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Restricted and Confidential—Internal Use Only
Growth InitiativesGary Reblin
MTAC
May 26, 2011
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Agenda
1.Drivers of Growth
Trends
Customer Needs
2.Opportunities
3.Progress
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Electronic Diversion
-8.7%
-6.5%
-4.8%
-7.8%
-3.5%
-1.5%
-10.4%
-9.8%
-8.3%
YTD
-7.9%
YTD
-4.9%
YTD
-12.5%
First-Class Mail Volume (000’s)
Total First-Class Mail
Presort Letters & Cards
Single-Piece Letters & Cards
•Add Value Proposition – 2nd oz.
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Key Opportunity: Digital
Add value to the mail by enabling physical mailpieceintegration with digital experience / advertising
Mobile Barcode Promotion
Build awareness of value inintegrating technology withDM
More Information
IMB
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E-Commerce & B2C Growth
Estimated Quarterly US Retail E-commerce Sales as Percent of TotalQuarterly Retail Sales – Q1, 2001 through Q2, 2010
•More Opportunity
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Total Market
58% of shippingvolume in Zones 1-3
Local
- Zone 2 & 3 4 5 6 7 8
US Shipping Volume by Length of Haul
Source: Colography, 2011
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Free Shipping
Source: ComScore, 2010
73%
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Key Opportunity: B2C Shipping
B2C shipping now represents 27% of all shippingvolume
•6.8M boxes ordered throughsupply center (as of 5/20)
Priority Mail RegionalRate Boxes
Parcel Select RegionalGround
First-Class MailParcels
•Launched 4/17!
•First-Class parcel revenue up5.8% year-to-date
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Opportunity Areas within Markets
Documents are a $15 billion/yr business
Cost cutting with Flat Rate options, 2-day delivery
New products target B2B & B2C shipping
•10M NEW Legal and PaddedFlat Rate envelopes orderedfrom supply center (as of 5/20)
Priority Mail Envelopes
Express Envelopes
Critical Mail
•1.7M NEW Legal envelopesordered from supply center
•15 customers on-boarding,over 160k envelopes orderedfrom supply center
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Other Forums for Feedback
USPS Sales and Employees
Customers
National Postal Forum
MTAC –
Work Groups
Pulse of the industry
Innovation Symposiums
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Future of Mail
…Future of mail depends on smart growth!
Add value to each mailpiece and increase revenuethrough:
New products
New technology
New ideas