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MAILING SYSTEMS TECHNOLOGY
(ISSN 1088-2677) [Volume 38 Issue 3] is published six times per year (January/February, March/April, May/June, July/August, September/October, November/December) by MadMen3 PO Box 259098 Madison WI 53725-9098, 608-241-8777. Periodical postage paid at Madison WI and additional offices.
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WHAT LIES AHEAD?
BY AMANDA ARMENDARIZ
Anyone in the mailing industry is understandably worried about the upcoming July price increases that have been proposed by the USPS, and this was certainly a hot topic of conversation at this year’s National Postal Forum. There was a fair amount of frustration expressed by many mailers that these continual postage rate increases are now multi-year occurrences, which could cause some mailers to decrease the amount of mail volume they’re injecting into the mail stream in order to balance their postage budgets.
Of course, many mailers are (understandably) hesitant to do this, since we all know that mail is a necessary component of any organization’s customer communications effort. It carries a trustworthiness that no other communication channel can come close to matching, and it’s a popular medium among all the generations. There are so many innovative ways to take our mail pieces to the next level and increase the level of customer engagement, so while rate increases are never something that mailers are excited
about, they shouldn’t be deterring us from utilizing mail itself. And, as was often discussed at NPF, the USPS postage-savings promotions are a fantastic way to cut some of those costs without cutting the number of pieces you’re putting into the mail stream. If you’re not already taking part in these promotions, what are you waiting for? There’s still time to get in on some of the promotions for 2025, and the offerings for 2026 have already been announced, so check those out when you get a moment.
And, of course, we hope that everything we have showcased here within these pages helps you take your mailing operation to the next level, as well. That is our ultimate goal, so if there is ever anything you’d like to see covered that we currently are not reporting on, please let us know.
As always, thanks for reading Mailing Systems Technology.
LET’S BE A GOOD BOSS!
BY WES FRIESEN
Sadly, we have an epidemic of “bad bosses” in our country. The American Psychological Association (APA) conducted a survey revealing that 75% of employees report their boss as the worst and most stressful part of their jobs, and 60% would take a new boss over a pay raise. A survey by the Society for Human Resource Management (SHRM) found that 84% of US workers blame bad managers for creating unnecessary stress. And according to a Gallup survey, 50% of employees have left a job to get away from their manager at some point in their career. A Harris poll found that harmful behaviors displayed by bad bosses include setting unreasonable expectations (51%), micromanaging (49%), and credit-stealing (48%).
Bad bosses harm morale, performance, and retention — and are detrimental to our health! Harvard and Stanford researchers found that the environment created by bad bosses has negative health effects equivalent to being exposed to significant amounts of secondhand smoke. And multiple studies showed that working for a bad boss can increase the chance of having a heart attack by as much as 50%. Wow!
In contrast, multiple studies and surveys have shown that good bosses help employee satisfaction, retention, morale, and productivity. And teams led by good bosses have higher levels of collaboration and more positive cultures. Fortunately, there are proven ways to
help us become good bosses. Let’s explore some of these.
1. Pursue Results AND Relationships. A large survey by James Zenger focused on finding what leadership characteristics made leaders “great” in the eyes of their employees. Two characteristics looked at were “results focus” and “people focus.” He found that leaders who were primarily focused on people were considered great just 12% of the time, and leaders primarily focused on results were seen as great only 14% of the time. But leaders who balanced their approach and focused equally on results and people were seen as great a whopping 72% of the time (sadly, a study by David Rock showed that only one percent of leaders do that balance well).
2. Lead by Example. A good boss shows the behaviors and values they expect from the team. This includes treating people with respect, being accountable, staying calm under pressure, acting ethically and with integrity, and showing a positive and optimistic attitude. As leadership expert John Maxwell likes to say, “A leader is one who knows the way, goes the way, and shows the way.”
3. Develop a Sense of Purpose. A good boss develops a team mission (what we do), a vision (where we are headed), and explains the why behind what the team does and the importance to all team stakeholders (i.e. investors, customers, employees). CEO Frances Hesselbein wisely said, “People want
to feel that what they do makes a difference.” We also should celebrate the “wins” the team achieves along the way as we meet service standards, complete projects, and meet goals. By doing so we practice the principle of “success breeds success” and create positive momentum. Note: it’s important to involve our team members in developing the future direction so there is a buy-in and we end up with better quality products due to the collective wisdom of multiple people, not just us as the boss.
4. Create a Positive Work Environment. We can work to create a culture of respect, inclusiveness, collaboration, and caring for each other. As Simon Sinek said, “Leadership is not about being in charge. It is about taking care of those in your charge.” A positive work culture includes bosses like us avoiding micromanaging our team members (relevant coaching, yes; micromanaging, no). We also need to promote a sense of fairness (not favoritism) and have a psychologically safe environment where people can express their ideas and admit mistakes without reprisals.
5. Demonstrate Empathy. Emotional Intelligence expert Dr. Travis Bradberry explains empathy by bosses as getting into our team members’ skins and understanding things from their perspective. This includes recognizing that our team members are human and treating them as such. Reality is that “life happens” and we all have tough days where we need an extra dose of support and grace. When we show empathy when a team member is going through a tough time, we will gain their trust, support, and they will want to make it up to us when they are able.
6. Show Appreciation and Recognition. Everybody likes to be at the receiving end of recognition and appreciation, including the members of our teams. Taking the time to acknowledge the hard work and achievements of our team members makes people feel valued. We have a variety of ways to express appreciation, both formally (e.g. emails, texts, handwritten notes, gift cards, bonuses, etc.) and informally, such as simply saying “thank you.” I have always loved this quote from Maya Angelou: “People may forget what you said, but they will never forget how you made them feel.”
7. Communicate Effectively. Communication is foundational to a healthy
workplace. Richard Branson suggested that “Communication is the most important skill any leader can possess.” As a boss, it’s important for us to communicate clearly, consistently, and with empathy. We should listen to our team members and consider their feedback, suggestions, and address their concerns.
8. Support and Develop Your Team Members. A good boss is someone who invests in their team members’ growth and development. CEO Harvey Firestone spoke to the importance when he said, “The growth and development of people is the highest calling of leadership.” Millennials and Generation Z employees especially appreciate and respond well when we intentionally provide opportunities to help them learn and grow. Author Jon Tatter speaks to this when he wrote, “The greatest gift of leadership is a boss who wants you to be successful.” One of my favorite quotes is by Branson, who said, “Train people well so they can leave; treat them well so they don’t want to.”
9. Encourage Work-Life Balance. A good boss understands the importance of supporting a healthy work-life bal-
ance for our team members. We need to set realistic expectations, be as flexible as reasonable with work schedules, support time off when needed, and respect our team members’ personal time. This means that we should avoid off-hour texts and emails unless it’s truly an emergency.
10. Be Humble, Approachable, and Transparent. All managers (bosses) are busy, but to be a good boss we need to be approachable and make time for the most important resource we have — people. I agree with the saying, “People don’t care how much you know until they know how much you care.” We also need to be humble enough to really listen and consider the ideas and feedback we receive from our team members. Sometimes this may include constructive feedback, which may be hard to hear but can help us avoid saying and doing things that fall under the bad boss category. We also need to be transparent. Author David Niu explains, “To be a good boss, you must be transparent. There’s a correlation between worker happiness and workplace transparency. Leaders and managers who
offer transparency will earn the respect and devotion of their team.”
Concluding thoughts: Marcus Buckingham summarized research that shows “People don’t leave bad jobs. They leave bad bosses.” Instead of being bad bosses to avoid, we can intentionally work at being good bosses that help employee satisfaction, retention, morale, and productivity. Here is a closing quote from Charles Mayo: “A good boss makes their people realize they have more ability than they think they have, so that they consistently do better work than they thought they could.” That is the type of boss I want to be; how about you?
Wes Friesen (MBA, EMCM, CMDSM, MCOM, MDC, OSPC, CCE, CBF, CBA, ICP, CMA, CFM, CM, APP, PHR, CTP) is a proven leader and developer of high-performing teams and has extensive experience in both the corporate and non-profit worlds. His book, Your Team Can Soar!, has 42 valuable lessons that will inspire you and give you practical pointers to help you — and your team — soar to new heights of performance. Wes can be contacted at wesmfriesen@gmail.com or at 971.806.0812.
THE ELEPHANT IN THE ROOM: WHAT DIRECT MAIL CAN LEARN FROM LEGO’S COMEBACK
BY KAREN KIMERER
The United States Postal Service (USPS) is currently undergoing a significant transformation, and this reality understandably creates some uncertainty within the direct mail industry. For mailing services organizations, sales teams, and marketers, the ongoing discussions surrounding postal reform, rising costs, and evolving communication channels require a strategic and proactive approach.
During times of change, considering the experiences of other industries can offer valuable insights. Take LEGO, for example. This globally recognized brand faced an existential crisis in the early 2000s. Struggling with substantial financial losses, declining relevance due to over-diversification, and significant market shifts, LEGO’s future looked precarious. By refocusing on its core strengths and committing to innovation, however, LEGO managed to make a remarkable comeback and is once again a dominant force.
By addressing the perceived threats to direct mail’s future, we can uncover powerful lessons in resilience. Just as LEGO reinvented itself by embracing change, the direct mail industry must assemble its own set of essential building blocks to adapt and thrive in today’s dynamic marketing landscape. This article explores the striking parallels
between LEGO’s transformation and the current state of direct mail.
Volume Drops, Strategy Rises: Finding Opportunity in Postal Shifts
The USPS continues to handle a substantial volume of mail, delivering nearly 137 billion pieces of mail and packages annually to over 168 million addresses across the United States. The volume of mail pieces has declined by approximately 11% over the past decade, down from 154.2 billion pieces 10 years ago. Keypoint Intelligence’s USPS Delivery Forecast provides insights into what the mail industry can expect in the coming years.
Over the next two years, direct marketing and transactional mail anticipate a decrease in their mail volumes across nearly all applications. The only exception is packaging, which is expected to see a compound annual growth rate (CAGR) of 3.1%. The anticipated decline in mail volumes is closely tied to changes in postal rates; greater increases in rates are expected to cause larger decreases in volume (see Figure 1).
Despite the organizational changes occurring within the USPS, printed mail and packages are unlikely to disappear anytime soon. Even so, these declining volumes present an opportunity for
marketers to reevaluate direct mail strategies and learn from the challenges they face.
The
Power of Rediscovery and Innovation: Lessons from LEGO
The USPS’s decrease in volume mirrors what LEGO encountered in the early 2000s. Once a dominant player in children’s toys, LEGO experienced a significant drop in market share as kids increasingly turned to digital entertainment. Essentially, LEGO faced its own version of declining volumes, along with decreased relevance and less engagement with its core audience.
The similarities between the challenges faced by LEGO and the direct mail industry are noteworthy. Both have experienced significant disruptions to their traditional business models, raising questions about their ongoing relevance and viability. However, LEGO’s subsequent resurgence provides a compelling narrative for the direct mail sector, demonstrating that adaptation and a renewed focus on core strengths can help drive a remarkable turnaround.
LEGO’s comeback was not simply about clinging to nostalgia; it involved a deliberate and multifaceted strategy. The company recognized the enduring value of creativity and learning across generations and made a commitment to quality and appeal. Additionally, LEGO invested heavily in understanding its diverse audience. The company identified the motivations and preferences of different age groups and meticulously tailored its products and experiences to meet these specific needs. This customer-centric approach enabled LEGO to create appealing products and engage in marketing that truly resonated with its target demographics, fostering stronger connections and renewed interest.
Finally, LEGO embraced strategic innovation, showing that progress doesn’t always mean abandoning core principles. Instead of avoiding new technologies and formats, the firm thoughtfully integrated them in ways that enhanced the customer experience. For instance, LEGO ventured into video games and movies, always maintaining a clear connection to the physical product. This intelligent integration enabled the company to reach new audiences while engaging existing ones in fresh and exciting ways, ultimately strengthening its brand.
If you look closely, you’ll see that direct mail campaigns also have similar opportunities to enhance the recipient’s
experience. By incorporating new elements like video content, tactile embellishments, or personalized messaging, direct mail can create more engaging interactions.
Building Blocks for Direct Mail’s Future Value
The direct mail industry can draw significant inspiration from LEGO’s journey. First, though, we must acknowledge the elephant in the room — the rising costs of direct mail. This reality demands that marketing campaigns be executed with precision and strategy. Just as LEGO was prompted to reevaluate its market fit and future direction, answering the following questions is crucial for the evolution of direct mail:
Are we perceived as an outdated option in an increasingly digital world? Are marketing budgets being disproportionately allocated to newer digital channels? Instead of viewing this as an either/or scenario, savvy marketers recognize the strength of an integrated approach. Here, direct mail complements and enhances digital campaigns. Service providers must present data demonstrating direct mail’s return on investment (ROI) for specific objectives, such as customer acquisition, high-value customer engagement, and brand building. By doing so, these providers can prove direct mail’s relevance and secure its rightful share of marketing budgets.
In our pursuit of innovation, have we inadvertently diluted our core offering? The future of direct mail lies not in abandoning the core business but in amplifying it through smart
innovations. A unique advantage is the tangible connection; it provides the ability to deliver a physical message directly to consumers. It’s important to focus on creating truly personalized and immersive experiences using tactile elements, unique formats, and high-quality design. Innovations should enhance these core strengths to make direct mail even more engaging and impactful.
Are we truly adapting to evolving consumer behavior? Just as children’s play preferences have shifted, consumers’ communication expectations have also changed. It’s time to move beyond static mailers and create dynamic, relevant experiences that resonate with today’s consumers, who seek personalized and engaging interactions across all channels. It’s crucial to demonstrate how direct mail is becoming more data-driven, interactive, and integrated to meet these evolving demands.
How can direct mail effectively compete with the allure and perceived efficiency of digital channels? LEGO faced intense competition from video games and other forms of digital entertainment. Similarly, direct mail competes with email, social media, and various other digital marketing avenues. While digital excels at broad reach and immediate action, direct mail can foster deeper connections. It conveys complex information in an engaging format while also cutting through digital fatigue.
Who is the core audience for direct mail in today’s environment? Just
as LEGO rediscovered that its core audience valued hands-on creativity, the direct mail industry must leverage data and analytics to distinctly define the segments where its medium delivers the highest ROI. This involves understanding consumer preferences, purchasing behaviors, and channel engagement. By focusing on these core audiences and tailoring messaging and formats accordingly, direct mail’s ongoing power and relevance can be highlighted in today’s diverse marketing landscape. It’s about smart targeting (not mass mailings) to connect with the right people in a meaningful way.
The Bottom Line
The challenges facing the direct mail industry are real and require immediate attention. Despite these challenges, LEGO’s remarkable comeback serves as a powerful reminder that even amidst considerable disruption, focusing on core values, deeply understanding the audience, and committing to strategic innovations can lead to renewed success.
For the direct mail industry, the building blocks for a thriving future lie in embracing its unique strengths, creatively integrating with the digital landscape, and consistently demonstrating its tangible value within the modern marketing mix.
Karen Kimerer of Keypoint Intelligence has experienced the many challenges of expanding current market opportunities and securing new business. She has developed a systematic approach to these opportunities, addressing the unique requirements of becoming a leader in our changing industry.
DEJOY AND DOGE
BY LEO RAYMOND
Author’s note: This article was written just a few hours before PMG DeJoy announced his immediate departure. Though he and his perspective may be gone, the issues he raised remain, as does DOGE and its campaign, so what will be done by Congress or others that will impact the USPS remains very much yet to be seen.
It should come as no surprise to armchair political observers that Postmaster General Louis DeJoy has spent time with the president’s Department of Government Efficiency. Though DeJoy might be expected to keep such meetings quiet, in this case, he actually announced his conversation, and what was agreed, in a three-anda-half page letter sent March 13 to the leadership of the House and Senate and the respective committees with USPS oversight.
Typically, DeJoy recited — again — the many faults he found with the agency when he arrived, and listed seven areas in which his 10-year Plan has led to “impactful” accomplishments. Then, in the middle of the third page, he stated that he has engaged DOGE to help him tackle challenges “that have been intractable even though they have needed to
be addressed for over a decade. Please review the following:
“The mismanagement of our selffunded retirement assets and the actuarial miscalculations of our retirement obligations… They result in several billion dollars a year in burdensome additional charges not common in private industry.
“The mismanagement of our Workers’ Compensation Program resulting in approximately $400 million dollars a year in excessive charges when compared to private industry practices.
“The unfunded mandates imposed on us by legislation. These well-intended laws that have been passed since we were created as a self-funding agency for the most part require the Postal Service to perform costly activities without providing any supporting funding… This amount is estimated to cost between $6 billion and $11 billion annually.
“Our burdensome regulatory requirements restricting normal business practice. The Postal Regulatory Commission is an unnecessary agency that has inflicted over $50 billion in damage to the Postal Service by administering defective pricing models and decades old bureaucratic processes that encumber the Postal Service.”
Apparently, his letter caused enough concerned reactions that he wrote a second letter to Congress on March 17 trying to explain further. After a page-and-a-half of his usual complaints and comments, he gave “a more detailed description and listing of the activities for which I have sought their help.” Those included retirement plans (CSRS correction and revaluation, investing pension and RHB assets, OPM mis-billing); workers compensation costs; unfunded Congressional mandates; regulatory requirements; retail center lease renewals; leveraging the postal infrastructure for federal agencies; and counterfeit postage. All totaled, he listed hundreds of billions in potential savings or revenue if his sought-after solutions were realized. But…
As for his plaints about the PRC, DeJoy has never accepted that the USPS is a statutory monopoly, and that its monopoly power is appropriately limited by a regulator.
While leveraging DOGE to get action from Congress may seem desirable, there’s no guarantee that the result would be what DeJoy wants. Lawmakers may decide against the USPS regarding the CSRS liability and how retirement funds should be invested; the current political thinking might not favor having the Treasury refund billions to the USPS.
The complaint about workers’ comp reflects DeJoy’s dislike for it not being within his control. Of course, he could enhance safety training and ensure safer employee practices that would reduce the injuries leading to worker’ comp claims, but DeJoy prefers to find fault with how the system works instead.
Since he’s been at the Postal Service, Louis DeJoy has never openly criticized the universal service obligation or highlighted the problematic mandate to both provide expected public services while being financially self-supporting. However, it’s questionable whether even DOGE can get legislators to enact any measure that would reduce universal access to postal services, enable the closure of unprofitable post offices, or impact unionized postal carriers by permitting fewer delivery days. Above all, legislators want to be re-elected, and alienating constituents by supporting unpopular measures isn’t prudent.
As for his plaints about the PRC, DeJoy has never accepted that the USPS is a statutory monopoly, and that its monopoly power is appropriately limited by a regulator. His allegations about the PRC inflicting “over $50 billion in damage” — money he presumably could have raised through postage rates had he been able to price postal products and services as he wishes — simply reflects his rejection of any regulation over monopoly power in the marketplace.
At the end of his second letter, DeJoy perhaps unwisely chose to criticize Congress for not correcting the situations he listed earlier:
“… Now, as leaders in Congress, it probably has not escaped your notice that several of the identified initiatives require legislative action… This has long been the hypocrisy of the Congressional demand for service expansion and the concurrent demand for profitability…”
How Congress will react remains to be seen but, whether his arguments are
valid or not, and whether the PRC and Congress are the impediments he portrays them to be, some observers would allege he makes two mistakes.
First, regardless of the validity of his claims, he might not want to advocate measures that potentially could result in billions in outflow from the Treasury while a conservative government is seeking ways to cut spending.
Second, perhaps most important, DeJoy can’t stop himself from finding fault with whomever disagrees with him, laying blame for the situations he sees as problematic, and then poking in the eye the legislators whose help he seeks. Undoubtedly, he doesn’t think of it this way, but his lack of tact and fundamental business diplomacy will not help him or support the achievement of his goals.
Leo Raymond is Owner and Managing Director, Mailers Hub. He can be reached at lraymond@mailershub.com.
FUTURE-PROOFING PRINT/MAIL SERVICES
BY MIKE PORTER
We may think of the mailing industry as a steady, dependable business but mail is always changing — especially now. Print and mail service providers need to adapt as the mailing world evolves. Expect some uncertainty and be prepared to react when new risks and opportunities arrive on your doorstep.
The mailing industry certainly has plenty of questions about the future of postal mail. How much will postage rates change — and when? Will delivery standards decline? Will the next Postmaster General lead the organization in a different direction? Could private enterprises take over some or all of the USPS? Will the delivery network change? Could some facilities close? How will advancing technology further change the way humans communicate? Will your clients change their mailing practices?
Nobody knows answers to questions like these. Maybe none of those things will happen and you won’t need to change your business practices at all, but it pays to be informed and as well-prepared as possible.
Navigating USPS Challenges
The traditional methods print/mail service providers and high-volume mailers use to offset postage rate hikes are well known:
Use workshare discounts for presorting or drop-shipping
Evaluate mailing classes
Improve address hygiene
Optimize mail formats
Participate in USPS promotional programs
Lower mail volumes
Mailers should take advantage of all the cost-saving strategies available to them. Mail service providers can help their clients lower their costs, even if it means processing fewer pieces of mail per job. Your goal should be to keep your clients engaged in the mail channel.
Keep in mind that the USPS controls the conditions that make those well-worn moves viable. The rules could change.
You don’t want to be caught unprepared. Keep up with all the news from USPS sources and from industry experts that keep you informed in publications like Mailing Systems Technology.
Politics has a greater effect on the USPS than ever. Mail-in voting, the pandemic, and leadership choices all attracted political attention. Rumors of privatization plans by certain groups have circulated for years. Almost everything today seems to be viewed through a political lens, which can make the coming years even more unstable than we’ve recently experienced. Keep a close watch and prepare your business to be ready, regardless of which way the political winds should blow.
A Different Approach
How customers view mailed communication continues to change. Companies conduct business with customers, employees, suppliers, and other stakeholders via many communication channels, decreasing their reliance on printed and mailed documents. Mail still plays an important role, but it will never again be the leading actor.
If you haven’t done so in a while, this would be a good time to evaluate where your company stands in the communication environment.
Thinking of your organization as a communications company that happens to produce mail can change an entire company culture. In this scenario, the focus shifts from postage costs, paper supplies, and production efficiency and towards a desire to find the best way to meet your client’s objectives. Sometimes the answer is the mail, sometimes it’s a digital approach. Often, it’s a combination of channels that has the best chance of producing the desired results. Some people call this a “digital first” methodology. I like to think of it as “solutions first”. Consider a business challenge or goal from the client’s point of view, along with all the possible answers. This approach opens a lot of doors you may have previously overlooked when the only solution you contemplated was postal mail.
Thousands of agencies and other firms call themselves marketing experts or public relations authorities. They are wizards with social media, search, online advertising, SMS, and email, but many of them have little or no experience with mail. Unsurprisingly, their solutions are often entirely digital.
You, with your mailing experience, can easily conceive of customer communication strategies that include postal mail.
Mail serves as a component that works in conjunction with the digital channels. You know how to integrate physical documents with the rest of the workflow. This experience gives you an advantage.
Advanced Technology as a Tool
With a focus on effective communication, you might look at an application differently. Is a four-page, eight-image paper phone bill that includes generic bill stuffers in a double-window envelope the best way to present this information? Is a PDF that mimics the paper presentation the only other option? What if you delivered the facts to customers as an intelligent, data-driven digital experience? Can you approach customer communication from an angle that seeks to deepen customer relationships, offers upsell opportunities, and provides something different to phone company customers? Will your clients be willing to pay a little extra for such a presentation as they save money on paper and postage? What technology and expertise would be necessary to build and distribute such documents?
For some, intentionally switching away from postal mail is a foreign concept. Print/mail service providers have long made their money based on the volume of pages and mail pieces they produce. However, there’s no guarantee those volumes will continue to be up for grabs. Developments entirely beyond your control could cause a rapid reduction in mail volumes. Wouldn’t you rather diversify your revenue streams?
This idea of looking at your business from a completely different perspective will be difficult. Most of the people I know in the mailing business are seasoned veterans. Visualizing something new may be a tall order.
One approach that might help in this transition is hiring younger people who can bring fresh ideas into your company. Some bright people who can re-imagine business communications might lead your company to offer products less vulnerable to the technical, marketplace, and political influences we can anticipate in postal mail.
Readying for an Uncertain Future
Everyone has seen how fast things can change. By the time you are reading this, we may know more about the Postmaster General situation (Editor’s Note: The new PMG was announced just days before we went to print with this issue). But over the course of just a few weeks, we’ve gone from an announcement that a successor search should begin to an abrupt departure of the person holding the highest position in the USPS. There’s been new talk of governmental moves that would affect the autonomy and governance of the United States Postal Service, including layoffs, closing locations, or even selling the service to a private entity.
I wish the best for the men and women of the USPS, and I believe a strong and reliable postal service is vital to our nation. But I also recognize that things could easily change. You can’t plan for everything, but you should at least make some adjustments according to what you think is right for your business.
Mike Porter at Print/Mail Consultants creates content that helps attract and retain customers for companies in the mailing and document industry and he assists companies as they integrate new technology. Learn more about his services at www.pmccontentservices.com. Follow @PMCmike on X, or send him a connection request on LinkedIn.
Business Continuity & Disaster Recovery
WHY NOW IS THE TIME TO FOCUS ON SOFTWARE
BY MATT MAHONEY
Right now, US-based businesses are facing increasing challenges when it comes to sourcing and implementing hardware solutions. A big factor driving this shift is the rising impact of tariffs on hardware imports. As costs increase and supply chains become more unpredictable, it’s time to rethink investment strategies and focus on areas that drive growth and efficiency — without getting bogged down by external economic pressures. That’s where software-related projects come into play.
The Tariff Problem
Tariffs on hardware components are real, they are here, and they are impacting businesses that rely on international supply chains. The cost of importing everything from servers and networking equipment to printers, consumables, and spare parts is surging, cutting into profit margins and making large-scale hardware investments less attractive. These added costs aren’t just squeezing budgets — they’re also causing delays in procurement and deployment.
The companies I talk to in the print and mail space are always looking for ways to improve their operations because they have tremendous external pressures from the USPS, government oversight, insurance costs, and other factors that consume margin. While new hardware investments still have their place, many
companies know that enhancing software solutions can drive productivity gains, often with lower costs and fewer supply chain challenges. Shifting focus toward software can help organizations optimize performance while navigating the economic tension that we’re experiencing related to imported goods.
Why Software I s a Smart Investment in Today’s Climate
1. Lower Upfront Costs
Unlike hardware, which often requires significant capital expenditures, software solutions can be implemented with lower upfront costs. Cloud-based applications, subscription models, and scalable solutions allow businesses to invest incrementally rather than committing to large, one-time purchases.
2. Greater Flexibility and Scalability Software solutions provide agility. As business needs change, software can be updated, expanded, or customized without requiring physical upgrades. This flexibility ensures that companies can adapt quickly to shifting market conditions instead of being locked into a rigid hardware investment.
3. Reduced Dependence on Physical Supply Chains
One of the biggest advantages of software is that it isn’t subject to the same supply chain disruptions that plague hardware procurement. There are no shipping delays, customs issues, or component
shortages to worry about. Once a software solution is developed or purchased, it can be deployed quickly and updated as needed.
4. Improved Operational Efficiency
Many software solutions are designed to optimize existing infrastructure, reducing the need for new hardware. For example, AI-driven analytics tools, workflow automation platforms, job batching systems, customer-facing portals, PDF preflight tools, and PDF optimizers can increase productivity without requiring major hardware investments.
5. Staying Competitive in the Next Business Cycle
Technology is evolving rapidly, and companies that invest in software now will be better positioned to adapt to future changes. By focusing on digital transformation instead of expensive hardware acquisitions, businesses can remain competitive in a fast-changing market.
Final
Thoughts
Hardware will always be an essential part of business operations, but in today’s economic climate, it’s critical to evaluate where investments will have the greatest impact. I’ve seen firsthand how software investments can complement existing infrastructure to drive efficiency, automation, and better customer experiences. By leveraging the strengths of both hardware and software, businesses can build more scalable, cost-effective, and resilient operations.
Now is the time to embrace software as the future of business transformation. The companies that make this shift won’t just avoid the financial and logistical headaches of hardware investments, they’ll also be better positioned for those investments when current economic policies shift to make them more attractive.
Matt Mahoney is the Executive Vice President of Sales and Marketing at Racami, an innovative software and IT services company reimagining how organizations manage customer communications. Matt drives Racami’s go-to-market strategy, forging strategic partnerships and guiding growth across highly regulated sectors — including finance, healthcare, government, and commercial print. With deep industry insight and a passion for innovation, he helps clients modernize operations, enhance compliance, and deliver exceptional customer experiences.
THINK ABOUT IT
Did you know you could have Marketing Mail forwarded, for a fee? Or that you have time-based handling options? Or that you could have the Postal Service securely destroy your FirstClass sensitive mailings for free (the USPS does not charge additional for this service)? Or that you could get an electronic representation of the mail USPS forwarded or was unable to deliver? Or that you could even choose to use an ACS Service Type ID on only some pieces in a mailing? Yes, there is certainly more to IMb than may meet the eye!
— LISA BOWES
In 2025, personalization has evolved far beyond using someone’s name. With more data than ever at their fingertips, marketers can create one-to-one experiences that increase relevance and strengthen brand loyalty. Yet many are still underutilizing the potential of variable data to personalize imagery, offers, and messaging copy.
— MELANIE DE CAPRIO
THE USPS CONTINUES TO HANDLE A SUBSTANTIAL VOLUME OF MAIL, DELIVERING NEARLY 137 BILLION PIECES OF MAIL AND PACKAGES ANNUALLY TO OVER 168 MILLION ADDRESSES ACROSS THE UNITED STATES. THE VOLUME OF MAIL PIECES HAS DECLINED BY APPROXIMATELY 11% OVER THE PAST DECADE, DOWN FROM 154.2 BILLION PIECES TEN YEARS AGO. KEYPOINT INTELLIGENCE’S USPS DELIVERY FORECAST PROVIDES INSIGHTS INTO WHAT THE MAIL INDUSTRY CAN EXPECT IN THE COMING YEARS.
— KAREN KIMERER
AI-powered solutions can scan and interpret both physical and digital mail, categorizing documents, extracting key data, and routing them to the appropriate departments — all in real time. This process, known as intelligent document processing (IDP), uses machine learning algorithms to analyze documents, extract relevant information, and automate workflows. With AI, businesses can ensure that incoming mail is sorted and processed with greater speed and accuracy than ever before.
— KEVIN
GOSS
In addition to its inherently green features, direct mail continues to be an effective marketing tool, standing out in a sea of communications. In a recent white paper presented by the Winterberry Group and the USPS, one marketing VP put it this way: “As digital channels become oversaturated, digitally native brands are turning to direct mail as a way to cut through the noise.”
— TWO SIDES NORTH AMERICA
ELEVATING YOUR ENVELOPE
At this year’s National Postal Forum, the panel “Ideas and Innovations to Elevate Your Envelope” sparked fresh thinking on how envelopes can do more than carry mail — they can capture attention, tell a story, and drive performance. Direct mail, with the envelope delivering the first impression, plays a vital role in omni-channel marketing strategies. By integrating physical mail with digital touchpoints, brands can create cohesive, memorable experiences that resonate with consumers. Envelopes serve as the tangible entry point, grabbing attention and driving recipients to engage with online content, promotions, or calls-to-action. This constructive collaboration amplifies campaign effectiveness, bridging the gap between the outside world and online channels to maximize reach and impact.
Moderated by EMA’s (Envelope Manufacturing Association) President, Marie
Clarke, the “envelope experts” explored how today’s most effective mail pieces are the result of collaboration, creativity, and a deep understanding of what works. David Mitchell, President and COO of MackayMitchell Envelope Company based in Minneapolis and EMA Chair; Susan Foley, CEO of Diamond Envelope and EMA Vice-Chair of Aurora, Illinois; and Scott Evans, President and CEO of Kenmore Envelope Company Inc. in Richmond, Virgina shared creative approaches, practical suggestions, and excited energy to a room full of engaged attendees.
Here are the top takeaways from the panel:
Postal Promotions Are Fueling Creativity and Cost-Savings
USPS postal promotions continue to encourage marketers to push the envelope. Whether integrating color, scent,
texture, or technology, these promotions give brands the opportunity to experiment while saving on postage. Sustainability continues to be a driver for both consumer trust and brand credibility. Envelopes produced with FSC or SFI certified paper can carry subtle but powerful signals about a company’s values — especially when that messaging begins on the envelope itself. And add onto the postal savings!
Combining Designs and Technology for Maximum Impact
Foley emphasized the power of combining tactile features and unique shapes with technology to make envelopes feel fresh and engaging and drive engagement, especially with non-profits.
“The companies and brands we work with want to stand out to the consumer at the mailbox. The use of tactile & sensory, shapes, enhanced flexo printing, creative
perforations and pull tabs, anything that is going to interact with the consumer, is testing very well. And our customers are getting creative, combining these methods. For example, printing three or more PMS colors with an overall embossing feature, paired to a specific holiday season, on an envelope to get noticed and opened. Additionally using special window designs, in the shape of a star or house, as an alternative from a traditional standard window, is a small change that doesn’t cost any more.”
Whether it’s layered finishes, interactive openings, or custom die cuts, Foley’s examples emphasized how design choices can create both emotional and tactile connections. Add to that technology like QR codes or smart device prompts (i.e., ask Alexa, Google home), and mailers capture attention and gain critical tracking and analytics to optimize performance.
Meet the Envelope Experts
David Mitchell
Scott
Early Collaboration Unlocks Savings and Creativity
Mitchell highlighted the importance of getting your envelope manufacturer involved at the start of campaign planning. “When envelope experts are brought in early, we can often find ways to save money and increase impact — whether through smarter formats, efficient printing techniques, or creative design that aligns with postal regulations,” he shared. This kind of early partnership helps teams align envelope strategy with brand message and production realities — ensuring the first impression is both impactful and cost-effective.
Evans Marie Clarke (moderator)
Envelopes That Perform:
Case Study from Kenmore Envelope
Evans shared how intentional envelope design can directly impact campaign results. “Kenmore has proven that embellishments drive response and help our clients stand out. One of our banking clients rolled out a direct mail campaign with Cold Foil for 8mm pieces and received a 35% lift.” In addition to standing out, Evans added, “Kenmore knows that in today’s market, speed wins. We believe that spoiling our clients, the fastest response time and shortest lead time make our clients’ lives easier. Together we win!”
The panel’s message was clear: if you are not treating your envelope as a core part of your campaign strategy, you’re leaving impact — and ROI — on the table.
Evolving Machinery and Print Technologies
New converting and printing capabilities are allowing envelope producers to offer expanded creative options — like foils, textures, short-run specialty finishes, and fast-turn personalization — without the delays or costs that used to limit innovation. In addition, data-driven customization continues to grow in importance. From targeted variable data printing to personalized messaging on the envelope itself, panelists agreed that mailers who tailor their envelopes see higher open and response rates.
Bottom Line: Engage Your Envelope Manufacturer to Elevate Your Message and Mission
The panel’s message was clear: if you are not treating your envelope as a core part of your campaign strategy, you’re leaving impact — and ROI — on the table. By combining physical innovation, technology, sustainability, and smart collaboration, the envelope becomes a strategic asset that drives engagement and reinforces brand values.
About EMA: We Are Moving Communications
Forward EMA represents envelope manufacturers and suppliers who create paper-based communications that connect businesses, consumers, and communities. Our members, ranging from family-owned businesses to large-scale producers, are part of the US mailing industry, which supports 7.9 million jobs and generates $1.9 trillion in sales. EMA advocates for an affordable and reliable mail system that provides paper communication and connection for all Americans. Learn more at www.envelope.org.
Susan Foley
BY LISA BOWES
REVISITING INTELLIGENT MAIL BARCODES: A MUST-READ FOR EVERY MAILER
In January of 2013, the United States Postal Service mandated the use of Intelligent Mail barcodes for automation price eligibility and Full-Service discounts and perks. Full-Service Intelligent Mail offers mailers elimination of permit fees, address correction and undeliverable as addressed piece handling options, as well as visibility and tracking. A lot can change in a dozen years, and a lot stays the same. The Intelligent Mail piece, tray, and container barcodes are a well-established offering, used in every facet of mail processing. From the early days of Mr. Zip numeric coding, the Postal Service has used codes to manage a behemoth of delivery addresses. The IMb, at its most basic, does the heavy lifting of getting your mail from Point A to Point B in the most efficient manner possible.
A grave mistake I have seen many mailers do in their quest for quality control — although their hearts are in the right place — is to scan their production barcodes to make sure the barcode is read. And that’s where they stop. But the content of the barcode matters! The Service Type ID and the Mailer ID used can have financial and service implications that, once the pieces have entered the mail stream, are difficult, if not impossible, to correct. It is imperative to catch barcode errors early and avoid costly mistakes.
The IMb: A Tutorial
The first two digits of the Intelligent Mail piece barcodes are known as the Barcode Identifier and are usually “00.” This is a presort/shape indicator, determined by presort software, and there are no options to have
to consider. The exception is for automation-rate eligible flat mail with an optional endorsement line, where the Intelligent Mail barcode must contain OEL coding corresponding to the correct sortation level of each piece.
The next element in the barcode is critical. It is the Service Type ID, a three-digit code between the Barcode Identifier and the piece Mailer ID. This code is partially determined by the class/type of mail and Full-Service or Basic presort qualification, but there is also a myriad of options available to mailers, simply by choosing the STID that matches the outcome they wish to achieve. Options for Address Correction physical piece handling, and activation of Informed Visibility - Mail Tracking & Reporting (IV-MTR) data need to be considered.
Address Correction Service STIDs have come a long way since they were first implemented. Manual address correction options for Full-Service pieces are a thing of the past, bringing an old, physical process in line with digital address correction processing. The use of a generic ELECTRONIC SERVICES REQUESTED endorsement on pieces requiring ACS gives mailers the flexibility to determine what flavor of ACS services they want to use at the last minute, as the endorsement itself instructs USPS to “look to the STID” for instruction on how to handle the undeliverable as addressed pieces.
There are many sophisticated piece handling and ACS data options that mailers may not be taking advantage of simply because they aren’t aware. There are also mailers choosing the wrong STID for their mailings, because they don’t understand the options. ACS options like Address Service Requested Opt 1, Address Service Requested Opt 2, Change Service Requested Opt 1, Change Service Requested Opt 2, etc. are enabling different options for both handling and data delivery.
Other Considerations to Remember
Did you know you could have Marketing Mail forwarded, for a fee? Or that you have time-based handling options? Or that you could have the Postal Service securely destroy your First-Class sensitive mailings for free (the USPS does not charge additional for this service)? Or that you could get an electronic representation of the mail USPS forwarded or was unable to deliver? Or that you could even choose to use an ACS Service Type ID on only some pieces in a mailing? Yes, there is certainly more to IMb than may meet the eye!
Adjust and analyze your data in a more effective way by looking not just at what was delivered, but also at what did not deliver, why it wasn’t delivered, and how to remedy that situation.
There is a potential trap if you are using the STID chart, as there are STIDs that DO NOT APPEAR on the main chart. Specific to ACS services are a group of First-Class mail STIDs referring to Secure Destruction options that do not appear on the STID chart. They are only provided to you after you sign up for Secure Destruction. There are sometimes additional STIDs used for promotions and incentive programs, buried within the promotion guides themselves, so it’s important to become STID-savvy.
Remember, these aren’t the original STIDs, although the barcode symbology has remained constant. If you have previously printed out an STID chart and you now have it hanging prominently on your bulletin board for reference, throw it away. Even if your chart is current, mailers should reference the STIDs on PostalPro, so if anything changes and/or new options become available, you’ll be prepared and ready.
After the STID, the next six or nine digits of the barcode will be the Mailer ID. While the Mailer ID embedded into the Intelligent Mail barcode can be that of
either a mail service provider or a mail owner, the main consideration must be “Who/how will the unique ranges associated with this Mailer ID be managed?” Managing uniqueness can be done even on a single mail owner Mailer ID used by multiple vendors. It is all about setting up a good process to start with. Duplicate IMbs can result in penalties and loss of visibility, tracking data, and unintended ACS consequences (which can be costly). Next comes the Barcode Range, sometimes referred to as the “uniqueness.” The unique range will be either nine or six digits, depending on the Mailer ID used (six-digit MIDs have nine digits for uniqueness, while ninedigit MIDs have six digits of uniqueness). Uniqueness must be maintained for 45 days per postal regulations, but the longer the timeframe for the unique rage, the better. Our last field is the real payload: the hard-working Routing Code. This is the Zip+4 plus delivery point if available. This code tells the Postal Service where the delivery address is located, so the mail can be routed efficiently and quickly. If you have ever seen mail processing equipment reading barcodes, you know how fast the machines read and sort mail.
There is a reason that the first menu item under Mailing and Shipping on the USPS PostalPro website is “Intelligent Mail barcodes.” That’s how important they are. In this era of rapidly rising postage rates, squeezing every ounce of value and potential out of your mail is more critical than ever before. Break out of the “this is the way we’ve always done it” mold. Explore new options that you may not even be aware existed.
Adjust and analyze your data in a more effective way by looking not just at what was delivered, but also at what did not deliver, why it wasn’t delivered, and how to remedy that situation. Seek out subject matter experts that can help you make educated choices. Get creative, maximize mailing potential.
Intelligent Mail barcodes still deliver!
Lisa Bowes is Director of Postal Affairs and Product Insights at SnailWorks.
AI in the Mail Center: A New Era of Efficiency and Innovation
By Kevin Goss
In the age of rapid technological advancement, businesses across all sectors are seeking innovative solutions to improve efficiency, reduce costs, and drive productivity. One area that often gets overlooked when it comes to adopting cutting-edge technology is the mail center. But as we look toward the future, there’s one technological innovation that has the potential to transform mail centers everywhere: Artificial Intelligence (AI). The use of AI in the mail center is poised to not only streamline operations but to accelerate business processes in ways that weren’t possible before. In this article, we will explore the growing role of AI in the mail center, why it is so important for organizations to embrace it, and how it can drive business efficiencies that help companies maintain a competitive edge. AI is not a distant reality — it’s here now, and its integration into mail center operations is a game-changer for businesses seeking to modernize and optimize their document management and workflow processes.
The Power of AI: A Brief Overview
Artificial Intelligence is an umbrella term that refers to a range of technologies that allow machines to simulate human intelli-
gence. AI encompasses various subfields, such as machine learning (ML), natural language processing (NLP), and computer vision, which enable computers to analyze, understand, and interpret data in ways that were once the exclusive domain of humans. Over the past decade, advancements in AI have revolutionized industries from healthcare to finance to retail, and now, it’s the mail center’s turn to benefit from these innovations.
AI is already transforming the way we interact with data. From voice assistants like Siri and Alexa to automated customer service chatbots, AI has become a key driver of efficiency across the business landscape. In the context of the mail center, AI can dramatically improve how organizations process, sort, route, and extract data from physical and digital documents.
The Mail Center: A Critical Touchpoint for AI Implementation
Many businesses still rely on traditional manual methods in their mail centers — sorting incoming mail, opening envelopes, categorizing documents, and manually entering data into systems. This can be a time-consuming, error-prone process that slows down operations, creates bottle-
necks, and drives up costs. However, with the integration of AI technologies, companies can revolutionize the way they handle their incoming communications.
AI-powered solutions can scan and interpret both physical and digital mail, categorizing documents, extracting key data, and routing them to the appropriate departments — all in real time. This process, known as intelligent document processing (IDP), uses machine learning algorithms to analyze documents, extract relevant information, and automate workflows. With AI, businesses can ensure that incoming mail is sorted and processed with greater speed and accuracy than ever before.
Key Benefits of AI in the Mail Center 1. Streamlining Document Processing
The ability to read and process documents automatically is one of the most significant benefits of AI in the mail center. AI-powered document processing can significantly reduce the need for manual intervention. Software tools such as optical character recognition (OCR) and machine learning models can scan documents, extract critical data points, and categorize them based on content. Whether it’s invoices, customer inquiries, contracts, or
forms, AI can handle it all with impressive speed and precision.
For example, an AI-driven solution can read an invoice, extract key details such as the amount, due date, vendor information, and purchase order numbers, and automatically enter that data into the company’s accounting system. This eliminates the need for a human to manually input this information, saving hours of labor and reducing the likelihood of errors.
2. Accelerating Business Processes
In addition to streamlining document processing, AI can accelerate business workflows by intelligently routing inbound mail to the right departments. Once AI processes and categorizes documents, it can use predefined rules to direct them to the appropriate teams for further action. This can lead to quicker decision-making, faster response times to customer inquiries, and overall improvement in productivity.
For instance, AI can be programmed to recognize customer complaints and automatically direct them to the customer service team. Similarly, it can flag documents that require immediate attention, such as legal notices or time-sensitive contracts, ensuring that these critical materials are dealt with promptly.
3. Enhancing Data Extraction and Integration
One of the most powerful capabilities of AI in the mail center is its ability to extract data and integrate it into other business systems. With AI, organizations can take unstructured data from documents (such as emails, faxes, or printed materials) and transform it into structured, actionable data that can be fed into enterprise resource planning (ERP) systems, customer relationship management (CRM) software, and more.
AI tools can recognize various data formats and patterns, allowing them to pull out the most important information and integrate it seamlessly with other business
ognize certain documents that require extra security measures, such as contracts, financial statements, or legal documents, and route them to designated secure systems or personnel for further handling.
Furthermore, AI-driven systems can ensure compliance with data protection regulations, such as GDPR or HIPAA, by automatically redacting or encrypting sensitive information before it is processed or stored.
The Future of AI in the Mail Center
As AI technologies continue to evolve, so too will their applications in the mail center. With the growing use of machine learning and natural language processing, AI will be able to handle increasingly complex tasks, such as sentiment analysis, language translation, and even decision-making.
In addition to streamlining document processing, AI can accelerate business workflows by intelligently routing inbound mail to the right departments.
applications. This leads to faster data entry, fewer manual errors, and more accurate, real-time insights into business operations.
4. Reducing Costs and Errors
The time and labor savings resulting from AI implementation in the mail center directly translate into cost reductions. Automation of routine tasks such as sorting, categorizing, and data entry means businesses can reallocate resources to higher-value activities. Instead of spending time on repetitive manual work, employees can focus on strategic tasks that drive business growth.
Additionally, AI-powered systems dramatically reduce the risk of human error. Misplaced documents, missed deadlines, and incorrect data entries can have serious consequences for a business. By automating the data extraction process, AI minimizes the chances of these errors and ensures that information is processed with a high level of accuracy.
5. Improving Security and Compliance
In an era where data breaches and compliance violations are top concerns for businesses, AI can enhance security in the mail center by providing a secure and automated method for handling sensitive documents. AI can be programmed to rec-
Moreover, as businesses continue to embrace digital transformation, AI will play a pivotal role in bridging the gap between paper-based and digital workflows. Whether it’s managing physical mail or digital communications, AI’s ability to integrate both will allow businesses to create seamless workflows that enhance productivity and efficiency.
Conclusion: AI Is the Key to Unlocking Mail Center Efficiency
Incorporating AI into the mail center is no longer a luxury or a future consideration — it’s a necessity. By embracing AI-powered solutions, businesses can unlock a new level of efficiency, accuracy, and productivity in their mail center operations. The ability to process documents faster, route information more intelligently, and integrate data seamlessly into business systems will lead to improved business outcomes and a stronger competitive position.
As AI continues to advance, its impact on mail center operations will only grow more profound. It’s time for organizations to recognize the vast potential AI holds in transforming one of the most fundamental aspects of their operations: the mail center. By implementing AI solutions today, businesses will be ready for the future and poised to reap the benefits of faster, smarter, and more efficient document management.
Kevin Goss is Vice President of Enterprise Development and Postal Affairs, Postal Source.
NPF 2025: A Resounding Success By
This year’s National Postal Forum was unequivocally a success. The show boasted attendance and exhibitor numbers higher than had been seen in many years, and many attendees and exhibitors were first-time ones — always an encouraging statistic given the need for more “young blood” in this industry! The exhibit hall floor buzzed with energy, and the sessions
Amanda Armendariz
delivered actionable, practical advice that could be taken back to one’s organization. I was thrilled to be a first-time speaker at this year’s show, moderating a panel on: “Succeeding as a Mailer: Increasing Efficiency While Cutting Costs.” I’d like to take a moment to thank my three panelists: Paul Bobnak, Adam Lewenberg, and Mike Porter. If you’re a frequent reader of Mail-
ing System Technology, you’ll recognize these three names as regular writers in our publication, and they brought the same exceptional knowledge to the panel that they always bring to our articles. Overall, it was one of the best postal forums I’ve attended in years, so I can only imagine what 2026 will bring! I hope you enjoy this peek into this year’s show.
Acting Postmaster General Doug Tulino Delivers Keynote Address at 2025 National Postal Forum
NASHVILLE, TN — In a keynote address at the National Postal Forum, Acting Postmaster General Doug Tulino and key executives spoke to more than 5,000 mailing and shipping professionals about the U.S. Postal Service’s progress in advancing its transformation and modernization strategies, improving service performance, the evolution of its products and services, and its 250-year legacy of supporting American commerce and communities.
“It is the mission of the Postal Service to bind the nation together and to meet America’s continually evolving mailing and shipping needs,” said Tulino. “The mission hasn’t changed, but we must continually renew and reinvent the institution to best
serve that mission. That is exactly what we are doing today — and it’s exciting.”
Commenting on the 10-year transformation strategy begun in 2021 Tulino said, “After 44 years with the Postal Service, I can confidently say that the past four years have brought the most significant and necessary changes in our organization’s history. This transformation is about building a Postal Service that is more efficient, more capable, and more competitive for the future.”
Referring to the enduring legacy of the Postal Service Tulino said, “We have reached an important milestone this year: our 250th anniversary. The Postal Service, and this industry, plays an incredibly important role in the economy, in society,
and in the lives of every American. I am very optimistic about the prospects of this great institution.” The Postal Service is commemorating its 250th Anniversary on July 26, 2025.
The keynote highlighted the Postal Service’s sweeping operational overhaul, from modernizing its network, infrastructure, and technology to launching new, market-driven products like USPS Ground Advantage and Priority Mail Next Day. Major topics included:
On-time service performance improvement efforts;
The Increasing efficiency of the Postal Service middle-mile processing and logistics network;
The business strategies driving the market share gains in the package delivery business;
Sales initiatives resulting in the rapid expansion of Negotiated Service Agreements with shippers; and
The Mail Growth Incentive and mail promotions that are spurring mail volume and delivering greater value for participating mailers.
Other presenters in the keynote session included Dr. Joshua Colin, Chief Performance Officer; Greg White Executive Director, Operations Integration and Performance Excellence; Steve Monteith, Chief Customer and Marketing Officer; Juan Nadal, Vice President Strategic Sales; and Margaret Pepe, Executive Director, Product Solutions.
The National Postal Forum brings together thousands of businesses, mailing industry leaders, and technology providers, to collaborate on solutions that support innovation, efficiency, and commercial growth across the mailing and shipping ecosystem.
Postal Service Honors Award Winners in Mailing and Shipping Supply Chain at the National Postal Forum
NASHVILLE, TN — USPS today awarded its 2025 Delivering for America Partnership for Excellence awards to several recipients on the final day of the National Postal Forum (NPF), the country’s premier mailing and shipping supply chain conference. The Delivering for America Partnership for Excellence awards are bestowed at NPF to recognize companies that have made significant contributions to the mailing and shipping industry with forward-thinking and innovative practices.
The Acting Postmaster General and USPS Executive Leadership Team personally select the winners, who have successfully worked with the organization to enhance the value of what we deliver every day — mail and packages.
Awards were presented to customers in five categories: the Mailer of the Year Award, the Mail Service Provider of the Year Award, the Shipping Innovator of the Year Award, the Carrier of the Year Award, and the Supplier of the Year Award.
The Mailer of the Year Award recognizes companies who have made a significant contribution to the mail industry with forward-thinking and innovative practices and who have taken steps to implement new technologies and best practices to maximize efficiencies in creating, printing, and sorting mail, managing address lists, increasing response rates, and managing mailing operations. These companies employ innovative technologies and automation in their mail operation to improve productivity, streamline their production and provide their customers with a mail product that delivers increased value and business results. The winner of this award is: Citibank, N.A., the North American consumer division of Citigroup.
The Mail Service Provider of the Year recognizes customers who have demon-
strated excellence in various facets of mail management, including First-Class Mail and Marketing Mail Campaigns and for implementing new technologies and best practices that enhance mail’s effectiveness. The winner of this award is: R.R. Donnelley & Sons Company (RRD).
The Shipping Innovator of the Year Award aims to recognize outstanding contributions toward driving innovation within the USPS organization and that have leveraged postal products and services to achieve outstanding results. It celebrates customers who have introduced best practices to implement new technologies that maximize efficiencies or solutions that have positively impacted shipping growth. The winner of this award is: Evernorth Health Services.
The Carrier of the Year Award recognizes carriers that demonstrate outstanding alignment with Surface Transportation Key Performance Metrics. Recipients exhibit superior safety performance as assessed by the Federal Motor Carrier Safety Administration, achieve 95 percent or higher on-time service schedule performance, and maintain exceptional communication responsiveness. The winner of this award is: DDA Transport Incorporated.
The Supplier of the Year Award recognizes a designated key supplier to USPS who demonstrates process innovation and extraordinary contract compliance while providing exceptional quality and on-time delivery performance. The winner of this award is: Patriot Construction Management.
The National Postal Forum and USPS congratulate all award winners. We appreciate the partnerships with our mailers and shippers and their commitment to increasing the value of the U.S. Mail through innovation.
NPF by the Numbers
This year’s show saw 5,692 total attendees. Of these, 943 were from the USPS, 1,309 were exhibitor personnel, and 3,440 were mailing industry professionals. There were 187 exhibitors (of which 70 were new) and 98 sponsoring partners. This show boasted the highest attendance and exhibitor numbers in many years!
In honor of the 250th anniversary of the United States Postal Service, there was quite a bit of historical memorabilia showcased in the exhibit hall for attendees to peruse.
BY ADAM LEWENBERG
WHAT IS REALLY HAPPENING TO MAIL?
Every day, we hear stories about the USPS. Whether they are about the Postmaster General resigning, $9.5B annual losses, rate increases, DOGE, or even talks about privatization, it all sounds like the USPS is the worst-run organization on the planet, but this is far from the truth. What is actually happening is the organization is reacting to our changing mail needs. There are more delivery points that they need to service with fewer mail pieces per stop. They are trying to cut costs, but they are swimming against a tide of the public’s changing requirements and their limited ability to make change without congressional approval.
The objective of this article is to show you what is happening around mail, focusing on the class makeup, what is being sent, and what you can expect for the future. To simplify the discussion around mail, we will talk about the four main classes.
First Class Mail: This is the most common service and what everyone focuses on when discussing mail volume declines. There are two main ways this is processed:
Non-Presort – Items deposited into the standard postal stream directly by the client. (Letters, cards, and flats in Figure 1). Most of this volume is day-to-day mail sent from businesses but also includes personal items.
Presort – Items processed in groups of 500 or more, following specific automation processes for postal discounts. This is either done by having software and staff in-house, or, more commonly, by hiring third-party outsourced mail preparation services or presort/commingle companies that will pick up your mail and combine it with other clients’ pieces to get the lowest postage rates.
When you look at mail volume declines, the biggest is with the non-presort segment, which is going down at eight to 12% per year vs. the presort segment, which is only declining two to five percent. Also, when you look at the size of the category, 74% is run through presort, making the total reduction in First Class Mail lower at only three to four percent.
We do not see a major change in the current decline rates unless there are regulations that allow organizations to automatically sign clients up for electronic presentment without their approval.
Marketing Mail: This is for promotional content, and like Presort mail, it must be processed in larger groups with specific automation levels for postal discounts. Items must be non-personal in content and cannot have statement level details. The rates are less, and it is perfect for advertising or informational material. The volume declines have been very small in this segment at one to three percent per year, except for major economic corrections. During COVID-19, volumes went down 15%, and we saw similar declines in the recessions in 2001 and 2007. We did see a large 11.5% volume decrease in 2023 that was abnormal, but we believe that was at least partially due to the large USPS price increases that occurred throughout 2022 and 2023.
We do not expect Marketing Mail volumes to decline in a more drastic way because the response rates from direct mail have held up over the years. It is one of the few ways to ensure that your message is seen by the consumer who may block other forms of media.
Shipping: This is called the Competitive Products segment of the USPS because it directly competes with private carriers like UPS and FedEx. The two most popular products the USPS offers are Priority Mail and USPS Ground Advantage. Priority Mail volumes have declined rapidly over the past three years after continual growth in the 11 years prior. We believe that this shift is mainly from volume moving to Ground Advantage and its predecessor service First-Class Parcel. We also saw huge growth during COVID-19 as the USPS is the only carrier that does not charge fuel, residential, and delivery area surcharges, making it less expensive to get light weight items to homes.
We expect to see continual growth in the Ground Advantage service, especially in the Business-to-consumer segment. We also see USPS expanding their service offerings and increasing their negotiated service agreements with clients that will further enhance this category (see Figure 2).
Periodicals: This is for magazines and newspapers delivered through the Postal Service and has seen the most drastic declines (see Figure 3). Volumes are down 41% in the last five years, and we can expect this decline to continue as we get more content on websites and apps accessed through our phones and tablets.
Future Expectations
Based on this continual headwind of declines in volume and
customer demand for mail services, the USPS will need to react with limited options.
Price Increases – Over the last four years, we have seen the largest increases in the history of the Postal Service. Costs on the major market dominant mail classes have gone up 30-64% and we are expecting another eight to 12% increase in July. The price of a stamp in the United States is still the lowest of the major westernized countries and we will need to continue to increase prices to cover costs. There are regulations today that put limits on what these increases can be, and we can expect these regulations to change in order to hopefully give the USPS more control over rates.
Service Level Changes – We can expect the number of post offices, hours of operation, and service levels to change to try to adapt to the reduced revenue from decreased mail volumes.
Political Pushback – One of the USPS’s biggest issues is they are not in control to make all the changes that they need. There are laws in place about the amount they can increase prices, pensions they must cover, and service standards that are expected. This limits their ability to adapt to our changing mailing requirements.
Privatization – While we do not know if this will occur, this option could be viewed as an easy way to remove over 600,000 employees from the federal government, even if they are part of
a self-funded organization. We would expect drastic changes to the way mail is serviced, including closing some Post Offices and having them part of other retail stores, reduced service levels, and distance-based prices that would make it more expensive for people in more rural and difficult to support areas.
When you peel back the onion, mail volumes are going down three to five percent per year, but there are still over 111 billion pieces of mail generating $80.5B in the United States. This will be a very gradual decline due to our dependence on core mail services in order to get paid by customers, have packages delivered, and to be able to get our message heard. The USPS is going to have to be more aggressive in adapting their network to these reduced volumes and pushing for more control to make the changes needed.
Adam Lewenberg, CMDSS, MDC, President/CEO of Postal Advocate Inc., runs the largest mail audit and rwecovery firm in the United States and Canada. They manage the biggest mail equipment, postage and mail related services portfolio in the world. Their mission is to help organizations with multi-locations and mail streams reduce expenses, recover lost postage funds, and simplify visibility and oversight. Since 2011, they have helped their clients save an average of 74% and over $92 million on equipment, postage, shipping and outsourced mail service fees. He can be reached at 617.372.6853 or adam.lewenberg@postaladvocate.com.
Figure 3
CHALLENGING THE ‘PAPERLESS IDEAL’: THE SUSTAINABLE REALITY OF DIRECT MAIL
From Two Sides North America
Many business owners striving to adopt eco-friendly practices have begun to view direct mail and other responsible paper use with skepticism based on false information and “greenwashing.” However, the paper and mailing industries have long been proactive in implementing sustainable practices that not only mitigate environmental concerns but also contribute positively to our planet’s health.
Paper Industry’s Commitment to Sustainability
The paper industry has demonstrated a strong commitment to environmental stewardship. In the US, over one billion trees are planted annually, with the industry playing a significant role in these reforestation efforts. This dedication ensures that forested areas remain stable, supporting biodiversity and contributing to carbon sequestration.
Forests are pivotal in absorbing carbon dioxide (CO²), acting as significant carbon sinks. Recent studies indicate that global forests absorb approximately twice as much CO² as they emit annually, sequestering around 7.6 billion metric tons of CO² each year. In the United States, private forests are particularly effective, sequestering over one metric ton of carbon per acre annually.
Moreover, paper is one of the most recycled materials globally. The paper
recycling rate in the US hovers steadily around 65-69%, reflecting the industry’s dedication to resource conservation, and cardboard box recycling sits well above that at 71-76%.
The circular economy is an important concept in sustainability — and paper production is a key example of this in action. Once the paper has been used — for example, as packaging, books, direct mail, or office supplies — it can be collected, recycled, and transformed into new paper products. The recycling process involves breaking down the paper back into pulp, removing ink and contaminants, and reforming it into new paper.
Innovations in Direct Mail for Environmental Benefit
Companies are continually seeking ways to minimize the environmental impact of direct mail. Innovations such as two-way reusable envelopes have been introduced, allowing recipients to return mail using the same envelope, thereby reducing paper consumption and waste.
Additionally, using eco-friendly inks, recycled paper, improved data targeting, and sustainable materials in direct mail campaigns has become increasingly prevalent, aligning marketing efforts with environmental values and appealing to eco-conscious consumers. The use of Forest Stewardship Council (FSC)-certi-
fied or Sustainable Forestry Initiative (SFI) products ensures that materials come from responsibly managed forests, further supporting environmental sustainability. Additionally, innovative designs, such as reusable envelopes and printing on both sides of the paper, reduce material usage. Encouraging recipients to recycle mail pieces by including recycling instructions also promotes environmental responsibility among consumers.
Direct Mail Just Works
In addition to its inherently green features, direct mail continues to be an effective marketing tool, standing out in a sea of communications. In a recent white paper presented by the Winterberry Group and the USPS, one marketing VP put it this way: “As digital channels become oversaturated, digitally native brands are turning to direct mail as a way to cut through the noise.”
Despite rising postage, marketers surveyed were not planning to cut back on direct marketing in 2025. In fact, only three percent were planning to decrease their company’s direct mail budget. Instead, 50% said they planned to invest in improved data and technology to support more effective targeting and personalization
32% planned to seek to better leverage discounts or cost efficiencies from their suppliers/partners
Eight percent planned to reduce their direct mail volume
Six percent planned to shift to lower-cost formats or shared/cooperative mail opportunities
Precise data mining capabilities, easy audience segmentation, inexpensive variable data printing, and seamless connectivity to digital assets with QR codes and technology increasingly entice marketers to direct mail. By leveraging postal data, said the VP, “these brands can achieve a level of precise audience segmentation and targeting that digital platforms often struggle to match.”
The Misconception of “Paperless” as the Only Green Option
While digital communication is often perceived as the more environmentally friendly option, it’s essential to recognize that electronic media also have environmental footprints, including staggering energy consumption and electronic waste. The rise of massive server farms to support digital communication and data storage promises efficiency and convenience. However, the environmental costs of this shift are significant. And with 62 billion kg of electronic waste generated worldwide in 2022, only 22.3% of this was officially documented as properly collected and recycled.
The paper industry’s sustainable practices, combined with responsible direct
mail strategies, offer a balanced approach to communication that supports environmental health.
Ending Greenwashing for Good
Greenwashing is disinformation disseminated by an organization to present an environmentally responsible public image. Consumers rely on messages from corporations, government agencies and other organizations to inform their communication choices. Yet it is not uncommon for these organizations to make unsubstantiated and misleading environmental claims that promote switching from paper to electronic communication as better for the environment, e.g., “go paperless — go green” and “go paperless, save trees.”
Economic pressures continue to drive many cases of greenwashing, with numerous organizations that have previously relied on paper for communication shifting their customers from traditional paper-based services to digital platforms to cut costs. Globally, Two Sides has engaged over 2,800 organizations making misleading claims about paper. In North America alone, nearly 200 companies, from large Fortune 500 companies to small local utilities, have removed or changed these statements.
Paper Makes the Difference
The direct mail and paper industries have made significant strides in adopt-
ing sustainable practices that benefit the environment. Through well-managed forests, effective carbon sequestration, and innovative mailing solutions, these industries continue to demonstrate that direct mail can be a green and responsible choice for businesses committed to environmental stewardship. By embracing these advancements, businesses can confidently incorporate direct mail and other paper use into their marketing strategies, knowing that it aligns with green initiatives and resonates with environmentally conscious consumers.
Two Sides North America is part of the non-profit
Two Sides global network which includes more than 600 member companies across North America, South America, Europe, Australia and South Africa. Our member companies span the Graphic Communications and Paper-based Packaging value chain, including forestry, pulp, paper, paper-based packaging, chemicals and inks, pre-press, press, finishing, printing, publishing, envelopes and postal operations. Using a straightforward, balanced approach, Two Sides is telling the sustainability story of print, paper and paper-based packaging. For more information on sustainable practices in the paper and mailing industries, visit www.twosidesna.org. This article originally appeared on Two Sides North America’s website, and we at Mailing Systems Technology thank them for allowing us to print it in our publication, as well.
REACH NEW HEIGHTS:
How Smart Marketers Are Transforming Direct Mail in 2025
By Melanie De Caprio
Direct mail isn’t just surviving — it’s thriving. In 2025, the savviest marketers are proving that with the right strategy, this channel remains a powerhouse for driving ROI. Amid USPS turmoil and rising postage costs, evolving consumer expectations, and an ever-more complex omnichannel landscape, the marketers winning today are those who adapt with intention.
This year, the smartest brands are shifting their approach — not just for cost savings, but to make every dollar work harder. By embracing innovative formats, hyper-targeted messaging, and seamless integration with digital channels, they’re elevating their campaigns to reach new heights. Let’s explore how they’re doing it — and how you can, too.
Direct Mail’s Role in Today’s Marketing Mix
Marketers looking for return on investment have compelling reasons to lean into mail. In fact, letter-rate mail to house lists delivers ROI at least 266% higher than other major channels, according to the ANA’s latest Response Rate Report.
And it’s not just older generations engaging. Gen X, with significant buying power, continues to value physical mail, and Gen Z is, by many metrics, even more engaged — 72% say they’d be disappointed to stop receiving it. The tactile experience breaks through the digital clutter that young consumers have always known, appealing to emotion in ways digital alone cannot.
The Direct Marketing Omnichannel Journey
Today’s marketing isn’t about single-channel wins — it’s about orchestrating a journey. Direct mail plays a critical role as a conversion catalyst. Whether the goal is an online application, app download, or in-store visit, mail frequently serves as the trigger.
The most common consumer actions after receiving a piece of mail include:
Visiting a brand’s website
Saving the offer for future use
Making a purchase or application
Researching the brand online
When executed effectively, direct mail acts like a billboard and a bridge — grabbing attention and guiding the recipient to the next logical step.
Source: Comperemedia Direct
Source: Comperemedia Direct
2025 Trends and Innovations
Rising postal rates are pressuring marketers’ budgets. Rather than retreat and give up the results they know they can count on from direct mail, they are innovating. Let’s look at that innovation across formats, messaging, and the omnichannel journey.
Smarter Formats, Lower Costs
Strategic format changes can make a dramatic difference in cost without sacrificing performance.
Consider a major national retailer who had hefty production expenses due to complex mail packages. By switching from a four-page format with a coupon card to a one-ply format, they slashed costs while maintaining campaign impact. Personalized QR codes guided recipients to a mobile app where their individual offers lived — meeting the brand’s dual goals of
reducing printed materials and boosting first-party data collection.
Further savings came from tailoring the format to the customer. High-value segments received fully personalized packages, while cart abandoners received simple postcards — still personalized, but more cost-efficient.
In another example, a credit card provider maintained an upscale format while cutting costs by removing the application and BRE. This not only streamlined the recipient experience but aligned more closely with their digitally native audience’s preferences.
A large nonprofit saw similar efficiency gains by consolidating their complex monthly control campaign — which previously involved three vendors and multiple production steps — into a single print partner, significantly reducing cycle time, production costs, and operational complexity.
Personalization That Performs
In 2025, personalization has evolved far beyond using someone’s name. With more data than ever at their fingertips, marketers can create one-to-one experiences that increase relevance and strengthen brand loyalty. Yet many are still underutilizing the potential of variable data to personalize imagery, offers, and messaging copy.
A few areas where variable messaging is making an impact:
Behavioral triggers like birthday messages, loyalty rewards, or win-back offers
Geo-targeted offers tailored by neighborhood or region
Product-level customization based on previous purchases or known preferences
Likewise, personalizing QR codes or links pays dividends. It allows for precise attribution, targeted content delivery, and seamless engagement — all essential to creating relevant, measurable experiences.
ital, making it easy for recipients to engage instantly, on their terms.
In the case of the national retailer mentioned earlier, personalized QR codes guided recipients directly to their loyalty app. Not only did this reduce printed components and costs, it helped drive in-store traffic and first-party data collection.
Meanwhile, a leading credit card provider used a QR code in place of traditional application materials. The code directed prospects to a pre-filled application online, improving attribution, user experience, and production costs in one move.
Today, marketers are using QR codes to:
Redeem offers in mobile wallets
Drive to personalized landing pages
Encourage app downloads
Deliver product videos and customer reviews
Track and test call-to-action effectiveness
USPS Promotions: Opportunity Awaits
Many of the brands taking advantage of QR codes and other smart strategies are also unlocking significant postal savings through USPS promotions.
The brands reaching new heights in 2025 are doing so with a mindset of constant optimization — testing formats, refining messaging, and connecting every piece to a broader omnichannel journey.
For marketers tapping into these capabilities, the payoff is clear. The State of Personalization 2024 study found that 89% of decision-makers believe personalization is invaluable to their business success over the next three years.
QR Codes: Your Link Between Print and Digital
QR code usage on direct mail continues to grow — and with good reason. These scannable links bridge the physical and dig-
Qualifying enhancements such as spot gloss coatings, unique die cuts, and interactive elements can earn discounts of four percent or more through the Tactile, Sensory & Interactive promotion.
Meanwhile, the Integrated Technology promotion rewards marketers for including QR codes that enhance the customer experience — like enabling app downloads, wallet integrations, or personalized offers.
And now, with the new AI-generated content promotion, it’s easier than ever to participate: simply screenshot your AI prompt and its output to qualify. It’s a low-lift way to tap into additional savings while experimenting with creative content development.
USPS incentives can significantly boost your return, whether you’re maximizing budget or expanding reach.
Your 2025 Game Plan
Direct mail is no longer a static channel. It’s dynamic, data-driven, and increas-
ingly digital-savvy. The brands reaching new heights in 2025 are doing so with a mindset of constant optimization — testing formats, refining messaging, and connecting every piece to a broader omnichannel journey.
Whether you’re a seasoned mailer or revisiting print in a digital-heavy strategy, now’s the time to reimagine what’s possible. With the right partners, tools, and tactics, you can deliver standout campaigns that not only drive results — but do so smarter, faster, and with greater ROI.
Melanie De Caprio is VP of Lead Generation at Freedom Graphic Systems. The Ultimate Direct Mail Campaign Planner is a step-bystep guide that shows you how to involve your print partner from the beginning to uncover strategic options that influence everything from format and personalization to postal savings and performance testing. Get the Campaign Planner and start building more effective, efficient campaigns — right from the first step.
