Mailing Systems Technology November/December 2023 by MadMen3

WHAT’S ON YOUR 2024 MAILING EQUIPMENT WISH LIST? PAGE 18 NOVEMBER - DECEMBER 2023 MailingSystemsTechnology.com

THE FUTURE OF BUSINESS MAIL IN THE US. PAGE 24 HOW ARE YOU SELLING DIRECT MAIL? PAGE 12 DATA + ANALYTICS = BETTER RESPONSE AND CONVERSION. PAGE 16

MARCH-APRIL 2023 | MailingSystemsTechnology.com

O T E E R E IB H R K C C I CL SUBS

TABLE OF CONTENTS

NOVEMBER-DECEMBER 2023 | VOLUME 36 ISSUE 6

DEPARTMENTS

05 Editor's Note

And That's a Wrap! By Amanda Armendariz

06 Real-Life Management

The 3 Cs Approach to Maximizing Our Teams’ Success By Wes Friesen

08 Software Byte

No More Paper Postage Statements! (Starting January 28, 2024)

By Lisa Leslie

09 Intro to International Mail Yet Another UPU Extraordinary Congress

By Merry Law

10 Inkjet Info

Marketing Communication Trends: A Look at 2024 By Karen Kimerer

FEATURES 12 The Trenches 16 Mailing Smarter for Better Results

Using data and analytics to create better response and conversion.

By Bob Rosser

20 Our Annual Wage & Operations Survey: Part Two

What do our readers think of the USPS and other current industry events?

By Amanda Armendariz

24 The Future of Business Mail in the United States By Adam Lewenberg

26 Direct Mail: What Works, What Doesn’t, and Getting Personal

By Amanda Armendariz

By Mike Porter

14 Postal Insights

USPS Begins Insourcing Transportation Work By Leo Raymond

By Rob Hanks

28 Sea Change: Looking Back at 2023… and Ahead to 2024 By Kathleen Siviter

23 PRINTING United Wrap-Up

How Are You Selling Direct Mail?

SPONSORED CONTENT 18 WHAT’S ON YOUR 2024 MAILING EQUIPMENT WISH LIST?

FOR FREE

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

SUBSCRIBE FOR FREE!

EDITOR’S NOTE

VOLUME 36, ISSUE 6 MAGAZINE STAFF President Chad Griepentrog Publisher Ken Waddell Editor Amanda Armendariz amanda.c@rbpub.com Contributing Writers Wes Friesen, Rob Hanks, Karen Kimerer, Merry Law, Lisa Leslie, Adam Lewenberg, Mike Porter, Leo Raymond, Bob Rosser, Kathleen Siviter Audience Development Manager Rachel Chapman rachel@rbpub.com Advertising Ken Waddell 608.235.2212 ken.w@rbpub.com Design Kelli Cooke

MadMen3 PO Box 259098 Madison WI 53725-9098 Tel: 608.241.8777 Fax: 608.241.8666 Email: customerservice@rbpub.com

AND THAT’S A WRAP! BY AMANDA ARMENDARIZ

SUBSCIRBE Subscribe online at MailingSystemsTechnology.com. Subscriptions are free to qualified recipients: $20 per year to all others in the United States. Subscription rate for Canada or Mexico is $40 per year, and for elsewhere outside of the United States is $45. Back issue rate is $5. SEND SUBSCRIPTIONS TO: Mailing Systems Technology, PO Box 259098, Madison WI 53725-9098 Call 608.241.8777 Fax 608.241.8666 E-mail rachel@rbpub.com Online at MailingSystemsTechnology.com. REPRINT SALES ReprintPro 949.702.5390 www.ReprintPros.com All material in this magazine is copyrighted ©2023 by MadMen3 All rights reserved. Nothing may be reproduced in whole or in part without written permission from the publisher. Any correspondence sent to Mailing Systems Technology, MadMen3 or its staff becomes property of MadMen3. 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. MAILING SYSTEMS TECHNOLOGY (ISSN 1088-2677) [Volume 36 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 WI 53725-9098, 608-241-8777. Periodical postage paid at Madison WI and additional offices. POSTMASTER Send address changes to: Mailing Systems Technology PO Box 259098 Madison WI 53725-9098

t’s hard to believe that the year is already drawing to a close. It always seems that one minute, I’m writing my editor’s note for the January/February issue to (hopefully) kick off a great year for the printing and mailing industry, and before I know it, I’m writing the final editor’s note of the year. So, let’s take a look at what this year brought. 2023 was a decent year for the mailing industry. Personally, one of the most noticeable areas for me was with respect to the trade shows I attended. Both the National Postal Forum and PRINTING United had energy and excitement that went above and beyond what I’d seen in previous years. People were excited to discuss the future of the industry, the new solutions available, and what we can do collectively to keep mail as a viable communication method for years to come. I think that this excitement will carry into 2024, despite the negativity that sometimes surrounds discussions about declining mail volumes (although as Adam Lewenberg points out in his article on page 24, the numbers aren’t as dire

as some media outlets would lead you to believe). On page 28, Kathleen Siviter also gives her insight into what we can likely expect in the new year; check it out and see what you think. Of course, there always industry issues that plague mailers, such as the multiple yearly rate increases that are the new norm. It’s a fine line to walk; the USPS certainly needs more money to operate, but if prices are raised too high, many mailers may abandon their hard-copy efforts and switch solely to digital. That’s not something anyone wants, so this is certainly an area to keep an eye on. I hope your 2023 holiday season is happy and successful, and we look forward to continuing to partner with you in 2024. As always, thanks for reading Mailing Systems Technology.

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

REAL-LIFE MANAGEMENT

THE 3 CS APPROACH TO MAXIMIZING OUR TEAMS’ SUCCESS BY WES FRIESEN

hat is the most important thing we can do in our leadership and management roles? Perhaps it’s to create a culture where our team members can thrive and add maximum value to our key stakeholders. I recently read and was inspired by Susan Fowler’s book, Why Motivating People Doesn’t Work… and What Does (Second Edition, 2023). Fowler summarizes extensive research that shows that people have three innate, universal needs: Choice (aka Autonomy), Connection (aka Relatedness), and Competence. When these needs are met, people experience optimal motivation, positive energy, well-being, and vitality. Let’s look at these three needs and discuss what we can do to help meet them.

The Need for Choice Choice is our human need to perceive we have choices, feel we have options within boundaries, and have a sense of control that we are the source of our actions. People prefer to want to than to have to, and we value having a healthy degree of control and autonomy. In short, we all like to be treated like adults, not children. Mika Cross (a Director at the U.S. Department of Labor) writes, “Having a choice and a suite of flexible options that employers can offer their workforce is extremely important, especially when you are considering the generational differences of five different generations in the workplace.” To meet this human need, we can consider what flexibility we can offer with work hours and schedules; vacations and other paid time off; work location; dress codes; and how some of the work is 6

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

done. When possible, offering hybrid work is popular and well-received — a study by Incisiv found that 81% of employees are expected to be working in hybrid models by 2024, compared to 42% in 2021 (and fully remote workplaces are expected to recede from 56% to just 19% that same time period). If feasible, what about going on a four-day workweek, expecting the same output with the same amount of pay? A recent British pilot with 61 companies tried that and found company revenue stayed roughly the same, and employee turnover and sick days plummeted by more than half. As leaders, there is a place to give up our choices to benefit our team members. This fits into the Servant Leadership philosophy, which leads to optimal long-term success. Earlier this year, I heard an inspiring example from my friend Betsy Shortell, who is the Director of Mail & Distribution Services at Harvard University. During the pandemic period, Shortell could have done all her work remotely, which was what the other managers at Harvard and many other places typically chose to do. But Shortell chose to physically go into work every day! Why? Because her team members had to be physically present to do their work and she wanted to be there to show her care and support. What an example! The Need for Connection Connection is our need to feel a sense of belonging and genuine connection to others without concerns about ulterior motives, to align goals and actions to meaningful values and a sense of purpose, and to contribute to something greater than ourselves. Author Atul Gawande explains,

“Human beings are social creatures. We are social not just in the trivial sense that we like company, and not just in the obvious sense that we each depend on others. We are social in a more elemental way: simply to exist as a normal human being requires interaction with other people.” I appreciate this insight from the Dalai Lama: “We humans are social beings. We come into the world as the result of others’ actions. We survive here in dependence on others. Whether we like it or not, there is hardly a moment in our lives when we do not benefit from others’ activities. For this reason, it is hardly surprising that most of our happiness arises in the context of our relationships with others.” Professor and author Brené Brown shared her perspective, “I define connection as the energy that exists between people when they feel seen, heard, and valued; when they can give and receive without judgment; and when they derive sustenance and strength from the relationship.” The Surgeon General recently issued a detailed report entitled “Our Epidemic of Loneliness and Isolation: The U.S. Surgeon General’s Advisory on the Healing Effects of Social Connection and Community.” This report pulls in extensive recent research and is a sobering wake-up call to the dangers of the lack of social connection and community. The report iterates the leading causes of illness and premature death among American adults, including the usual suspects of physical inactivity, obesity, and excessive alcohol consumption. Surprisingly, the number one health risk today is the lack of social connection and community. The lack of connection is a higher risk of premature death than smoking 15 cigarettes per day! Inadequate social connection results in a 29% higher risk of heart disease; 32% higher risk of stroke; higher anxiety, depression, and dementia; worse performance at work; and costs businesses an estimated $154 billion per year due to stress-related absences and health costs. The problem of inadequate social connection and community is rampant. One large survey found that only 39% of people feel very connected to others; another survey found that 58% feel lonely on a regular basis. Following are the report’s recommendations of what we can do in workplaces to help encourage and facilitate social connection:  Make social connection a strategic priority in the workplace at all levels (administration, management, and employees).

SUBSCRIBE FOR FREE!  Train and empower leaders and managers to promote connections in the workplace and implement programs that foster connection.  Leverage existing leadership and employee training, orientation, and wellness resources to educate the workforce about the importance of social connection for workforce wellbeing, health, productivity, performance, retention, and other markers of success.  Create practices and a workplace culture that allow people to connect to one another as whole people, not just as skill sets, and in a way that fosters inclusion and belonging.  Put in place policies that protect workers’ ability to nurture their relationships outside work including respecting boundaries between work and non-work time, supporting caregiving responsibilities, and creating a culture of norms and practices that support these policies.  Consider the opportunities and challenges posed by flexible work hours and arrangements (including remote, hybrid, and in-person work), which may impact workers’ abilities to

connect with others both within and outside of work. Evaluate how these policies can be applied equitably across the workforce. Here are a few practical ideas that I, along with other leaders, have implemented to help build connection and community: have common break rooms; implement workout areas; offer common break times to take walks or play games; celebrate birthdays, marriages, births, and other special events in people’s lives; have regular team building times (e.g., events like miniature golf, attending a movie or sporting event; fun competitions, etc.). The Need for Competence Competence is our need to feel effective at meeting everyday situations, demonstrate skills over time, and feel a sense of growth and flourishing. Author Mary Jo Putney speaks to a benefit of competence when she says, “Competence is a great creator of confidence.” People are created for mastery; we want to develop our skills and learn to manage everyday situations more effectively. As leaders, we should help close gaps between what we ask people

to do and the skills required to accomplish these tasks by providing ongoing training and development. There are many opportunities to help train and develop our team members. Of course, on-the-job training is essential. As a long-time university professor, I suggest encouraging and supporting people that want to finish undergraduate or graduate degrees — or support those that want to take selected classes. Many companies offer training, and there are numerous webinars, seminars, and conferences available. We can encourage involvement with professional organizations, support relevant certification programs, and share relevant books and great trade journals like this one.  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.

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

SOFTWARE BYTE

NO MORE PAPER POSTAGE STATEMENTS! (STARTING JANUARY 28, 2024) BY LISA LESLIE

s of Sunday, January 28, 2024, the USPS is discontinuing hardcopy postage statements. The proposal to discontinue hardcopy postage statements was published on February 13, 2023 (88 FR 9218-9221). The final rule was published in the Federal Register Notice (FRN) on April 25, 2023, with an effective date of Sunday, January 28, 2024. I’ll review the rule, along with comments/concerns raised during the process, and the responses provided by the Postal Service. Finally, I’ll provide suggestions to help move to electronic submissions, as many mailers still use paper statements. Moving to eDocs will ultimately save time, improve operational efficiency, and will allow your most valuable resources to spend time on higher-end tasks. ELECTRONIC SUBMISSIONS: WHAT’S INCLUDED VS. EXCLUDED  All domestic mailing claiming a discount and all permit imprint mailings must be accompanied by a completed electronic postage statement. o All metered and permit imprint mailings of 50 pieces or more (except 8

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

for the exclusions noted below), must be accompanied by a completed postage statement. o The mailer’s electronic confirmation during eDoc submission certifies that the Move Update standard has been met for the address records, including each address in the corresponding mailing presented to the Postal Service.  Exclusions: o Mail manifested using eVS o Every Door Direct Mail-Retail (EDDM-R) o International mailings COMMENTS AND RESPONSES Comment: Eliminating hard-copy postage statements would make it so we cannot submit bulk mailings any longer. Response: Postal Wizard and Intelligent Mail Small Business Tool (IMsb) are free and simple electronic documentation solutions available on the Business Customer Gateway (BCG). Also, third-party software and mail preparation options are also available on the PostalPro website. Additionally, all BMEU employees are trained to assist in the transition to eDoc submissions.

Comment: Eliminating hard-copy postage statements will create an issue for mailers who mail non-identical pieces and must submit a hard-copy manifest. Response: Postal Wizard is free electronic documentation software available on the BCG. It allows for nonidentical pieces (as do many third-party options listed on PostalPro). The hardcopy manifest that must accompany such a mailing will still be accepted. This FRN only covers postage statements and does not prohibit hard-copy manifests. Comment: I do not have a computer and cannot submit my postage statement electronically. Response: BMEUs where you currently bring your hard-copy statement will assist you with submitting a statement electronically. Comment: The transition period should be continued through 2025. Response: Local BMEUs have been encouraging mailers to transition to electronic documentation for several years. Official notice was provided 11 months prior to this transition. Also, there are free and easy options to submit electronic documentation. As such, the Postal Service believes January 2024 is sufficient time for hard-copy mailers to transfer. SUGGESTIONS AND OPTIONS TO MOVE TO ELECTRONIC SUBMISSIONS While the Postal Service has several options for mailers to electronically submit postage statements — Postal Wizard, the IMsb, and PostalOne! (used by the majority of midsize to large mailers today) — third-party options can be extremely valuable for mailers looking to automate and simplify processes by using more intuitive and feature-rich solutions. Vendors can be your best partners! Focused on making mailing faster and easier while removing the potential for costly errors, your solutions provider has insight regarding upcoming changes to systems, rate increases, centralized Sorting & Delivery Centers (S&Ds), etc. Reach out to learn more about best practices and using specific solutions to help you navigate the ever-changing world of mail!  Lisa Leslie is Strategic Account Manager, BCC Software, a BlueCrest Company.

SUBSCRIBE FOR FREE!

INTRO TO INTERNATIONAL MAIL

YET ANOTHER UPU EXTRAORDINARY CONGRESS BY MERRY LAW

ith the Universal Postal Union (UPU) recently holding its 4th Extraordinary Congress the first week of October, the third such Congress in the last five years, assessing the overall worldwide delivery network helps put the UPU’s agenda in perspective. The continuing increase in crossborder packages from e-retailers has created an opportunity for increased revenues from the delivery of these packages for both postal operators and private delivery companies. In most cases in the developed and developing countries, delivery continues smoothly. Changes in customs and tax regulations have created some problems; these are usually overcome in a matter of weeks as the purchasers, sellers, and companies in the fulfillment and transportation chain adjust to the new requirements. After recently writing about failed and failing postal operators, it’s important to say that most postal operators, along with other delivery companies, generally perform well. Mailers do need to pay attention to delivery reliability and watch for events that will hinder delivery, such as extreme weather and civil violence. In countries with a liberalized postal sector allowing postal competition, delivery can be by the official, or designated, postal operator, postal competitors, or private delivery

companies. (All developed countries except the US and Canada and many developing countries allow postal-sector competition.) Competition provides options when the designated postal operator does not perform well. However, if international mail is sent via the USPS, it is sent to the designated postal operator in the destination country. Many designated postal operators add other communication services to basic mail delivery: notification by SMS for items in a post office box, email and other electronic messaging services, and mobile phone service. Additionally, many designated operators provide various financial services, such as banking and insurance. These can assist in maintaining profitability or can provide services in areas where they are otherwise not available. Designated postal operators may also offer government services, from applying for and renewing passports and drivers’ licenses to paying taxes and utility bills. This Extraordinary Congress has approved opening the UPU to a wider membership in limited ways, agreeing on green initiatives and goals, and modifying and expanding the agreements on postal financial products. The expansion of limited membership to, in UPU’s terminology, Wider Postal Sector Players (or WPSPs) could include private delivery and logistics companies;

e-retailers; financial service providers; air, rail, and ocean transport companies; and customs organizations, among others. We’ll see whether the terms interest the private sector, but the UPU is interested in the potential income from membership and other fees and (in the case of some countries) in partnering with the private sector companies to improve postal service. Environmental concerns are on the agenda as well. The UPU has encouraged global emissions reduction targets across the postal sector. A comprehensive "Green Package" proposal was presented and passed by the Extraordinary Congress. Environmental issues are very controversial in the international arena, as less developed countries have concerns with meeting the same or similar standards as the highly developed countries. The Extraordinary Congress took up improving the UPU’s legal structure for financial services. While the USPS cannot offer banking and insurance services without Congressional action, most designated operators do offer some financial services. The delegates also approved establishing conditions for creating connections with WPSPs for postal payments. The UPU is exploring greater interoperability — the ability for different hardware, software, and apps to communicate and exchange data — to further communication between postal operators and others. With 192 member countries at various stages of development, interoperability can further all the UPU objectives. The results of what passed at the Extraordinary Congress are the first step. After that, exact language of various regulations and agreements will need to be analyzed, along with budget allocations. And this year, for the first time, how the WPSPs in the private sector react to the member countries’ proposals for their participation.  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. MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

INKJET INFO

MARKETING COMMUNICATION TRENDS: A LOOK AT 2024 BY KAREN KIMERER

nother new year is just around the corner, so it’s a great time to start looking at some of the important changes that are trending in the print and mail industry. As we look forward, it's important to remember that, by definition, trends aren't always single-year events. They often evolve due to gradual shifts in consumer preferences, economic conditions, and technological advancements. Changes in these areas can result from governing policies or simply a growing awareness of positive and negative consequences with the desire to make better choices. Let’s start with a discussion about the difference between trends and predictions. Whereas trends typically describe the present and very recent past, predictions lack the benefit of hindsight. Here are examples of both:  Today’s consumers expect brands to understand them and what they want. This is a trend that can be validated by consumers’ buying behaviors.  A 1975 article published by BusinessWeek entitled "The Office of the Future" is an excellent example of a highly controversial prediction. Nearly 50 years later, the paperless office hasn’t been fully realized for several reasons. To be sure, there’s nothing wrong with bold predictions — they give us a sense of excitement and an opportunity to think about the possibilities of the future. At the same time, however, hypotheses can make it challenging to plan with growth in mind. Meanwhile, trends can be observed in concrete patterns from data and market research to possibly paint a better picture

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

of what lies ahead. Speaking of what lies ahead, let’s take a look at three important trends to look out for as we prepare for another new year, as identified by recent research from Keypoint Intelligence. Enterprise Communication Evolves Today's businesses understand the importance of providing an excellent customer experience (CX) to build lasting relationships and loyalty. As products and services become increasingly commoditized, brands realize they must differentiate themselves through more than just price and product features. This has led many companies to prioritize and invest in CX as a key business strategy. Seamless, meaningful communications are integral to delivering exceptional CX.

New research from Keypoint Intelligence reveals that over 90% of enterprises already have a formal CX strategy or policies in place to boost customer engagement. The data demonstrates that CX is no longer an optional business investment. To keep pace with customer expectations and stand out from the competition, brands must focus on refining communication channels, personalizing interactions, and creating share-worthy experiences throughout the customer journey. Now viewed as a business imperative, CX presents an opportunity for companies to align internal teams, processes, and technologies around a common purpose — fostering true emotional connections with each customer. Print service providers (PSPs) understand the value of personalized print and what it can deliver. When it comes to conversations with clients and prospects, cost has been a recurring challenge. The focus on CX enables PSPs to revisit the impact of relevant messaging. As shown in Figure 1 below, enterprises recognize the need to improve their messaging and are taking steps to do so. This same study reveals that marketers strongly prefer to rely on the same provider for both print and digital marketing initiatives. PSPs with a plan to support the trend toward omni-channel marketing will see an advantage over those only focused on print. Blurred Lines Direct mail marketers continue to increase the use of digital links with print campaigns to bridge the offline and online worlds.

SUBSCRIBE FOR FREE! optimal unified strategy to engage, convert, and retain customers.  Continuous Testing and Improvement: A/B testing is a method of comparing two versions of a variable, such as a direct mail piece, web page, email, or ad, to determine which one performs better. AI constantly tests and optimizes all campaign elements including imagery, headlines, layouts, and offers. Models improve through ongoing A/B testing and learning.  Performance Optimization: Analyzing campaign results is the golden ticket to success. AI gives insights into response rates, conversions, and additional customer behaviors. These insights enable the optimization of future campaigns. Here are some specific examples of how marketers are using digital links in their direct mail campaigns:  A retail company might include a link to a product page in a direct mail catalog. This enables customers to easily learn more about the product and make a purchase.  A software company might include a link to a free trial download in a direct mail brochure. Customers would thereby be able to try out the software before they buy it.  A non-profit organization might include a link to a donation page in a direct mail appeal letter. This would make it easier for people to donate. QR codes seamlessly direct recipients to specific landing pages, videos, or other digital content when scanned with a smartphone camera. Shortened URLs with tracking parameters allow for better response measurement by tying offline direct mail to online activity. Marketers are also getting creative with personalized URLs that populate landing pages with the recipient's name, location, or other personalized attributes when visited. These links also foster better multi-channel strategies. For example, website visitors from a direct mail scan can be retargeted with digital ads to reinforce the message. The contact information captured via a direct mail scan also facilitates customized email follow-up at scale. Simply put, the physical medium of direct mail intercepts the customer’s attention while the digital link enables deeper personalization, improved data tracking, lead generation capability, and an integrated cross-channel experience. Overall, the goal is to grab the

consumer’s attention and make it easier for them to take action. Artificial Intelligence: A World of Possibilities Marketers continue to embrace artificial intelligence (AI). Direct mail marketing has always been about data-driven targeting and personalization at scale. Now, with advanced AI capabilities, direct mail can deliver more relevant and optimized campaigns than ever before. Here's a look at how AI is revolutionizing direct mail:  Data-Driven Customer Profiling: AI systems ingest data from sources like customer relationship management (CRM) systems, website analytics, and purchasing history to build detailed customer profiles. This might include demographic, behavioral, and contextual data so the business can truly understand each customer.  Granular Segmentation and Targeting: With machine learning algorithms, AI can segment target audiences into highly specific groups based on attributes like interests, behaviors, and predicted lifetime value. Marketers can then use this information to develop hypertargeted direct mail campaigns.  Strategic Timing that Resonates: Based on historical data and predictive analytics, AI can identify the optimal timing to engage each customer via direct mail. This ensures that campaigns are aligned with buying propensities and seasonal interests.  Omni-Channel Orchestration: AI doesn’t just optimize direct mail — it looks across other channels (e.g., email, web, mobile) to determine the

AI is transforming the way marketers engage and convert customers, taking direct mail marketing to the next level. Marketers for organizations of every size believe that AI will have a significant impact on direct marketing over the next two years (see Figure 2). The Bottom Line There are certainly many more trends that should be considered as we look ahead to 2024. Some obvious ones include a hyper-focus on automation to improve efficiency, the need to onboard strong talent with modern skillsets, and an opportunity to educate marketers and print buyers that print can be sustainable when used correctly. Sustainability is a huge topic, and more education is needed. The trends outlined in this article shed light on what marketers need and how you can get more involved in your customers' business. Even as marketing methods transform and new platforms and technologies are introduced, print will continue to be a high-value tool when done with a specific purpose in mind. The key is to make each printed piece work harder through personalization while embracing technology to connect offline messaging to the online world.  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. She is well-versed in 1:1 marketing, web-to-print, direct mail, book publishing, supply chain management, data segmentation, channel integration, and photo products. MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

THE TRENCHES

HOW ARE YOU SELLING DIRECT MAIL? BY MIKE PORTER

client conversation about running a direct mail campaign shouldn’t begin with details like mail piece format (letters, flats, postcards, or self-mailers) or mailing list sizes. The discussion should really begin with questions that help the salesperson gain a clear understanding about what the client wants to achieve. Direct mail may be the answer (or part of the answer) but solving the client’s problem is the most important thing. Unfortunately, that’s not always the way the sales call goes. Your salespeople may be selling mail, but what the client really wants to buy are results. Start With Objectives Your clients’ businesses exist to solve problems, fill voids, or offer solutions. If your sales force hasn’t probed deeply enough to understand your clients’ objectives and challenges, how can you hope to service their needs efficiently? For direct mail sales folks, it’s easy to slip into a pattern of pitching the product first — especially to long-term clients. But where does that leave them? The direct mail campaign your staff pitched to a client today may have been designed to meet a need that no longer exists or isn’t as important as it once was. The client may not notice the approach you have proposed is not aligned with their current goals. They may even agree to run the campaign with you. But when it is over and they don’t see results in areas important to them, it may be the last time they buy from you. It’s surprising what you can find out by asking clients a different set of questions. I recently had this very experience. My company creates and promotes custom content for our clients in the printing, 12

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

mailing, and customer communications industry. In October or November, we talk to each of them to discuss the content plan for the following year. This year we’re starting the meeting by asking them to tell us what has changed for them over the last year. We ask about new or changed objectives and areas of focus. We want to hear about new hires or partnerships. Then we let them fill us in. They love to talk about their companies, and the responses are enlightening. Several clients disclosed plans for new products. Others shared inquiries they’ve fielded from their customers and prospects. In some instances, clients told us they want to increase sales in certain vertical markets or focus on a particular product line. Sometimes internal organizational changes bring new capabilities to the company and spark innovative ideas about content we can create for them. We could have simply continued the plan we’ve been executing for each customer. Having worked with them for some time, we are knowledgeable about what to do. Most clients are pleased with the results they see from working with us. It probably would have been OK to skip the probing questions, but we would have missed lots of important facts that will change the creative direction and allow us to generate more effective custom content for each client throughout the next year. Your salespeople can still talk about the mechanics of direct mail and the important contributions to direct mail campaign success like paper choice, colors, list selection, coatings, and variable data. But the technical part of the conversation should be in the context of designing a campaign that helps the client achieve their business goals.

Customer Problems: Direct Mail as a Solution Let’s consider an example. Suppose a local restaurant wants to increase their weeknight dinner business. They already know that on weeknights, most of their customers are older, retired people. The young families come mostly Friday through Sunday. You have been mailing postcards featuring coupons for the restaurant with satisfactory results. Now that you know the targets are older people, you can adjust the criteria for the mailing list. Change the imagery and copy to appeal to the mature diners the restaurant wants to attract. You might reduce the effort previously aimed at text messages and social media appealing to the younger generations and watch the results. Just a small piece of information, the age group of the target customers, changes the direct mail campaign you recommend to your customer. Without the new knowledge, your salespeople would probably push to repeat the same postcard campaign. The sales call would have focused on the “what” instead of the “why.” Listen intently to your customers. Take the time to comprehend their goals, challenges, and pain points. Learn as much as you can. Then, position direct mail as one solution that could help them attain their objectives. Are your customers aiming to raise brand awareness? Showcase direct mail as a medium that can keep their brand top-of-mind for a receptive audience. Are they interested in increasing event attendance? Demonstrate how timely, personalized direct mail invitations can drive RSVPs. Are they eager to boost sales? Explain how geo-targeted direct mail promotions can push in-store traffic. Pivot from selling direct mail as a “product” and instead present it as a service — a comprehensive solution that addresses specific customer issues. Customer Reluctance to Invest in Direct Mail In today’s digital-focused world, overcoming customer reluctance to invest in direct mail can pose a significant challenge. But addressing the customer’s major concern and presenting a convincing case for postal mail can turn the conversation in a new direction. Remember, the print service provider’s goal is to furnish a means to a desired result. And often, direct mail is one of those tools that helps in that quest. But how do you go about convincing your clients? Here are a few strategies that might help.

SUBSCRIBE FOR FREE! Show Them the Numbers Statistics are persuasive. Studies show that direct mail response rates beat digital by a landslide. A few years ago, the Direct Marketing Association (DMA) found that direct mail achieves a 4.4% response rate compared to email’s 0.12%. Other studies can supply more findings that show the effectiveness of direct mail. Be ready with strong, compelling statistics. Stick to the most relevant and impactful numbers. Focus on Quality, Not Quantity Many clients worry about spending a lot of money on extensive mailing lists, only to have their mail tossed out or ignored. It’s important to stress the quality of the interaction rather than the sheer number. Your salespeople need to convince prospects it’s not about reaching a vast audience but creating a meaningful connection with the right people. Personalization and careful list segmentation can increase response rates and reduce wasted efforts. Illustrate with Success Stories I constantly remind my clients about the value of customer case studies. I know

it’s difficult to get customers to agree to participate, but it is worth it to keep trying, even if you must cloak their identity. Nothing speaks louder than actual results! A sure-fire way to convince customers about the power of direct mail is to illustrate success stories. These could be earlier campaigns that yielded great returns on investment or industry examples where direct mail has led to remarkable results. Address Customer Expectations The path to selling a customer on direct mail is not about telling them about all the things you can do. It’s about producing a deeper understanding of their objectives and pitching how direct mail could meet those needs. Sellers cannot merely operate on the assumption that direct mail will yield great results; they ought to demonstrate its value by showing customers how it can lead to the results they aspire to achieve. Offering solutions is much more potent than providing a mere service. A recent article that I wrote for this publication, titled, “Your Mail Center Has a Brand,” hit home with lots of read-

ers. A more consultative way of selling direct mail plays into the idea that print/ mail service providers must distinguish themselves. Stand out from the crowd by asking the right questions. Really find out what is important to your customers and help them achieve it. This will bolster any other brand-building moves you make. A dedication to communicate the effectiveness of direct mail through relevant success stories and industry examples is far from exaggeration. Its power lies in the tangibility of its results. The clearer your salespeople can paint the picture about the benefits and attainable success through direct mail, the higher the chances of turning a prospect into a customer. 

Mike Porter at Print/Mail Consultants helps his clients meet the challenges they encounter in document operations and creates informational content for vendors and service providers in the document industry. Follow @PMCmike on Twitter, send a connection request on LinkedIn, or contact Mike directly at mporter@printmailconsultants.com.

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

POSTAL INSIGHTS

USPS BEGINS INSOURCING TRANSPORTATION WORK BY LEO RAYMOND

ooking to reduce the Postal Service’s use of air transportation, and make feasible slower service for First-Class Mail, Postmaster General Louis DeJoy has moved significant quantities of mail onto ground transportation routes for all but the greatest distances. Now, looking for ways to reduce the reliance on contractors for that service, the PMG is beginning to insource USPS transportation. As reported August 28 by Government Executive, the initiative also can result in thousands of jobs moving from the private sector into the ranks of the American Postal Workers Union (APWU), whose favor the PMG continues to curry. The USPS began a pilot program in Oklahoma City late last year, insourcing work once performed by contractors and generating 125 postal jobs. Since then, the initiative has expanded to the Richmond (VA) area, including Charlottesville (VA), according to officials involved and public job postings. Expanding the program into the Richmond area coincided with changes to mail transportation related to converting the existing Rich14

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

mond P&DC into a Regional Processing and Distribution Center and co-located Local Processing Center. The article noted that, though the Oklahoma City pilot was planned to last at least six months, it’s still in effect nine months later. Further suggesting permanency, the USPS has signed a memorandum of understanding with the APWU to create a new job category — postal vehicle operator — as part of the initiative.

surprisingly, the agency has offered few details about its long-term plans to stakeholders or the public. Some observers nonetheless expect that insourcing will be included in those areas where the Postal Service is establishing its RPDC/ LPC network. Multichannel Merchant recently reported that DeJoy is looking to significantly ramp up transportation insourcing by 2025 — a timeline approximating the pace on which the agency will be activating the RPDCs and LPCs. The overarching premise of DeJoy’s changes to the transportation network seems to have three elements: reducing costs, moving more mail by truck (rather than airplane), and eliminating contracted transportation (by air or truck) as much as possible. However, though it’s estimated that the USPS has saved $1 billion by cutting mail transportation by air by 90% over the last two years — putting 95% of its mail and packages on the ground — it did so at the expense of service. Conversely, changing from outsourced to insourced ground transportation shouldn’t have a service impact but likely will affect costs. The major beneficiary of insourcing ground transportation would be the APWU, a group that DeJoy has been conspicuously trying to assuage since his Plan was issued. Bringing more mail transportation in-house would boost the ranks of the union’s Postal Vehicle Service craft group, about 9,000 APWU-represented employees who now primarily drive routes of 50 miles or fewer, such as between local facilities. For longer-haul routes, Government Executive stated that the USPS has over 1,700 contractors operating primarily on highway contract routes of 50 miles or more. The USPS spends almost $5 billion annually on its highway contract route (HCR) contracts, nearly four times as much as for its Postal Vehicle Service (PVS) transportation, and those costs grew 18% between 2017 and 2021 as the driver shortage took hold. Arguably, if the pool of individuals who have or could hold a commercial driver’s license is limited, those individuals’ pref-

For all HCR contractors, the loss of postal work would be a financial blow, but for those that exist solely to haul mail, it could be fatal. A USPS spokesperson said the agency is “currently evaluating other locations for expansion” of the pilot program. Not

SUBSCRIBE FOR FREE!

erence for private or USPS employment could arise from different motives. Private sector drivers driving some lanes can make more money than USPS drivers, and have greater latitude in choosing where they drive, but postal-employed drivers would have stable wages and benefits, fixed schedules, and not have to be away from home overnight. Observers also note that while current HCR drivers would be candidates for hire by the USPS, the pilot includes training programs for its own employees to help them earn a CDL and thus supply the necessary drivers. Naturally, the latter approach is especially appealing to the union, and could offset job losses in other APWU-represented crafts from facility consolidations, for example. The APWU’s craft director for motor vehicle services was quoted as claiming that the insourcing pilot “has the potential for the Postal Service to solve some of the challenges in recruiting, hiring, and retaining.” He “pledged to continue to

‘extol the benefits of having transportation duties performed in house by postal career operators instead of contractors.’” Given that it’s often estimated that clerk craft employees working in mail processing or retail service are more expensive than private sector employees doing similar work, it’s unclear whether the move from HCR to PVS drivers will yield the anticipated savings. Moreover, staffing and work assignments for commercial drivers can be adjusted as needed, while USPS staffing and scheduling is largely fixed, and wages and benefits cannot be adjusted as if they were in a competitive labor market. Obviously, the biggest negative impact of insourcing would be on existing HCR providers. “It’s definitely a cause for concern,” an industry official said of the pilot. “It’s the first time anything like that had happened, to my knowledge.” As Government Executive reported, the USPS had renewed its contracts with impacted vendors just

months before launching the insourcing. Oklahoma-based Louis V. Lepak Trucking Company sued the USPS in the US Court of Federal Claims in February, alleging the agency negotiated in bad faith when it renewed the company’s contract just before insourcing the work. The company eventually dropped its suit. For all HCR contractors, the loss of postal work would be a financial blow, but for those that exist solely to haul mail, it could be fatal. Many are worried about their future, particularly if they operate shorter routes or have trucks whose drivers aren’t required to hold a CDL. Of course, if the contractor shrinks or fails, its drivers are impacted as well. For DeJoy, who once ran a trucking company, such consequences are not a concern.  Leo Raymond is Owner and Managing Director at Mailers Hub LLC. This content is based on information from the Mailers Hub enewsletter. He can be reached at lraymond@mailershub.com.

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

should we communicate with them, and when should that communication happen?

MAILING SMARTER FOR BETTER RESULTS Using data and analytics to create better response and conversion. | By Bob Rosser

he environment for direct mail today is a challenging one. Marketers are looking to optimize their spend in the direct mail channel, and improving ROI performance is top of mind. To do that, successful direct mail needs to be engaging, compelling, and relevant. From frequent postal increases to a tight paper market and economic uncertainty, marketers must mail smarter and do more with less to ensure a strong ROI. The key to doing this effectively is leveraging data to target each specific audience’s highvalue customers and prospects, presenting them with a personalized and relevant message across channels to maximize each campaign’s impact. With the digital technology and automated manufacturing systems available, data can be harnessed to maximize what this technology is capable of to yield tasteful, personalized, and tailored communications that can lift both response and conversion numbers. Hyper-personalization can help ensure your organization 16

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

is targeting the highest-value customers. According to the Association of National Advertisers, targeting customers one-onone through direct marketing can increase business response rates by 50%. Mail has proven to be the most responsive lead generation channel for marketers when used correctly. Data-driven direct mail that is integrated across channels and propelled by creativity, data, and analytics has enormous potential to drive consumer response. Creative for each specific audience or segment within a campaign can be tailored and driven by each recipient’s data along with prior testing results to generate optimal performance. Testing is key as the metrics drive creative, copy, call to action, offers, etc. Direct mail’s measurability is one of its greatest strengths. So, what do you need to know for effective direct mail? A few key questions to ask are what, who, how, where, and when. What are you selling, who are you selling it to, how will they want to respond, where

Let’s Start with the Data A successful direct mail package cannot be based on assumptions. Starting with data and insights can help create award winning direct mail results. This starts with first finding the right audience, which is a matter of balancing the interest in your product and service with your ideal audience’s willingness to engage. When you are working with the highest-quality data, you’re able to analyze a smaller group of individuals with a higher propensity that may be interested in your product or service. Types of data can include behavioral data, financial data, psychographic data, demographic data, and geographic data. When you have the tools to research top-tier data, you’re able to create improved model performance, resulting in sales. Models can be built around the desired characteristics and attributes of your target audience to best fulfill the purpose of each direct mail campaign. All of this dynamic, data-driven content must be managed to approach each prospect personally. Protecting your brand and customer information requires marketers to ensure that their process maintains compliance with all information, privacy, and data security requirements. With access to this type of data, it is critical to remain compliant with privacy legislation and personally identifiable information (PII) data security. Great Mail Is Made Up of Quality Ingredients How you build your direct mail piece matters, and it’s not a fixed solution. It is important to maximize your relevance across the package, utilizing a strong offer and making it clear to your audience. Every direct mail piece should present your message with honesty and clarity, answering the question, “What’s in it for me?” Your call to action needs to drive a sense of urgency and ask for specific, defined action with all barriers removed. There are a few common direct mail mistakes to avoid, including a poor list/ model, ignoring testing results, focusing on features rather than benefits, not including an offer at all, or starting with the product rather than the prospect. To ensure your direct mail package is of the highest value, testing is crucial. Testing will allow you more results with less spend and will give you the opportunity for more targeted, relevant messaging with fewer wasted dollars. When testing, there must be a clear, measurable objective, or hypothesis. This

SUBSCRIBE FOR FREE! could be inclusion/removal of a card, a different headline, or different imagery. We’ve seen program performance improvement up to 184% (and sometimes more) when combining predictive analytics, scientific testing, production optimization, and technology enhancements. Multiple clients have experienced creative-based response lift of 31%, and some have seen annual postage savings in excess of $950K. In order to do this, though, successful and nimble technology is critical. Digital print and mail manufacturing technology for direct mail continues to advance, fueling easier testing, improved targeting, one-toone messaging, and faster speed-to-market. The technology available in digital mail manufacturing makes testing even easier while maintaining postal qualification and density. Direct Mail and Digital Team Up Using a data-driven, holistic view of your consumer to coordinate mail with digital, social media, and other channels to maximize marketing impact is essential to successful integration. Ideally, your target customer could receive an Informed Delivery ride along image, a call to action prior to receiving your mail package in their

mailbox. They could also see a branded online ad for your product within one to two days of the mail piece landing in their home. This ad message serves as a reinforcement or reminder of the benefits. This message could be on Facebook, LinkedIn, Instagram, YouTube, or other sources. Frequent exposure can increase the rate of response and conversion up to 20%. Sophisticated Postal Logistics Sophisticated postal logistics management with visibility gives marketers greater control of in-home dates and tighter coordination of delivery with digital channels. It allows them to measure and track every event or touchpoint, offering greater understanding of internal flows. Sophisticated postal logistics are giving marketers greater control of mail in-home dates and tighter coordination of mail delivery with digital channels. This requires coordination and precision from marketers and all supply chain partners in order to fully execute the plan. This is an ongoing continuous improvement process, as every mailing campaign is different. It is critical for all marketers and supply chain partners to leverage all available visibility and data tools to strike the

best balance to maintain effectiveness in the use of the mail channel to optimize ROI. Data and visibility are key to optimizing mail manufacturing, postage costs, and transportation plans for achieving the desired in-home delivery. Keeping Direct Mail in the Marketing Mix There are better tools and technologies available today to improve the results of your direct mail marketing efforts. Mailing personal and relevant content to your prospect or customers continues to perform well. Leveraging data and analytics to pinpoint prospects with mail in coordination with social media efforts can increase the rate of response conversion, fuel improved targeting and lead to faster speed-to market. When marketers connect direct mail to digital marketing efforts through a data-driven, holistic view of the company, sophisticated postal logistics can drive tighter coordination of delivery with digital channels. Digital direct mail is growing for the above reasons. Make sure it is part of the mix!  Bob Rosser is Director, Postal Affairs, Products and Services at IWCO Direct.

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

SPONSORED CONTENT

WHAT’S ON YOUR 2024 MAILING EQUIPMENT WISH LIST? As 2023 draws to a close, many companies are thinking ahead to the new equipment and solutions that are on their 2024 wish lists. Check out the companies below; their equipment will help your organization streamline your process 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.

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. https://clearimagetechnologies.com | 314.853.5867

Engineering Innovation is uniquely focused on developing custom parcel and mail processing equipment solutions that are compact, modular, affordable and, most of all, easily scalable to grow with you — making your transition from manual to partial or full automation fast, seamless, cost-effective, and forward-looking. Our Chameleon Solution can increase your throughput capacity with label application, scanning, dimensioning, weighing, and sorting. As a cost-effective solution to full automation without the big price tag, the Chameleon Solution can be scaled to fit any environment to fit your ideal processing need. Additionally, integrate the Chameleon Parcel Processor with your existing business logic to collect, track, and analyze your live or past data. Gear up for high volume parcel processing and meet consumer expectations! www.eii-online.com | 800.350.6450 | Sales@eii-online.com

For over 75 years, Kern has led the way, offering tailored hardware and software solutions to the production mail industry. Kern’s core products include the K1600 (12,000 to 16,000 insertions/hour), K3200 (18,000 to 22,000 insertions/hour), and the K3600 (27,000 insertions/hour). All of Kern’s high-speed inserters include features that improve productivity and optimize performance. Each system operates on a shared platform that reduces the time it takes to train operators and make them proficient. Kern’s mailFactory software also operates on this shared system and integrates productivity reporting across all systems on the production floor. www.kerninc.com | info.usa@kernworld.com | 614.317.2600 18

MARCH-APRIL 2023 | MailingSystemsTechnology.com NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

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

www.kirkrudy.com

The MACH 6 printer leverages Memjet® inkjet technology to print on applications beyond envelopes and paper, including various materials up to 3/8” thick. It dramatically improves direct mail marketing and packaging maintaining the lowest cost of ownership. The MACH 6 helps commercial printers expand their offerings for affordable short run color printing jobs while increasing their profitability and productivity. It can print on 10” x 13” floats, mailers up to 10.5” wide x 17” long, stuffed envelopes, chipboard, corrugated cardboard, folding cartons, and much more. The combination of speed, value, and capability is found nowhere else in this class.

mail.quadient.com | 888.444.7362

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! Visit www.Mailcrafters.net or www.RavenMetalsLLC.com, or call us at (708) 701-3774. www.Mailcrafters.net | www.RavenMetalsLLC.com | 708.701.3774

Tritek has been a trusted provider of custom-built equipment for US Government agencies, Fortune 100 and 500 companies, and private sector corporations worldwide for 40 years. We take pride in our ability to deliver stateof-the-art solutions that meet the most demanding requirements. We specialize in the design, development, and manufacturing of mail and parcel sorting equipment, OCR readers, document imaging and processing equipment, barcode readers, and mail processing software including software for vote by mail envelope verification. Our focus on quality and customer satisfaction has enabled us to build a reputation as a trusted partner in the mailing technology industry. www.tritek.com | 707.237.1349 | skylar@tritek.com

W+D is the leading provider of high-performance production technologies for the direct mail markets. New products this year include the W+D i-Jet 3 36K+/hr. inkjet overprint press now with a new wider 12.77” Memjet Durbolt print engine and new lower ink pricing and lower total cost of operation. New W+D BB820+ 20K multiformat direct mail inserter. Also new is the W+D 449 e-commerce mailer bag machine as well as the W+D BB1000 all-in-one converter and inserter which now has window patching capabilities and of course the full line of envelope, self-mailers, and ENVACard finishing equipment. www.w-d.de/en/ | 913.227.4980 | info@wdnorthamerica.com | NOVEMBER-DECEMBER | MARCH-APRIL 2023 MailingSystemsTechnology.com MailingSystemsTechnology.com

PART TWO

OUR ANNUAL WAGE & OPERATIONS SURVEY What do our readers think of the USPS and other current industry events?

By Amanda Armendariz

This year’s results were fairly encouraging. Many numbers improved (some significantly) compared to last year, especially with respect to service performance and the number of companies utilizing (or planning to utilize) Informed Delivery and Informed Visibility. Of course, there are always areas where it would be nice to see improvement (like with respect to the postage-saving promotions). Overall, however, I’m very pleased with this year’s results. 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 The number of people who reported the performance of the United States Postal Service as “excellent” went up by five percentage points compared to last year, which is encouraging. The number of respondents who reported the performance as “poor” was a scant three percent (although that is an increase compared to last year’s two percent).

3% 17%

20%

60%

Excellent

Fair

Good

Poor

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

Last year, “inconsistency” was our respondents’ numberone issue with the USPS, followed by delivery accuracy. This year, delivery accuracy and rates/pricing are tied for the number-one spot. Address corrections

Communication/information

Delivery accuracy

17%

Flexibility

Hours of operation

Inconsistency

13%

Mail acceptance

Pickups/drop-offs

Postal personnel

Rates/pricing

17%

Regulations confusing or burdensome

Reliability

Returned mail

Supplies availability

Timely delivery

Tracking

None

SUBSCRIBE FOR FREE! The number of people who reported seeing great results from Informed Delivery went up slightly compared to last year, and the number of folks who reported having no plans to utilize ID went down by almost 30 percentage points. Since the USPS is pushing pretty hard for mailers to incorporate ID into their campaigns, this is quite encouraging.

13%

Likewise, the number of people who report having no plans to incorporate Informed Visibility went down significantly compared to last year.

15%

10%

5% 20% 20%

25% 27%

34% 30%

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 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

We don’t take part in ID, and we have no plans to. Other

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

PICTURE PERFECT The low cost matching solution

While the number of respondents who are using the USPS postage-saving promotions went up compared to 2022, it’s unfortunate that more mailers aren’t taking advantage of these offerings.

YES 56%

NO 44%

Which statement below most closely matches your thoughts on the USPS Delivering for America plan?

• Visual Matching • OCR / Barcode • Read and Print Picture Perfect is designed as a low cost alternative to many automatic document vision systems. It is well suited for the customer that demands the most personalized look.

CALL US TODAY! clearimagetechnologies.com

314-853-5867

It’s what we need in order to cut costs and improve service performance. This plan is saving the USPS from financial ruin and 22% ensuring its viability far into the future. 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.

26%

52%

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? Compliance with postal regulations Customer relations

Business Continuity & Disaster Recovery

Facility is inadequate Inadequate equipment/Equipment maintenance Personnel issues (motivation, attendance, hiring, etc.) Productivity or efficiency Relationship with USPS employees

Keeping your critical communications running so nothing comes between you and your customers

Safety and security Scheduling Time management Timely delivery of mail Training of staff Turnover

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

21% 4% 2% 0% 2% 2% 11% 7% 0%

Workload

5% 4% 4%

Other

Understanding/support of upper management

www.mailgard.com • Paul J. DePaoli 203.572.3887 • paul.depaoli@iwco.com

13% 7% 4% 7%

Volume spikes/changes

2023 PRINTING UNITED EXPO WRAP-UP By Amanda Armendariz

his year’s PRINTING United Expo, held October 18-20 in Atlanta, was a resounding success, and we at Mailing Systems Technology were so thrilled to once again be a media partner for such a dynamic show. “PRINTING United Expo has set a new benchmark for the printing industry,” says Mark J. Subers, president, PRINTING United Expo. “With over 28,000 registrants this year, the continued feedback we are receiving directly and across social media platforms confirms that we are delivering what attendees and exhibitors have asked for. Expo news and exhibitor feedback has flooded social channels with sentiments such as ‘record-setting’, ‘refreshed’, ‘reenergized’, ‘revitalized’, ‘enthusiastic’, ‘optimistic’, and more.” With one million square feet of floor space occupied by 810 exhibitors, attend-

ees had their pick of solutions providers across every aspect of the printing industry. The Mailing & Shipping Hub, which is where our booth was — naturally — housed, was a veritable center of excitement. Attendees and exhibitors alike spent hours talking about the exciting changes in our industry, the latest product offerings, and how direct mail pieces must continue to be a staple in any organization’s customer communications strategy. And speaking of the power of direct mail, one of the highlights of the show for me was moderating a session on this very topic: The Importance of Hard Copy Mail in Direct Marketing Strategies. My three panelists (Paul Bobnak, Who’s Mailing What; Bill Boyce, United Business Mail; and German Sacristan, Keypoint

Intelligence) delivered some of their best insights into why mail should continue to be a major component of any marketing strategy, and the best ways to achieve that goal. With these talented professionals sharing their thoughts, combined with the engaged audience members, this 50-minute session could easily have gone on another hour. It’s that type of energy and engagement that makes the Expo such a success for the printing industry. Be sure to mark your calendars for September 10-12, 2024 in Las Vegas. As Subers says, “We cannot thank the industry enough for its continued investment and engagement in making the Expo the success it is today. We will continue to raise the bar with each passing year and look forward to seeing everyone in Las Vegas in 2024!”

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

THE FUTURE OF BUSINESS MAIL IN THE UNITED STATES By Adam Lewenberg

hen you hear about mail in the media, you will often be told desolate stories about how it is becoming a forgotten system, with huge volume declines, obliterated by the online replacement technologies. In actual practices, this is far from the truth. Mail volumes are declining, but not at the rate one would be led to believe. We are

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

changing where and how mail is processed, but it is still a vibrant industry and service that will be around for years to come. To simplify the discussion around mail, we will talk about the two dominant classes that make up approximately 92% of all pieces: First-Class Mail and Marketing Mail. First-Class Mail is the most common service and what everyone focuses on when discussing mail volume declines. There are two main ways this is processed: Non-Presort – Items deposited into the standard postal stream directly by the client. This also includes personal mail sent from home. Presort – Items processed in groups of 500 or more, following specific automation processes for postal discounts. This is either done by having software and staff in-house, or more commonly by hiring third-party outsource mail preparation services or presort/ commingle companies that will pick up your mail and combine with other clients to get the lowest postage rates. When you look at mail volume declines, the biggest is with the Non-Presort segment, which is going down at seven to eight percent per year vs. the presort segment that is only at two percent. Also, when you look at the size of the category, 73% is run through presort, making the total reduction in First-Class Mail lower at only three to four percent. We do not see a major change in the current decline rates unless there are regulations that allow organizations to automatically sign clients up for electronic presentment without their approval. Marketing Mail is for promotional content, and like Presort mail, it must be processed in larger groups with specific automation levels for postal discounts. Items must be non-personal in content and cannot have statement level details. The rates are less, and it is perfect for advertising content or informational material. The volume declines have been very small in this segment at one to three percent per year, except for major economic corrections. During COVID-19, volumes went down 15%, and we saw similar declines in the recessions in 2001 and 2007. We do not expect Marketing Mail volumes to decline in a more drastic way because the response rates from direct mail have held up over the years. It is one of the few ways to ensure that your message is seen by the consumer who may block other forms of media. Mailing Technology Today Mail is processed in one of the following methods: Postage Meter – We estimate that there are approximately 700,000 postage meters in the US based on USPS market share data that was available in the past and extrapolating average decline rates. Meter populations have been declining by around five percent per year. Fifty to 70% of these devices will need to be

replaced by June 30, 2024 to meet USPS technology rules. Many of the devices impacted are in the low-volume segment, and the industry may see higher short-term cancellation rates. Online Postage – This is processing mail through the web to print stamps or shipping labels on demand. This segment has an estimated 800,000 paid subscriptions and has been growing due to its simplicity and lower cost. Purchase Stamps Directly from the USPS – According to NAICS, there are 18,232,567 businesses and we estimate there are 25,000,000 plus locations. Ninety-four percent of these locations will purchase postage directly from the USPS vs. having mailing technology in their offices. How Mail Will Be Processed in the Future To look at future mail needs, it is important to break down volumes to segments. Larger mail volumes will continue to be outsourced to third-party service providers due to the complexity and their ability to get better postal rates. Fewer organizations will have in-house expertise and will want to outsource to providers that can better support their needs. In large companies, high-volume mail will be consolidated to fewer processing locations. After you strip away the large volume mail streams, you are left with day-today convenience mail that needs to be processed.

We predict there will be pay-perpiece online postage models (vs. monthly subscriptions) that will support mailers and drastically improve postage access. The biggest opportunity for expansion is the way that day-to-day mail is handled. Although mail volumes are going down, 94% of the business locations in the US have no access to mail technology. This also does not count the millions of people that work from home. The reason for this lack of access is the postage meter industry charges $30-1,300 per month per device, and online postage is $10-30 per month per subscription. Locations may not be doing enough mail to justify this expense. It is easier in many organizations to send a $15 overnight than a $.66 letter because they have enterprise online access to UPS and FedEx services vs. needing to drive to the post office to purchase stamps. We predict there will be pay-per-piece online postage models (vs. monthly subscriptions) that will support mailers and drastically improve postage access. These systems have a cost that can be shared across all locations and users vs. needing to pay per location and are a fraction of the price of the other technologies that were replaced. They can also be expanded with Single Sign-On that connects to a company’s employee directory and with UPS and FedEx Access to provide one place for entities to go for their mail and shipping needs. Costs can be shared on a location, per piece, or percentage of postage spend allocation as needed by the client. As this technology evolves, it will be pushed downstream to smaller organizations to expand access. These platforms have the following benefits for users:  Postal access where and when you need it and with the exact denominations.

 Postal discounts on parcels can be as high as 80% over what is paid at the retail counter or through a postage meter.  Pay for the postage that is used vs. needing to prefund large amounts onto devices and subscriptions.  Full visibility to every piece of mail for department chargeback and to eliminate theft.  Drastic reduction in costs over other mailing technologies.  Simplified standardized mail process across an organization. When you peel back the onion, mail volumes are only going down three to four percent per year, and there are still over 116 billion pieces of mail in the United States. This will be a very gradual decline due to our dependence on core mail services to get paid by customers and to be able to get our message heard. More mail will be pushed to outside providers who have the infrastructure to better support it. Also, more of the residual mail will be processed through online tools with more flexible billing methods to better support larger groups of consumers. The realities of what is happening are far different from what is being heard in the news and the technology and services available can better support users to make mail easier to process and manage in the future.  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 shipping & mail equipment fleet in the world and their mission is to help organizations with multi-locations reduce mail and parcel related expenses, recover lost postage funds, and simplify visibility and oversight. Since 2011, they have helped their clients save an average of 55% and over $85 million on equipment, presort, avoidable fees, and lost postage. He can be reached at 617.372.6853 or adam.lewenberg@postaladvocate.com. MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

DIRECT MAIL: WHAT WORKS, WHAT DOESN’T, AND GETTING PERSONAL By Rob Hanks

s an inside sales representative, one of my tasks is to work with prospective clients who contact me through my company’s website. As I ask questions to see what their experience has been using direct mail, I often get the response that direct mail didn’t get the results they hoped for. At this point, I ask to see a previous mail piece, and I ask about who the mail piece was sent to. I am then able to ask questions regarding what they were trying to accomplish, and what the actual results were. I will then go through each aspect of the mail piece and provide advice as to what works, what doesn't, and how personalization can increase response rates. I am going to start out with what doesn’t work as I like to end my articles on a positive note. One of the most common mistakes that will cause a mail piece not to work is an unclear message. If I look at a mail piece and I am not able to figure out what the message is in three seconds or less, it is a poorly designed mailer. 26

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

A mail piece must have a clear, concise message the grabs the addressee’s attention. A direct mail piece without a compelling offer and a call to action just doesn’t work. If the addressee is not given a large enough discount, they have no reason to respond. People are too busy for an offer of five percent on a $50.00 item. If you are going to the effort to design a mail piece, print it, mail it, and pay the postage, make the discount worth the addressee’s time. Be sure to have a call to action. Use terms such as “Limited Time Offer,” “First 100 Responses Receive This Offer,” or “Time is Running Out” to drive an immediate response. Along with your offer, you need to make it easy for the addressee to respond. Try using a QR code that points to a landing page on your website, and ensure your website is mobile optimized so orders can be placed immediately. Be sure your address and phone number are easy to find on the mailer and make them large enough for people to spot quickly. If you are a new business and are looking to drive people to a brick-and-mortar store, place a map on the mail piece showing your location. The design of a mail piece will also help dictate if the mailer works or not. When designing a mail piece, ensure it appeals to your senses. Use coatings, such as soft touch or a textured coating, to give the piece a special feel to make people want to hold on to your offer. The color of the mail piece can also make a difference. Try using a pastel color of paper to draw attention. Colorful inks and die cuts appeal to sight. Use a scented ink to draw people closer to your mail piece. Make your mail piece interactive by using specialty folds or pull-out panels. Get the addressee involved with manipulating your mailer. The United States Postal Service will be running the Tactile, Sensory and Interactive Engagement promotion starting on February 1, 2024, and running through July 31, 2024. All these techniques would qualify for the promotion. Who Is Receiving These Mail Pieces? The last item that is critically important is your mailing list. If you don’t have the right list, your mailing will not work. Long gone are the days of sending out 100,000 pieces of mail to an area regardless of what you’re selling or who your current customers

are, unless you’re a service provider or restaurant. A clean list targeting addresses of people who fit your current customer profile drives down costs and increases response rates. A good mailing list will be a targeted mailing list. Use demographics to target the consumers most likely to respond to your offer. A few of the demographics that can help target a specific audience include age, income, homeowners, renters, presence of children, single family dwelling units, multi-family dwelling units, and net worth. These are just a few of the consumer demographics available. There is still a time and place for a saturation list for hitting everyone in a specific ZIP Codes or carrier routes. This works well for mailing items such as menus and coupons for services such as auto repair or haircuts. New doctor, dentist, and veterinarian clinics also benefit from the use of saturation lists. I suggest going with a larger mail piece and sending out using Every Door Direct Mail when doing saturation mailings. The larger mail piece sticks out in a stack of mail and gets noticed. The Power of Personalization Personalizing your mail piece to your addressee is the best way to get the highest response rates. People love to see their name placed on a mail piece they receive. Personalization works for letter packages, self-mailers, and post cards. Personalizing both sides of a postcard ensures that when the mail piece is picked up, the addressee will see their name no matter what side of the card is facing up. One side will have the address block, and the other side can have a personalized message or a picture of a sign, hat, t-shirt, or sweatshirt with their name on it. Use an oversized postcard and don’t forget to include your QR code for easy ordering. A folded self-mailer allows you extra room to personalize a story for the addressee. Drop in a name and address. Also add in other personal information such as if they are a homeowner or drive a specific vehicle. Do they own a boat or vacation home? You can personalize both the mail piece and your offer to the customer/prospect. Finally, a letter package can allow you to personalize the outer envelope, a cover letter, an order form, and a donation slip. Be sure to include a reply envelope to increase your returns. Personalize the cover letter with a salutation, drop in personal information regarding previous orders or donations, and add in a personalized request. Personalize the order form and donation slip so the addressee does not need to do so. This makes it easier for them to fill out the forms and read responses. Print the donor card and order forms on color paper to add appeal to the letter package. Match the components together to the outer envelope. When addressing the outer envelope, use an ink color other than black, try a handwritten font, and add a real stamp rather than an indicia to help get your mail piece opened. It is critical that all the components are matched together correctly, as a mix-up can lead to disaster. I was told many years ago by an older colleague that a great mail campaign is 30% offer, 30% design, and 40% the mailing list. I think that over the years, those percentages have changed a little bit, but the 30-30-40 rule still is very relevant.  Rob Hanks is an inside sales representative at Suttle-Straus and has more than 25 years of experience in direct mail. Rob is a Certified Direct Mail Professional and a Certified Mail Piece Design Professional though the United States Postal Service and serves as the Industry Co-Chairperson for the Greater Madison Area Postal Customer Council. Rob enjoys the challenges of mail piece design within postal regulations and helping clients save on postage costs. MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

SEA CHANGE: LOOKING BACK AT 2023… AND AHEAD TO 2024 By Kathleen Siviter

he year is not yet over, but already it has brought significant changes in the postal and shipping industry, and 2024 promises more of the same. While many of the changes are well-known and understood, there are other changes that happened this year or are still to come next year, and many may not be aware of them. 2023 Recap. At the time this article was written, although the USPS’s Fiscal Year 2023 was complete, the calendar year still had two months to go. That being said, let’s look back at the changes we’ve already seen in calendar year 2023. In all honesty, there are too many to mention in one article, so I will hit the highlights. And while many changes brought challenges, in some cases, they also brought opportunities. One of the most significant changes for the Postal Service and the mailing industry in 2023 has been the start of the implementation of the USPS’s network redesign. The network changes are part of the USPS’s 10-year Delivering For America (DFA) strategic plan and when completed will consist of 60-65 Regional Processing & Distribution Centers (RPDCs), 190+/- Local Processing Centers (LPCs), and 400+ Sorting and Delivery Centers (S&DCs), and thousands of Delivery Units that will remain as they are today. 28

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

The USPS is redesigning its network (and modernizing existing facilities) to reduce transportation costs, improve service and efficiency, and support growth of its parcel business. 2023 so far has seen implementation of the first RPDC in Richmond, VA, along with supporting LPCs for that geographic area. The S&DC implementation is on a separate track and is driven, in part, by the need for USPS to ready its Electric Vehicle infrastructure prior to deployment of its electric vehicle fleet. To date, the USPS has implemented 23 or so S&DCs. Another transformation initiative underway by the USPS as part of its DFA focuses on transportation and logistics and has included changes such as reduction in outsourced transportation contracts, increase in USPS-operated transportation, new transportation contract management systems, a dynamic “freight auction” system for USPS to fill short-notice transportation needs from the competitive logistics marketplace, and many more changes designed to reduce the USPS’s transportation costs and improve efficiency. In 2023, the USPS has also eliminated outside contracts of seven Terminal Handling System (THS) facilities and six Surface Transfer Facilities (STCs), pulling back management of the facilities to USPS. 2023 also has brought the challenge of significant mail volume decline. At the time this article was written, the final FY2023 volumes were not yet published by the USPS, but as of the end of Quarter 3 FY2023, total mail volume was down 8.6% compared to the same period for the previous year. First-Class Mail volume was down 6.1%, Marketing Mail volume was down 10.3%, and Periodicals mail volume was down 12.5%. USPS Competitive Services (parcels) total volumes were also down 3.4%. The USPS in 2023 implemented two price increases for its Market Dominant mail products: one in January and another in July. The USPS in July introduced new SCF pallet discounts for Marketing Mail, providing new discount opportunities for the industry. The USPS also announced a new growth incentive for 2024 as well as proposing the first Market Dominant Negotiated Service Agreement (NSA) in the last decade (still under consideration by the Postal Regulatory Commission (PRC)). Both the USPS and the mailing industry in 2023 have continued to face labor shortages. The USPS’s labor issues appear focused on carriers and specific geographic areas of the country. The USPS in 2023 implemented changes from a new rural route evaluation system, which resulted in significant wage reductions for many rural carriers. With the peak shipping and mailing season only just underway at the time this article was written, it remains to be seen whether the USPS will manage it successfully as it did the 2022 peak season. Unlike some of its competitors, the USPS decided not to introduce a peak surcharge on parcels and also introduced a new ground product while consolidating/eliminating other parcel offerings. The USPS has said it is only hiring about 9-10,000 seasonal employees for the peak season, a significant reduction over recent years. On the mail preparation side, the USPS in 2023 eliminated hardcopy Address Correction Service (ACS) notices, implemented CASS Cycle O, eliminated the use of sacks for some entry points and mailing types, implemented new preparation rules for shipments of hazardous materials, proposed elimination of Change Service Requested Option 1 service for ballot mail, and published a Flats Plan as required by the Postal Service Reform Act of 2022 (PSRA). The USPS also delayed implementation of additional postal assessment for Category 14 undocumented piece errors in Seamless Acceptance mailings. For USPS service performance, in addition to embarking on its network redesign, the Postal Service published a new public Service Performance Dashboard, which also was a requirement

included in the PSRA. The new dashboard is live and additional functionality is scheduled to be implemented. In other service performance related activity, the PRC in 2023 held a proceeding to analyze the feasibility of returning USPS service standards to those in place in 2012 (an analysis required by the Consolidated Appropriations Act of 2022). The PRC gathered input from stakeholders but ultimately determined there was insufficient data for it to make any policy recommendation. This year, the USPS awarded contracts for 9,250 battery electric vehicles and more than 14,000 charging stations to be deployed at postal facilities. Delivery of the electric vehicles is intended to begin in December of 2023. The USPS also received the Public Service Award for its Election Mail program from the nonpartisan Election Verification Network. The award is given every year to a public official or governmental unit for protecting and promoting election integrity and verifiable elections. On the legislative front, 2023 has not seen a great deal of postal activity after passage of the historic Postal Service Reform Act in 2022. The House held an oversight hearing on the USPS in May 2023, but no additional hearings have been held so far this year. While the Senate in fall 2023 confirmed the Presidential nominations of Robert Taub and Tom Day as PRC Commissioners, there has not yet been any confirmations for two positions on the USPS Board of Governors that will be vacant as of mid-December. What’s Ahead for 2024? As the mailing industry looks ahead to 2024, it should be prepared for even more changes from the USPS as it ramps up its network redesign implementation. The USPS has said that it plans to implement nine more RPDCs by the end of 2024 and 26 LPCs — handling a total of about 25% of all mail and packages volume. It also plans to implement about 50 more S&DCs (though some of those will be parcel transfer hubs) by the end of 2024. As these implementations roll out, mailers need to watch the Mail Direction File and Labeling List changes as well as USPS Industry Alerts to be prepared for the necessary changes in preparation and entry. The USPS in 2024 will not only offer the same Promotions that it did in 2023, it also will offer a new Growth Incentive that will give mail owners who grow volume in calendar year 2024 compared to Fiscal Year 2023 a 30% discount credit of the average price paid per piece over one million pieces. The USPS is in the process of rolling out implementation guidelines with registration planned to begin in November and go through June 2024. The USPS hopes to see growth in First-Class Mail and Marketing Mail volumes as a result of the Growth Incentive. Effective January 28, 2024, the USPS plans to eliminate the use of hard-copy postage statements. The USPS in October reported that about eight to nine percent of statements were still being submitted hard-copy versus mailers using electronic documentation. In other anticipated mail preparation and entry changes, the USPS sometime in 2024 likely will begin to assess additional postage for Category 14 Undocumented piece errors in Seamless Acceptance; the USPS will begin postage assessment for use of hard-copy ACS notice STIDs (which were eliminated in 2023); the USPS will continue to implement and increase its use of a new Mail Irregularity Reporting System; the USPS will continue its review of over 900 policy and procedure manuals – including the Domestic Mail Manual (DMM) — with changes implemented; the USPS in January of 2024 plans to allow bulk exchange of eDoc info; and more to come! On USPS service performance measurement, the USPS, beginning in January, plans to hold webinars to educate mailers on how to access and investigate mail pieces not included in the USPS

AUTOMATE YOUR RETURN MAIL

Processing return mail can be a logistical and operational nightmare for companies that receive a lot of it from the USPS. Companies often perform a significant amount of manual work to determine the reason that a mail piece was returned, and then make additional efforts to update address information. With CPT’s solution, you can scan the envelopes and we’ll help you determine the intended recipient, the USPS’s reason for return, and a forwarding address if available. Our solution can help to identify the contents of the envelope to route the images to the appropriate department within your organization. We can even send the name and address information to a service that runs the data against five databases to try and find a more current address, and only charges you when they find one.

908.751.0709 | www.cptinfo.com | sales@cptinfo.com

MailingSystemsTechnology.com | NOVEMBER-DECEMBER 2023

Service Performance Measurement system through their Mailer Scorecard. The USPS also will implement additional functionality enhancements to its public Service Performance dashboard. In October of this year, the USPS filed for a January 2024 price increase of about two percent and has said it likely will also increase prices again in July 2024, forecasting about seven percent average increase for that change. The USPS may continue the creation of new workshare discounts, such as the SCF pallet discount it created in 2023, to support optimal mail prep and entry in the redesigned network. 2024 will also bring the industry one year closer to a five-year review of the rate-making system, which the Postal Regulatory Commission (PRC) repeatedly has said it will perform in FY2026 (fall of calendar year 2025). For 2024, the outlook for mail volume may be more optimistic. If the USPS’s growth incentive stimulates volume growth the way it is designed to, increases may be seen in First-Class Mail and Marketing Mail. In addition, a recent study released by The Winterberry Group forecasts that direct marketers’ spend on direct mail will at least hold steady if economic conditions continue to improve, and may grow as innovation in the channel continues. Since 2024 marks a Presidential election year, volume increases in political mail are expected along with ballot mail. Although the USPS Board of Governors has formed an Election Mail Committee, which has been considering creating a Ballot Mail specific product/price, it is unlikely that would be implemented in time for the 2024 election cycle. Since there have not yet been any nominations for the two vacancies that will occur on the USPS Board of Governors in mid-December 2023, it is possible that 2024 will see the first time the Board has been understaffed since 2022 when the Board was brought back up to full strength after more than a decade. For many

Publisher’s Note: The U.S. Postal Service requires the following statement be published for Mailing Systems Technology (Periodicals Class) mailings only. Mailing Systems Technology has had a (Periodicals Class) permit since January 1989. U.S. Postal Service STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION Required by 39 U.S.C. 3685 1. Publication Title ........................................................................Mailing Systems Technology 2. Publication No. .........................................................................1088-2677 3. Filing Date ................................................................................September 14, 2023 4. Issue Frequency .........................................................................Jan-Feb, Mar-Apr, May-June, Jul-Aug, Sept-Oct, Nov-Dec 5. No. Of Issues Published Annually .............................................6 6. Annual Subscription Price (if any) .............................................Free 7. Complete Mailing Address of Known Office of Publication (Street, City, County, State and ZIP + 4)(Not Printer) MadMen3, P.O. Box 259098, Madison, WI 53725-9098 Contact Person ....................................................................Rachel Chapman, (608)446-6200 8. Complete Mailing Address of the Headquarters of General Business Offices of the Publisher (Not Printer) MadMen3, P.O. Box 259098, Madison WI 53725-9098 9. Full Names and Complete Mailing Address of Publisher, Editor and Managing Editor (Do not leave blank) Publisher (Name and Complete Mailing Address) .....................Ken Waddell, MadMen3, P.O. Box 259098, Madison WI 53725-9098 Editor (Name and Complete Mailing Address)..........................Amanda Armendariz, MadMen3, P.O. Box 259098, Madison WI 53725-9098 Managing Editor (Name and Complete Mailing Address).......... Amanda Armendariz, MadMen3, P.O. Box 259098, Madison WI 53725-9098 10. Owner (If the publication is owned by a corporation, give the name and address of the corporation immediately followed by the names and addresses of all stockholders owning or holding 1 percent or more of the total amount of stock. If not owned by a corporation, give the names and addresses of the individual owners. If owned by a partnership, or other unincorporated firm, give its name and address as well as those of each individual owner. If the publication is published by a nonprofit organization, give its name and address). (Do Not Leave Blank). Full Name ..................................................................... Complete Mailing Address Chad Griepentrog.............................................................P.O. Box 259098, Madison, WI 53725-9098 Ken Waddell .................................................................. P.O. Box 259098, Madison, WI 53725-9098 Josh Vogt ....................................................................... P.O. Box 259098, Madison, WI 53725-9098 11. Known Bondholders, Mortgages and other Security Holders Owning or Holding one Percent or more of Total Amount of Bonds, Mortgages or Other Securities None 12. (Must be completed if the publication title shown in item 1 is a publication published and owned by a non-profit organization). For completion by nonprofit organizations authorized to mail at special rates. The purpose, function and nonprofit status of this organization and the exempt status for federal income

years the USPS Board of Governors was entirely vacant except for the Postmaster General and Deputy Postmaster General. The USPS will begin the rollout of its Next-Generation delivery vehicles in 2024 with the first anticipated rollout in June. By 2028, the USPS plans to purchase over 106,000 new delivery vehicles including at least 66,000 electric vehicles. The USPS in August 2022 received $3 billion from Congress towards purchase of electric vehicles and building the necessary charging infrastructure. The USPS in fall of 2024 will renegotiate contracts with one of its major employee unions — the American Postal Workers Union (APWU) and 2024 may also see negotiation or binding arbitration with the other of its largest employee unions — the National Association of Letter Carriers (NALC) — since those negotiations begin in 2023 but had not yet been completed at the time this article was written. The USPS has said that in FY2024 it plans to update its Delivering for America (DFA) strategic plan, which could include revisions to financial projections and other elements of the plan based on its progress in the first three years. Of course, these are just the highlights of what the mailing industry can expect to see in 2024. Stay close to your mailing industry association to keep tabs on other changes as they are announced!  Kathleen J. Siviter is Asst. Executive Director of the National Association of Presort Mailers (NAPM) as well President of Postal Consulting Services Inc. (PCSi), and she has over 30 years’ experience in the postal industry. She has worked for the U.S. Postal Service, Association for Postal Commerce (PostCom), and others, as well as providing consulting services to a diverse set of clients with interest in the postal industry. She has also worked with PostalVision 2020, an initiative designed to engage stakeholders in discussions about the future of the American postal system.

tax purposes has not changed during preceding 12 months. 13. Publication................................................................................................. Mailing Systems Technology 14. Issue Date for Circulation Data .....................................................July-August 2023 15. Extent and Nature of Circulation ..................................................B2B - Controlled a. Total No. Copies (Net Press Run) ............................... 16,802 .............................. 15,010 b. Legitimate Paid and/or Requested Distribution (By Mail and Outside the Mail) 1. Paid Requested Outside-County Mail Subscriptions Stated on Form 3541. (Include advertiser’s proof and exchange copies) ..... 16,122 ............................... 14,463 2. Paid Requested In-County Mail Subscriptions Stated on Form 3541. ............................0 ........................................0 3. Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Non-USPS Paid Distribution .....................0 ........................................0 4. Other Classes Mailed Through the USPS ....................0 ........................................0 c. Total Paid and/or Requested Circulation [Sum of 15b (1,2,3 and 4)]......................................... 16,122 ............................... 14,463 d. Nonrequested Distribution (By Mail and Outside the Mail) 1. Outside-County as Stated on Form 3541 ..................517 ....................................509 2. In-County as Stated on Form 3541 .............................0 ........................................0 3. Other Classes Mailed Through the USPS ...................28 ......................................28 4. Nonrequested Copies Distributed Outside the Mail ....................................125 ......................................0 e. Total Nonrequested Distribution.......................................670 ....................................537 f. Total Distribution (Sum of 15c and 15e).................... 16,792 ............................... 15,000 g. Copies not Distributed (See instructions to Publishers #4 (page #3) ...................................................................................10 ......................................10 h. Total (Sum of 15f and g) ............................................ 16,802 ............................... 15,010 i. Percent Paid and/or Requested Circulation (15c/fx100) .................................................................. 96%................................. 96.4% 16. Electronic Copy Circulation ........................................................................................... Yes a. Requested and Paid Electronic Copies ...7,657.......................................7,668 b.Total Requested and paid Print Copies (Line 15c) + Requested/Paid Electronic Copies (Line 16a).....................................................23,779.....................................22,131 c.Total Requested Copy Distribution (Line 15f ) + Requested/Paid Electronic Copies (Line 16a).....................................................24,449.....................................22,668 d.Percent paid and/or Requested Circulation (Both Print & Electronic Copies) (16b divided by 16c x 100) ...................................................97.3% ........................... 97.6% 17. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the November-December 2023 issue of this publication. 18. Signature and Title of Editor, Publisher, Business Manager or Owner: Rachel Chapman, Audience Development Manager, / September 14, 2023 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). PS Form 3526-R, July 2014

NOVEMBER-DECEMBER 2023 | MailingSystemsTechnology.com

DO YOUR COLLEAGUES Get Mailing Systems Technology?

What do more than 46,000 mail production and workflow professionals know that your colleagues do not?

Every month, Mailing Systems Technology delivers information and ideas for improving the production, quality, workflow, and delivery of your company’s printed customer communications and direct mail.

MailingSystemsTechnology.com/subscribe

NOT A SUBSCRIBER? Sign up for FREE today!