Proposed 2015 Promotions and Innovations

Gary Reblin, VP New Products & Innovation

February 17, 2015

Drive the usage and integration of new technology to evolve mail

• Encourage mailers to infuse direct mail with mobile technology, to increase engagement and to drive ROI

• Encourage use of first class mail for advertising and reward continued usage

• Show value of direct mail to eCommerce merchants

• Promote the value of mail to the digital community and build customer awareness of new uses for mail

Promotion Strategy

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2014 Promotions Results

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Promotions by the numbers…

FY 2014 Promotions (7 promotions) generated:

■ 7.8B mailpieces

■ $1.8B in revenue

■ 1,487 participating customers

■ Over $48M in discounts received by participating customers

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■ PRC filing on 1/15/2015■ Proposed four promotions from May 1 –

December 2015 Earned Value Color Transpromo Emerging and Advanced Technology Mail Drives Mobile Engagement

■ Took feedback Promotions will run for longer period Focused on most popular areas Ran multi-year color promotion to help off-set

investment

Overview

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Earned Value

Encourages FCM mailers to keep using Business Reply Mail (BRM) and Courtesy Reply Mail (CRM)

• Customers may use their Earned Value credit to pay postage for First-Class and Standard Mail mailings

• No changes to the requirements for proposed 2015 promotion

2015 Proposed Promotions

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Color Transpromo

Encourages FCM mailers to invest inand use color transpromotional messaging on bills and statements

• Leverages color and open-and-read rates of transactional documents for promotional and informational purposes

• Increases the value of transactional mail by fostering enhanced customer engagement

• No changes to the requirements for proposed 2015 promotion

2015 Proposed Promotions

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Emerging and Advanced Technology

Encourage Direct Mailers to incorporate interactive technology to drive interest in mail as a marketing channel

2015 Proposed Promotions

New features proposed for 2015

• Eligible Mail: Standard Mail, Nonprofit Standard Mail and First Class Mail letters, flats and cards.

• Mailpiece must integrate specified technologies

• Advanced Augmented Reality

• NFC NFC

Augmented Reality

OR…

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Emerging and Advanced TechnologyNew Entrants

2015 Proposed Promotions

• Advances in Inks• Change color based on variations in temperature, pressure, exposure to liquid or light

• Conductive inks can print a “circuit” which can be used to activate other components (light, sound)

• Advances in Paper characteristics – provide new levels of sensory engagement to help drive increased customer response

• Must still be automation compatible

• Textural, Scented, Sound, Visual

• Interactive mailpieces• 3-Dimensional, pop-ups, infinite folding, etc.

Use innovative new technologies in paper and inks; and include

interactive mailpieces

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Mail Drives Mobile Engagement

Utilize state of the art mobile purchasing technology with direct mail to facilitate purchases and eCommerce

Eligible mailpieces must include print/mobile technology that can be read or scanned by a mobile device that allows the recipient to make a product purchase.

This must:• Include best practices like directional copy on the mailpiece• Link to mobile-optimized sites

2015 Proposed Promotions

Questions?