MTAC Innovation Symposium August 11, 2010

1. MTAC Innovation SymposiumAugust 11, 2010

2. 1.  The Future of the USPS and Mail are Not Exactly the Same Presented by: Maynard Benjamin • eServices • Consumer –create secure email linked to physical address • Create a secure email certification service • Create secure postal email box • Business-create known sender/receiver verification service • Develop identity authentication and address verification service • Develop hybrid mail service/system open to business • Improve Ad/DM ROI by linking addresses and enabling multi-channel marketing • Retail Footprint Expansion • Provide banking, financial services, payment services • Provide other government services (e.g. social security, dmv) • Enable other retailers to use post office locations and manage post offices in ther locations • Create a communications / community hub with wi-fi, desks, starbucks, etc. • Leverage “Last Mile” and delivery capability • Deliver/pick-up other goods and services, recycling • Grant license for other firms to use mailbox • Census, other government agencies

3. 2. Extending the Role of USPS in Payments System Presented by: Charles Howard (Harte-Hanks) • Create Electronic Payment and Presentment • Similar to Paypal model • Micropayments • Hybrid Services • Postal Scanning Center • Unique personal ID • Notification to consumers • USPS eReaders – portable mailbox • Split FCM into FCM “lite” (commercial vs. consumer) • Kiosk: flat rate envelope or box • Drop ship commercial • Fractional pricing – preserves consumer FCM

4. Leveraging Data to Create Solutions and Value Presented by: Bob Rosser, IWCO Direct • Sell New Data Sources • Leverage value of information surrounding the mail stream • Customer Profile Information • Operational Data • IMb Innovation • Adding delivery confirmation to letters & flats; Certified mail to “ the next level” • Leveraging USPS as “trusted source” • Digital inbox • IMb app developer’s toolkit; outside sources drive innovation • Customization • Service based pricing • Corporate wide view of Customers – reward corporation based on total value of portfolio • Customer scorecard per vertical/industry; benchmarking success

5. 4. Apply Technology to Improve Effectiveness Presented by: David Robison, Pitney Bowes Lee Garvey, Click2Mail Challenge: USPS Needs to Rebrand • Cross link physical and electronic address; Leverage USPS as the trusted agency (secure) • Leverage richness of Imb information, ie. Secure destruction of UAA mail, appeals to customers. • Increase business: remove postal barriers; Leverage technology to increase mail; customer engagement

6. 5. Restructuring the Postal Retail Network and Improving Alternate Access Presented by: Ernie Rojas • Broadening the USPS Retail Role in Parcels • Return solution • Parcel lockers • “Doorman” • Access to PO boxes to FedEx and UPS • Rent Out Retail Space • Utility companies • Government agencies – Federal, state and local • Cell phone tower locations • USPS Franchiser • Control Cost • Control Service • Expand Service ** Must have the communications/education/marketing for any of these ideas to be successful.

7. 6. Improving Partnerships Presented by: Wanda Senne • Create a new product development organization that engages industry and creates customer-centric growth initiatives • Create a USPS “geek squad” (sales) organization that will create tools and resources that industry can use to sell mail • Create a program that develops and sustains enterprise-wide understanding of the mailing industry supply chain.

8. 7. The Package Market – Growth & Market Share Presented by: Jody Berenblatt • “Fun & Easy” • Remove ridiculous rules and regulations (when do you want to get it there ? perfume hazmat) • Market to the next generation and to business • Everyone else offers payments terms/invoices – close the gap to compete • Create consistency in implementing shipper release options • Brand Management – Communicate postal strengths (we love our postwoman) • We could go on … but we won’t • Bundle front-end promotion with backend fulfillment across all existing USPS mail products • Cataloguer agrees to use USPS to fulfill orders – offer an incentive • Launch Green Initiatives – Recycling Product Offerings • Small consumer electronics (Cell phones), ink cartridges • Rebate program • Flat rate box or bag protective for recycling

9. 8.  The Future of the USPS and Mail are Not Exactly the Same Presented by: Steve Lopez • Collaboration for Public/Private Partnerships (PPP) • (transportation, gov’t services/retail) • Direct Mail (DM) Growth • (targeted to include digital to physical and physical to digital, more two-way communication, recipient creates demand for DM, focus on parcels, focus on Flats growth, creative formats cut bureaucratic process for new ideas) • Customer Total Value • (USPS value prop to new clients, use technology to drive personalized messages on USPS website, & all product classes – price by total value to the USPS,) • Parcels • (Saturday delivery, negotiated pricing , total wave of the future – “New Mail Moment”)

10. 9. Enhancing the Mail Moment by Delivering what Customers Want Presented by: Dennis Farley, Red Tag News • Advertising campaign to describe unique advantages of mail vs. alternatives (IPost) • Leverage physical and online retail space to generate mail volume (Best Buy kiosk; periodicals/catalog kiosk) • Offer prospecting rates

11. 10.  Improving Innovation at USPS Presented by: Chuck Chamberlain & Ty Taylor Idea : Create a culture of innovation at USPS

12. Benchmarking Empowerment Metrics/Measurements -Rewards -Recognition Organization Structure • Community Involvement • Employee • Customer • Partner Visibility Identify & Eliminate Barriers Process Accept Risk Tools Innovation (Components of Culture)