods at discounted prices.

    The U.S. Postal Service has a brand, too. Its attributes include reliability, convenience, value, and tradition. Where the Postal Service differs from many other businesses and organizations is in the management of its brand: To get the most financial value out of their brands, successful firms treat them like other assets and carefully measure and monitor them. Brand valuation is an important management tool used to do this. But while the Postal Service has worked to enhance some of its brand attributes, it has never conducted a formal brand valuation.

    We worked with Premier Quantitative Consulting (PQC), experts in brand valuation, to develop an estimate of the Postal Service’s brand value. Based on extensive research and analysis detailed in our new white paper, The Value of the U.S. Postal Service Brand, PQC conservatively estimates the Postal Service brand value is $3.6 billion, based on fiscal year 2013 financial data (the most recent available when PQC performed its study). This means the Postal Service would forego at least an additional $3.6 billion in future cash flows if it had no discernable brand. In other words, if the Postal Service were indistinguishable from a generic delivery brand, it would not realize these significant cash flows.

    PQC also suggested some ways the Postal Service could further enhance its brand. For example, the organization could (1) aggressively respond to inaccurate “doomsday” reports and predictions about its future, (2) involve employees – who are truly “the face of the brand” – in implementing brand strategies, and (3) expand licensing activities.

    Do you think the Postal Service brand is important? What could the Postal Service do to enhance its brand? What are some attributes you associate with various brands? 

  • on Dec 17th, 2012 in Delivery & Collection | 30 comments
    The U.S. Postal Service delivery workforce consists of city and rural letter carriers, who perform similar duties, but have differences in compensation and work rules. City letter carriers typically work routes that are high density and low mileage. These routes are classified as either “mounted” routes (for those that require a vehicle) or “walking” routes (for those that are done on foot). City letter carriers are also given a $371 per year uniform allowance. Rural letter carriers typically work routes that have a lower density of delivery points and higher mileage than those of city letter carriers. They work mounted routes, leaving their vehicles only to deliver to grouped mailboxes or to deliver an item that must be taken to a customer's door. However, rural routes have expanded to suburbs and exurbs, which are more densely populated and urbanized. These routes are similar to mounted “city” routes. Because suburban areas in the country continue to flourish, the rural carrier craft is the only craft in the Postal Service still growing. Postal Service policy states that rural carriers must present a neat, clean, and professional appearance reflecting a positive postal image, but does not require rural carriers to wear uniforms like their city counterparts. The 114,000 rural carriers and non-career rural carrier associates serve as a post office on wheels. They perform many of the services that a customer could receive at a retail counter. They sell stamps and money orders; provide Priority Mail flat rate boxes; accept Express and Priority mail; offer signature and delivery confirmation; and collect mail and parcels. Rural carriers provide their own vehicles to deliver mail on nearly half of the more than 73,000 rural routes. Now that the rural carrier craft is becoming more "urbanized," they are more visible to the public. Also, the past few years has seen an increase in the number of rural carriers delivering mail in Postal Service vehicles with the logo on the side. Do you think a uniformed shirt for rural carriers would be an overall positive change for the Postal Service as far as image, branding, marketing, and security? Would a uniformed shirt for rural carriers give employees a larger sense of unity and ownership to the mission of the Postal Service? Or is the idea of a uniform old-fashioned?