Mailing Systems Technology Sep/Oct 2019

SEE YOU AT PRINT 19 & PRINTING UNITED!

SEPTEMBER - OCTOBER 2019 MailingSystemsTechnology.com

IN THIS INCREASINGLY DIGITAL WORLD, WE NEED TO REMEMBER TO

GIVE PRINT A CHANCE. PAGE 18

HOW MUCH DO DAMAGED DOCUMENTS REALLY COST YOUR OPERATION? PAGE 22

THE STATE OF THE INDUSTRY: PART ONE OF OUR ANNUAL SURVEY RESULTS PAGE 14

IS THE INFORMED DELIVERY PLATFORM READY FOR PRIME TIME? PAGE 12

TABLE OF CONTENTS

SEPTEMBER - OCTOBER 2019 | VOLUME 32 ISSUE 6

DEPARTMENTS 05 Editor's Note

A Look at USPS’ Q3 Numbers

By Amanda Armendariz

06 Real-Life Management

Passion: The Key to Success in the Workplace

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20

By Wes Friesen

08 Software Byte

Preventing By/For Errors

By Jeff Peoples

10 Inkjet Info Tips for Cashing in on this Season’s Print Shows

By Karen Kimerer and Nichole Jones

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26 FEATURES 14 The State of the Industry

How did this last year treat mailers and their organizations?

Part one of our annual survey takes a look at wages, certifications, and more.

Despite the overwhelming presence of digital messages in our everyday lives, the printed communication piece is still a critical tool for mailers.

By Gina Ferrara

20 How Amazon’s Delivery Network Could Disrupt the Package Industry — the Postal Service Included

By Adam Lewenberg

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The Informed Delivery Platform: Is It Ready for Prime Time?

By Anita Pursley

22 How Much Do Damaged Documents Really Cost?

Different departments will give different answers. Here’s how to figure out the true cost.

By Mike Porter

By Amanda Armendariz

18 Giving Print a Chance

12 Connecting Point

26 Non-Letter Mail Practices 101

There is an increasingly diverse mix headed into today’s mail centers, so industry professionals need to make sure they are able to handle it.

By Mark Rheaume

28 Informed Delivery: Creating and Measuring Success

By Dave Lewis

SPONSORED CONTENT: 13 What to See at Print 19 25 The Importance of Workflow Automation

EDITOR’S NOTE VOLUME 32, ISSUE 6 MAGAZINE STAFF President Chad Griepentrog Publisher Ken Waddell Editor Amanda Armendariz amanda.c@rbpub.com Editorial Director Allison Lloyd allison.l@rbpub.com Contributing Writers Gina Ferrara, Wes Friesen, Nichole Jones, Karen Kimerer, Adam Lewenberg, Dave Lewis, Jeff Peoples, Mike Porter, Anita Pursley, Mark Rheaume Audience Development Manager Rachel Chapman rachel@rbpub.com Advertising Ken Waddell 608.235.2212 ken.w@rbpub.com Design Kelli Cooke RB Publishing PO Box 259098 Madison WI 53725-9098 Tel: 608.241.8777 Fax: 608.241.8666 Email: rbpub@rbpub.com SUBSCIRBE Subscribe online at MailingSystemsTechnology.com.

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MAILING SYSTEMS TECHNOLOGY (ISSN 1088-2677) [Volume 32 Issue 6] is published seven times per year (January/February, Annual Industry Buyer’s Guide, March/April, May/June, July/August, September/October, November/December)

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A LOOK AT USPS’ Q3 NUMBERS

BY AMANDA ARMENDARIZ

T

he United States Postal Service reported their third quarter fiscal year results a couple of weeks before I wrote this editor’s note, and, as has been the case for the past few years, the results are a mixed bag. The USPS reported total revenue of $17.1 billion for this quarter, which runs from April 1 through June 30.

First-Class Mail revenue declined by $98 million (1.6%) on a volume decline of 361 million pieces, or 2.7%, compared to the same quarter last year. Marketing Mail revenue declined by $121 million (three percent) on a volume decline of 878 million pieces, or 4.7%, compared to the same quarter last year. Periodicals revenue declined by $38 million, or 11.2%, on a volume decline of 173 million pieces, compared to the same quarter last year.

Now, on the (slight) plus side, these declines are not as large as what we saw in the second quarter of this fiscal year; a $98 million decline for First-Class Mail almost sounds like pocket change compared to Q2’s $217 million decline in that category. Still, any decrease in revenue is not what we want to see happening for this critical American institution. It’s encouraging, though, that the revenue from shipping and packages increased

by $250 million even in the face of a volume decline compared to the same period last year.

However, before we get too excited, it’s important to remember that there are some big shakeups going on right now in the package industry. Our article on page 20 delves into these changes, but the main takeaway is that any shifts in the package industry are going to affect the USPS and, ultimately, us as mailers.

Sometimes, it’s easy to think of mailing and shipping as two different worlds, but when it comes to the sustainability of the Postal Service, these two sectors are quite intertwined.

It will be quite interesting to see what the fourth quarter results bring. In the meantime, we in the industry can keep speaking out about the power of mail and, most important, keep using this critical communication tool in an effort to keep these declines in volume to a minimum.

As always, thanks for reading Mailing Systems Technology.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

5

REAL-LIFE MANAGEMENT

PASSION: THE KEY TO SUCCESS IN THE WORKPLACE

BY WES FRIESEN

T

here is a big problem we often face in today’s workforce, and it might not be what you think.

Deloitte completed a large study and found that a full 88% of employees don’t have passion for their work, so they don’t contribute their full potential, which means their teams don’t perform as well as they could.

What Is a Passionate Worker?

Prior research has shown that job satisfaction — how satisfied and happy we are at work — does influence performance (a recent Wall Street Journal study found 51% of workers are satisfied). Beyond satisfaction, job engagement — how engaged we are at work — has been shown to be even more important to performance than satisfaction (unfortunately, Gallup research shows about 30% are engaged). But for optimal performance, workers need to move beyond satisfaction and engagement to become passionate about their work.

As Deloitte’s report explains, “Passionate workers are committed to continually achieving higher levels of performance.

In today’s rapidly changing business environment, companies need passionate workers because such workers can drive extreme and sustained performance improvement — more than the onetime performance “bump” that follows a bonus or the implementation of a worker engagement initiative. These workers have both personal resilience and an orientation toward learning and improve-

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ment that helps organizations develop the resilience needed to withstand and grow stronger from continuous market challenges and disruptions.” When an employee is passionate about what they do, they consistently look for better ways to improve themselves, their role, and the business in general. Passionate employees can spread their passion to others, have more energy and motivation, are more loyal, and have lower absenteeism.

Martin Luther King, Jr. beautifully describes what a passionate worker looks like in this classic quote, “If a man is called to be a street sweeper, he should sweep streets even as a Michelangelo painted, or Beethoven composed music, or Shakespeare wrote poetry. He should sweep streets so well that all the hosts of heaven and earth will pause to say, ‘Here lived a great street sweeper who did his job well’.” We need passionate workers like that, don’t we?

Why Aren’t Employees More Passionate?

Deloitte’s report hits on a major part of the problem — managers aren’t creating the type of environments where passionate workers can thrive. The report states, “Unfortunately, not only do many companies not recognize the value of worker passion, they view it with suspicion.

Many work environments are actually hostile to it. The types of processes and policies designed to minimize risk taking and variances from standard procedures effectively discourage passion. Passionate workers in search of new challenges

and learning opportunities are viewed as unpredictable, and thus risky.”

Managers are missing out on a huge opportunity by being too risk averse. We need to be much more trusting of our employees if we expect to achieve great things. Most people would like to get passionate about their work, want to do good work, and desire to continuously develop.

For many different reasons (politics, processes, and policies, etc.) employees can get turned off and lose that passion.

How Do We Develop More Passion at Work?

Fortunately, there are strategies we can use to help create work environments where people can develop passion for their work. Following are some ideas to consider, which I have derived from the Deloitte report, other experts, and my own personal experiences and observations: 1) Set a positive example. Sadly, Deloitte found that 80% of managers aren’t passionate about their work. How can we expect employees to give 100% of their effort and go above and beyond if we as leaders aren’t passionate? On the other hand, if we are passionate, our passion is contagious.

2) Give them purpose; explain the why. Purpose is what gives a team the “why” to go the extra mile as they work for you. It can be described as something that is bigger than us which we can work towards. Purpose is a psychological need that is basic and pursued by every person who wishes for a brighter tomorrow.

3) Build connections with each other.

Whether it’s a team lunch, celebrating employee birthdays, or a volunteer project, these events provide our team members with the opportunity to interact on a personal level with each other. They also serve as a great opportunity for boosting engagement levels in our workplace.

4) Maximize people’s strengths.

There are two important aspects to this strategy. First, place people in positions where they can use their strengths and giftedness, and avoid placing people in roles they are ill-suited for. For example, if you have an extroverted team member who is very friendly and engaging with people, place them in a customer-facing role, not a back office role with minimal human contact. Second, identify people’s strengths and intentionally work at using and developing them further. Dr. Kenneth Leithwood wisely said, “Great leaders

build trust and collaboration while focusing on developing people’s capacities rather than focusing on their limitations.”

5) Fan the flames. Find ways to share and celebrate the passion of your team.

Recognize, reward, and highlight your team successes. Look for opportunities to share the good work your team does in your company newsletter, by shooting videos of your staff in action, and making time to celebrate your joint accomplishments.

6) Appreciate and recognize. Do you like to be shown appreciation for what you do? Of course; we all do! Showing sincere appreciation and recognizing people for who they are and for their specific contributions is priceless, and will help build great passion in the recipients.

7) Encourage creativity and sharing of ideas. The Deloitte study really hit on the importance of making sure that politics, processes, or policies not get in the way of people sharing their creativity and ideas to make work better. People want to have a voice and have their ideas heard, especially the millennials and the upcoming Generation Z workers.

8) Give team members autonomy.

It’s hard for someone to get passionate if they don’t have the autonomy to grow as a person. If someone’s micromanaging and controlling every move they make, there’s no way they’ll be able to develop passion and feel that excitement for what they’re doing.

9) Listen. Asking team members for feedback and implementing their ideas may well be the easiest way to engage your workforce. If people feel they contribute to decision making, they’ll feel more entrenched in the team and committed to working toward team success.

10) Trust. Trust is foundational for having positive relationships and inspiring people to give their best efforts. Trust can be built by admitting we don’t have all the answers, asking for help, admitting mistakes, and showing our human side and allowing others to be human too. Our goal is for our team members to trust us and for us to trust our team members.

11) Don’t sedate your rock stars. We should give all our team members the autonomy to do the work that interests them as best we can. Then watch what

happens when they put their energy and talent fully into their role. This is especially true for our most talented and committed stars; we need to encourage them and let them shine and not hold them back.

12) Have fun! Having fun at work makes it a happier place to be and keeps the team motivated if they see that you care about their happiness as well.

Plus, customers like dealing with happy motivated people. And when customers are delighted with the service they receive, our team members feel better about themselves and the potential for increased passion is created.  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. He is also an award-winning university instructor and speaker, and is the President of Solomon Training and Development. His book, Your Team Can Soar!, has 42 valuable lessons that will inspire you. Wes can be contacted at wesmfriesen@gmail.com or at 971.806.0812.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

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SOFTWARE BYTE

PREVENTING BY/FOR ERRORS

BY JEFF PEOPLES

O

ne of the critical data elements in electronically submitted mailings to PostalOne! is the identification of the various entities involved in the mailing job, specifically the mail owner, the mail preparer, and the eDoc submitter.

Combined, this information is known as the “By/For” relationship. In other words, the United States Postal Service (USPS) is asking that electronic documentation identify who is preparing the mail and who is submitting the eDoc (this is the “By” portion) as well as who is responsible for the content of the mail piece and ultimate payment of the postage for the mailings (the “For” portion).

These entities may be identified in the eDoc using their Mailing Identification number (MID) or their Customer Registration Identification number (CRID).

In the case of the mail owner identification, there are several places in the eDoc where this needs to be identified. For mail service providers (MSPs), getting all of this straight can be a challenge, and it can be difficult to collect all of these critical pieces of information for their clients, too.

By/For data is a common area for mailers to have errors on their Mailer Scorecard. So let’s take a deeper look at this information, its uses, and how to reduce the errors.

Uses of Mail Owner Information The USPS uses the mail owner data in eDoc for three main purposes:

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1. To identify the mail owner for Full-Service compliance (this is the “For” part of the “By/For” relationship).

2. To validate nonprofit price eligibility when nonprofit prices are claimed.

3. To display the mail owners on postage statements.

Means of Identification By/For Relationship: Currently, the mail owner MID, CRID, or permit data may be used to identify the mail owner for this purpose. The mail owner is required to be identified when the owner represents 5,000 or more pieces in a mailing.

Nonprofit Price Validation: For each nonprofit mailing, all mail owners must

be identified and must have a valid nonprofit authorization number, regardless of the number of pieces per owner in the mailing. For mailings consisting of multiple mail owners, all of the mail owners must be identified in the eDoc. The mail owner permit may be used to identify the mail owner if the mail owner is paying their own postage using their own permit. For mail owners using a MSP permit to pay postage, the MSP must identify the mail owner using the mail owner’s MID/CRID information.

Display Owner on Postage Statements: On the first page of postage statements, there are three blocks for the mailer’s information. The first block is the permit holder, and the data displayed in this block is that of the owner of the permit used to pay for the mailing. The second block is the mailing agent or mail preparer. This is identified by the CRID or MID of the mail preparer in the eDoc. The third block is the name and address of the organization for which the mailing is prepared, also known as the mail owner. This block is populated using the mail owner MID or CRID in the eDoc. If the mail owner uses their own permit to pay the postage, this data should be identical to the data in the first block. However, if the mail owner uses the postal permit of the mail preparer, then the company associated with the mail owner MID/CRID in the eDoc should appear in this block.

Mail Service Provider Challenges If you are an MSP, you need to obtain the CRIDs and MIDs of your clients in order to ensure the Mail.dat files are correctly populated.

Resources So, how do you try to make sense of all of this? The best resources are the Business Customer Gateway (https://gateway.usps.com/eAdmin/view/signin) and PostalOne! A mail service provider (MSP) may also verify or gather the MID and CRID data for their clients using the Business Customer Gateway. The USPS PostalPro website (https://postalpro.usps.com/) also has some helpful information to clarify MIDs and CRIDs. The USPS also provides guide documents, such as Guide to Mail Owners in eDoc (https://postalpro.usps.com/node/2787) and By/For Relationship in eDoc (https://postalpro.usps.com/byforfactsheet). Your mailing software providers also offer automated tools to assist mailers with obtaining, validating, and maintaining this data, so check with them to get additional information on their available solutions.

This can become a bit of a challenge for mail preparers who may have hundreds of clients using hundreds of postal permits to pay for their postage. Associating each of the clients and permits with the appropriate MIDs can be a daunting task, to say the least.

Either the MID or the CRID may be used in the eDoc, but the CRID takes precedence.

Keep in mind that PostalOne! must be aware of all this MID, CRID, and permit information and have them all appropriately linked. If the appropriate linkage isn’t established, this can result in errors when uploading files to PostalOne!. These types of errors can only be rectified by contacting the PostalOne! help desk to request that the appropriate MIDs, CRIDs, and permits be linked.

Another error that can occur is when the same MID/CRID information is populated in the eDoc for both the mail owner and the mail preparer. If your company is rightfully both the owner of the mail and the preparer of the mail, PostalOne! needs to know that and verify that this is indeed the case. If you receive this type

of error, again, you need to contact the PostalOne! help desk for resolution.

If you have numerous clients with fewer than 5,000 pieces in a mailing, you may want to consider requesting a Jackpot CRID/MID to identify these mail owners.

The USPS outlines the process for using these Jackpot CRID/MID in their guide for this process (visit https://postalpro.usps. com/node/2538 for more information).

If you receive validation errors that refer to permits when submitting files to PostalOne!, postage payment methods, MIDs, or CRIDs, or if you are seeing excessive By/For errors on your Mailer Scorecard, you should use this checklist:  Verify that the postage payment permit information you entered in your eDoc is correct for the client, the location, and the postage payment method.  Verify that the MID/CRID information you entered in your eDoc is correct for the mail owner, mail preparer, and the eDoc submitter. The MID/ CRID information for the mail owner should not be the same as for the mail preparer, unless your company

does own the mail and physically prepares it.  Understand the difference between the permit information and the local permit information in the Mailer Postage Account (MPA) file, verify that the correct permit information is being populated in the permit field (this is the permit information that is being used to pay the postage for the mailing), and discontinue populating the local permit field in lieu of the mail owner MID/CRID.  Verify with PostalOne! the MID/ CRID information for your company and for the clients for which you prepare mail, and verify that the postal permits are properly linked.  Jeff Peoples is founder, president, and CEO at Window Book. With over 30 years of innovative postal solutions that make using the Postal Service easier and more profitable for mailers and shippers, he has done presentations at industry events, GraphExpo, MAILCOM, the National Postal Forum, Postal Customer Council meetings, Harvard Business Expert Forum, and other industry and direct marketing events.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

9

INKJET INFO

TIPS FOR CASHING IN ON THIS SEASON’S PRINT SHOWS

BY KAREN KIMERER AND NICHOLE JONES

W

hile print-related conferences happen year-round, the prime show season for print service providers is right around the corner. As you rush to register for PRINT 19 and PRINTING United, don’t lose sight of why you’re attending these shows in the first place — to discover new developments within the industry and learn how to grow your business.

Whether you’ve been to dozens of conferences or this is your first time attending, this list of tips will surely help you make the most of your time during show season.

Create Conference Goals We’ve already established that you’re attending conferences because you want to learn new things and grow your business, but have you taken the time to define your goals? Are you attending to see new equipment before you invest, or are you hoping to network with peers so you can uncover strategies for increasing sales? Once you recognize the purpose of your visit, next map out who you want to see. Accomplish this by: } Scheduling meetings with key partners and vendors. Key staff members and management personnel are easily reached at events, so schedule time to

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discuss your business, concerns, and technical questions with them. Take advantage of this opportunity to get some face time with other experts. } Review the agenda and register for workshops. With specific goals in mind, you should be able to attend workshops and conference sessions that will equip you with actionable ideas to move your business forward. Make it a point to learn at trade shows! Some topics might seem really cool and intriguing, but sessions that don’t sync with your business strategy and conference goals aren’t worth your limited time at the show. For those topics, consider catching the recap from post-show videos and reports.

Research and Prepare Your Itinerary After planning your meetings and selecting (or registering for) your desired sessions, you can structure your days around these must-do activities when you arrive. Review, print, and research any conference materials that you have access to ahead of the show, including conference schedule agendas and the floor map. If one exists, don’t forget to download the conference app in advance and to familiarize yourself with it before you get there. Consider researching your workshop presenters and vendor sales representatives. Understanding

their background and expertise can help maximize your time with them and ensure that you ask the right questions of the right individuals.

If you’re in the market for new equipment, establish a plan of attack ahead of time so you aren’t wandering the show floor aimlessly. Review the list of exhibitors in advance and prioritize who you are visiting and why. Read press releases, announcements, and the show dailies to obtain a better understanding of the specific products that you’ll be able to touch and see at the show. When you first arrive, start by walking the entire show floor. Take note of any new vendors or interesting announcements that might not have been heavily marketed in advance.

Network, Network, Network!

When you network at trade shows, do it like you’ll get paid for it! More times than not, peer-to-peer conversations and connections can pay dividends. Here are a few tips for making the most of your networking opportunities: } Practice an elevator pitch. Be ready to introduce yourself and your company by creating a two-minute description of yourself and your business. } Bring your business cards. Even in today’s world of technology, a simple business card is necessary when networking at large events — especially for printers! Exchanging business cards can help extend your conversations beyond the conference to open up sales opportunities, create partnerships, or just establish a new contact within the industry. Here’s another tip — jot down notes on the back of all the business cards you collect so you don’t forget who you met or what you discussed. } Attend the social events. Whether sponsored or spontaneous, happy hours and after-show parties are an important part of the overall conference experience because they enable you to network with peers (attendees and exhibitors) in a more casual environment. } Ask questions and chat after sessions.

After a workshop has ended, don’t be afraid to start informal conversations about the session and engage with other attendees. Presenters typically field additional questions and feedback after their workshops as well. You might not always get an answer right away, but they’ll surely get back to you if you leave a business card behind!

 Introduce yourself. If you want to meet someone, introduce yourself! Don’t be shy — whether it’s the keynote presenter, a panel presenter, or a vendor executive, take the initiative and talk to them.  Follow up after the conference. Don’t limit your networking to the few days on the conference show floor. Once the conference has wrapped up (or even while it’s still going on!), be sure to connect with all your new contacts from the event. Don’t let any introductions go to waste — follow up with a LinkedIn request, an email, or a phone call.

Do Something with What You Learn It goes without saying that you should pay attention and take notes during the conference sessions that you attend, but trade shows include many distractions.

It can be difficult to remember what your notes really mean after an event, let alone follow up or implement anything.

Follow these instructions to make

processing the information you obtain at events a little easier:  At the end of each workshop, make a list of what you will do with the information and knowledge that you’ve gathered.

By mapping out specific takeaways and capturing those “aha!” moments right away, you will be better positioned to navigate post-conference activities.  Create an action plan. Set some goals and specific benchmarks for reviewing the information you’ve learned throughout the conference. If you establish a plan for what you’ll do once you’ve returned to normal life, you’ll be less likely to let all that new information fade away.  Do a lunch and learn for the staff members who could not attend the event.

It may not be within budget to invite everyone you’d like to a conference, but non-attendees might still need to know about the event! Take the time to pass on what you’ve learned to other staff members so they can reap the benefits for the conference too.

Finally, make the most of your conference experiences by taking time to recover.

Conferences can be hectic and overwhelming, so plan ahead and leave your schedule open the day after an event.

Get a full night’s rest, then mull over everything you’ve just learned.  Karen Kimerer is Director of Keypoint Intelligence – InfoTrends’ Business Development Strategies service. She has experienced the many challenges of expanding current market opportunities and securing new business. She is well-versed in 1:1 marketing, web-to-print, direct mail, book publishing, supply chain management, data segmentation, channel integration, and photo products.

Nichole Jones is a Senior Product Manager for Keypoint Intelligence – InfoTrends’ Business Development Strategies Production Printing & Packaging Consulting Services. Ms. Jones’ responsibilities include managing the promotion and distribution of InfoTrends’ content and assisting clients and channels in building business development programs.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

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CONNECTING POINT

THE INFORMED DELIVERY PLATFORM: IS IT READY FOR PRIME TIME?

BY ANITA PURSLEY

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s touted, the Postal Service has created their own omnichannel tool for mail with the development of the Informed Delivery platform. From all accounts, the Informed Delivery (ID) program, which rolled out nationwide in 2017, has been successful and is growing in popularity.

As of mid-July, the program has 17.83 million subscribers, representing 11.3% of all eligible addresses. The Postal Service has been adding an average of 205,000 new users weekly, a bit shy of the anticipated 1.2 million new users per month that they anticipated. With an unprecedented 62.7% email open rate, mailers should take a serious look at this enticing omnichannel tool.

As of September 1, 2019, the Postal Service will be offering a three-month Informed Delivery promotion, giving a two percent postage discount to mailers who conduct an Informed Delivery interactive campaign. So, what better time to get started? Let’s take a look at some common questions and concerns.

Is the Platform Ready?

Many in the mailing industry are speculating that the ID promotion will entice an astronomical number of new participants, and they have expressed concerns over 12

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the system’s ability to handle the deluge of campaigns.

The concern is not without merit. Consider the following: } For a three-month period, large portions of the country did not receive images in their daily digest on Mondays or the day after a holiday. The problem, which appears to have been fixed in mid-July, was caused by the system timing out due to the volume of images being processed. Monday is the highest volume delivery day of the week, so it was a missed opportunity for many advertisers. } Mailers have experienced exceedingly long load times for reporting during normal business hours. } The Mailer Campaign Portal (MCP) can allow unauthorized use of a Mailer ID (MID) to create a campaign. Also, there is concern over the security of URLs that contain mailers’ scanned images. } According to the Informed Delivery program manager, only 33-34% of Mail. dat files (containing the color images) are uploaded successfully.

A Word (or Several) of Caution Read and understand the ID promotion requirements carefully. If you are not com-

pliant with these requirements, you risk the loss of the discount. There are some categories of mail that are not eligible for participation: Non-automation mail (letters, cards, and flats), Saturation mail, Destination Delivery Unit (DDU), and Every Door Direct Mail (EDDM) letters, cards, and flats. Additionally, mailings sent primarily to business addresses are excluded.

Secondly, as a result of the lack of consistent success with uploading Mail.dat files, the Postal Service is encouraging mailers to submit campaigns via the mailer campaign portal or, at a minimum, test in advance.

And finally, it’s critical you talk to your mail service providers and ask for help, since they are already preparing for the influx of interested customers by understanding the requirements and providing assistance.

As you prepare for this promotion, please keep in mind that the Informed Delivery team is aware of the performance issues and has committed resources to their resolution. Additionally, the team has engaged the Chief Information Security Officer’s organization to address mailer concerns. It is also extremely important that you follow the ID promotion requirements exactly.

And finally, don’t forget to test prior to the promotion start date, if possible. It is not advised to submit a mailer campaign for the first time during the promotion period.

The registration period is now open, and the promotion runs from September 1 through November 30 of this year. There is still time for the Postal Service to restore mailers’ confidence and time for mailers to test and to review the requirements closely so that surprises can be minimized.

This is where the rubber will meet the road. We’ll soon know if we had reason for concern. 

THINKING OF CONDUCTING AN ID CAMPAIGN SOON? TURN TO PAGE 28 FOR SOME TIPS AND BEST PRACTICES. As Senior Manager of Industry Affairs at BCC Software, Anita Pursley is entrenched in major industry events and associations, representing BCC Software and advocating on behalf of its customers. She has a breadth of industry experience and expertise, including serving for two years as the Industry Co-Chair of the Postmaster General’s Mailers’ Technical Advisory Committee (MTAC) and similar roles at some of the industry’s largest and most influential companies.

“WHAT TO SEE AT PRINT 19” SPOTLIGHTS All-in-One Direct Mail Management Software

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From order entry through to invoicing, Avanti enables mail shops to work more efficiently. Visit Avanti at booth 436 in the North Hall to see the latest RedHot Technology in Print MIS. Book a free 30 minute in-person consultation to discuss your goals, and get recommendations tailored to your business.

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THE STATE OF THE INDUSTRY How did this last year treat mailers and their organizations? Part one of our annual survey takes a look at wages, certifications, and more.

By Amanda Armendariz

P

utting together this survey every fall is always an interesting exercise. I enjoy seeing how the statistics change from year to year; obviously, there are some we want to continuously go up (wages and the number of managers and supervisors who hold certifications are among my top two), while we hope that some stats go down (the employee turnover rate is one we naturally want to be as low as possible!) Unfortunately, it’s rare that the statistics ever converge in such a perfect manner. It’s usually much more balanced, with some promising stats kept in check by some that aren’t so great.

This year is no different. There are some wage increases for certain positions, but some actually saw a decrease in salary. The number of respondents who reported that the economy has had no effect on their positions increased for the most part, which could be a positive or a negative, depending on how you look at it. And it appears that the number of boomers (which are the folks who typically held the management positions in the mail center) leaving the workforce continues to grow, which drives the average number of years employed down. This brings to mind conversations that I continually have with many in the industry, in which we discuss the importance of attracting and retaining younger workers as the older generations are exiting. It will be interesting to see what the survey results in the next few years hold.

And as always, thanks to all of you who completed the survey. We couldn’t put this together without you.

Certification

4%

CMDSM

16% EMCMP

2% CMM

The number of mail center managers who possessed the EMCMP and CMM certifications went down drastically compared to last year, while the number who held the CMDSM certification increased slightly. Last year, 23% of our respondents reported that their mail center managers held an EMCMP certification, while 10% possessed the CMM certification. This is quite a significant drop; hopefully, in 2020, we’ll see the numbers back on the upswing.

Number of Full-Time Employees Supervised

14.89% 0-5

Mail Center Managers

11-15

Male vs. Female

8.51%

6-10

51.06%

16-20 20+

48%

52%

We had an increase in the number of female mail center managers this year; 48% compared to last year’s 42%.

14

SEPTEMBER-OCTOBER 2019 | MailingSystemsTechnology.com

25.53% 0%

Just like last year, the biggest number of respondents supervise between zero and five employees. However, the number of managers supervising between six and 10, and 20+ employees, went up quite a bit compared to last year.

Managers and the Economy

A full 62% of respondents say that the economy has had no effect on their positions, compared to only 50% last year.

70 60

$60,987

50 40

Average Salary and Time in the Industry

30

The average salary for a mail center manager is $60,987, a respectable increase from last year’s $58,248. Only 54% of managers oversee other departments or functions, compared to 64% last year.

20 15.56%

10

The average time in the industry is 16 years, which is a decrease from last year’s almost 18.5. This doesn’t come as a surprise, however; there is a lot of talk in our industry (and elsewhere) about how to accommodate the changing workforce as baby boomers are retiring and millennials are taking their place. These numbers only demonstrate what we’ve all been hearing.

70

62.22%

2.22%

6.67%

4.44%

2.22%

6.67%

Has had no effect

Salary freeze

Took on additional responsibilities

Working additional hours

Salary concession

Other

Number of mail managers decreased

Continuing Education 64.44%

60

During the last 12 months, managers had the opportunity to continue their professional training in the following ways. Only 40% of respondents said that managers would have the opportunity to attend further training in the next 12 months.

50

40

42.22%

30

22.22%

20

24.44%

24.44%

22.22%

15.56%

10

11.11% 4.44%

4.44%

National Postal Forum (NPF)

Local PCC conferences/meetings

National mailing “schools”

Vendor’s user conference

National industry or associationspecific mailing conference

Other non-mailing national conferences (i.e., management training courses)

(MSFA, NACUMS, Non-profit, DMA)

Other non-mailing local conferences

6.67%

2.22%

6.67%

Online continuing education classes

None, didn’t find the time to attend

On-site continuing education classes

None, training is not allowed for supervisors

None, due to budget cutbacks

None, no training needed this year

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

15

Supervisors and the Economy

Supervisors

70

71.43%

60

The Lowdown  Sixty percent of our respondents reported that their mail centers have supervisors, a marked increase from last year’s 46%.  Fifty-eight percent of supervisors in our respondents’ mail centers are male, which is very similar to last year’s 57%.  Ten percent of supervisors in our survey possess the EMCMP certification, two percent are CMDSM-certified, and four percent hold the CMM certification.  The majority of our respondents (57%) supervise between zero and five employees.

50 40 30

10 0%

 The average salary for a supervisor in our survey is $48,595, a decrease from last year’s $53,000.  The average time in the mail center is 9.17 years, down from last year’s 12 years.  Seventy-seven percent do not supervise other departments or functions.

Training & Education 50

50%

23.81%

20

0%

4.76%

0%

Has had no effect

Working additional hours

Took on additional responsibilities

Number of supervisors decreased

Salary concession

Other

0%

Salary freeze

Just as was the case for managers in our respondents’ mail centers, local PCC conferences appear to be the most popular training choice for supervisors. Unfortunately, less than half (41%) said that supervisors would have time to attend training in the next 12 months.

40

30

22.73%

20 13.64%

9.09%

9.09% 0%

National Postal Forum (NPF)

Local PCC conferences/meetings

National mailing “schools”

Vendor’s user conference

National industry or associationspecific mailing conference

Other non-mailing national conferences (i.e., management training courses)

(MSFA, NACUMS, Non-profit, DMA)

Other non-mailing local conferences 16

22.73%

18.18%

18.18%

10

22.73%

SEPTEMBER-OCTOBER 2019 | MailingSystemsTechnology.com

4.55%

0%

0%

Online continuing education classes

None, didn’t find the time to attend

On-site continuing education classes

None, training is not allowed for supervisors

None, due to budget cutbacks

None, no training needed this year

Non-Managerial Staff

Average Wages of Mail Center Staff

Staff and the Economy

20

15

2017 - $14.66

2018 - $15.88

2019 - $15.52

2017 - $15.91

2018 - $15.68

2019 - $14.80

2017 - $15.38

2018 - $15.28

2019 - $16.00

2017 - $19.28

2018 - $20.33

2019 - $20.70

5

2017 - $13.38

10 2018 - $14.02

The average employee turnover rate among our respondents was 4.5%, and the average number of years employed in the mail center was about 9.5 years. The number of employees represented by a union continues to drop; only 12% this year, down from 17% in 2018 and 21% in 2017. Twenty-six percent have an employee incentive program.

25

2019 - $13.64

For the first time that I can remember, the majority of mail center staff was female, with a 59/41 split. Now, I always need to make the standard disclaimer that, of course, we may have different companies filling out our survey every year, so it doesn’t necessarily mean that the staff breakdown has changed in specific organizations. However, it is still interesting to see that women are making up much more of mail center staff this year than they have in the past. In order to appeal to a workforce that is increasingly made up of millennials, many companies are experimenting with more flexible work schedules; perhaps this boost in the number of female workers reflects that shift, as millennial women strive for a better balance between families and careers.

0 Entry-level

Inserter operators

Highest hourly wage

Mail handlers

Addressing machine operators

Staff and Training Opportunities

70

70

60

60

58.06%

50

53.13%

50

40

40

30

30 28.13%

25%

20

20

21.88%

16.13%

10

6.45% 3.23%

12.50%

10

9.68% 0%

6.45% 3.13%

Existing staff work additional hours

Attend local PCC meetings/conferences

Off-site equipment training provided by vendors

Salary freeze

Existing staff do additional tasks

Attend national mailing conferences

Layoffs

Other

On-site equipment training provided by vendors

None; non-managerial staff do not get training beyond on-the-job training

Has had no effect Salary concession

Other

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

17

By Gina Ferrara

GIVING PRINT A CHANCE Despite the overwhelming presence of digital messages in our everyday lives, the printed communication piece is still a critical tool for mailers.

A

fter its introduction close to three decades ago, the quick adoption of email led many to believe the predicted obsolescence of printed communications was inevitable.

As time went on, consumers were able to enjoy interacting with their favorite brands through a variety of digital channels. However, despite the focus on using digital channels to communicate with customers, organizations are not ruling out print as an important communication tool.

Why? Because they know consumers still 18

SEPTEMBER-OCTOBER 2019 | MailingSystemsTechnology.com

open and read their mail. Monthly bills and statements represent 12 opportunities to communicate information to customers.

If consumers are opening and reading their mail, why not take advantage of this medium? This means a solid customer communications strategy needs to incorporate both print and digital channels.

Transactional communications are business to consumer (B2C) communications generated by those who send regular (monthly or quarterly) bills or account statements, such as banks and financial institutions, utilities and insurance com-

panies. As electronic channels gained popularity, many of these companies made electronic delivery a high priority as a cost reduction strategy, since the best way to reduce costs associated with print and mail — postage being the largest component — is simply not to mail the documents at all.

Marketers jumped on the bandwagon by creating feel-good campaigns, asking consumers to “go green” and “save a tree” with the hope of increasing adoption. But the unintentional consequence was a lost opportunity to communicate with customers on a more meaningful level.

on-demand convenience, real-time customer support, personalized service, and — most important — memorable brand experiences.

Despite the availability of advanced technology, many people still prefer printed communications. In fact, today, monthly bills and statements have the highest open rates as compared to electronic documents. Paper statements are easy to access and review to identify errors or fraudulent activity, and paper bills serve as a reminder to pay. Observing the open rates for regular mail versus email, companies clearly see the advantage of the opportunity that print offers.

Companies also discovered that the open rate of electronically delivered documents was much lower than paper, indicating consumers were not looking at their e-documents. Additionally, the electronic version of the document was a PDF of the printed copy, minus the inserts that could have been included in the envelope. Marketing campaigns that incorporated inserts to cross-sell or upsell products began reaching an even smaller population. Suddenly, print began to look as good — if not more — attractive.

Customer Experience Becomes the Priority In the past decade, when producing customer communications, there has been a shift away from focusing on adoption rates and to a laser focus on the customer experience. Consumer expectations have been set by advances in technology, which continue to raise the bar, with companies like Amazon and Apple setting the standard.

Devices like smartphones and tablets allow consumers to engage and interact with businesses anytime and anywhere.

This has increased the expectation for

Using Print to Make an Impression With statistics showing that 90% of consumers open their paper bills every month, marketers have an opportunity to provide educational information, as well as marketing messages, to customers through a channel that has less competition when compared to digital channels. If your company is focused on getting documents out the door to meet strict service level agreements (SLAs), but not on content, it might be time to take a step back and review how you can improve the customer experience through these printed communications.

Improving document readability and enhancements that incorporate the use of color and graphics are just a few ways to improve the customer experience. Utilizing data to personalize the communication and incorporate on-statement marketing messages that are relevant to the consumer is yet another way. Marketing professionals know more than anyone the importance of good data. Data is collected from multiple sources; however, the challenge is aggregating and storing it in a single database where data analytics and business intelligence tools can access it and put it to good use. Using data intelligently to segment and target a specific customer population with messages that are personal, relevant, and timely, along with the use of color and the proper sentiment, is key. When a recipient holds a document in hand that is printed with them in mind, the kind of engagement marketers are seeking can be achieved.

Millennials Don’t Respond to Print… or Do They?

There has been a lot of focus on the millennial generation — those born between 1982 and 2000, according to the US Census Bureau. As the largest living generation in the United States, they have surpassed

boomers and represent approximately 25% of the population. This is a generation that has grown up with the internet and, according to Accenture, is projected to spend $1.4 trillion by the year 2020. This tremendous buying power has marketers specifically targeting this generation.

Some may be of the opinion that millennials do not respond to print and direct mail; however, this is not entirely true. While they are typically glued to a smartphone and their social media pages, the USPS reports 47% of millennials check their mailbox every day, and Lending Science reports that 77% pay attention to direct mail advertising. This presents a perfect opportunity to combine print and digital to appeal to the multi-channel preferences of this generation. For example, a mail piece can highlight a link to a web portal where additional information can be obtained. Digital features such as QR Code barcodes and augmented reality that connects to a video and interactive materials on the company website or social media property serve to increase engagement with a brand and enhance the customer experience.

Despite the focus on millennials, it is important for companies to consider all the channels through which customers prefer to communicate. Communication preferences tend to be influenced by age and shaped by the experiences of each generation. An organization may offer multiple channels through which customers may interact, but all channels will not be embraced equally. Reaching out to each customer with the right information at the right time on the right channel is a challenge for every organization.

Print that Collaborates Print is still an important, consistent, and reliable channel of communication that has less competition for attention when compared to digital media. But print and digital communications do not have to follow separate paths — they can work hand in hand. By using printed communications to drive consumers to a digital channel, consumer engagement can be increased by creating interactions through multiple channels. Digital channels may provide ease of access on any device, but print offers a sense of credibility. So let’s hear it: Long live print!  Gina Ferrara is Senior Analyst at Madison Advisors. Connect with Madison Advisors on LinkedIn at www.linkedin.com/company/madison-advisors or on Twitter @madison_advisor.

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

19

By Adam Lewenberg

HOW AMAZON’S DELIVERY NETWORK Could Disrupt the Package Industry — the Postal Service Included

I

n 2018, Amazon started offering franchises for their final-mile package delivery segment. For as little as a $10,000 investment (which could be free if you are a veteran), you could start an Amazon package delivery franchise. Within five years, this offering could dramatically change the package delivery networks as we know it — to the detriment of the USPS and the other major small parcel carriers.

The competitive advantage Amazon could create could be similar to what McDonald’s built with their franchise model in the 1950s (and, notably, McDonald’s is still the dominant restaurant chain in the world).

According to One Click Retail, an e-commerce analytics provider, Amazon accounted for 44% of all e-commerce sales in 2017. This franchise offering is an attempt to reduce delivery costs and have more control of their growth. With no experience required, Amazon allows buyers to own a franchise that can have as many as 40 vans and 100 employees. Amazon will lease you the trucks, the software, and will train you on what is needed to run a successful business.

20

SEPTEMBER-OCTOBER 2019 | MailingSystemsTechnology.com

From the entrepreneur side, this could be an incredibly popular option as people see the growth in the package delivery space. Many people may consider this the new frontier, and they will likely want to get in early. It is very unlikely that Amazon would have any issue attracting people who are willing to work hard to build up their franchise. Also, with the minimal startup costs and a guaranteed revenue source from a parent company that people expect to have continued growth, the risk will be perceived as low.

From Amazon’s perspective, this is a total game changer. They will be able to win in the final-mile package delivery segment. They already have 7,000 trucks and 40 airplanes that can move their packages to hub locations; it has always been the final delivery segment, or the last mile, that has been the trouble. They have needed to rely on USPS, UPS, and FedEx for the majority of their deliveries. If they can find a way to do these deliveries at lower costs with better delivery times, it offers them a competitive advantage that can skyrocket Amazon’s growth.

Here are the major ways that this will provide them with this competitive advantage:  The major carriers are under unions that have significant negotiating power.

These small business owners will be able to pay significantly lower wages and benefits.  The major carriers have annual increases that usually fall between four and seven percent, whereas Amazon will be able to control the rates paid.  By Amazon having this network, it gives them the ability to tailor the delivery experience to the needs of the client and further expand its Prime service. As we can get packages delivered in two hours, at night, or on weekends, it will increase the amount of people buying from Amazon, furthering their growth. Other companies will have a difficult time competing with these rates and service levels.  The major carriers have incredible amounts of infrastructure and overhead. These small businesses will have minimal amounts and can keep costs low.

 The major carriers must cover the costs for their long-haul deliveries, whereas these businesses are only concerned with the last mile.  These franchises can be set up in densely populated areas, which are the most profitable routes, and leave the rural, remote deliveries to the private carriers and the USPS, which have lower volumes and margins.

Not surprisingly, this has both short- and long-term implications for the USPS and the private carriers. As Amazon’s franchise shipping increases, they will reduce the number of shipments that leave their network, which could reduce the profitability of the other providers. This is especially true for the USPS, which is estimated to have delivered 40-60% of Amazon’s US packages. If they can now rely on their own network, it could cause a decline in the one growth segment the USPS depends on for its future sustainability.

We are already seeing this impact with slowing growth of USPS Priority Mail, the main service used for postal packages.

The Quarter 2 2019 USPS volumes (Janu-

ary – March 2019) were basically flat from the prior year, whereas they had been consistently growing in the recent past.

Amazon will be able to market this delivery network to clients outside of orders placed on their website. They could market themselves as a carrier just like the others, where items could be drop-shipped to their hubs and their delivery network could move items to their final destination. They could have a competitive advantage based on their lower costs and flexible delivery times discussed above. Regardless, having another major carrier to compete with the current entrenched three would reduce the volumes, potentially at higher rates than the growth in e-commerce.

To show a real-life example of the power of this network, consider this. I ordered a tablet at 7:00 PM on a Friday night through Amazon using Prime service with free, next-day delivery. At 8:30 the next morning, I got an email stating the Amazon driver was down the street and had nine deliveries ahead of mine, but they should arrive within the next 30 minutes. They showed up earlier than expected through a franchised van service. This is a model

that is difficult for the other carriers to duplicate, especially where the client is not paying an extra fee for shipping.

Shipping costs are one of Amazon’s greatest expenses, especially with the majority of clients having Prime service, which offers free, two-day delivery (for a set annual fee, of course). If they can control this network, they can reduce these costs, offer more flexible services, and grow at faster rates. In 1955, Ray Kroc started his first McDonald’s franchises, and at that time, no one could have predicted the growth in a chain that would change the food industry forever. Amazon could change the package delivery industry for generations to come with a competitive advantage that is nearly impossible to duplicate.  Adam Lewenberg is CMDSS, MDC, and President of Postal Advocate Inc., the largest mail audit and recovery firm in the United States and Canada.

Since 2013, they have helped their clients save an average of 60% and over $52 million on equipment, presort, avoidable fees, and lost postage. He can be reached at 617.372.6853 or adam.lewenberg@ postaladvocate.com

MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

21

HOW MUCH DO DAMAGED DOCUMENTS REALLY COST?

By Mike Porter

W

hat is the impact to your organization if an average transactional document, such as a bill, gets damaged during the inserting operation in your print and mail facility? How much could such an event actually cost?

The answer will depend on who you ask:  An equipment operator will focus on the cost of paper, envelopes, or ink. They may throw in some dollars to account for the extra labor to reprint and insert the material.  An operations manager probably recognizes the cost of lost productivity caused by stopping an inserting machine while an operator clears a jam.  Someone in Finance might point out the cost of money. A delayed mailing date results in correspondingly delayed payments.  Customer Service would assign a cost to fielding a call from a customer that didn’t get the bill soon enough to pay on time 22

SEPTEMBER-OCTOBER 2019 | MailingSystemsTechnology.com

because of the production problems. They incurred a late fee the CSR must reverse.

Those are all valid measures of loss. But even adding them all together won’t accurately represent the true potential cost of a mangled document. It is higher than most would expect.

Let’s Start with Mail Center Costs When a jam occurs, an inserting machine stops — eventually. Until then, pieces can slam into the back of the jammed document, creating a train wreck of torn and wrinkled credit card statements. What inserter operator has never extracted pages subjected to the “accordion fold”? Fast inserting systems can damage quite a few pieces before jam detectors put on the brakes.

The time it takes for an inserter operator to remove the jammed pages and get the machine running again depends on the severity and location of the jam, the equipment, the materials used in the mail piece, and the skill of the operator.

The cost of this jam-clearing time includes the employee labor cost plus the value of work unprocessed while the machine is stopped. If the machine is idle for five minutes and it normally runs at 15,000 pieces per hour, productivity has taken a hit in the neighborhood of 1,250 pieces. Four jams a day means 5,000 mail pieces might not make the daily cutoff for sending mail to the presort house. They must wait until the next mailing day.

If a junior operator has to ask a co-worker for help to determine the cause of the jam, we have to add in the labor and productivity costs associated with the helper. The senior employee’s equipment isn’t running while he’s providing assistance.

Since the mail center manager doesn’t want those inserters sitting still any longer than necessary, the shop probably has a quick way for the operator to get back to work once he resolves the problem. In most mail centers I’ve visited, this efficiency tool is a cardboard box. The operator tosses all the material extracted from his

Customer service gets calls to register complaints or ask questions. “Where’s my bill?” questions typically spawn inquiries from customer service asking the in-plant or outsource mail center to track down individual documents, extending the costs back to the document center.

Next, let’s consider what happens to those mangled documents after they are removed from the mail stream. How are they re-created and sent to the recipients?

Most of the print and mail facilities I’ve toured use a manual process to reprint and re-mail damaged documents. As we will see, reprints are not the most efficient workflow in the operation. Reprints also include risks that will add to our calculation for the cost of damaged statements.

machine into the box. The material sits in the box until the end of the day, guaranteeing the damaged statements won’t be mailed until the next day at the earliest.

If the jam occurred on a Friday preceding a Monday holiday, it could be four calendar days before those documents get reprinted and mailed.

Enterprise-wide Effects Every organization has its own calculation for the cost of money, but bills that sit in a box for four days influence cash flow and investable assets of the company. Individually, the cost is negligible, but all the jammed bills an organization creates over the course of a year add up. The financial impact includes undamaged bills mailed late because of production delays incurred while dealing with jams.

Documents that aren’t distributed on schedule also impact business units and customer service. These departments could deal with angry or confused customers who don’t receive their bills on time.

Back to the Mail Center for a Moment…

Big surprise! Not all damaged statements are reprinted! Some shops allow inserter operators to smooth out pages that “aren’t too wrinkled.” I have observed operators fold and insert pages by hand or manually place pages back on the inserter “track,” which is easily accessible on many swing arm inserters still in use in thousands of mail centers. I cringe when I see this happening. The operators are doing their best to get the mail out on time, but a policy that encourages them to assemble documents after a jam is risky.

On complex applications such as variable page-count documents, operators may neglect to notice a page is missing or inadvertently mix pages from two different accounts as they attempt to reassemble the mail pieces by hand. We all know about the fallout from mailing mixed documents in applications such as finance, insurance, or healthcare. Manual intervention errors can cause regulatory infractions, damage customer relationships, and spur customer service calls.

For this reason, some mail centers have a “touch and toss” policy. The company allows no pages removed from an inserting machine to re-enter the mail stream.

To ensure integrity, these accounts are reprinted and mailed separately or as part of a future production run. Sometimes the automated document factory (ADF) system automatically orders the reprints. In other cases, the reprint process still starts with that cardboard box in the mail center, but it’s out of the hands of inserter operators.

Now for the Print Center At the end of the day, someone collects the contents of the jam boxes and sends

the pages (or page parts) to print operations. If the operation is running three shifts, reprints are frequently the responsibility of a graveyard print operator. They find time between production runs to search through the print archive, find the accounts matching the statements in the box, and reprint them — one at a time. If jammed pages came out of the inserter in small pieces, the print operator’s first task is assembling enough of each page to allow him to read the account number or other data necessary to identify the document.

I have watched this painful process, dismayed at the length of time necessary to reprint a single account. In some systems, the operator must load all the pages from the archived print job back into the print queue before hunting for the desired pages. On large print runs, this takes a great deal of time. Sometimes a search box helps operators find the right account number. Other establishments may rely on the operator’s knowledge of the print sequence. They manually scan forward and backward through the print queue until they locate the desired pages.

Cut-sheet printing environments frequently use pre-printed paper stock customized for each type of document. Here, the operator must locate and load paper stock before reprinting a few pages.

If operators accidentally print on the wrong paper, will the error be caught? Maybe yes, maybe no. When I was in the service bureau business, we ran statements for over 40 different credit unions. Because many of our customers used the same statement-generation software packages, print from one credit union would line up perfectly on forms for another. It would take a sharp eye to notice anything was wrong.

What is the cost of this enormously inefficient printing exercise? It’s tough to calculate. Different organizations have diverse reprint processes. The size of an organization or the amount of mail they produce does not necessarily mean the company has a more automated process. A good-size regional health insurance provider used the procedure I’ve described here about restoring the print queue. The cost of labor alone pushed reprint costs to several dollars per page, but I doubt anyone ever accounted for the expense of this activity.

Instead of firing up production printers to generate a few pages for reprints, some organizations reprint documents on smaller print devices. This simplifies things and reduces the cost, but may circumvent MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

23

tracking and logging processes tied to the production equipment.

We’ve revealed some mail center costs associated with damaged transactional documents, and later as the print center reprints the items. We’ve run up quite a bill, and the statements aren’t even in the mail yet!

So far, time and money have been spent clearing jams, restarting the inserting equipment, and then re-printing the documents. What happens next can be expensive too, though the impact isn’t always so obvious.

Mailing Reprinted Documents Mailing procedures for reprinted documents differ among organizations. In quite a few companies, final distribution is yet another manual and unmanaged process.

I’ve seen print operators take responsibility for folding documents by hand, inserting them into envelopes, and dropping them in an outgoing mail basket. An internal courier picks up the outgoing mail during their route in the morning. They deliver reprinted bills to the mail center along with the rest of the correspondence and department-generated mail collected on the morning route.

Throughout the day, the mail center runs this office mail through a manual postage meter and sends it to the presort bureau late in the afternoon. Or they meter at full postage rates and drop the mail at the post office at the end of the day. The reprinted documents finally make it to the mail stream, but it may be several days from the originally scheduled mailing date.

Several areas of risk are connected with this manual approach: An employee can select the wrong outbound envelope. This is an easy error to make for service providers who may inventory dozens of similar-looking envelopes for various clients. If the Postal Service can’t deliver the piece, they will return it to the wrong company, whose return address appears on the envelope. This creates a possible privacy breach, perhaps even revealing customer and pricing data to the biller’s competitors. At best, the Postal Service delivers the piece, but it appears to have come from a source unfamiliar to the bill recipient. It’s an embarrassing mistake that affects two of the service provider’s clients.

During manual insertion, an employee can neglect to insert a return envelope.

There are several consequences to this mistake. Bill recipients may mail their payments using their own envelopes, causing an exception in the remittance processing operation. If the bill recipients address their 24

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payment envelopes incorrectly, payments will be processed late, possibly triggering a late fee that must be reversed later.

If the print/mail center employee inserts an incorrect return envelope, the remittance address on the payment stub may not line up with the return envelope window. The Postal Service will return the payment to the payer. For closed-face return envelopes, the Postal Service will deliver the response or payment to the wrong company. What a mess!

Now What Do You Think?

Going back to our original question, how much do you think damaged documents cost your organization? After adding in all the largely undocumented costs we’ve discussed here, the real impact from damaged documents may be significantly higher than your original estimate.

Sometimes we see only our part of the process and we don’t think about how customer communications affect other parts of the business.

We’ve revealed some mail center costs associated with damaged transactional documents, and later as the print center reprints the items. We’ve run up quite a bill, and the statements aren’t even in the mail yet!

Other problems with a manual mailing process for reprinted documents can pop into the workflow. Employees attempting to include inserts must locate the correct enclosures and determine which ones each addressee was supposed to receive.

In today’s world of targeted messaging, this is a tall order. In my observations, organizations frequently mail reprinted documents with no inserts, creating a possible regulatory infraction if the mailer fails to provide required notices to the recipients.

Impact of Mailing Mistakes The costs associated with these simple mistakes could be extremely high. A print/ mail service provider could lose a customer by mixing up outbound envelopes, inserts, or return envelopes. If there have been integrity or quality problems in the past, manual reprint errors could be the last straw. The price tag for errors related to reprinted documents processed outside the normal quality controls could be thousands of dollars in lost revenue to the print/ mail service provider.

Regulatory infractions are expensive too. Regulatory bodies can sue or fine the mailer for non-compliance. Companies may also be subject to audits and be forced to upgrade documentation and training.

Would a single print/mail operation endure all the negative experiences highlighted here from a single damaged document event? Not likely. However, the costs can trickle down depending on the applications the print/mail centers are running, the procedures in place, and the equipment in use.

If you suspect your company lacks processes to deal efficiently with damaged paper documents, take the same steps I do when a client asks for a document production workflow assessment. Watch the process as it happens. Talk to the people doing the work.

Get a feel for how long it takes to complete the necessary steps and what those actions might cost in terms of lost productivity, revenue, or cash flow. Look downstream from the mail center to see what happens (or doesn’t happen) when the inserter mashes another document. Judge the risks inherent in manual, uncontrolled processes.

Only after a thorough analysis can you decide on a course of action to change processes or justify investing in new hardware or software to prevent jams or automate the reprints.  Mike Porter at Print/Mail Consultants helps his clients meet the challenges they encounter in document operations. Follow @PMCmike on Twitter, send a connection request on LinkedIn, or contact Mike directly at mporter@printmailconsultants.com.

APPLICATION ARTICLE

THE IMPORTANCE OF WORKFLOW AUTOMATION In the ever-changing landscape of the postal industry, evolution is key in order to stay relevant and profitable.

From vacancies on the USPS® Board of Governors to new technologies and promotions on the horizon, there is a lot to keep up with. So, how can your company continue to stay profitable and relevant? Implementing an automated workflow is a good place to start.

Productivity is tied to workflow efficiency — and an automated workflow helps ensure your operation is running at optimal levels of performance. By automating your workflow, you can save time and money by reducing postage and improving operational efficiency, while also gaining important peace of mind.

Putting Data Quality First Having the right data quality tools and solutions is imperative when it comes to optimizing your workflow. Complete, correct, and current data ensures that your direct communications are being delivered to the intended audience.

With your customers asking for more mailings on short turnaround times, it is essential to streamline your workflow with automated processes. Delays and mistakes cost your operation time, money, and security. They can also

generate a significant amount of wasted material and labor. Automating your workflow helps safeguard against these issues, bringing you improved security and reduced redundancies. Mailroom automation frees up your manpower and dollars to different parts of the company, giving you the ability to take on more jobs, and ultimately resulting in greater ROI. You may be asking yourself, where do I start? The presort and logistics part of your workflow is where data enhancement lives — and we all know that data is king when it comes to effective direct communications.

Powerful services like Enhanced Merge/ Purge from BCC Software work to remove and suppress duplicate records in your lists, saving you resources and ensuring your direct mailpieces are delivered appropriately. Once you are confident that all the addresses on your list are complete, correct, and current, trust your automated postal software to complete the presort phase.

A Solution for Every Level of Operation A fully automated workflow is not reserved only for large-scale operations, but rather is a possibility for all levels of business. The essential thing to

remember when working to automate your workflow is the importance of flexibility and scalability. Choose software flexible to support the needs of your business as they arrive, as well as scalable to grow with your business as it expands. At BCC Software we offer all levels of software to help optimize your workflow, from desktop solutions like our suite of BCC Mail Manager™ products, our unique BCC Ignite solution, and our award winning Integratec API. Partner with an Industry Leader BCC Software has been in business for over 40 years, evolving our technology to meet the growing needs of our customers. Our suite of mailing preparation and data quality services is trusted by thousands of mailers and direct marketers for their robust capabilities. Everything is backed by unlimited access to our legendary team of USPS Mailpiece Design certified professionals.

Now including Satori Software solutions, BCC Software’s technology platform boasts the widest range of products to meet your specific needs.

Our expanded technology and personal support all deliver low postage, reduced return mail, and increased efficiency.

Partnering with a respected company like BCC Software puts you ahead of the curve and sets you up for success.

Contact BCC Software to learn what other effective data quality solutions we offer at (800) 377-0442 or visit us at bccsoftware.com.

BCC Software marketing@bccsoftware.com 800.337.0442 https://bccsoftware.com

NON-LETTER MAIL PRACTICES 101

By Mark Rheaume

There is an increasingly diverse mail mix heading into today’s mail centers, so industry professionals need to make sure they are able to handle it.

I

t is no surprise to anyone that the mail mix coming into organizations is changing. This means new best practices are being put into place to better handle the increase (which, by the way, is predicted to continue to grow for years to come) occurring in both accountable and non-accountable flats and packages.

Accountable mail has always been a challenge. Regardless of your organization and industry, the requirements and expectations have always been rather similar. Recipients want their piece delivered to them in a timely manner. Mail centers strive to do this, but the chain of custody is an added burden to be absorbed in the process. The desire to provide exceptional service, while admirable, cannot take priority over making sure the piece gets delivered to the right person, which means that some sort of chain of custody documentation must be recorded. Data that shows the delivery was made properly and securely is imperative.

In peak volume periods, organizations fall into practices that are neither secure nor controlled, which is dangerous. None of us knows the contents of any of these

pieces. One common practice is to place the incoming pieces on shelving in an area outside of the mail center and notify recipients their piece has arrived. The pieces are recorded on manual logs that are left with the packages (often on clipboards) and then the honor system kicks in. Recipients go to the shelves and sort through the pieces until they locate theirs. They (theoretically) sign the log in the proper place acknowledging they took the piece and leave. The packages are all considered delivered when they are all gone, but no one knows for sure who took what — and that is a problem.

The issue here is not that people are dishonest. To a large degree, they are honest.

Systems like this one are just not secure.

Anyone (organizational employee or not) walking by the shelving can take a piece without consequence, and the mail center is the area held accountable. The carriers who deliver these packages all know the pitfalls, and that is why they have us sign for each delivery they make.

Mail centers today must be equipped with chain of custody tools and technology that go beyond the traditional

today cannot afford to just add labor to manage the increasing volumes. It is expensive and addresses none of the issues associated with these manual processes.

handwritten logs. These solutions range from the handheld scanners like those the delivery carriers have, to smart lockers that can integrate with these scanners to automate the processing and provide chain of custody recording. These technologies can range in functionality (and price) based on the needs of the organization.

The less robust systems capture the individual package information on receipt and delivery. This data allows the mail center to know every handling step the package went through once they took possession from the delivery driver.

The rest of the processes leading to delivery are not automated. Notification to the recipient (which is often a manual email), the actual delivery, locating the recipient to coordinate signature, knowing who can act as a delegate and when, accessing a current active employee database to verify that the package truly belongs at the organization or address, and knowing which packages are aging beyond a reasonable and acceptable time period (expiration time) to facilitate possible return are often still manually controlled. Traditional mail centers are usually “labor-based.” Organizations

How Do We Resolve the Issue?

Technology can resolve all these issues, streamline the process, optimize labor utilization, and provide the necessary data to truly manage the volumes effectively.

Smart lockers are a great technology that organizations should consider. The workforce today is more mobile and often not tied to a location or schedule as they perform their work. Today’s worker requires access to their incoming pieces when it is convenient for them. Staffing a mail center service counter 24/7 is not realistic or a good use of resources. Instead, smart locker technology allows organizations to receive pieces in, sign for them, and automate the rest of the process. After receipt, the piece is processed in the mail center and placed into a locker for the recipient.

The notification containing a locker number, locker location, and access code is sent via text, email, or other method, based on the preference of the recipient. The system then starts the clock on an organizationally defined expiration time, the recipient comes to the locker, picks up their piece, and that transaction is recorded into the database in the event any questions arise.

The now-empty locker is flagged as “available” and the process can start again.

This is not some crazy, “pie in the sky” dream. This technology is available and in use today. Organizations must know that the benefits of this technology go way beyond the labor savings, since these alone will not justify these technologies.

Not because they are enormously expensive but because labor is only a small part of the issue. Security, access, actionable data, durability, flexibility, and enabling workers across the organization to be more productive are the real value of these systems. Integrating these systems with employee databases, IT systems, facilities management systems, and almost any system that can provide an open API is the true benefit. Most of these systems are disparate, and this technology can bring them together to enable workers to conduct business efficiently and on non-traditional schedules.

Finally, these systems are modular in terms of configuration and function. You can start with a smaller configuration and

add to it when the data shows that more are needed. They can be placed in the same or different locations/sites. Function is directly correlated to the choice of software, which is often defined by an organization’s requirements.

This technology can deliver the same efficiencies for non-accountable pieces.

These can be processed through the same workflows (each piece can be assigned a unique code) and the process can move forward from there. At the very least, the labor processing these through the more traditional and manual processes can be more efficient because they have more time to perform these functions as a result of the process improvements the technology introduced. Things like traditional mail receipt and delivery processing (including mystery mail) can be improved — mystery mail particularly because the technology has access to and interfaces with an accurate company database that they can use to try to identify where these pieces belong.

The most important factor in scoping these solutions is the organization itself.

How long will packages be allowed to sit without pickup and occupy space in a locker or on a secure shelf in the mail center? Those shelves will never go away totally, as there will always be packages that are too big for the lockers. The organization must decide on a policy related to personal packages. Will they allow them or not, and if not, what process do they want implemented and followed should one be received? A growing number of organizations today allow employees to have personal packages sent to them at work because it helps their employees attain a better work/life balance. Finally, adding technology is not a trend. These technologies at their core provide actionable data that allows organizations to make better decisions about their business processes, gain visibility into workflows, and cater to the needs of their employees.  Mark Rheaume is a Services Engineer, Enterprise Services Sales Engineering, at Ricoh USA, Inc. He has over 35 years of industry experience developing, designing, and implementing solutions. Mark is and has been an active member in several postal industry associations as a board member, speaker, and writer.

These associations include: MTAC, Idealliance, NPOA, PCC, MSMA, Mailcom, NPF, and Printing Industries of Minnesota. He can be contacted at Mark.Rheaume@ricoh-usa.com.

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By Dave Lewis

INFORMED DELIVERY: CREATING AND MEASURING SUCCESS This USPS program can be a huge boon to mailers’ campaigns — but only if it’s utilized correctly. Here are some tactics of a winning campaign.

I

nformed Delivery, the United States Postal Service program that sends consumers images of their mail before they receive it, presents some great opportunities for mailers. Informed Delivery is a fast-growing program with one million new consumers signing on monthly. Mailers can place their own links and images into that email, thereby creating an Informed Delivery campaign that could increase every mailing’s chance for success.

Informed Delivery: The Big Numbers As of July, Informed Delivery had almost 18 million registered users, and that number only continues to grow. Some registrants access their Informed Delivery feed from the web, but most have elected to receive an email from the Postal Service every day. Of 28

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those who get the email, about 65% open it.

That is an exceptional open rate — just ask any email marketer you know. Consumers open their Informed Delivery email because they like it; the information within is personal and relevant to them. This is exactly the type of information mailers should be salivating over.

Adding Your Mark to Their Informed Delivery As a mail creator, you can have more than a black and white image of your mail piece appear in your prospects’ feed. You can replace that image with a full-color image and add a “ride-along” ad underneath it with a link to your website, or, better still, a web landing page. The benefits to doing this are clear:

 You can create anticipation for the mail piece, boosting response rates  You can drive your ID ad viewers to online resources such as catalogs, coupons, special offers, and more  You can give your prospects a simplified response path. One hurdle direct mail faces is getting prospects to take action.

It takes effort to respond; recipients are often asked to call an 800 number, go to a website, or mail back a form. ID allows you to give your prospects another path to response — they can just click a button and be on your website. ID doesn’t replace other response channels — it just provides one more  You can create an additional brand impression, reinforcing your brand while associating the ad to your mail piece

 And, from September through November of 2019, the Postal Service is offering a two percent postage discount for mailings that have an associated ID campaign Clearly, ID campaigns offer some significant advantages to mailers, so let’s discuss the nuts and bolts of creating one!

The Elements of an Informed Delivery Campaign The Mail Piece: Every ID campaign is centered on a mail piece — without mail, there is no ID. One appealing aspect of ID is that it requires no changes to the mail piece — no special barcodes, PURLs, or endorsements. You can add an ID campaign to any mailing without touching the piece design.

The Representative Image: This is the image that replaces the grayscale image provided in a consumer’s ID feed. The representative image is required on flat-size mail since flat sorting equipment does not capture an image, so there is no grayscale image to display. It is optional for letter-size mail. Some mailers find it more effective to leave the grayscale image as is, and just add a ride-long ad beneath it. We’ll take a deeper look at ridealongs in a moment.

If you do use a representative image, keep in mind that the image must be a color reproduction of the address side of the mail piece without an address showing or the non-address (obverse) side of the mail piece.

The Ride-Along Ad: One item that is not optional is the ridealong ad, as this is a required part of every ID campaign. The ride-along is a smaller image that appears beneath the grayscale image or replacement image. The ride-along is a clickable link; there needs to be a web address to which it directs consumers.

The ride-along ad needs to contain a strong call-to-action, encouraging users to click on it. Calls to action might include: MailingSystemsTechnology.com | SEPTEMBER-OCTOBER 2019

29

   

Click Here to Donate!

Donate Now! Click Here to Save!

Order Now!

Remember that most consumers will be viewing the ride-along on a mobile device, so make your call-to-action big and bold.

Furthermore, if you are hoping for the two percent discount, remember that the ID promotion has specific requirements for the call-to-action in order to secure your discount.

Web Links: Of course, it’s no fun to click on a link if it doesn’t take you anywhere.

Along with every ID campaign, you need to provide a URL that tells the ride-along ad where to send clickers. In some cases, this can be as simple as your homepage, but, as most campaigns relate to a specific offer, I always suggest using an offer-specific link. Here’s a look at the different types of URLs:  General URL: This is the general corporate website. Of course you’d love people to visit it, but it generally does not apply to a specific offer you may be promoting.  Offer-Specific URL: This links to a specific page built for a particular offer, and luckily, custom URLs are inexpensive and easy to obtain.  Trackable URL: You might have seen URLs like these in the address bar after you’ve clicked on an email you’ve received; it might look something along the lines of www.swuc6444.swreply. com?eid=9114&rtype=18. This is a more complicated and coded URL that will also direct users to the same landing page as the offer-specific URL. The customer usually doesn’t see this ugly thing since it is “hidden” behind the ride-along ad, but this URL allows you to track who is hitting what page. Eventually, you will be able to create unique URLs for every mail piece (although not yet, unfortunately).

If you have an e-commerce website to which you are directing prospects, a general URL may be fine. If you want prospects to sign up for a specific offer, one of the offer-specific URLs that lead to a landing page is better. Please note, the USPS recently announced that the URL supplied with your campaign must be to a secure site. Luckily, if you are directing readers to a corporate site, the chances are good that the link is already secure.

Web Landing Pages: As we said above, a landing page is optional, but it is always 30

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a good idea to direct prospects to an offer.

The landing page, sometimes called a microsite, is just a simplified web page that doesn’t need all of the links and navigation of a full-blown corporate website. It should place the offer front and center for your prospects. Ideally, there should be an order form right there for them to complete, or an inquiry form if you’re doing lead generation. The landing page can have its own domain, such www.XYZ.com, or it can be a subdomain: www.YourCompanyPage. com/XYZ. Each has its advantages: The unique domain is easier to track, while the subdomain doesn’t require a new domain and can use the security certificate of the primary domain.

This gets beyond postal regulations, so make sure you consult with your marketing and IT teams before making any decisions.

Measurement and Reporting Informed Delivery provides excellent granular reporting, although you need to know how to navigate and manipulate the data.

Pre-Mailing: You can generate a pre-mailing report that will show you how many people on your list are ID subscribers. You need to pull only the 11-digit routing code from your address file. There is no detail provided — just how many subscribers, and how many of them are email subscribers.

Generally, the data returned is not worth the effort, but sometimes we will run it for a new client to set expectations.

Post-Campaign: After the mail begins to deliver, you can get a detail and summary report of who has received an email notification, who got it by email, and whether they opened the email or not. A detail report is also provided that proves those same data points by IMb serial number. By itself, it’s not so useful, but married back to your mailing file, it is pretty wonderful data! You will know exactly who on your list is a subscriber, if they clicked on the link, and how many times they did. This data can also be joined to mail tracking data.

You also want to be sure to track the delivery of your mail using Informed Visibility. You really can’t see what is happening with your campaign without knowing when the mail is being delivered — which is when Informed Delivery ads are “fired.”

Creating Your ID Campaign The mechanics of setting up an Informed Delivery campaign are relatively straightforward. There are two primary methods of setting up a campaign:

 Through the Mailer Campaign Portal (MCP) in the Business Customer Gateway (BCG)  Via eDocs through PostalOne! Using the MCP: To date, the MCP is the dominant means of creating ID campaigns.

The mailer logs into the portal through their BCG access and creates an ID account. From there, you’ll need a campaign name, one or two images, depending on whether you will be using a representative image, and a URL to which you wish to direct your prospects.

This can be as simple as a home page address or an offer-specific landing page created just for this campaign, as discussed above.

You will also need to provide the range of IMb serial numbers in your campaign.

This needs to be a contiguous range, so you need to think through your numbering strategy before creating the mailing job or the campaign.

The MCP can be slow and finicky, but the USPS is working hard to make it better all the time. Just be sure to bring a little patience along with your images and URL. Creating Campaigns in PostalOne!: Informed Delivery does provide for creating campaigns directly in your eDocs, by assigning image and web page URLs in your detail file. Ultimately, this method may allow mailers to use non-contiguous IMb ranges. Today, the failure rate on this method is pretty high — well over 50%. It’s a complicated, touchy system. Most mailers will be better off with the MCP for today.

The Informed Delivery Promotion The Postal Service is trying to encourage the use of ID by running a promotion September through November of this year.

Like all promotions, it has its own set of rules and some specialized requirements for the representative image and ridealong ad. You can get details by searching for “Informed Delivery Promotion” on PostalPro.com.

Informed Delivery is one of the most exciting programs put forward by the Postal Service. It creates an entirely new means of coordinating direct mail with other online marketing channels, it’s relatively easy, and it’s affordable. Expect to see it become an important component of every successful mailing campaign.  Dave Lewis is President and co-founder of SnailWorks. He has been in the mailing industry for more than 30 years in every capacity from letter carrier to company owner. He is the industry co-chair of MTAC User Group 4 on mail visibility, and active in User Group 12 on Informed Delivery. You can reach him at dlewis@snailworks.com.

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