Last week representatives from the mailing industry met with USPS in Washington DC. Here’s a quick recap of some of the topics discussed:

• The biggest announcement, in my opinion, was they finally announced the end of POSTNET! Starting January 2013, an Intelligent Mail barcode (IMb) will be required to get automation discounts. They’ve pushed this back many times before, but I think they really mean it this time.
• And second biggest was their announcement that Full-Service IMb will be required for Automation discounts in January 2014. While they were pretty confident about this date, I don’t think they’ve thought this all the way through, and this date is likely to slip. But that doesn’t mean mailers shouldn’t get started on this now. The goal is to have 100% of automation mail tracked using IMb by 2014.
• “Did you hear the one about the unstamped letter? You wouldn’t get it.” — CFO Joe Corbett, budding comedian
• The mobile barcode incentive will be back this summer. First-Class and Standard mailers who include an approved mobile barcode on their pieces will get a 2% discount on their mail. To learn more about this incentive, including the new requirements for where the barcode goes, see the documentation on RIBBS.
• Postmaster General Pat Donahoe laid out his new business plan for USPS. In order to get out of the financial hole they’re in, USPS wants to:
  • Pull out of the government healthcare system and self-insure.
  • Re-align the postal network, including several thousand office closures, along with closing over half the sorting facilities. This could also include eliminating Saturday delivery, pending Congressional action. For a complete list of facilities they want to close, see the network realignment page. Mailers should still be able to drop their mail at their existing centers and still get the SCF discounts.
  • Encourage more employees to retire (almost half of the staff is currently eligible to retire).
  • Increase the cost of a First-Class stamp to $0.50.
  • Eliminate retirement pre-funding (this would also require Congressional action).
  • All together this could save USPS $20 billion by 2016, which would ensure they stay in the black.
• Donahoe said “We have to act on this now. Putting a couple of pieces together and holding your breath is not the solution. We will be in an untenable position in five to six years. It is hard to get the message across. Everyone can’t have their cake and eat it too. When you look at our outlook and do nothing, we look like Greece.” And it’s interesting to note, Congress doesn’t seem as ready to assist USPS as the EU has been ready to bail out Greece.
• The PMG also noted that his big dream is to have all “large” mailers using “seamless acceptance”. Basically seamless acceptance is Full-Service IMb on steroids – the USPS will just take their mail, then bill them the rates later. This assumes that those large mailers are preparing easy-to-process mail, and that the USPS will bill them accordingly. For “smaller” mailers, he envisions them dropping their mail off at their local post office window, not the current Business Mail Entry Unit (BMEU). They didn’t define what makes a mailer “large” or “small”.
• Productivity is up, but they can only cut so much. USPS will pay their employees first, suppliers second, but won’t be able to make the $11 billion payment to the government for health pre-funding this year.
• At some point they want to move to a single account/single permit world, rather than have each company register a permit at every drop location. But this system hasn’t been built yet, and won’t be until 2013 at the earliest.
• The MTAC meetings are getting restructured this year to encourage more participation and communication. This means I’ll be a little busier at the next MTAC.

So big changes are afoot! We should hear a lot more about the IMb changes between now and NPF.

barcodes · direct mail · events · Full-Service · Intelligent Mail · mail preparation · mobile barcodes · MTAC · National Postal Forum · NPF · POSTNET · prices · QR codes · USPS

USPS has introduced a new summer discount for mailings using QR (2D) barcodes on all pieces. From July 1 to August 31, you can save 3% of your postage by including a QR code on First-Class and Standard Mail letters, flats and cards. Here are some tips to make the most of this summer sale.

• To qualify for the discount, the QR code must link to advertising content. This could be a website, picture, video or text message. Use URL shorteners like TinyURL or bit.ly to compress longer URLs for easier to read QR codes.
• To generate your QR code, use the Satori QR Code Generator or specialized software to generate unique QR codes for each mail piece in your mailing.
• On the mail piece, insert the QR code along with instructions on how to use it. In order to scan the barcode, many smartphones need special software. Use incentives such as coupons or additional information to encourage the reader to scan the code.
• If the QR code links to a website or other content, make sure the content is formatted for smartphones. Test the content with several different smartphones to make sure it is easy to read on smaller screens.
• Use metrics to track the response to the barcode. If you get a positive response, you may want to continue using QR codes after the postage sale is over.
• Submit your postage statements electronically using Mail.dat, Mail.xml or the Postal Wizard.

For more about QR codes, check out the Satori QR code generator or search our support database to see how to use it with Satori Software products.

barcodes · direct mail · discounts · mail piece design · mail preparation · prices · QR codes · summer sale · USPS

For those of you who don’t remember (or never knew) the definition of a QR code: it’s a two-dimensional (2D) image that can be read by smartphones with the appropriate app. When scanned, those pixilated little squares can be used to display text, link to a Facebook page or browse to a company website. QR codes can do nearly anything digital, including trigger a phone call. I like to think of a QR code as a right-click on anything physical.

It’s no small thing when people scan a QR code. It’s an act of consumer devotion. People aren’t just browsing items. Suddenly they’re taking a picture of a mailing insert, a store window or a poster. Consumers who scan a QR code are making a declaration of their interest. A QR code done right can turn interest into a sale. Done wrong, the company looks foolish (so no pressure).

Department Store Dummies

Recently, as I walked through a department store, I saw a QR code on a pair of women’s jeans. I immediately became the creepy guy as I stopped and pulled out my camera phone to scan the QR code.  A mobile friendly site appeared, giving me the option to shop online for jeans, watch a video or download a mobile app so I could shop or watch said video.

Anyone interested enough in the jeans to scan a QR code could potentially be considered a motivated buyer. A smart marketer would use the QR code to inform the buyer of tops or accessories that would go well with the jeans. Or other products she might like in the same clothing line. The actual execution was subpar. Consumers are smart and most would ask themselves, “Why do I want an ad when I’m already looking at their clothes.” The point here is to use QR codes to BETTER engage the customer. If they already have the product in their hands, showing them a picture, no matter how glossy and wonderful, is just going to make your company look stupid.

Using QR codes effectively

The same rules apply to QR codes in direct marketing .

• Who is the audience
• What are your campaign goals
• What are consumers going to do at the end of the QR code
• Is the offer relevant to the audience and related to the service or product you’re promoting

As to the audience, you have to figure out if the demographic you’re chasing owns smartphones. They also have to be willing to use a scanning application and know how to get one on their phone. The stats on QR codes are a little surprising. Only 13% of US consumers have used a QR code and the adoption demographic skews to the 35-44 year-old segment, slightly more female than male. When I think QR code, I think techy, geeky, male and young, that’s just not what the research shows.

Campaign goals are probably the most important factor to consider when picking how the QR code is applied. If the campaign’s purpose is to add to your contact list, then you probably want to move in the direction of offering a white paper or some sort of special deal. If your goal is to convert a QR code into a sale, then a coupon or some sort of enticement would work. The point here is to figure out the desired result and pick a QR strategy that best steers your audience towards that goal.

Another key consideration

QR codes can make rich and relevant interaction with the consumer possible and they do it quickly. A QR code should add value to the consumer. If you’re still not convinced of QR code’s marketing value, keep in mind that QR codes are still new and “techy”. The gee-whiz factor alone is enough to get some to scan a QR code. Hype matters, so don’t dismiss the coolness factor of new technology!

Interested in getting started with your own QR codes? It’s easy and free with the Satori QR code generator.

direct mail · mail piece design · QR codes