Hybrid mail allows customers to send letters in a digital format and recipients to receive the letters physically in envelopes. Various carriers have successfully introduced hybrid mail services in the global marketplace. The U.S. Postal Service offers hybrid mail services through agreements with three affiliated partners: Click2Mail, Cardstore.com, and Premium Postcard. In fiscal year (FY) 2011, the Postal Service introduced its own hybrid mail platform, the Direct Mail Hub. This platform focuses on small- and medium-sized businesses and allows users to send direct mail to customers.
U.S. Postal Service Office of Inspector General (OIG) auditors evaluating Postal Service hybrid mail services reported revenue with its affiliated partners dropped 58 percent from $11.4 million in FY 2007 to $4.8 million in FY 2011 because the agency had no strategic plan to promote its hybrid mail products. Auditors also noted agreements with the Postal Service’s affiliated partners did not include measurable performance goals.
Auditors estimated the potential hybrid mail market for the Postal Service is small- and medium-sized enterprises with about 400 million mailpieces annually. To increase revenue, auditors suggested the Postal Service offer hybrid mail solutions for correspondence and transaction mail, including invoices, statements, surveys, and reminders. These solutions could increase revenue by $3.8 million annually for FYs 2013 and 2014. Postal Service management agreed with the report’s findings and recommendations. They established a measureable goal of a 5 percent increase in revenue for FY 2013 and a process to discuss strategy and measure success at quarterly meetings. Postal Service management also revised usps.com, the Postal Service’s website, to improve the customer experience and reduce the number of clicks to the affiliate partners’ page.