If you can't read please download the document
Upload
mitch
View
24
Download
0
Tags:
Embed Size (px)
DESCRIPTION
MTAC Revenue Generation Update. Bob Bernstock President Mailing and Shipping Services May 19, 2010. Agenda. BCG Study Results McKinsey Recommendation Role of Mailing and Shipping Services M&SS Business Initiatives. Three of the Best Projected USPS Future. Volume forecast. - PowerPoint PPT Presentation
Citation preview
A new way to access Postal Services for consumers and small businessesProject Phoenix Update April, 2010
Current mindset:
Go to the Post Office
Futuremore choices:
OnlineMobile appetc.
Create such great experiences that typical customers prefer to use the website, mobile, and other lower cost channels
Demand for online is already apparentUSPS.com revenue equivalent to:132 highest volume retail units18,295 lowest volume retail units
35th largest ecommerce siteAbove Home Depot, ToysRUS, Barnes and Noble, Blockbuster 60th most visited website in USA leading business app for Apple iPhone and iTouch
Online Revenue Will Accelerate
Simple. Simple. Simple. Convenientat their locationon their scheduleQuick and easyHelpful, always up-to-dateSame data online, in call center and at retail New, useful products and services
MobileMedium-Term Vision
Access my account
Registration & Login
Transactions
Service Inquiries, help
New servicesSmartphone Apps Find USPS locations Lookup zip Track package Next: Rate CalculatorUSPS Mobile Website(Any connected mobile device)
1Million visits per month!
5x expectations
World Class Web DesignGoals
Simple to navigate
Simple to create label
Simple to buy merchandise
Simple to see history, tracking, and get help
Simplify IT architecture for all channels
Project TimingMobile website and iPhone appFall, 2009
Updated USPS.com & key IT architectureend 2010
New Call Center Agent desktopend 2010 (module 1)
Remaining USPS services 2011but were not waiting for the new website to create great online promotions
Contract Pricing ProcessStatus ReportMailers Technical Advisory Committee
May 19, 2010Sample Showcase
Sampling Market-OverviewSampling is a nearly $4 billion dollar business, and interviews reveal that consumer products goods (CPGs) companies prefer to have products sampled at home.There is now a significant amount of performance data around sampling, and the practice is driven almost entirely by conversions and ROI.As marketers get smarter, targeting versus broad based sampling becomes more important. The economy has impacted product sampling strategies. With more consumers staying closer to home, in home sampling has become more popular.
Customers rate sampling as a key way to get them to try a product!!
The consumer promotions market is valued at $46B, and the product sampling market is valued at ~ $4B.Sample Market SizeSources: Veronis Suhler Stevenson Communications Industry Forecast 2008-2012, CPG and sample packaging manufacturer benchmarks. 46.449.252.4** 2009 and 2011 are forecasted 2.12.32.5
Sample Market Size3.84.24.6Sources: Veronis Suhler Stevenson Communications Industry Forecast 2008-2012, CPG and sample packaging manufacturer benchmarks.** 2009 and 2011 are forecasted There is potential to re-allocate sampling and overall consumer promotion spend if the right offer is created.All Other includes samples in newspapers, samples bundled with products, door hangers, coupons for free samples, etc.The spend on product sampling is large and growing at 7% CAGR
The Co-op Box has compelling economics and presents a viable business model for USPS, partners, and brands based on thorough work-to-date and our lead market expectations.Sample ShowcaseRigorous market assessment to-date
Compelling economics and viable business models for all stakeholders
Learnings from the lead market will improve the execution at larger scale Extensive Industry ResearchFrequent Customer and Consumer InteractionInput from Leading Sample Vendor Detailed Financial AnalysesAlready confirmed Core brands interestRefine the optimal product mixRefine the marketing strategy and sell story via actual response and conversion ratesValidate the optimal price pointRefine process prior to national roll-outSample Market is large ($4B) and growing at 7%Brands: Favorable cost/conversion vs. alternativesPartners: Profitable at 40 avg. price/sampleUSPS in yr 5: $64MM revenue, $22MM margin Re-invigorates samples by mailMinimal cannibalization
Additional BenefitsCreates a very noticeable and marketable launching pad for reinvigorating the sampling business.
Helps to change to brand perception of the Postal Service. Improves the mailbox moment and helps validate that good things come in the mail. It can help change the perception that mail is only used to get people to act while other media is used to get people to change how they feel about a brand.In addition to box-specific economics, the Co-op Box has several other benefits.
Market Research LearningsThere will be three rounds of surveys intended to understand the impact on brands and the perception of recipients.
Market Research PhaseExpected LearningsPre-SurveyBrand awareness, prior purchaseBox SurveyRecipient reaction of the box and what they did with itProduct SurveyBrand awareness lift, purchase intent, actual purchase
Co-op Box: Direct MailFront of cardBack of cardConsumers received a direct mail card one week prior to Co-op box drop date.The card received a 5.8% response rate!!
Q6 - Please indicate which of the following words or phrases best describes your own reactions to the Sample Showcase Box. Choose as many words or phrases as apply:People chose exclusively positive attributes to describe their reactions to the box. On average people chose ~5 descriptors. Leading terms were Wanted to open it (82%), Grabbed my Attention (75%), Made me curious (65%), Exciting (61%), and Interesting (61%).Topline results, Box Survey
Q7 Please rate your level of agreement with each of the following statements. Five (5) point agree / disagree scale used. Results above are Agree Completely Peoples level of agreement with statements used to describe the box was quite high as well. These reactions suggest that the Sample Showcase box provided a very strong delivery platform for participating brands.Topline results, Box Survey
Q8 - How likely would you be to recommend the Sample Showcase Box program to your friends or family?On a seven point scale, 95% of respondents would Definitely or are Very Likely to recommend the Sample Showcase box to their friends or family. Here again this suggests the Sample Showcase program has the potential to provide a very strong platform for brands who are seeking to engage people with their brands. Topline results, Box Survey
Q9 - When you do recommend the Sample Showcase Box, how many people do you think you would tell about the Sample Showcase?People who said they would recommend the program were asked to indicate how many people they thought they would tell about it. By applying simple conservative math*; the Sample Showcase program generates at least 5 times the impact of box distribution footprint with over 1 million consumers reached in total with some news about the Sample Showcase program. *Using 90% of Sample Showcase recipients recommending and using calculation mid-points of (2, 5, 8 and 11) the math results in 1,097,856 people touched!Topline results, Box Survey
We expect people will like this a lot Consumer comments will appear in social media sites, these happened on the first day of delivery. These people ordered their boxes online .
Questions????
*****Alternate Access has the largest potential based on an assumption of replacement for about half of current bricks and mortar modelShipping has the largest near-term growth opportunity among the business unitsMarketing Mail may have the largest growth opportunity but it is more challenging to achieve
Alternate Access has the largest potential based on an assumption of replacement for about half of current bricks and mortar modelShipping has the largest near-term growth opportunity among the business unitsMarketing Mail may have the largest growth opportunity but it is more challenging to achieve
SLIDE *-Different approaches to roll-outWhat learningsConsumer research (to help sell in)