The Power of Direct Mail In a Digital

The Power of Direct Mail In a Digital World USPS Discussion Items USPS 2018 Mailing incentives Informed Delivery The Mail Moment Irresistible Mail USPS

2 2018 USPS Mailing Promotions Due to the absence of any Presidentiallyapproved Governors, the Postal Service does not have the authority to establish promotional pricing incentives after the 2017 promotions expire. Customers can continue to leverage the benefits of mailing innovations gained through prior promotions, and we welcome their input on future potential promotions offerings for new Governors to consider once they are appointed and confirmed. USPS

3 Informed Delivery The Future of Marketing USPS What is Informed Delivery? Simply stated, Informed Delivery is a DIGITAL copy of the mail being delivered to a customers home on any given day.

USPS How Does It Work? The USPS customer signs up for the service and the USPS provides a daily email with images of that days mail. USPS

Show Me The Money! This is how your clients can increase response, lift ROI and make money. Participating mailers can replace the image of their mailpiece with another image to support their marketing efforts. Additionally they can place a live link to send their prospects into a digital ad experience. USPS Why Its A By syncing direct mail with a digital component the USPS is

providing mailers with a Omnichannel solution. Informed Delivery allows advertisers to drive their digital with paper truly giving meaning to the word phygital. USPS Supporting Data Of course we have data to support your sales effort! The next few pages are taken from case studies and white papers that bolster the use of email and direct mail in tandem as an effective marketing strategy.

This is probably the best way to characterize the use of Informed Delivery. USPS USPS USPS

USPS Direct Mail continues to perform to its core strength. Being a catalyst. Direct Mail drives store traffic Direct Mail drives web traffic According to this Royal Mail Report direct mail also drives Social Media (SoMe) engagement as well.

USPS Direct Mail drives digital engagement among the digitally active. (Millennials) USPS

USPS Possible Uses for Informed Delivery The next few pages contain some ideas on how to use Informed Delivery by different business segments. The possibilities are only limited by your imagination. USPS

USPS USPS USPS

USPS USPS USPS

The Future of Marketing USPS Are The Channels Really Divergent? Is the question really one field of advertising is superior to the other? Consumers today have access to multiple channels and brands have to meet them on all/every channel. It isnt a question of one being superior to the other rather,

how customers perceive your brand across all touchpoints. Using offline channels to drive online engagement is a strong combination for marketers. USPS Synergies From Combining Channels Achieving the Multiplier Effect USPS

ROI between online and offline has been converging over the last 12 years. The trend has been continuing unabated. USPS USPS Informed Delivery: Connect

Everywhere The Future is Now! USPS The Challenge of Marketing Clutter 5,000+ Average number of advertisement and brand exposures per day per person 86 Average number of ads only that we have some awareness of per day

12 Average number of ads only that made an impression (engagement) Source: Media Dynamics Inc. America's Media Usage & Ad Exposure: 1945-2014 USPS 29 USPS 2016 Mail Moment Findings 86% pick up mail at first opportunity 79% sort mail at first opportunity &

another 20% sort it later the same day 8.4 minutes is the average time spent sorting mail USPS 30 Household Heat Map Showing where specific items of mail are displayed in a typical household

0% - 15% 16% - 30% Kitchen 31%+ 51% Dining Room 6% Bedroom Living Room 31% Hallway

18% Study 5% Source: Royal Mail MarketReach, Ethnographic Quant, Trinity McQueen, 2014 USPS 31 Bathroom 1%

3% House File Response Rates 4.00% 3.70% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.20% 0.10%

0.10% 0.10% Email Social Media Paid Search 0.00% Direct Mail Mobile Source: DMA Response Rate Report 2015

USPS 32 0.02% Internet Display Response By Selected Media Telephone 9.5% Mobile* Paid Search*

0.2% 0.1% Internet Display* 0.0% Social Media* 0.1% eMail* 0.1% 0.1% Direct Mail 0.0% House

Prospect 1.0% 3.7% 1.0% 2.0% 3.0% Source: DMA Response Rate Report 2015 USPS 33

4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Direct Mail Response Rates Metrics Total

Metric Letter-sized envelope Postcard Oversized-envelope* Dimensional* Catalog* ROI (Median) House File 3.5% Prospect File 1.0% CPM $583

4.25% 5.0% 4.0% 3.9% 18%-20% 1.0% 2.0% 2.8% 0.8% 12%-14% $586 $1,046 $1,205 $897 N/A

Source: DMA Response Rate Report 2015 *Small sample size- use this data for informational purposes only USPS 34 Do Our Brains Process Digital and Physical Media Differently? Neuroscience research strongly suggests that greater emotional processing is facilitated by physical material vs. virtual

material Physical print ads are better at facilitating emotions MRI image from the Millward Brown/Bangor study. The red area is activated by Direct Mail and the blue area is activated by virtual media. Source: Using Neuroscience to Understand the Role of Direct Mail Millward Brown 2009 USPS 35

Do Our Brains Process Digital and Physical Media Differently? Digital ads seized consumer attention quicker Physical ads held attention longer Physical ads elicited greater emotional reaction Physical ads played a more direct role in ultimate purchase decision Source: USPS OIG Report Enhancing the Value of Mail: The Human Response 2015 USPS

36 Do Our Brains Process Digital and Physical Media Differently? Print (direct mail) elicited greater internal thinking Direct mail aligned with a persons feeling & memories Those reading online materials displayed difficulty in maintaining focus Online activity fostered greater filtering of irrelevant information to complete the task

Source: USPS OIG Report Enhancing the Value of Mail: The Human Response 2015 USPS 37 Mail to Mobile Technologies Smart Phone/ Tablet Over 128 smart devices currently in the marketplace. Over 182 million mobile devices Scan QR Code, SnapTag,

NFC, Watermark, Augmented reality brings ads to life and has demographic appeal. Streaming media content 2D/3D USPS 38 Marketer Directed Engagement Learn Instructions, Reviews, Information

Contact Click to call/Customer Service Play Sweepstakes, Games Pay Purchase, Bill Pay, Authenticate Signature, Account Login Coupon, Loyalty Card Share Q3 2015 ScanLife Mobile Barcode Trend Report Total Scans in Millions 23M 18.2M

21.8M Females 41% Gender 59% Males Under 18 Most scans between 4:00 7:00pm When people retrieve mail from their mailbox 18-24 9% 5% 18% 55+ Age 25-34 20%

21% 45-54 27% Source: ScanLife Q3 2015 Mobile Barcode Trend Report USPS 39 35-44 Mail Drives Customers Online And mobile is making it easier than ever for people to do this

43% downloaded something AS A DIRECT RESULT OF RECEIVING MAIL 92% driven to online or digital activity 87% influenced to make online purchases Source: Royal Mail MarketReach, Mail and Digital Part 2, Quadrangle, 2014

USPS 40 86% connected with business 54% engaged in social media The Mail Moment Planning Formula

Your creative has 3 seconds to gain the prospects attention and 12 more seconds for comprehension USPS 41 The Mail Moment Planning Formula 20.00% 40.00% 40.00%

USPS 42 THANK YOU Louis J Figurito Sr. Direct Marketing Executive USPS Major Accounts Mobile (631) 316-2720 [email protected]

USPS