Don’t let the decline in mail volumes over the past few years fool you. People still place a high value on postal services. Postal customers especially value being able to interact with postal employees at a Post Office as compared to other retail alternatives. And while some people might be indifferent to Saturday delivery of letters, they still value Saturday delivery for packages.
These discoveries are among the key findings in our first-in-the-U.S quantitative survey on the value people place on the services the U.S. Postal Service provides as part of its universal service obligation (USO). In our earlier report on the USO, which looked at the collection of requirements that ensure all users of postal services receive a minimum level of service, we pointed out the need for a quantitative study – one that asks people if a higher level of service is valued enough to warrant the additional cost. We recently conducted such a study, What Postal Services Do People Value the Most?, with market research firm Gallup and postal economist Michael Bradley.
The new study asked respondents to consider four aspects of the USO:
- Mode of delivery;
- Access to postal services;
- Frequency of delivery; and
We learned household customers place a high value on getting mail delivered to their door or to a curbside box rather than to cluster boxes or parcel lockers. Even for parcels, household consumers don’t like cluster box or parcel locker delivery, our survey found. At the highest parcel price in the survey, more than half of consumers would prefer paying the higher price to have delivery to the door, suggesting convenience trumps other factors for customers.
And it turns out that people really like to go to the Post Office. Both households and businesses have a strong preference for visiting post offices for retail services over alternative access points, including kiosks. However, respondents were satisfied with keeping post offices open for just a few hours, and placed minimal value on normal business hours.
Yet for all services, respondents indicated a limit to the amount of postage they would pay as a trade-off for higher levels of service. It seems both household and business customers value lower prices and might be willing to accept lower levels of service to keep prices from rising sharply.
We welcome your input on our survey results. What aspects of the USO are most important to you? What levels of service do you feel the Postal Service should continue to provide?