16 2025: What’s Next for the Mailing Industry? By Chris Lien
18 Are Costs “Flat Out” of Control?
The costs for sending FirstClass Mail flats have increased by up to 64% over the past three years, and they show no sign of slowing down. By Adam Lewenberg
20 Redefining Direct Mail with Data-Enriched AR: The Future of Marketing By Steven
Belshaw
05 Editor's Note What Lies Ahead? By Amanda Armendariz 06 Real-Life Management Is Your Team High-Performing or Hardly Performing? By Wes Friesen
22 And That’s a Wrap!
This year’s PRINTING United Expo, held in Las Vegas, was a veritable success. Here’s a look at what went on. By
Amanda Armendariz
26 Mailing Systems
Technology’s Annual Wage & Operations Survey, Part Two
How do our readers rate the USPS performance, the challenges facing their mail centers, and more?
28 Navigating the Enterprise Payment System (EPS): Unlocking Your Postage Power By John Whittington
12 Postal Insights USPS Slowing Service… Again By Leo Raymond
14 Intro to International Mail An Industry in Transition or in Decline? By Merry Law SPONSORED CONTENT
VOLUME 37, ISSUE 6
MAGAZINE STAFF
President Chad Griepentrog
Publisher Ken Waddell
Editor Amanda Armendariz amanda.c@rbpub.com
Contributing Writers
Steven Belshaw, Wes Friesen, Karen Kimerer, Merry Law, Adam Lewenberg, Chris Lien, Mike Porter, Leo Raymond, John Whittington
Audience Development Manager
Rachel Chapman rachel@rbpub.com
Advertising Ken Waddell 608.235.2212 ken.w@rbpub.com
Design Kelli Cooke
Tel: 608.241.8777
Fax: 608.241.8666
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The articles in this magazine represent the views of the authors and not those of MadMen3 or Mailing Systems Technology. MadMen3 and/or Mailing Systems Technology expressly disclaim any liability for the products or services sold or otherwise endorsed by advertisers or authors included in this magazine.
24 WHAT’S ON YOUR 2025 MAILING EQUIPMENT WISH LIST?
MAILING SYSTEMS TECHNOLOGY (ISSN 1088-2677) [Volume 37 Issue 6] is published six times per year (January/February, March/April, May/June, July/August, September/October, November/December) by MadMen3, PO Box 259098 Madison
POSTMASTER
WHAT LIES AHEAD?
BY AMANDA ARMENDARIZ
It’s always surreal to me when I write the last editor’s note of a calendar year. It seems like we were just embarking on the 2024 journey, and here we are, already looking ahead to 2025. As always, those of us in the mailing industry are wondering what the new year will hold. Multiple price increases per year seem to be the new norm (which is never something a mailer
wants to hear), and, according to our survey, the Delivering for America plan causes a fair amount of uncertainty for many mailers. Add to that a presidential administration change, and most of us are probably pondering what exactly the new year has in store for us. Luckily, there are ways to mitigate cost increases to some extent. The USPS postage-saving promotions are a
great way to inject more pieces into the mail stream, while also saving money. There are some exciting offerings in 2025, so make sure you participate as much as you are able. As always, PostalPro is a great source of information on these promotions, or if you missed our free webinar on the subject, you can email me at amanda.c@rbpub.com for the registration link to watch the recorded presentation.
It will be interesting to see what exactly the new year has in store for us. Even with all the uncertainty that permeates our industry, there are concrete steps mailers can take to reduce their costs and improve the effectiveness of their mail. As your trusted industry partner, we’ll be with you every step of the way.
As always, thanks for reading Mailing Systems Technology.
IS YOUR TEAM HIGH PERFORMING OR HARDLY PERFORMING?
BY WES FRIESEN
Building a high-performing team (HPT) is one of the most valuable achievements a leader can strive for. HPTs are known for their positive morale, high motivation, productivity, and commitment to excellence and serving their stakeholders well. Sadly, according to recent Gallup surveys, about 70% of the United States work force is not fully engaged on the job! The result is that many work teams struggle and perform at a mediocre level — or worst. In contrast, some teams stand above the normal and are high performance. Here are five keys to put into practice.
1. Define a Clear Vision and Purpose
Andrew Carnegie said, “Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to reach uncommon results.”
A good starting place for building an HPT is a clear and compelling vision. Our team members need to understand the “why” behind their work, which fosters motivation and alignment. Vision provides direction and purpose, helping individuals see how their contributions fit into the bigger picture. We should ensure that each team member understands the organization’s mission and how the team’s goals align with it. This alignment helps build commitment and enthusiasm, which are essential for achieving high performance.
2. Foster Open Communication and Trust
Trust is the cornerstone of any successful team. When trust is present, our team members are more likely to share ideas,
ask questions, and provide feedback. Open communication enables teams to work more efficiently by eliminating misunderstandings, addressing conflicts early, and encouraging creative problem-solving. I appreciate this quote from Stephen M. Covey, author of The Speed of Trust: “Without trust, we don’t truly collaborate; we merely coordinate or, at best, cooperate. It is trust that transforms a group of people into a team.”
These next three keys are based on an extensive research project involving over 2.5 million people in 237 companies! This study looked to find the common characteristics of HPTs. It was discovered that HPTs share these special characteristics:
3. Sense of Fairness
HPTs are first characterized by a sense of fairness. People have a need to be treated equitably, and that sense of fairness has three components. There is a physical part — this includes a safe working environment, realistic workload, and reasonably comfortable working conditions.
Another part is economic fairness — people have a need to feel they are paid a fair day’s pay for a fair day’s work with satisfactory benefits and have a reasonable degree of job security.
The third part is equity — being treated respectfully. Included is a reasonable accommodation for personal and family needs and being treated like an adult, not a child.
Included under the sense of fairness is appreciating diversity. Diversity is essential for innovation and problem-solving. An HPT is made up of individuals with varied skills, experiences, and perspectives. We should strive to build a diverse
team that brings unique viewpoints to the table, fostering creativity and driving better decision-making.
As inclusion expert Verna Myers notes, “Diversity is being invited to the party; inclusion is being asked to dance.” It is crucial to not only have diverse voices in the room but to create an environment where they feel empowered to contribute. This inclusive approach can lead to more robust solutions and cultivate the sense of fairness we need.
One way to check the feeling of fairness on our teams is to conduct an annual team survey — and include some questions related to fairness.
4. Sense of Achievement
HPTs are characterized by a sense of achievement. Achievement includes taking pride in one’s accomplishments by doing things that matter and doing them well; receiving recognition for one’s accomplishments; and taking pride in the organization’s accomplishments.
There are six primary sources for a sense of achievement:
1. Challenge of the work itself.
2. Acquiring new skills.
3. Ability to perform.
4. Perceived importance of employee’s job.
5. Recognition received for performance.
6. Working for a company of which the employee can be proud.
One tool we can use to help build a sense of achievement is to participatively set and work together to achieve SMART goals, which have these characteristics:
Specific
Measurable
Ambitious yet achievable
Results oriented
Time specific
Communicating progress and celebrating progress on goals will help develop a powerful sense of achievement within our team. Remember the principles that “success breeds success,” and “celebrating small wins leads to bigger wins.”
5. Sense of Camaraderie
Benjamin Franklin said, “We must indeed all hang together, or most assuredly, we shall all hang separately.” HPTs are characterized by a sense of camaraderie — having warm, positive, and cooperative relations with others in the workplace (“one for all and all for one”). Setting and working together to achieve SMART goals helps build camaraderie.
In addition, try having periodic fun and team-building activities. Need ideas?
Here is a list of five to get you thinking:
1. Take your team to a movie (the large screen IMAX movies are great — even better if in 3D!).
2. Play a fun game together, like your own customized version of “Family Feud.”
3. Try a fun recreational activity like miniature golf, or just have an afternoon in the park.
4. Attend a favorite sporting event, concert or other social event that team members would enjoy (important to know your team on this one!).
5. Last but not least, anything with FOOD seems to be a big hit.
A tremendous yet overlooked tool that leaders can use to help build camaraderie is recognition. To help conduct recognition well, consider these five recognition principles:
1. Be specific about what is being recognized.
2. Do it in person.
3. Be timely.
4. Be sincere.
5. Recognition should be given for both individual and group performance.
Putting It All Together
Let’s look at six ideas we can do to build and maintain engagement with our team members on an ongoing basis:
1. Don’t let the newbies sink. Get your new employees off to a great start by clearly explaining the goals and expectations of the team, regularly checking in with them, and assigning a teammate as a “buddy” mentor.
2. Create a physically comfortable work environment. Ideas can come from peers, conferences, and the employees themselves.
3. Eliminate perks that favor one level of employee over another. Goal is to avoid sending the message that some employees are “second class,” when in reality everybody contributes to the success of the team.
4. Avoid micromanaging. Give employees as much flexibility and as many choices as you can. Avoid “dirty delegation” and think about how you would like to be treated.
5. Spill the beans. My former CEO Peggy Fowler once said there are three keys to being a great manager: Communication, Communication, and Communication! If we don’t communicate, a vacuum is
created. The vacuum is filled with the rumor mill, which is notoriously negative and will sink morale faster than the iceberg sunk the Titanic.
6. Observe basic courtesies. Never underestimate the value of simple greetings, a smile, or saying thank you.
A final thought from Bill George, former CEO of Medtronic and leadership expert: “No individual achievement can equal the pleasure of leading a group of people to achieve a worthy goal. When you cross the finish line together, there’s a deep satisfaction that it was your leadership that made the difference. There’s simply nothing that can compare with that.”
Wes Friesen (MBA, EMCM, CMDSM, MCOM, MDC, OSPC, CCE, CBF, CBA, ICP, CMA, CFM, CM, APP, PHR, CTP) is a proven leader and developer of high-performing teams and has extensive experience in both the corporate and non-profit worlds. His book, Your Team Can Soar!, has 42 valuable lessons that will inspire you and give you practical pointers to help you — and your team — soar to new heights of performance. Wes can be contacted at wesmfriesen@gmail.com or at 971.806.0812.
THE TRENCHES
THE POWER OF PERSONALIZED CLOSED-FACE ENVELOPES
BY MIKE PORTER
Do you ever give much thought to the envelopes you use in your mailing operation?
Envelopes are part of the workflow and an essential element of many mail pieces, but we often consider them as little more than a container for the messages within. We don’t think of envelopes as an outlet for creative inspiration.
Your default envelope choice for many mail applications may be the reliable number ten single window variety. Envelope manufacturers pre-print the sender’s logo and return address and you load them into the envelope feeder on your inserter. Back in my service bureau days, we mailed 90% of our jobs that way, and much of the mail I receive today follows suit. But window envelopes often resemble ‘junk mail’ to many recipients, causing them to transfer these uninteresting mail pieces directly to the recycle bin.
Lately, I’ve been thinking about closedfaced envelopes as possibilities for print/ mail service providers or in-plant mail operations and the clients they serve. It’s worth a look. The outside envelope can transform how recipients perceive and interact with your mailings, making them more appealing and interesting.
Closed-faced personalized envelopes enable a slew of advantages, including security, efficiency, and flexibility — characteristics not always shared by window envelopes.
We Have the Technology
Once upon a time, personalized envelopes seemed impractical. Limitations of the printing technology and inserting mechanisms of the day made it unreasonable to move away from window envelopes. Matching, synchronization, and print resolution were common concerns. Quality and accuracy were questionable, and embracing such an option often seemed like a gamble. I was running a great application for this approach, but we couldn’t risk it.
Today, however, you find yourself in a completely different landscape. File-based inserting and camera technology for mail inserting equipment has erased many worries about matching the printed address to the personalized documents the envelopes contain. Likewise, modern high-quality inkjet printheads installed on inserters can handle the logos that used to be pre-printed on the outbound window envelopes.
Creating personalized envelopes on an inserting machine can be an achievable and seamless part of the mail production process. Mail professionals can rely on this advanced technology to deliver results with precision and efficiency, setting them ahead in the world of print and mail.
Enhancing Mail Security: The ClosedFace Advantage
Envelope window elimination allows you to offer a more secure presentation. Sensitive data remains hidden, thus
enhancing privacy and protecting personal information from prying eyes. Envelopes without windows communicate professionalism and trust, subtly altering the way recipients perceive your brand. Without windows, you avoid the risk of exposing sensitive details through misaligned data, material shift, or improper window positioning. You’ve probably experienced jobs where confidential data became visible through the window. A page got folded incorrectly or the number of document pages in a set caused information printed below the address to creep into the window.
Privacy compromises can also happen after the mail leaves your facility. Although rare, postal service mail processing machinery can catch on the edge of the window and tear it, revealing part of the inside document. Also, individuals intent on accessing confidential information can peek through the window to see information they should not.
Maximizing Efficiency by Combining Jobs
We all know the key to mail inserting efficiency is keeping the inserters running. Frequent stops and starts between jobs can eat into the productivity of a mail operation. With the declining volumes in First-Class Mail, adopting a method that manages expenses by optimizing machine usage becomes imperative.
Operators stop the inserting machine between jobs for two reasons related to window envelopes:
1. Physical material changes — unload one variety of outbound envelope and load another.
2. Fold plate adjustments — the mailing address location may be inconsistent from job to job, necessitating operator intervention to change the set-up.
The effect of these intra-job adjustments varies according to the variety of jobs you are running, the equipment you have, and the skill of the operator. Changeover processes on older machines can take 15 minutes or more. More modern mail inserters feature automated changeover, which shortens the time dramatically and doesn’t rely entirely on operator experience. At PRINTING United this year, I watched as an inserter manufacturer demonstrated a change from number ten to six-by-nine envelopes in 15 seconds! With closed-faced envelopes, you can combine diverse jobs, including those
with varying document formats and different return addresses. The inserting machines can run at peak speed without frequent stoppages for changeovers. Address block location on the documents makes no difference, therefore operators needn’t adjust the folds. You will image plain outbound envelopes with sending and return address information as part of the inserting process, so intra-job material changes become largely unnecessary.
This strategy plays a vital role in your efforts to deploy an effective white paper workflow. Job merging at print time can deliver high-volume presorted mail sequences to the inserting operation. Switching from pre-printed inserts to onserts and closed-face envelopes allows you to standardize the inserting operation and keep those machines running while simultaneously opening the door to precise targeting and personalization.
Your ability to print envelopes dynamically, customized for each client, positions your services as a value-driven option in a competitive market. When you leverage the power of job combination, you maximize your resources, improve productivity, and enhance profitability.
Captivate Recipients by Marketing with Envelope Graphics
With data-driven variable messaging, you can craft each envelope to connect with its recipient. For instance, rather than a generic “Special Offer Inside,” you might state something specific, like “Exclusive Savings Just for John!”. Such tailored messaging can compel recipients to open their mail, knowing it was customized specifically for them.
You can incorporate other targeted elements, too. If you know about a customer’s interests, membership status, giving amounts, or past purchases, consider highlighting related offers or products directly on the envelope. For example, identify a previous electronics buyer and entice them with “Discover the Latest Gadgets Inside” right on the envelope. This targeted approach can significantly increase engagement, and ultimately, response rates.
Depending on the application, you can even sell advertising space on the envelopes that refer to targeted offers included on the documents. A message about “How to Cut Pool Operation Costs” would only appear on the electric bill envelopes of pool owners. Your docu-
ment pages would include a paid ad from a seller of variable speed pool pumps. Varying messages based on geographical data can also aid in personalizing experiences. You might attract residents in sunny regions with text like “HotWeather Must-Haves Await, Alice!” tailoring the inside content to match the customer’s gender and environment.
Data-driven variable messaging transforms each mailing piece into a mini marketing machine, ensuring every contact gets a personalized invitation to explore further. This customization builds stronger connections with your audience and turns a simple envelope into a powerful marketing tool.
File-based processing and cameras ensure documents and envelopes remain in sync, minimizing the danger of mis-matched mail.
What About Large Single-Windows?
When considering envelope options, a large single-window envelope might appear advantageous. This approach gives you the ability to display messages and visual elements, much like closedfaced envelopes. And they mitigate the need to adjust fold settings to accommodate address block placement. However, using large window envelopes means you must carefully avoid placing any sensitive or identifying information within the window area. This design restriction presents a challenge when laying out your document content.
Certain content, like account numbers or balances, should not appear in these spaces. You risk privacy breaches if these elements inadvertently show through the window. Consider the unfortunate situation faced by a major insurance firm some years ago, when their large-win-
dow envelopes revealed private health diagnosis details. This incident serves as a stark reminder of the potential pitfalls of using large window envelopes for sensitive communications.
While large-window envelopes meet some needs, weigh the risks and limitations carefully. They may work in situations where you have great control over the document design, allowing you to combine jobs and reap the benefits of a white paper workflow. Mail service providers, who may have little influence over their customer’s data presentation, may find a large window approach presents too much risk. Closed-faced envelopes offer greater security and flexibility without compromising the privacy of your customers’ information.
Embracing Personalization
As you contemplate the future of mail services, consider making personalized closed-face envelopes an element of your strategy. By harnessing the power of personalization and targeted messaging, you’ll captivate recipients with relevant content that resonates before they even open the envelope. This approach increases customer engagement while also elevating the efficiency of your mail operation.
Closed-faced envelopes provide a secure and distinctive canvas for your messaging, free from the constraints of windows. You can maximize individualization, ensuring that each piece of mail truly connects with your recipient. As a result, you foster stronger relationships and drive better outcomes, all while streamlining the production process. File-based processing and cameras ensure documents and envelopes remain in sync, minimizing the danger of mis-matched mail.
Consider this innovative solution to revolutionize your mailing strategy. By taking advantage of technology that allows for personalization and efficient mail production, you’ll position your business for continued success in an increasingly personalized world.
Mike Porter at Print/Mail Consultants creates content that helps attract and retain customers for companies in the mailing and document industry, and he assists companies as they integrate new technology. Learn more about his services at www.pmccontentservices.com. Follow @PMCmike on X, or send him a connection request on LinkedIn.
WHAT THE FUTURE HOLDS FOR THE PRODUCTION INKJET MARKET
BY KAREN KIMERER
The printing industry has undergone a significant transformation in recent years, with production inkjet technology emerging as the cornerstone of this modern printing revolution. Once associated with large-scale commercial printers, inkjet has become a versatile and efficient solution for print service providers (PSPs) of all sizes, demonstrating the industry’s adaptability and importance.
From personalized direct mail campaigns to on-demand book publishing, inkjet’s versatility and efficiency have revolutionized business communications. As we approach 2025, critical factors like automation and the integration of artificial intelligence (AI) along with media flexibility promise to further enhance inkjet’s capabilities, offering exciting opportunities for growth and innovation. This article explores what’s possible for print and mail providers as we examine the changes in inkjet technology and look forward to another new year.
Expanding Applications
Being able to say yes to more jobs is a goal that many PSPs have in common. One of the most exciting changes in production inkjet is the arrival of inks that work seamlessly on regular offset papers. In the past, inkjet printing was limited to specific paper types and often required treatment before going into production. This was not an ideal scenario and eliminated
inkjet technology as an option. Today and in the future, though, new generations of ink are making it possible for print providers to use more affordable, readily available paper without sacrificing quality.
This shift helps lower costs, opening the door to a wider variety of print jobs and enabling print providers to offer their clients more flexible and budgetfriendly options. Whether it’s transactional documents or direct mail, using standard paper brings more possibilities to inkjet printing, giving it a real advantage over traditional and toner-based methods.
What’s more, the quality of inkjet printing has significantly improved over the last few years, and 2025 will continue this trajectory. Print providers can now achieve near-offset quality on inkjet presses with higher ink density and better resolution. This leap in image quality means that applications previously reserved for offset or digital toner printing (e.g., high-end
marketing materials, brochures, and even photo-quality prints) are now feasible with inkjet. In fact, some of the largest providers of personalized photo products now rely heavily on digital inkjet presses for their offerings.
This opens new revenue streams for print providers by enabling them to serve markets where visual impact and fine detail are paramount. With these improvements, inkjet is no longer seen as a compromise but a competitive alternative. This makes it much easier to sell to more clients.
The Rising Star in the Inkjet Market Cut-sheet inkjet presses are one of the fastest-growing areas in inkjet technology. These models are well-suited for various short-to-medium print runs and align perfectly with the growing demand for shorter print runs. According to Keypoint Intelligence’s latest forecast data, print volumes will achieve double-digit growth in both inkjet press categories between 2023 and 2028 (see Figure 1).
The significance of cut-sheet inkjet presses becomes even more apparent for organizations that handle a diverse range of print jobs. These presses enable dynamic, personalized content produced at scale and eliminate the downtime that is traditionally required for paper changes, boosting overall productivity.
The rising demand for personalized print stems from today’s consumers wanting to be seen and understood. It remains one of the highest-value services PSPs can offer and will continue to drive production inkjet volumes in the future. From customized campaigns to unique marketing collateral, the ability to tailor each page to the recipient or produce versions meant for a specific audience boosts customer
engagement and ultimately improves the customer experience.
As we look ahead to 2025, even more advanced applications of data-driven personalization are expected. With production inkjet presses at the forefront, PSPs can produce highly targeted print campaigns that rival digital marketing efforts, making them indispensable partners in their clients’ marketing strategies. Personalized print stands out in a world that is overwhelmed by digital noise, delivering impactful messaging in a tangible, memorable format.
From Ink to Intelligence
We can’t look toward a new year and not mention the impact that AI is having on our industry. If we take a step back, inkjet’s impact on workflow efficiency and labor costs is evident. Unlike traditional printing methods, production inkjet presses need much less setup time, enabling PSPs to get the presses running faster while seamlessly switching between jobs. In addition, with no need for plates and fewer consumables, the cost per page for shorter print runs is lower. As a result, PSPs can handle smaller jobs quickly and more profitably. On top of that, many inkjet presses come with high levels of automation. Everything from color calibration to substrate handling is monitored by the intelligence built into the device. This reduces the need for constant monitoring, minimizes errors, and helps make the whole process smoother and faster, leading to quicker delivery of jobs.
Still, when it comes to executing the tasks that are required to get print jobs on the press, many print operations are only
in the early stages of automation. The low adoption rate is often a result of traditional automation that follows predefined rules and conditions. This makes it difficult for PSPs that regularly produce a large variety of job types to see the benefits. For this reason, the strong interest in AI in the print industry should come as no surprise. AI has the potential to provide more flexibility for automation to work effectively in environments with a wide variety of applications.
A recent study from Keypoint Intelligence brings light to this subject, examining the adoption rates of AI in the workplace. When respondents were asked what motivated them to adopt AI practices, enhancing operational efficiency was a top motivator across all company sizes (see Figure 2).
Inkjet technology has emerged as a game-changer in the printing industry, perfectly aligning with the evolving demands of modern communication. The inkjet market is thriving, with today’s manufacturers continuously innovating and expanding their offerings. From sheetfed to roll-fed and B2 to B3 formats, the potential of inkjet technology is vast. However, its true value isn’t achieved when these presses sit idle, waiting for print jobs to load up properly.
As we move forward, technology providers and PSPs that are willing to change how work gets done will unlock the full value of inkjet technology through intelligent operation. AI offers a powerful solution, transforming inkjet operations into highly efficient and responsive systems. By leveraging machine learning and real-time data analysis, technology
providers can give PSPs the tools they need to optimize their processes, predict equipment failures, and proactively schedule maintenance. This helps avoid unexpected breakdowns that compromise uptime and throughput. With its ability to continuously learn, AI ensures that inkjet presses are running at peak performance. This translates directly into improved efficiency and profitability.
The Bottom Line
As we approach 2025, the role of production inkjet in transforming the print landscape will only grow stronger. The advancements in cut-sheet inkjet technology, combined with the everexpanding possibilities of data-driven personalization, present an opportunity for print providers to redefine their value to clients. The question isn’t whether inkjet will continue to evolve — it’s how savvy PSPs will adapt to harness its full potential. Those that are willing to embrace these innovations and position themselves as leaders will meet the growing demand for tailored content while also playing a pivotal role in shaping the future of printed communications. The challenge ahead is not simply adopting the latest technologies — it’s leveraging them strategically to stay ahead of market needs and deliver exceptional value.
Karen Kimerer of Keypoint Intelligence has experienced the many challenges of expanding current market opportunities and securing new business. She has developed a systematic approach to these opportunities, addressing the unique requirements of becoming a leader in our changing industry.
USPS SLOWING SERVICE –AGAIN
BY LEO RAYMOND
Though spun to appear as improving service performance, the Postal Service has announced a proposal to further reduce service standards so it can eliminate afternoon collections nationally. Though the USPS is overtly committed to going through the advisory opinion process, it’s well known that the resulting opinion is not binding and that, as has happened with previous opinions, the USPS will implement its plan as intended.
The Release
In its August 22 press release, the USPS stated, in part:
“The Postal Service is proposing key improvements and adjustments to optimize service and reduce cost, including:
Transitioning from 3-Digit to 3-Digit ZIP Code standards to more precise 5-Digit to 5-Digit ZIP Code standards. ...
Adjusting pick-up and drop-off times of volume between post offices and processing plants, when the post offices are far away from the regional hubs. ...
Expanding daily reach for most classes of mail and packages when traveling through the network; resulting in faster delivery expectations for some mail pieces. ...
Recognizing the significant volume reduction of Single-Piece First-Class Mail and making the long overdue adjustments required, while committing to a 3-day delivery standard for
local Single-Piece First-Class mail, and in some instances even achieving a 2-day standard. … Depending on location, time, and distance, expected time to deliver will increase for some ZIP code pairs.
“The proposed changes will maintain the existing 1-5 day service standards for First-Class Mail and are designed to enable the Postal Service to make optimal use of its updated and developing ground network. The streamlined processes for the integration of both mail and packages, will ensure efficiency and timeliness by enabling an integrated delivery network that avoids duplication and complexity. The refinements within the existing service standards are projected to enhance service reliability and predictability, crucial aspects of the Postal Service’s commitment to universal service.
“Moreover, these modifications are anticipated to yield significant cost reductions for the Postal Service, with an estimated saving of approximately $3 billion annually. This aligns with the organization’s mandate to be financially self-sufficient, while continuing to deliver to every address across the nation.”
Postmaster General Louis DeJoy, who has already driven other reductions in service standards through previous advisory opinion filings, repeated his well-known allegation that:
“… our service requirements, facilities infrastructure, business rules and oper-
ating practices have continued to reflect a Postal Service designed for three decades ago.”
The 2022 Law
DeJoy cleverly now cites elements of the 2022 law which he advocated as the reasons compelling these changes.
The USPS previously had the operational latitude to move time-sensitive mail, like First-Class Mail and some Periodicals; premium package products like Priority Mail; and deferred service products like Parcel Post, in separate mailstreams, with the related attributable and institutional costs being assigned accordingly. The legislative “mandate” that DeJoy engineered — that all mail (market-dominant and competitive) must be in a single “integrated network” — impacts cost attribution.
DeJoy wants to grow package volume, so the cost attribution pattern of an “integrated network” can enable more advantageous pricing for competitive USPS package services. This was recognized somewhat obliquely by one of the “facts”:
“… our package and mail products will benefit across the board. The service standards we set for First-Class Mail are also aligned with all of our other products.”
Six-day delivery of all mail also was not codified before DeJoy agreed to it being part of the 2022 law. Doing so pleased the carriers’ unions but — in the face of declining volume — committed the USPS to retaining a level of service to an expanding delivery network being supported by less mail revenue.
Collection Mail
The proposal about “optimization” of collections epitomizes DeJoy’s fixation on “efficiency” at the expense of service. Essentially, his proposal defines mail from ratepayers served by post offices more than 50 miles from the Regional Processing and Delivery Center as not qualified for the same service available to customers of closer post offices; an afternoon collection run to those distant offices isn’t “efficient.”
However, in another creative move, DeJoy obscures the decrease in service by reframing how the deferred mail would move. By arguing that it would get into the mailstream “earlier” (i.e., in the morning) than if it had been in that
afternoon’s collection, he overlooks that — absent the more “efficient” collection regime — that mail would have been in the mailstream the previous day — when it was actually mailed. In turn, by redefining the day of mailing, he can continue to claim the mail gets the same service.
Service
In an interview with The Washington Post, DeJoy admitted his proposal would result in different levels of service, stating “customers within 50 miles of the Postal Service’s largest processing facilities [will get] faster delivery service.” Justifying this as another necessary step in his Plan to fix problems he says he inherited from his predecessors, DeJoy added:
“At the end of the day, I think some portion of the mail showing up 12 hours later, I think it’s a price that had to be paid for letting this place be neglected. … We’re trying to save the Postal Service — not figuratively, not to advocate for something. We’re trying to literally save the Postal Service.”
How members of Congress will react to this isn’t yet known, but DeJoy was characteristically dismissive of whatever response they might have. As the Post reported:
“DeJoy in an interview shot back that lawmakers were ‘out of their league’ with their critiques of the agency. ‘ They don’t understand the business. Nobody knows what it takes to compete with FedEx and UPS and drives billions of dollars of cost out of here that’s in the critique business. Even though it’s Congress, they don’t know,’ DeJoy said.”
DeJoy obviously did not see any irony in his comments. He’s barely any more educated about “the business” now than he was in 2020, and even at that he likely knows only what his inner circle of sycophants wants him to know. More worrisome, it’s his perspective that informs the USPS governors in their decision-making on matters like filings with the PRC.
The Postal Service offers no explanation for how actual service performance will improve by deferring the collection of some mail or expanding its more “efficient” ground transportation network.
In its 2021 filing to reduce service standards for First-Class Mail and some Periodicals, the USPS claimed that the standards then in place were “unat-
tainable” and so, without any efforts to improve operational discipline, declared they had to be changed. (We now know that part of the motive for the reduction was to allow greater use of ground transportation, the mode favored by PMG DeJoy.)
The Postal Service offers no explanation for how actual service performance will improve by deferring the collection of some mail or expanding its more “efficient” ground transportation network.
Apparently, even with the use of more ground transportation, the relaxed service standards are still unachievable so, rather than finding ways to make his network perform better, DeJoy wants ratepayers to again accept slower service:
“All First-Class Mail and USPS Ground Advantage will continue being delivered within 5 days.”
In effect, mail that may now be receiving better than five-day service could be delivered more slowly and still be within DeJoy’s commitment. Presumably, ratepayers would be consoled because the reduced service is more “efficient.”
Notably as of Postal Quarter III (AprilJune) 2024, the USPS is meeting none
of its service standards for First-Class Mail on a nationwide basis, and less than 15.5% of its district scores for fiscal 2024 to-date have hit the corresponding targets.
Perhaps the most obsequious element of the Postal Service’s announcement was its invocation of environmental considerations. Claiming the elimination of afternoon collection runs “contributes to reduced carbon emissions and truck trips through American neighborhoods” is a transparently self-serving attempt to sanctify a simple reduction in service.
The Process
The Postal Service had a pre-filing webinar on September 5, and filed its formal request for an advisory opinion on October 4.
Overall, the filing reflected what was announced in August and was another thinly veiled promotion for the PMG’s 10-Year Plan, presenting more rosy promises for improvements as more of The Plan’s elements are implemented. As with any promotional material, benefits are defined in the context of the advocate’s perspective, and any negative impacts are explained away. Regardless, the essence of the proposal is clear: reduce service and spin it in a way that makes it sound like a good thing.
Though the PMG has told legislators that changes to the processing network will be deferred until after the election, the filing makes it clear that the service standard changes will be implemented early next year:
“… the Postal Service would not implement the service standard changes within the scope of this Request any sooner than 90 days after the filing of this Request.”
As noted earlier, the Postal Service is requesting an advisory opinion solely to conform with a legal requirement. Though it claims it will consider the opinion, it likely will repeat past practice and do exactly what it plans to do, so ratepayers should expect the planned reductions in service and related changes to take effect the first weekend in January 2025.
Leo Raymond is Owner and Managing Director at Mailers Hub LLC. He can be reached at lraymond@mailershub.com. This article is based on information from a recent Mailers Hub newsletter.
AN INDUSTRY IN TRANSITION OR IN DECLINE?
BY MERRY LAW
Editor’s Note: Merry Law is retiring, so this will be her final regular column for Mailing Systems Technology. We’d like to thank her for all of her contributions over the years, and we wish her the best in this new chapter!
Declining mail volumes and revenues, competition from private sector delivery companies, increasing requirements for electronic information, and higher costs for mailers and postal operators are contributing to a crisis in the postal world. We need to look beyond the postal sector into the industry processing and delivering small packages, as they become a greater proportion of mailed items and of postal revenue.
Until about 30 years ago, all postal operators were government entities. Then, in the late 1990s, the EU directed its then-15 member countries to allow competition in the postal sector and end most postal subsidies, while continuing to provide universal postal service. At the time, this was seen as very risky, with many predictions of outcomes that fortunately never came to pass.
Since those countries first instituted “liberalized” postal sectors, most highly developed countries and many less developed countries have done the same. In some cases, the postal operator designated to provide universal service within the country is privately owned; in others, that postal operator is partially government-owned. Postal competition and government regulation of the sector varies widely in the liberalized countries (the US, Canada, and Australia are exceptions to this trend).
By the time liberalization and privitaization of the government-run postal operators began, letter volumes were already decreasing. Revenue from mail
was declining. Many postal operators depended, and continue to depend, on non-postal services, such as banking and insurance and fees from government services offered at post offices. (The USPS is banned by law from offering some services that contribute revenue for foreign postal operators.) Even with this revenue, many postal operators struggled to stay solvent, and not all of them have succeeded, whether in countries with liberalized postal sectors or not.
In some (perhaps most) developing countries, the situation was exacerbated by a lack of resources. Although these countries may have a postal monopoly for the national postal operator, the lack of financial resources and, occasionally, fraud and corruption, have contributed to extremely poor mail delivery and failing/failed postal services. The UPU and the international postal network seem unable to remedy the poor services that have existed for decades in some regions and countries.
As more small packages entered the market, while regular letters, magazines, and newspapers in the mail continued to decrease, competition from private delivery companies became more problematic for postal revenue. In the US and other countries with work-share or negotiated discounts, mail consolidators and other mail services companies have long played a role in the chain from the company that originates or “owns” the mail, along with pick-and-pack warehouses, transshipment hubs, and freeport facilities. All these services are used whether the final delivery
will be through a postal service or a private delivery company. A private delivery company moving the item part way along the delivery chain then handing it off to a postal operator for final delivery has become more common with packages, particularly internationally. (The USPS has recently pushed back on this for domestic packages.)
More recently, postal operators, including the USPS, want more advance notice of larger quantities of mail entering their individual systems, and countries, particularly developing countries, want to know what is entering their borders. For international items containing goods (basically, anything other than documents with no commercial value), even more documentation is required for customs and sales tax purposes in advance of the items being shipped to the destination country. This Advance Electronic Data (AED, or EAD as it is known in most other countries) is required from postal and non-postal shippers. As requirements for customs and tax information have increased, new service providers have developed to provide the data required by an increasing number of countries and to assist with pre-payment of duty and other taxes by the sender. Postal operators have lagged behind the private sector in providing this option.
The staff and member countries of the UPU are aware of these and other issues facing the global postal network. In 2004, the UPU’s Congress of member countries approved a new body, the Consultative Committee (CC), to provide private sector advice. The CC was originally limited to non-profit associations and representatives of UPU member countries. It languished as it had little effect on the UPU’s decision-making. Renewed efforts to give CC members a greater role in the UPU and allow more involvement by the private sector in the UPU have begun within the last few years. Whether these newer efforts will be more successful is not yet known.
A well-functioning global postal network will need cooperation between many entities. Whether the delivery network for mail and small packages is in transition or decline will depend on how well all the parties cooperate on moving through the current matters of concern.
Merry Law is President of WorldVu LLC and the editor of Guide to Worldwide Postal-Code and Address Formats. She is a member of the UPU’s Addressing Work Group and of the U.S. International Postal and Delivery Services Federal Advisory Committee.
Heads in the Clouds: Modernizing Mail Processing
In today’s rapidly evolving mail processing landscape, embracing cloud technology is essential for staying ahead. Traditional onpremise systems, while once reliable, now face challenges in scalability, data access, and system management. Moving to cloud-based solutions, such as Engineering Innovation’s Apian Sort™, offers a path to enhanced efficiency, scalability, and transparency. As the first cloud-based letter-sorting solution, Apian Sort™ empowers mail operations with cutting-edge features that simplify processes and increase productivity.
Why Choose Cloud Technology?
Traditional mail operations often depend on physical infrastructure, which can lead to limitations in scaling operations, sharing data seamlessly across locations, and maintaining system management. These on-premise setups require significant IT resources and can create data silos that hinder comprehensive oversight. Cloud technology centralizes data, making it accessible anytime, anywhere, and allows teams to operate with real-time insights and comprehensive control. Apian Sort™ stands out by streamlining the sorting process, reducing manual tasks, and offering intuitive plug-and-play setup, ensuring swift deployment across facilities.
Addressing Security Concerns
A common hesitation surrounding cloud migration involves data security, particularly with regulations like HIPAA and the threat of ransomware. Modern cloud providers maintain high security standards, utilizing encryption, multi-factor authentication, and regular audits to protect information. While transitioning to cloud solutions like Apian Sort™, businesses can benefit from built-in cloud security practices designed to support data protection and compliance. These features help ensure that sensitive data remains secure, and operations are resilient, offering peace of mind as companies move their processes online.
Operational Visibility and Centralized Management
Cloud-based mail processing enables management teams to monitor and oversee operations across various facilities in real-time. This level of transparency facilitates the collection
of productivity data and operational analytics, offering a comprehensive view that enhances decision-making. With Apian Sort™, businesses gain the ability to track performance metrics, manage operations from anywhere, and have total visibility into their mail processes. This centralized management leads to quicker, data-driven responses and more effective workflow management.
The Potential of AI and Enhanced Analytics
Cloud platforms like Apian Sort™ have the potential to integrate with AI tools that can harness historical and real-time data to deliver valuable insights in the future. This could open the door to advanced productivity metrics, such as analyzing pieces per hour (pph) and providing intelligent recommendations for optimal mail entry times to meet delivery schedules more effectively. The future integration of AI-driven analytics may enable businesses to monitor sorter performance across multiple locations and make proactive adjustments that enhance efficiency and throughput, positioning mail operations for even greater innovation and adaptability.
Key Takeaway
Moving mail processing to the cloud, with solutions like Apian Sort™, bridges the gap between traditional mail operations and the demands of modern technology. It offers unparalleled visibility, operational efficiency, and strategic insight while addressing critical concerns about data security and compliance. The cloud ensures robust backup and data protection, providing peace of mind and enhanced data resilience.
Adopting Cloud Solutions: For organizations considering this transition, cloud technology is no longer just a dream but a strategic step forward. It allows mail operators to monitor their operations from any location, benefit from greater transparency, and opens the door to utilize AI for optimized decision-making. With cloud integration, businesses position themselves to be more connected, adaptable, and efficient, meeting the evolving needs of the industry.
The future of mail processing is in the cloud. Solutions like Apian Sort™ show that with the right technology, it’s possible to achieve high efficiency, seamless management, and long-term sustainability while mitigating traditional concerns.
BY CHRIS LIEN
2025:
WHAT’S NEXT FOR THE MAILING INDUSTRY?
In March of 2021, the USPS debuted its Delivering for America (DFA) plan; a bold initiative to transform the United States Postal Service into an integrated mail and package network that would be financially self-sustaining by 2023. To date, it has proven to be far more challenging for the USPS to implement than leaders had anticipated. Will 2025 be the year that the USPS is able to accelerate the plan? Can the organization roll out more of the envisioned 60 Regional Processing Distribution Centers that are essential to the optimized hub and spoke ground delivery network than the four that are currently operating? And what can the mailing industry as a whole do to survive and thrive in what is arguably the largest transformation to the 250-year-old postal network in the United States of America?
Let’s begin first by looking at postage prices in 2025. Postage prices have increased cumulatively by 33% to 105% since January of 2021. This is primarily the result of inflation along with additional pricing “adders” that the Postal Regulatory Commission provided the USPS to cover its universal service obligation of delivering mail to 167 million delivery points six days per week. Certainly, every business has been challenged these past three years with 40-year high inflationary rates, and the USPS is not immune to them, either. The Consumer Price Index (CPI), which is tied to inflation, is the foundation of postage pricing and is a primary driver for why postage prices have increased substantially. Recently, the USPS decided to not raise prices in January of 2025, thus ending the cadence of twice-annual price changes, but do not let that confuse you into thinking that the USPS will go back to once-per-year price changes. July of 2025 will likely see
postage increases of nearly eight percent as the USPS is simply deferring the 1.53% it could have taken in January. Mailers need to use the break in price changes as a pause of opportunity to further automate their mailing operations and leverage every possible USPS promotion incentive to mitigate future postage increases and make every mail piece count.
That brings up the second major challenge and opportunity in 2025, which are the USPS promotions. The USPS has been encouraging astute mailers to bridge the high touch aspect of direct mail with high-tech messaging to enable a physical-to-digital experience that increases the value of mail. As mail volumes decline, in part due to the postage pricing, mailers need to increase the value per piece of mail if they want to survive and thrive during the DFA rollout. For a mail service provider (MSP), this begins by cataloging all mail pieces you are currently producing and determining which ones would qualify for the various USPS promotions. You may be surprised how easy it is to qualify for a promotion with pieces you are already printing! It is like leaving money on the table if you don’t participate, and the USPS has recently shortened the approval window for promotion qualification to four hours in some cases. Rather than face an eight percent postage increase in July of 2025, why not mitigate that down to a two percent increase instead by leveraging these promotions?
For mail owners, USPS promotions are the best way to utilize the mail volume growth credits that you have been accumulating since the beginning of 2024. You have been earning those credits, right? If you mail over one million pieces of First-Class Mail or Mar-
keting Mail and grow that volume over an established baseline, you can start earning significant credits toward a future mailing. This program is extending into 2025, and if you use these credits toward a USPS promotion, it further maximizes their value and may even allow you to try new multichannel marketing campaigns.
Mailers need to fully leverage the
Informed
Visibility data from the USPS in order to track and trace their mail pieces from point of induction to final delivery.
The third major item we will see in 2025 are service standard changes. There are two major initiatives that will begin implementation in early 2025 that could be challenges and opportunities for the mailing industry.
The first is the transition from three-digit to three-digit standards to a more precise five-digit to five-digit standard. This increased level of granularity could be very helpful to the mailing industry to pinpoint in-home delivery times, especially for rural addresses. However, the table matrix to reflect this level of granularity would result in a spreadsheet of over 1.7 billion rows! Industry and USPS will need to work together to devise a way to share this information in a manner that is timely and can be utilized effectively.
The second is the Regional Transportation Optimization that would eliminate afternoon pickup of mail collection and could add one day or more of delivery to addresses that are more than 50 miles from an RPDC. Since there are only four out of 60 RPDCs implemented, the RTO initiative could have a nationwide impact initially.
Mailers need to fully leverage the Informed Visibility data from the USPS in order to track and trace their mail pieces from point of induction to final delivery. With broad network changes like these, every mailing that is dependent upon a specific in-home delivery date will need to have a revised strategy for mail preparation, production, and induction into the USPS.
On October 4 of 2024, the USPS filed an Advisory Opinion request with the Postal Regulatory Commission for the planned network changes in 2025. It’s a lengthy filing, but a necessary one if DFA is going to be successful. Mailers who want their voices to be heard should read this filing and be prepared to share their thoughts with the PRC about the planned DFA changes. It will take the entire mailing community working together to ensure we have a financially stable postal delivery system that can hopefully continue delivering for another 250 years.
Chris Lien is Executive Vice President of Postal Affairs for BCC Software, a BlueCrest company. He has been active in the mailing industry for 30 years and participates in numerous industry associations including the Postmaster General’s Mailers Technical Advisory Committee as a former industry chair. As EVP of Postal Affairs, he is focused on all aspects of the mail supply chain and provides a voice of advocacy on behalf of the thousands of BCC Software and BlueCrest customers. Chris also chairs the Board of Directors of the National Postal Forum.
BY ADAM LEWENBERG
ARE COSTS “FLAT OUT” OF CONTROL?
The costs for sending First-Class Mail flats have increased by up to 64% over the past three years, and they show no sign of slowing down.
The postage costs for sending First-Class Mail flats have increased by 40-64% over the last three years, and we are expecting two increases per year starting in July 2025, when we should see similar increases. This is higher than First-Class letters, which have gone up by 29-33%, as you can see in Figure 1. Organizations need to rethink how they are sending flats because these costs are out of control. Luckily, there are ways to significantly reduce them. The goal of this article is to explain the details regarding flats and the strategies you can implement to save money.
There were five billion flats mailed in 2023, making them one of the most significant mail segments. These are defined as items having at least one dimension greater than 11.5” long, 6.125” high, or .25” thick. The weight is one to 13 ounces, and the most common forms would be 9 x 12 or 10 x 13 envelopes or catalogs. This is compared to the lower priced letter category, which has a maximum size of 6.125” x 11.5” x .25” thick and 3.5 oz.
Folding Flats
The best way to save money on flats is to have a better understanding of when they should be used. We see lots of companies using flats for page counts that could be folded in half into 6 x 9.5” letter envelopes. In the First-Class Mail segment, flats are used to send invoices, statements, insurance policies, medical records, or items with higher page counts. We hear from clients that they have either always used flats or did not think through the cost differences when determining when they should use flats vs. letters. You can fold about 15 sheets of paper into a 6 x 9.5” envelope, and the rate differences are substantial, as you can see in Figure 2. These 44-76% savings occur for the following reasons:
The USPS rate for the flat is much higher than the rate for the letter.
The envelope weighs more (.6 ounces vs. .3 ounces), potentially pushing you to the next ounce weight.
Presorted and Automation letters are a set rate up to 3.5 ounces. This means the flat with 15 sheets, which is at the four-ounce rate, is compared to a one-ounce letter rate.
Since most large volumes of flats are done by third-party print and mail service providers, it is important to ask the maximum number of sheets they can insert into a 6 x 9.5” envelope on their inserters.
For Marketing Mail, items may not be going in envelopes. The options would be to fold and tab the piece, or design the size of the mail to meet USPS guidelines for letters with a maximum size of 6.125” x 11.5” x .25” thick and 3.5 oz.
Automate Flats
If the item must go as a flat, the USPS has automation discounts in place that can reduce the costs by three to 79%. Here are the basic strategies:
1. Use a presort service to pick up your flats (along with your letters). Typical savings are three to 10%.
2. High-volume mailers can either have automation software in their offices or outsource to a third-party print and mail facility, to sort their flats prior to submitting to the USPS. Typical savings are 10-30%.
3. Convert flats without personalized content from First-Class Mail to Marketing Mail, which yields a savings of 50-79%.
Entry Discounts
With Marketing Mail, USPS offers entry discounts to move the items closer to the final destination. If you move your mail to the Destination Network Distribution Center (DNDC), or to a Destination Sectional Center Facility closer to the delivery address, the USPS will give extra rate incentives. These discounts get larger for items over four ounces. As an example: a seven-ounce Marketing Mail Commercial Flat is $.968-1.322 whereas moving to the DSCF lowers the price over $.19, to $.759-1.13.
If most of your mail is local, it may be feasible to move it yourself to your local DSCF, but most high-volume mailers will use a transportation service that specializes in moving this mail. This could be a presort service, a logistics provider, or an outsourced print and mail service that coordinates this for the mail.
Visibility and Control
In most organizations in the US, there is not a single owner of mail and limited expertise internally on mail best practices. The biggest challenge to implementing the savings above is to understand the detail of what mail is being generated. This is further complicated since most of the mail is outsourced to third parties. The only way to save money through mail is to gain visibility of what is being sent and then compare it to other options available. This is what we spend most of the time doing with clients, and if done correctly, it yields amazing savings results.
Conclusion
The USPS is raising flats at higher amounts than letters because they cost more to process. As the volume of flats decreases, these unit costs are going to increase at higher levels that will get passed on through rate changes. The good news is that with proper visibility, strategy, and oversight, the costs can be decreased by as much as 79%.
Adam Lewenberg, CMDSS, MDC, President/CEO of Postal Advocate Inc., runs the largest Mail Audit and Recovery firm in the United States and Canada. They manage the biggest mail equipment, postage, and mail-related services portfolio in the world. Their mission is to help organizations manage their total enterprise mail and ship-
ping spend. Their goal is to reduce expenses, recover lost postage funds, and simplify visibility and oversight. Since 2011, they have helped their clients save an average of 74% and over $89 million on equipment, postage, shipping, and outsourced mail service fees. He can be reached at adam.lewenberg@postaladvocate.com.
Integrating Direct Mail with Data-Enriched AR: A Winning Combination
By combining advanced data-enriched AR technology with direct mail, marketers have the unique opportunity to create highly engaging and deeply personalized experiences for their target audience. This innovative approach leverages the immersive nature of AR, enriched with a wealth of data, to deliver interactive content through the trusted medium of direct mail.
This fusion not only boosts user engagement but also significantly enhances customer satisfaction. Moreover, the detailed analytics derived from these interactions empower brands to fine-tune their marketing strategies, leading to more tailored and impactful audience interactions, and fostering stronger brand-consumer relationships.
The Key Advantages of Data-Enriched AR in Direct Mail
1. Personalized Interactions: Data-enriched AR tailors content to the recipient’s details, preferences, behaviors, and location, ensuring unique and relevant interactions every time.
2. Increased Engagement: AR-enhanced content can elevate direct mail engagement rates by up to 40% compared to traditional static content, effectively capturing and retaining user attention. Notably, it can also achieve click-through rates of 85% and beyond.
3. Enhanced Memorability: Studies show that consumers are 70% more likely to remember brands using AR technology, significantly boosting brand recall and fostering consumer loyalty.
4. Data-Driven Insights: AR enriched with data provides in-depth insights into campaign performance, capturing individual recipient interactions such as content views, engagement duration, and more. This empowers marketers to refine their campaigns and targeting strategies effectively.
In today’s rapidly evolving marketing landscape, staying ahead of the curve is vital for standing out in a crowded marketplace. One of the most innovative advancements in direct mail marketing is the integration of data-enriched Augmented Reality (AR). This powerful combination is transforming how brands engage with their audiences, creating personalized, interactive, and highly captivating experiences that deliver exceptional results.
The Power of Data-Enriched AR: Revolutionizing Engagement
Data-enriched Augmented Reality (AR) merges the immersive power of AR with various data sources to craft personalized experiences. By utilizing AR technology, marketers can create interactive content that serves as a bridge to multiple marketing channels. Incorporating data such as campaign metrics, mailing lists, IP locations, and retargeting information, brands can deliver engaging and relevant content that resonates with each individual. This personalization enhances user engagement and retention, ultimately leading to higher customer satisfaction and loyalty. Additionally, the detailed analytics provided by data-enriched AR allow for continuous refinement of marketing strategies, ensuring more precise audience targeting.
Seamless Integration Across Multiple Marketing Channels
Data-enriched AR not only enhances direct mail but also seamlessly integrates across various marketing channels, creating a cohesive strategy that maximizes consumer engagement and conversion rates.
Websites and Landing Pages: Behavioral data and mailing list details can be synchronized with AR to create personalized URLs (PURLs) in real-time, tailoring the recipient’s website and landing page experiences. This customization extends to pre-populating web forms for a seamless, and convenient, user journey.
Email and Text Messaging: Data-enriched AR can sync with email and text messaging, enabling automated follow-ups based on audience engagement. This integration supports comprehensive campaign workflows, including customer autoresponders and business alerts.
Social Media Integration: The same immersive AR content used in direct mail can be shared on social media platforms, captivating audiences and expanding reach through network sharing.
Digital Push Messaging: AR content can place a pixel on the recipient’s device upon interaction, prompting synchronized digital push messages or ads, extending brand touchpoints.
USPS Informed Delivery: Informed Delivery interactive campaigns can trigger AR campaigns with interactive calls to action, enriching the Informed Delivery experience and activating additional AR functions like geospecific content or digital retargeting.
Geospecific Content: Location data gathered during AR interactions can deliver localized content in real-time, enabling highly targeted local area marketing.
One of the most compelling aspects of data-enriched AR is the potential for hyper-personalization in direct mail campaigns. By leveraging detailed recipient data, every aspect of the AR experience can be intricately customized to meet the unique needs and preferences of each user. This level of personalization fosters deeper connections with your audience, significantly boosting engagement and conversion rates.
For example, AR content can be synchronized with mailing lists to create hyper-personalized interactive direct mail campaigns. Data such as first names, gender, preferences, and past purchasing behavior can be automatically integrated across all touchpoints, creating a seamless and immersive journey for each recipient.
Moreover, real-time data integration can further enhance the AR experience, allowing for dynamic content updates based on recent interactions or even the current time of day. These layers of personalization capture attention and build a more meaningful and memorable experience.
Enhanced Data Insights: Driving Smarter Campaigns
A significant advantage of data-enriched AR is the ability to gather and analyze detailed insights. This data is invaluable for marketers, providing a deeper understanding of user behavior and campaign performance. By leveraging these insights, marketers can optimize their strategies and make data-driven decisions that enhance campaign effectiveness.
For instance, detailed analytics can reveal how users interact with AR content, what captures their attention, and how long they engage with specific features. This understanding enables more personalized and targeted marketing, leading to higher engagement and improved customer satisfaction.
Additionally, data-enriched AR can identify trends and patterns in user behavior, helping marketers anticipate future needs and preferences. This proactive approach results in more innovative content, keeping brands ahead of the competition. The ability to measure AR campaign performance in real-time allows for quick adjustments and optimizations, ensuring resources are used efficiently.
Embrace the Future with Data-Enriched AR
The integration of data-enriched AR with direct mail is not just a trend — it’s the future of marketing. This innovative approach allows businesses to create dynamic, engaging, and personalized experiences that stand out in a crowded marketplace.
By leveraging data-enriched AR, marketers can deliver highly relevant and memorable experiences, connect with their audiences on a deeper level, and achieve superior results. Embrace this powerful technology and watch your direct mail campaign performance soar.
Steven Belshaw is CEO and Co-Founder of UnifiedAR, a global leader in Interactive Print and Direct Mail technology, powered by Augmented Reality.
AND THAT’S A WRAP!
This year’s PRINTING United Expo, held in Las Vegas, was a veritable success. Here’s a look at what went on.
By Amanda Armendariz
Every year, it seems like the PRINTING United Expo just keeps getting better and better, and 2024 was no different. The four days I spent in Vegas over the course of this show were professionally enlightening, showcasing just exactly what our industry is capable of. As a press release sent out after the event stated, this year’s Expo solidified “its status as the premier event for the global printing industry. This year’s show drew 24,969 registered attendees, 800 exhibitors, and industry thought leaders from 115 countries, offering a dynamic blend of product launches, live demonstrations, immersive education sessions, and high-powered networking opportunities.”
As you can imagine, the energy and excitement on the show floor was palpa-
ble. Attendees were eager to learn and engage, and exhibitors were more than willing to share their vast knowledge about their offerings. “With the many concurrent events taking place, as well as 2024 being
being reported,” said Mark J. Subers, president, Events and Exhibitions, PRINTING United Alliance. “We had nearly five million pounds of equipment on the floor this year. Many attendees were able to see the newest technology for the first time ever in North America, which was a huge highpoint for them.”
It wasn’t only the exhibit hall that offered numerous educational opportunities to attendees. The sessions this year were incredibly informative and focused on helping people maximize the effectiveness of whatever business they were in. Of course, I stuck mainly to the mailing/ customer communications sessions, but there was truly something for everyone.
“We had nearly five million pounds of equipment on the floor this year.”
a ‘drupa year,’ we were really pleased with the crowds, but even more so, with the impressive volume of groundbreaking equipment running live on the show floor and, not surprisingly as a result, the sales
If an attendee is in the printing industry, no matter what the capacity, there was an abundance of educational opportunities for them. By the way, a huge “thank-you” to all who attended my panel on maximizing the effectiveness of direct mail while keeping costs down. My fellow panelists (Paul Bobnak, Adam Lewenberg, and German Sacristan) and I appreciated all who came and engaged. It was a fantastic discussion, and I look forward to hopefully doing something similar at next year’s PRINTING United!
Something New to Offer
One difference in this year’s Expo compared to years past was the creation
of a “media day” for members of the press, held the day before the show officially opened. This day was dedicated to presentations from a select group of sponsors, showcasing their company’s offerings and sharing insights into the industry as a whole. This was a huge
perk, as it allowed more time for individual questions and interviews, giving those of us from the media more time Tuesday-Thursday to roam the show floor and see the equipment offerings in action. We also heard from Ford Bowers, CEO of PRINTING United Alliance, as he shared
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P.O. Box 259098, Madison, WI 53725-9098
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how far-reaching the Alliance’s work is. The amount of advocacy work the Alliance does to keep this industry thriving is impressive, and it was truly inspiring to see the passion Bowers and the rest of his team has for this sector. As he said in an interview on the show floor, “Print is really one big community, and everybody belongs in the same community so we’ll build a platform that represents that… Over the last few years what we’ve tried to do is emulate that same thing on the association side. We’ve reached out to other segments, other segments are now joining our membership, [and] that membership gives us perspective and insight into their needs, their wants, their desires, and we start to build on that. And that manifests itself in other ways, whether it’s by learning forces we do for various segments or advocacy.”
It truly is an exciting time to be part of this industry, especially with such a passionate group at the helm of this Alliance. I hope to see you at PRINTING United 2025, which will be held October 22-24 in Orlando. Visit PRINTINGUnited.com for more information.
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18. Signature and Title of Editor, Publisher, Business Manager or Owner: Rachel Chapman, Audience Development Manager, / September 12, 2024 I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties).
WHAT’S ON YOUR 2025 MAILING EQUIPMENT WISH LIST?
As 2024 draws to a close, many companies are thinking ahead to the new equipment and solutions that are on their 2025 wish lists. Check out the companies below; their equipment will help your organization streamline your processes while simultaneously saving you money — something every mailer needs in this day and age. When you reach out, be sure to mention you saw them in Mailing Systems Technology.
BW Converting is a leader in the printing, packaging, bag, and mail industries, with well-established brands like W+D, PCMC, Baldwin, and Hudson Sharp. We manufacture high-performance converting, inserting printing and enhancement technologies for our core markets. W+D is our 111-year-old brand with technologies specifically for the mailing markets. BW Converting is one of the five strategic platform groups within BarryWehmiller, a $3.6B global supplier of engineered technologies with over 12,000 employees and 29 brand companies that serve 31 market segments involved in printing, converting, and packaging. BW’s commitment and resources to converting, printing, and process systems are extensive.
The Picture Perfect Match System is your solution for retrofitting your existing inserter for mail matching, barcode verification, end of machine verification, and Read and Print using one to four cameras. The system can be purchased as a low-cost visual match system or upgraded to a smart OCR or Barcode system that will stop the inserter automatically. Barcodes include IMB, Data Matrix, and QR, along with many more. The OCR is a non-teaching system. The smart system writes the results to a file for proof of mailing and quality assurance. All upgrades are modular so you only pay for what you need.
Engineering Innovation Inc. (Eii) offers robust mail sorting solutions that streamline returns, especially during peak periods. The Champ™ system, designed for precision and reliability, handles high volumes of mail with ease, reducing manual labor and processing time. By efficiently sorting mail and mitigating potential jams or misreads, The Champ™ ensures a seamless workflow that supports return operations. Complementing this, Eii’s Apian Sort™ cloud-based software provides real-time data insights and seamless integration with existing systems, further enhancing efficiency in mail processing. Together, these solutions enable businesses to manage returns more effectively, reduce operational costs, and maintain customer satisfaction throughout the year.
Kirk-Rudy is introducing its newest mail addressing system, the G-Line of inkjet printers. This low-cost, easyto-operate UV printing system can replace existing cartridge-based systems and pay for itself in no time due to greater ink cost savings. The clean design, simple to operate interface, and low maintenance process ensure rapid implementation and high production of mail addressing. The G2 features a 2.13” wide print width while the G4 offers a 4.25” print width. For more information, visit www.kirkrudy.com
Mail finishing leader of folder/gluers, rotary die cutters and special applications. Their solution for self-mailers, return mailers, courier style envelopes (2 directional work in one pass), presentation folders, remoisten adhesive, double sided / transfer tape, accurate tip-on of discount, magnetic and key cards, labels, window patching, RFID and Velcro have complemented the printing world and has helped sustain Moll’s longevity over 40 years as a USA manufacturer. The Moll FlexCut Rotary Die Cutter funning at 7,000/hr, with inline nickless stripping allows product to flow straight into a finishing section... visit Moll at the National Postal Forum.
and
pigmented
inks
for greater impact, deliverability, and lower operating costs. Our new in-line MACH 9DS solution runs in combination with our popular DS-700Q inserter to produce dynamically matched and vibrant full-color envelopes in a single intelligent process. Contact us today for a demonstration!
Raven Metals is proud to be your new source for genuine Mailcrafters parts. From the Pro Mailer 6.0 to the 1200X Jumbo, we have you covered. We manufacture and stock the entire line of electrical and mechanical components for all Mailcrafters machines, even the custom configurations. Looking to upgrade your old machine? We also offer the best rebuild services on the market. Raven is also very excited to announce brand new swing arm machines! Tired of being “burned” by bad rebuilds? Take a look at our all-new swing arm inserters!
What do our readers think of the USPS and other current industry events?
By Amanda Armendariz
This year’s results weren’t as encouraging as we’d like them to be, although luckily nothing stood out as drastically different compared to last year’s survey. If you’d like to see additional results that we weren’t able to fit into the print issue, you can go to MailingSystemsTechnology.com/ 2024SurveyPartTwo.
Take a look at the results and see how your opinions compare to those of your peers. We’ll keep tracking and bringing you the industry trends, so thanks for trusting us as your industry resource.
USPS Performance, Programs, and Current Events
Do you feel that the USPS is taking the correct steps to change how it does business in the face of an increasingly digital communications environment?
The number of people who reported the performance of the United States Postal Service as “excellent” went down compared to last year’s survey, while the number of respondents who rated performance as “poor” increased from 4% to 7%.
Last year, delivery accuracy and rates/pricing were tied for the number-one spot. This year, rates/pricing alone were the biggest concern.
Address corrections
Communication/information
Delivery accuracy
Flexibility
Hours of operation
Inconsistency
Mail acceptance
Pickups/drop-offs
Postal personnel
Rates/pricing
Regulations confusing or burdensome Reliability
The number of people who reported seeing great results from Informed Delivery went down compared to 2023’s survey, and the number of respondents who have no plans of participating in ID increased by seven percentage points. The number of people who do not yet participate but plan to also went down slightly.
The number of mailers taking part in the USPS mailing promotions is up by three percentage points compared to last year, which is always encouraging! These promotions are a great way to get more mail in the mail stream and save money at the same time. If you’re not yet participating, consider doing so in 2025.
Which statement below most closely matches your thoughts on the USPS Delivering for America plan?
It’s what we need in order to cut costs and improve service performance. This plan is saving the USPS from financial ruin and ensuring its viability far into the future.
We use ID, and we’ve seen great results from our customers!
We participate in ID, but I don’t know that we’ve seen any concrete results from it.
We do not yet participate in ID, but we plan to.
We don’t take part in ID, and we have no plans to.
Other
Likewise, the number of people who utilize Informed Visibility went down compared to last year.
I’m undecided; I think it has good intentions but I’m not sure how it will play out in practice as the years go on.
This plan ignores the needs of mailers with the constant price increases, and there is a lot of marketing spin that doesn’t match the actual experience with respect to service level performance, etc.
What is your number-one issue in managing your mail center?
We utilize IV and have found that it allows us to better time our multi-channel marketing efforts.
We utilize IV but haven’t seen any concrete results yet.
We have not yet started utilizing IV, but plan to.
We do not plan to utilize this offering.
Other
of staff
NAVIGATING THE ENTERPRISE PAYMENT SYSTEM (EPS): UNLOCKING YOUR POSTAGE POWER
By John Whittington
With postage prices rising twice a year for the last three years, it is more important than ever to monitor your postage costs and find ways to reduce them while continuing to mail. Physical mail remains a viable marketing channel, but maintaining a strong return on investment (ROI) is crucial. These frequent price hikes pose a significant challenge. This article will provide strategies to help overcome these challenges.
THE NEXT GENERATION OF POSTAGE ANALYTICS IS HERE
Do you find yourself drowning in a sea of spreadsheets to manage your postage
data? Why? The Enterprise Payment System (EPS) has been around for a while, yet many of us are not fully utilizing its capabilities or aware of upcoming enhancements. The old days of managing and analyzing postage by updating massive spreadsheets are a thing of the past — or at least they can be. For those of us deeply involved in postage, it is exciting to see how EPS and postage data through Informed Visibility (IV) can be such a time-saver and put key analytics for decision-making at your fingertips.
This article is not a “how-to” of EPS. The USPS has numerous resources for the nuts-and-bolts of creating EPS accounts, creating user access, and swimming
through the data and reports. Simply go to https://postalpro.usps.com/ and search “Enterprise Payment”. Instead, this article aims to highlight how EPS data can be leveraged through the Informed Visibility (IV) portal, which was originally only used for tracking mail. EPS through IV (EPS/IV) enables mail owners and mail service providers (MSPs) the ability for even better reporting and analytics.
HOW DID WE GET HERE?
For those of you who have gone through the experience of the CAPS/EPS transition and have the scars to prove it, feel free to jump ahead to Exploring the Possibilities. If you’re new to the mailing industry, read on.
What Is the Enterprise Payment System (EPS)?
The USPS introduced EPS about a decade ago as a modern successor to the 1980s-era Centralized Account Processing System (CAPS). As with CAPS, EPS streamlines the process for customers to conveniently pay for mailings and fund permits. Since its introduction, the USPS has been transitioning mailers away from CAPS in multiple phases.
The Evolution of EPS and the Replacement of CAPS
EPS offers several improvements and features over CAPS, including:
Improved Security: As anyone who had a CAPS account remembers, CAPS operated with a single login by account number for everyone. EPS requires each individual user to log in through the Business Customer Gateway (BCG). Additionally, the Business Service Administrator (BSA) of EPS must grant specific access levels to each user, reducing the risk of fraud or unauthorized access.
Simplified Account Management: EPS makes managing accounts similar to how you manage your checking account, but on a larger scale. Many functions that needed a call, email, or, worse, “a signed letter on company letterhead” to CAPS are now self-service. This includes linking or moving permits to an EPS account, transferring funds between accounts, and accessing detailed reporting: all are available on the platform.
A SIMPLIFIED TIMELINE OF POSTAGE PAYMENT PROGRESS
1980s: CAPS introduced.
Mid 2010s: EPS introduced.
2015 – 2018: MTAC Work Group 173 collaborated on the development of
the new platform, discussing the risks, establishing implementation timelines, and transitioning the first group required to make the change.
2018: EPS data became available through Informed Visibility (EPS/IV), greatly expanding capabilities by housing postage data in a database environment.
2020 – 2022: MTAC WG 195 “EPS –Review & Enhancements” highlighted opportunities for improvements, determined the “showstoppers” preventing mailers from entering EPS, and prioritized all open and new EPS issues.
April 1, 2022: CAPS is retired.
2022 – 2023 – MTAC Task Team 36 “EPS Data Delegation” was spun off from WG 195 and focused on EPS data delegation. The primary issue was how to get eDoc submitters their own postage data through IV as an alternative to manually pulling statements from PostalOne!
April 2024: EPS-IV is available for eDoc submitters.
Ongoing: MTAC User Group 11 addresses any remaining EPS issues from the previous groups or new EPS related issues.
EXPLORING THE POSSIBILITIES
What EPS Makes Possible Before we show visual examples of what your postage data may look like, here is a brief list of what EPS enables:
1. Comprehensive Data Management: Manage your postage through a database environment with all data readily available.
2. “Unshackling” your postage data: View your data and metrics independently of the postage statement.
3. Detailed Metrics: Access cost per piece and other metrics by mailing, campaign, time period, or any other parameter.
4. Informed Decision-Making: Quickly make business decisions to reduce postage spending using accurate data.
5. Postage Optimization Expertise: Become an expert in postage optimization without having to download a postage statement.
Postage data through IV would have saved me considerable time and effort when I was responsible for postage and postal operations for a large publisher. Gathering and organizing postage data, analyzing it, and forecasting future costs required a team and significant time. The EPS data through the Informed Visibility tool automates the process of gathering, organizing, and analyzing data, allowing you to focus directly on understanding and making decisions to reduce postage spend.
THE FUTURE IS NOW WITH EPS/IV
1. Immediate Access to Postage Data:
Imagine having a “library” of all your postage data readily available without needing to access PostalOne! The image in Figure 1 shows a system that displays ACH withdrawals and corresponding transactions. At your fingertips is an instant view of all your withdrawals with contributing transactions.
2. Instant Access to Key Metrics: What if you could access key metrics with a single click? Postage data through IV provides a wealth of data beyond what is visible on a postage statement, including key performance indicators (KPIs). Figure 2 is a small example of how comprehensive this data can be.
3. Forecasting Postage Spend: As I said at the top of this article, and setting aside any personal opinions regarding semi-an-
nual price changes, consider the substantial advantages of being able to gather all your previous postage data and instantly forecast your next six to 12 months of postage spend. This capability is possible because your postage data is collected and stored in a database, ready to be presented in the way you need (see Figure 3).
4. Becoming a Postal Expert: Want to transform your data even more so you can quickly become a “postal expert,” even if you’re not your company’s postal person? EPS/IV data allows you to slice your data and view it in any imaginable format helping you to identify opportunities to save on postage. Here are some examples:
Time Period, Customer, and Portfolio Analysis: Slice your data by time period, customer portfolio, and more (see Figure 4).
Figure 1
Figure 2
Figure 3
Promotion Discounts: Quickly see how well your mailings are saving with promotion discounts (Figure 5).
Vendor Performance: Instantly know how well your mailings and vendors are performing in securing the deepest discounts possible (see Figure 6).
THE JOURNEY NEVER ENDS
The USPS and the mailing industry have continuously collaborated to improve EPS and EPS/IV, working on numerous enhancements and opportunities for further improvement. Recently, several issues have been discussed, approved, scheduled, and implemented. Here are two significant changes coming to EPS/IV that will enrich the data and user experience even more.
Delegating Access to eDoc Submitters
Initially, EPS data through IV could only be delegated or retrieved by the EPS account holder. Although eDoc submitters may not pay the postage, they submit it to PostalOne! and handle related inquiries. Many of my colleagues that are eDoc submitters currently must manually download hundreds, even thousands, of postage statements from PostalOne! to view and analyze data for their customers. The USPS and mailing industry recognized that the eDoc submitters should be able to access all their postage data through IV as well. And why not? They have access to all of it now, but they are tethered to the manual execution process. At a minimum, this change is a significant time-saver and unlocks full analytic capabilities. It’s a win for the USPS, too, since it reduces processing time within PostalOne! as the need for downloads decreases. When will this be available, you ask? Now! Postage statement data to the eDoc submitter was completed back in April of 2024.
Expanding Data Fields for Comprehensive Analysis
Another major enhancement is the addition of new fields to the EPS/IV Postage Detail and Commercial Mailing feeds. Currently, the available fields allow for in-depth postage analysis. The mailing industry has requested approximately two dozen additional fields to make the data even more comprehensive. Some of these new fields include Presentation Category, Promotion Type, SKU, and Postage Statement Mailing Date. These additional fields are being phased in during USPS FY24.
FINAL THOUGHTS
From Evolution to Revolution
EPS and EPS/IV offer numerous opportunities to streamline and optimize your postage processes. You don’t need to be your company’s “postal person” to take advantage of these tools. The data from EPS/IV is scalable and user-friendly, making you an instant expert. Here are some of the possibilities:
Creating a Postage Library: Easily access statements, transactions, and account withdrawals.
Building a Customized Dashboard: Keep your entire business in view.
Generating Automated Reports and Alerts: Get warnings when something may be inaccurate.
The transition from CAPS to EPS was an evolutionary change, but the integration of EPS/IV has brought revolutionary
innovation and possibilities. Previously, managing postage often required separate permits for each mailer or line of business. Now, EPS provides detailed insights into where the mail is generated and helps identify postage related to specific mailings. It is possible, but not required, to manage postage with a single Mail Anywhere permit, saving on permit renewals, and one EPS account.
So, what are you waiting for? Dive into EPS/IV. You don’t have to do it all at once. Start by directing the data to yourself or delegating it to a trusted partner. The analytical insights you will gain will help lower your postage spend, create precise postage budgets, and give you back your most valuable asset — time.
John Whittington is Senior Manager, Business Solutions, Marketbridge.
