Postmaster General Brennan described innovations transforming the capabilities of mail by adding a digital dimension to the consumer experience. These included Informed Delivery, which allows residential customers to see a mobile preview of their mail, and provides businesses with a new way to engage consumers and extract more value from their investment in mail. “More than 2,000 mail senders are now using Informed Delivery to entice consumers toward a website, a coupon, or to open an app or connect directly with a business,” said Brennan. “This is a powerful offering that moves the mail recipient closer to making the purchase.” “Today, there are more than 16.4 million registered users of this powerful digital channel, and we are committed to growing our user base to 40 million customers by the end of 2020,” said Brennan. “We will also expand our Informed Delivery offering by including package integration – this will provide a powerful new means of engaging for both package senders and recipients.” Click Read More below for additional information.
Directives issued to the Postal Service last year to improve service for flat mail instead resulted in a further declines in handling performance for flat mail, a classification that includes catalogs. That was one of the key findings of the PRC’s Annual Compliance Determination (ACD), released yesterday. The mandated report analyzes USPS’s ability meet financial and service targets specific operations in 2015.
Covering the costs of delivering Standard Mail Flats has been a nagging problem for the Postal Service since 2009, when its coverage level slid to about 82% from 94% the previous year. Cost coverage held at about 83% in 2014, but slipped precipitously to 80% last year.
The Postal Service told the PRC that the decrease in cost coverage resulted from three cost methodology changes that increased unit costs by a penny, or 2.1%. It also reported that an increase in flats volume last year contributed to an increase in the aggregate contribution shortfall. The PRC has asked the Postal Service to provide it with a more detailed assessment of flats issues within the next 120 days.
The ACD also reported that 24 workshare discounts were not up to statute because the work performed by mailers could have been done more cheaply by the Postal Service itself. Four of those workshare discounts were excepted by the PRC, however, because the removal of the exigent surcharge in April will align them with avoided costs.
USPS offers workshare discounts for letters, flats, parcels, carrier route, high density, and saturation letters.