And then there was the USPS…

On March 2nd, Postmaster John Potter of the USPS, announced a 10-year plan to return to profitability, including increased productivity, new products, and legislative reform…blah, blah, blah 
The net result to consumers and businesses is higher rates and reduced service, including a five-day-per-week delivery service with the elimination of Saturday delivery. The USPS is also considering additional price increases above the inflationary-based increases, secured within the last few years.
While a 2-cent difference in postage to consumers is annoying, it can be extremely difficult on business. For example, let’s say Wells Fargo Bank has 500,000 customers and of that, 75% receive statements via USPS with 50% of those statements weighing 1 oz or less and the balance weighing more than 1 oz and less than 2 oz. Because of the nature of the content, the USPS requires statement to be mailed 1st class.
Let’s see how one simple mailing rolls out with respect to postage:

  • 500,000 clients
  • 375,000 receive statements via USPS
  • 187,500 50% weigh less than 1 oz (187,500 x .382 = $71,625)
  • 187,500 50% weigh less than 2 oz (187,500 x .507 = $95,063)

Postage = $166,688
…more reason to get customers online and to engage through social media.

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About

Janet Osterdock is ZOOM Media’s President and CEO where she focuses on campaign development and implementation. Janet founded ZOOM Cross-Media in 2009 with a team of highly skilled industry specialists. She has a heart for service and works side-by-side with clients to deliver integrated high-impact campaigns. In Janet’s words “implementation is everything and it can make the difference between average performance and outstanding performance.” In her spare time, Janet volunteers in pet therapy at Shriner’s Hospital for Children.

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