The USPS is in the news again with a huge financial loss. http://tinyurl.com/3793mek This got me thinking.
If this were a more traditional business what would they do to become financially stable? This discussion might give us some insight into what we can expect in mail cost which heavily affects print. They are talking about going to 5 day weeks however I can’t see that accounting for the 3.5 Billion they lost. If they severely cut services and raise prices will that drive end user customers to digital (non print) marketing?
We have seen banks running dual platforms of paper check and electronic money transfer. Dual platforms cost money so the paper version is doomed to a short life span (probably shorter than most think). The USPS does not have a dual platform so we could think of them as a printer who only produces checks. What happens if their “check” market disappears?
The last I knew ½ of the USPS revenue was in statement, invoices and checks with the other ½ in direct mail and promotional marketing. If ½ of their volume leaves do to electronic billing/payment AND they had to reduce services while increasing postage could they even survive?
What would our business world look like if the USPS was non-existent in 5 years?
Friday, September 10, 2010
Sunday, August 15, 2010
AR is coming!
Augmented Reality or "AR" is one of the newer technologies making it's entrance in the direct marketing world. Though it's been around for several years it was primarily only available in the world of Hollywood. Now it's beginning to make it's move into high end commercial marketing environments. Though some say it's still 5-10 years away from being commercially cost effective others say within 2-3 years we could see these costs within reason.
AR combines digital files with live video. Currently most AR is created by using your webcam to scan a 2D glyph however AR can be used with GPS and will soon be able to work from image recognition. Where QR (Quick response) codes are heavily used today to generate web traffic AR will take the messaging process to a new level.
Here's a nice example of AR using GPS technology. http://tinyurl.com/24huqwb
[Open in new window]
AR combines digital files with live video. Currently most AR is created by using your webcam to scan a 2D glyph however AR can be used with GPS and will soon be able to work from image recognition. Where QR (Quick response) codes are heavily used today to generate web traffic AR will take the messaging process to a new level.
Here's a nice example of AR using GPS technology. http://tinyurl.com/24huqwb
[Open in new window]
Thursday, June 24, 2010
Monday, May 10, 2010
Customer service on steroids
If you've ever wondered how some companies reach beyond the norm in customer service you might want to check out the Customer Astonishment program offered by Cornerstone Professional Developement. www.AstonishU.com.
We all have had experiences where we witnessed first hand a poor level of customer service. It's also a common occurance to have one of your lowest paid employees upset one of you best customers. Are all employees in customer service? Absolutely! If they do not directly serve the customer they serve someone who does. Everyone is Customer Service and needs to know and understand how vital their part is in servicing beyond expectation.
Today's economy has a very easy solution for poor customer service. The buyer simply goes away.
We all have had experiences where we witnessed first hand a poor level of customer service. It's also a common occurance to have one of your lowest paid employees upset one of you best customers. Are all employees in customer service? Absolutely! If they do not directly serve the customer they serve someone who does. Everyone is Customer Service and needs to know and understand how vital their part is in servicing beyond expectation.
Today's economy has a very easy solution for poor customer service. The buyer simply goes away.
Sunday, May 2, 2010
Thursday, April 1, 2010
Friday, March 26, 2010
USPS in trouble
It's not new to hear the USPS lost more money in the first part of 2010. As more transactional documents become electronic transfers the USPS mail piece volume drops. Checks, statements and invoices are a few of the transactional documents making up about 1/2 of the postal media currently. The USPS expects a signficant drop The USPS saw a net loss of $592 million for January, according to data released by the PRC earlier this month. The USPS mailed 13.9 billion pieces during January. The USPS has taken a number of steps to rectify its financial situation, unveiling a 10-year plan to stabilize its finances in early March. The plan includes the transition to a five-day-per-week delivery schedule, as well as an exigent price increase that exceeds its inflation-based price cap in 2011.
John Potter, postmaster general and CEO of the USPS, predicted that mail volume could fall by as much as 27 billion pieces in the next decade to an all-time low of 150 billion pieces in 2020. Potter also warned that if the agency did not rectify its financial shortcomings, it would see a cumulative shortfall of $238 billion in the next 10 years.
How will this affect direct mail rates? What will the USPS do to create new revenue streams while cutting cost? Direct mail marketers will be watching.
John Potter, postmaster general and CEO of the USPS, predicted that mail volume could fall by as much as 27 billion pieces in the next decade to an all-time low of 150 billion pieces in 2020. Potter also warned that if the agency did not rectify its financial shortcomings, it would see a cumulative shortfall of $238 billion in the next 10 years.
How will this affect direct mail rates? What will the USPS do to create new revenue streams while cutting cost? Direct mail marketers will be watching.
Subscribe to:
Posts (Atom)
