Chapter 2: Our Customers

The younger generations generally regard the Internet more highly. As technology begins to play a larger role in people’s lives, redefining the role and relevance of mail will be important.

eBay High Volume Sellers: This qualitative study shows that high-volume eBay sellers select shipping companies based on price, package size, and package weight. They typically choose the Postal Service because it is perceived as the “low-cost” provider. These sellers like the easy online Click-N-Ship service for labels and payment and the convenience of free at-home Carrier Pickup service. They also like the co-branded Priority Mail boxes provided by the Postal Service at no charge.

2007 Household Diary Study: Published in March, this study measures the mail sent and received by U.S. households in 2007, tracks household mail trends, and compares mail use among different household types. The report examines trends in the context of changes and developments in the wider markets for communications. In 2007, households received 150.9 billion pieces of mail and sent 21.2 billion pieces, together making up 79 percent of total domestic mail.

The Direct Mail Qualitative Study: This study presents the perceptions of users and non-users of direct mail. It also assesses the sophistication of direct mailers as marketers and how well they planned advertising for the upcoming year. The research examines customer reactions to three new concepts considered by the Postal Service as options to assist advertisers in using direct mail.

The Post Office Box Qualitative Study: This study shows the perceptions among users, former users, and competitive users about renting a local Post Office Box. It also assesses the reasons why they rent or no longer rent a Post Office Box. The research explores customer reactions to some potential new features and concepts that could increase revenues.

Intelligent Mail®: This research evaluates the strategies and actions being taken to implement Intelligent Mail® by end users and vendors and their readiness to implement on schedule. Key findings reveal that current CONFIRM users along with the largest companies and vendors will likely adopt Intelligent Mail to retain the lowest prices. The largest and more sophisticated mailers and vendors appear well informed and are developing strategies and plans, whereas the smaller mailers and vendors appear less informed and are waiting to determine their best options.

Innovation Center: This research project shows the impact on customers’ attitudes and behaviors of the Innovation Center, a redesigned prototype retail outlet in Schaumberg, IL. The key findings reveal improvement in user attitudes about and experiences with this redesigned Post Office compared to more traditional Post Offices. In addition, the research shows that customers tend to use more core services in this environment.

Advertising Effectiveness Research: This research is a continuous tracking survey among consumers and businesses to measure the effectiveness of Postal Service advertising. The research shows that customer awareness of the advertising has increased, and the perceptions of consumers and businesses have improved on several key categories.

Postal Regulatory Commission Proceedings

Operating under the Postal Act of 2006, the Postal Service filed cases with the Postal Regulatory Commission (PRC) that modified the pricing and classification of products and services, established mailing and shipping services contracts for domestic and international mail, and submitted reports, documents, rulemakings, and studies required by the new law.

Annual Compliance Report: Docket No. ACR 2007
Although not required to file the first compliance report until fiscal year 2008, on December 28, 2007, the Postal Service provided information on revenue, costs, and pricing in its first Annual Compliance Report. The PRC on March 27, 2008, published its first Annual Compliance Determination Report, verifying that the Postal Service was in compliance with the law.

Mailing Services

Notice of Price Adjustment: Docket No. R2008-1

Consistent with the Postal Act of 2006, the Postal Service announced that it would adjust its mailing services prices each May and increase these prices by class (on average) no more than the rate of inflation, as calculated using the Consumer Price Index. A 90-day advance notice of the new prices changes will give customers time to make necessary adjustments.

On February 11, the Postal Service announced a May 12 price adjustment for mailing services — First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services. The average increase by class of mail was at or below the CPI cap (2.9 percent).

This pricing change was the first under the Postal Act of 2006. The First-Class Mail stamp price was increased to 42 cents. For the first time, customers could continue to use the Forever Stamps they purchased before the price change, without adding additional postage. The PRC approved the changes, with these highlights:

  • No change in the First-Class Mail single-piece additional-ounce price.
  • Lower additional-ounce price for presorted nonautomation First-Class Mail letters.
  • Lower per-pound price for Standard Mail saturation and high-density flats.
  • Shape-based pricing for First-Class Mail International letters, flats, and parcels.
  • First-Class Mail International expanded from five to nine price groups.