Kathy J. Siviter

I still remember when Oldsmobile ran its memorable ad series using the "it's not your father's Oldsmobile," in an attempt to attract younger buyers and change its image. Watching the U.S. Postal Service lately makes me think of that ad because it's also looking to attract the next generation of customers and change its image. Gone are the days when the Postal Service was all about mail and little else. As First Class mail volumes — the Postal Service's high-profit margin bread and butter — continue to decline, the USPS is looking hard at other sources of revenue.

The U.S. Postal Service is dipping its toes into the digital waters, recently announcing plans to embark on several digital initiatives, starting with the formation of a new Digital Solutions Group (DSG) within its organization.

This summer the U.S. Postal Service provided cross-channel retailers with its January 2012 software release overview for customer-facing postage systems such as PostalOne after hearing from mailers and service providers that software changes need to be made in a more stable, scheduled manner so they could better plan for said changes.

The U.S. Postal Service (USPS) is in the midst of a sweeping reorganization and change in focus, which began with the October 2010 appointment of a new postmaster general, followed by significant organizational changes in January, which will continue for some months to come.

In early October, the Postal Regulatory Commission (PRC) was applauded by the mailing industry when it denied the USPS its exigent price increase, which would have taken effect in January 2011 for an average increase of 5.6 percent, with specific products receiving higher or lower increases (catalogs were expected to see increases ranging from 4 percent to 10 percent).

In late March the U.S. Postal Service officially presented its plan to move to a five-day delivery week to the Postal Regulatory Commission (PRC). Although the centerpiece of the USPS’ plan is the elimination of street address delivery on Saturdays, direct marketers should be aware there are many more potential changes that could impact their businesses.

Cross-channel marketers who have historically left postal matters in the hands of their service providers may find that the rapidly changing postal landscape requires more hands-on knowledge and involvement than ever before.

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As the USPS faces significant financial stress and mail volume continues to decline, catalogers must exercise vigilance on postal issues. While some of the changes the USPS is pursuing as a result of its unprecedented economic state are positive, others can do tremendous harm to catalogers and other
direct marketers.

Attention catalogers who have changed the shape of your books or are considering doing so within the next year: Beware! Changing your catalog shape to qualify for automation letter postage rates may save money in the short term, but it can cost more in the long term. That’s because the U.S. Postal Service is in the process of conducting tests on a variety of design characteristics. Within the next year, its rules will change significantly and may wipe out the slim-jim savings. And it’s not just about the shape. The USPS also is looking into changing rules concerning mailing materials, thickness, tabbing requirements and