Postal

By Kathy J. Siviter

This summer the U.S. Postal Service provided cross-channel retailers with its January 2012 software release overview for customer-facing postage systems such as PostalOne after hearing from mailers and service providers that software changes need to be made in a more stable, scheduled manner so they could better plan for said changes.

While some may think a software release schedule is no big deal, the January 2012 overview provides direct marketers a first look at initiatives the USPS is considering including in its next market-dominant product pricing change, which will occur on Jan. 22, 2012 — the same time as pricing changes for its competitive  service products.

The USPS has stressed that some of the items in its software overview are "placeholders," meaning that it hasn't yet committed to making those changes but wants the software designed to accommodate the initiatives if it does go through with them.

2012 USPS Placeholder Initiatives
For First Class mail, the USPS included software placeholders for new services such as roundtrip letter/flat service for mailing DVDs or optical discs (e.g., Netflix); election mail services; a "blended second ounce rate"; a new "extra day certain delivery" service; and customized prices for commercial parcels.

For Standard mail, placeholders include adding a new price tier to high density; replacement of existing Not Flat Machinable (NFM) categories with parcel categories; new indication of Every Door Direct mail pieces; two new Detached Marketing label services; replacement of existing NFM categories with Standard mail marketing parcels incorporating carrier-route pricing; and using mobile interactive  technology to identify contents of Standard mail.

In a move designed to keep up with evolving technologies, the USPS has asked for software to allow for adding the number of pieces of mail with mobile interactive technology to the Periodicals postage statement.

For multiple classes of mail, the USPS's placeholder list includes adding a dynamic pricing template; a new price for Picture Permit Imprint Indicia; allowing a return receipt (with adult signature required) for PACT Act items; and adding the number of pieces of mail with mobile interactive technology to non-Periodical mail postage statements.

USPS Finds a Place for Mobile
The USPS looks to be embracing mobile interactive technology beyond its recently completed Mobile Barcode Promotion, which many catalogers are excited about. The promotion ran from July 1 through Aug. 31. Qualifying mailers received an up-front discount of 3 percent on First Class and Standard mail presort/automation mailings.

In order to qualify, companies had to submit a hard-copy sample of their mail piece to the USPS that showed placement of a two-dimensional mobile barcode, which was required to be on or inside each piece in the mailing. The barcode had to be used for marketing, promotional or educational purposes and needed to be relevant to the contents of the mail piece. Postage was paid with permit imprint and electronic documentation was required. There were provisions for comingled, combined and co-mailings to qualify for the promotion.

Other January 2012 software placeholders include new regional rate box C and cubic soft packs for Priority mail, Priority mail Open and Distribute container prices; new Extra Day Certain Delivery service; changes to Parcel Select offerings, including omitting the barcode discount for Parcel Select Network Distribution Centers (NDC) and Origin Network Distribution Centers; deleting zones four through eight for Parcel Select Regional Ground NDC; providing prices for Parcel Select nonpresort; adding extended delivery area fees; adding Parcel Select Lightweight; and adding RSCF pricing for Parcel  Return Service.

What Can Cross-Channel Retailers Expect Come January
Does this placeholder software list mean that other changes won't be included in the January 2012 pricing change? Not necessarily. If the changes don't require major software design work, the USPS could still include other items in its January 2012 case.

Ultimately the USPS board of governors and Postal Regulatory Commission must approve all pricing and classification changes. What does this mean? It means that even if the USPS proposes all the things represented by these software placeholders, it doesn't necessarily mean they'll be passed since they must still be approved by those two bodies.

In keeping with its commitment to the business mailing community, the USPS will give at least 90 days notice of its Jan. 22, 2012 pricing change, which means that more details will be shared by Oct. 22, 2011 at the latest. Looking at the USPS's new release schedule, more information on its January 2012 pricing change and initiatives will be revealed as details are shared on the software development front.

If your business is interested in preparing for these changes or taking advantage of some of the new initiatives that may come from the January 2012 pricing change, now is a good time to stay close to your software or service providers. After all, as USPS business partners, they're more likely to get detailed information from the USPS before the general mailing industry.

Kathy J. Siviter is president of postal consulting agency Postal Consulting Services. Kathy can be reached at kathys@postalconsulting.com.