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Incentive ProgramsNew Functionality

December 6, 2010

® Agenda

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• Overview

• Enrollment Methods/Process

• Enrollment Requirements/Benefits

• Incentive Categories

• Questions

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System Functionality for Incentive Programs

Functionality will be released in a phased approach to help streamline and automate incentive activities

• Enrollment in Incentive Programs• Communication between mailers & USPS• Pre-qualification and post-qualification• Tracking toward incentive goal • Reconciliation• Rebate process

USPS is implementing system changes that will allow mailers to easily enroll in Incentive Programs and monitor progress.

System changes will not fully deploy until 2012. Incentive Programs are initially targeted at Mailing Services (Letters and Flats).  

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Mailers able to enroll with online tool

New system functionality will provide convenience to mailers.

Online or eDoc Enrollment

Visibility & Tracking

Standardized Participation

• Enroll online and/or through eDoc. Enrollment method options vary based on the Incentive Structure.

• View enrolled incentives and the progress toward incentive target.

• Use assigned CRIDs and associated permits when enrolling in incentive programs

® Agenda

5

• Overview

• Enrollment Methods/Process

• Enrollment Requirements/Benefits

• Incentive Structures

• Questions

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Two enrollment methods

• Program Registration enrollment

• eDoc enrollment

Each enrollment method comes with associated requirements as well as benefits for the mailer and USPS.

Enrollment in Incentive Programs

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Program Registration Enrollment

Program Registration Enrollment Method

* The mailer signs off on the rebate amount only if applicable. Some scenarios do not require formal sign off.

1. Incentive Owner creates the Incentive

2. Mailer enrolls in the Incentive

through Program Registration

6. System calculates and

tracks progress toward incentive

7. At the end of mailing period,

system calculates Pending Reward

Amount

8. Customer is notified of Pending

Reward Amount

3. Mailer is notified of Enrollment

Status

4. Mailer and USPS agree upon threshold

5. Mailer submits mailings that

include Incentive Type

9. Customer requests

Reconciliation or signs off on

Pending Reward Amount *

10. System determines Final Reward Amount

(based on customer sign-off or Reconciliation)

11. Customer’s Permit Account is credited (may be CAPS Account)

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Program Registration Enrollment

Step 1: Incentive Owner creates the incentive • Product Manager identifies a sale opportunity and creates a specific Incentive Type (i.e.

“Summer Sale”).• Incentive Owner creates the incentive within Program Registration and establishes specific

parameters (Incentive Structure, Incentive Start/End Date, etc). • Once the incentive has been defined and activated, it will appear to the mailer within the

Program Registration section of the BCG.

Step 2: Mailer Enrolls in the Incentive Program • Mailer links CRIDs & permits to the appropriate Incentive Program and enters qualifying

data and contact information. • Mailer identifies a primary business point of contact. • Mailer indicates use of MSP.

Step 3: Mailer is notified of Enrollment Status • System and/or Incentive Owner qualifies the mailer for the incentive. Once Enrollment

Status is updated (Pending, Qualified, Disqualified, Denied), Enrollment Status appears in Program Registration and the mailer receives an email.

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Program Registration Enrollment

Step 4: Mailer and USPS agree upon threshold• Mailer and USPS agree upon Mailer’s historical Volume or Revenue data.

Step 5: Mailer submits mailings that include Incentive Type• Mailer sees a listing of active Incentive Types in Program Registration. • Technical Specifications include valid Incentive Types. • Mailer includes Incentive Type and/or other variables in eDoc.

Step 6: System calculates and tracks progress toward incentive • System tracks mailers’ progress toward goal. Mailers are able to view their progress and

status through new incentive-related reports.

Step 7: At the end of mailing period, system calculates Pending Reward Amount• System uses mailer data and business rules specific to Incentive Structure to calculate

Pending Reward Amount.

Step 8:Customer is notified of Pending Reward Amount• An email is sent to Mailer indicating Pending Reward Amount. Mailer signs off on Pending

Reward Amount (if applicable), available for viewing in Program Registration.

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Program Registration Enrollment

Step 9: Customer requests Reconciliation or signs off on Pending Reward Amount• Mailer signs off on Pending Reward Amount or requests Reconciliation in Program

Registration.

Step 10: System determines Final Reward Amount (based on customer sign-off or Reconciliation)• If customer does not request Reconciliation, System sets Final Reward Amount to be the

same as Pending Reward Amount. • If customer requests Reconciliation, review process is conducted and System updates

Final Reward Amount based on Reconciliation results.

Step 11: Customer’s Permit Account is credited (may be CAPS Account)• The appropriate permit account, which may be a CAPS account, is credited.

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1. Incentive Owner creates the Incentive

2. Mailer enrolls in the Incentive

through eDoc with Incentive Type

5. System calculates and

tracks progress toward incentive

7. At the end of mailing period,

system calculates Pending Reward

Amount

4. Mailer submits mailings that

include Incentive Type

8. System determines Final Reward Amount

9. Customer’s Permit Account is credited (may be CAPS Account)

3. System creates enrollment record

from eDoc Postage Statement

6. System post-qualifies customer at end of Incentive

Period

eDoc Enrollment

eDoc Enrollment Method

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eDoc Enrollment

Step 1: Incentive Owner creates the incentive • Product Manager identifies a sale opportunity and creates a specific Incentive Type (i.e.

“Summer Sale 2011”).• Incentive Owner creates the incentive within Program Registration and establishes specific

parameters (Incentive Structure, Incentive Start/End Date, etc). • Once the incentive has been defined and activated, it will be visible on the BCG Sign-on

Page.

Step 2: Mailer Enrolls in the Incentive through eDoc with Incentive Type• Mailer includes Incentive Type on their eDoc

Step 3: System creates enrollment record in Program Registration from eDoc Postage Statement• System extracts CRID, Permit #, Permit Type and Incentive Type indicated in eDoc.• System uses this information to create enrollment record for internal controls.

Step 4: Mailer submits mailings that include Incentive Type• Technical Specifications include valid Incentive Types• Mailer includes Incentive Type value and/or other variables in eDoc.

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eDoc Enrollment

Step 5: System calculates and tracks progress toward incentive • System tracks mailers’ progress toward goal. Mailers are able to view their progress and

status through new incentive-related reports.

Step 6: System post-qualifies customer at end of Incentive Period• Incentive Owner qualifies customer and system updates Enrollment Status in Program

Registration.

Step 7: At the end of mailing period, system calculates Pending Reward Amount• System uses mailer data and business rules specific to Incentive Program to calculate

Pending Reward Amount.

Step 8: System determines Final Reward Amount (based on customer sign-off or Reconciliation)• System sets Final Reward Amount.

Step 9: Customer’s Permit Account is credited (may be CAPS Account)• The appropriate permit account, which may be a CAPS account, is credited.

®Registration differs based on the enrollment

method

Program Registration Interface

Incentive Owner Enters Incentive in Internal Console

And/OrUpdates Reconciliation Amount

eDoc sent to PostalOne!

PostalOne! Interface

Step 2a: Customer enrolls in Incentive

via Program Registration

Step 2b: Customer enrolls in Incentive

via eDoc

Customer enrolls in Incentive via Program Registration ORenrolls in Incentive via eDoc

Enrollment record based on customer Customer Key

Permit Number Permit Type CRID Incentive Type

Assumptions: Pre-qualification activities are

executed for Program Registration enrollees before ICE is engaged

®Incentive Calculation Engine:

Calculation & Data Feed

ICE continuously calculates Incentive based on business rules

Items in blue are optional depending on Incentive Type

ICE cross-references customer data in ICE Mailer Tables with Customer Key to validate Incentive Type

Look up Program Registration Incentive Owner Parameters Threshold Discount Percentage Flat Discount Tiers

Calculation Results: Pending Reward Amount Reward Status Volume Total Revenue Progress Percent Mail Trend

Reward Status and Pending Reward Amount are passed to Program Registration for customer viewing via the external pages

Step 6: ICE continuously

calculates Incentive based on business

rules

Step 7: ICE Mailer Tables feed CDM for

customer reportsIn Phase III

Mail Trend Progress Percent

Current Projected Baseline

Error Name Error Description

IncentiveCalculation Engine Discount/Rebate

Calculation Sessions (Business Rules &

Events)

ICE Mailer TablesCRID/Permit/Incentive Type

(Updated nightly 12:00am EST)

CDM

(Updated nightly 12:00am EST)

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ICE processes rebate & accounts for reconciliation (if applicable)

ICE will recognize a customer’s Enrollment Status and Reconciliation Status from Program Registration and process rebate accordingly

ICE stores Pending Reward Amount as Final Rebate Amount if no reconciliation requested or allowed

ICE stores Final Reward Amount received from Program Registration if reconciliation activities were conducted

ICE updates a customer’s Reward Status

ICE sends Final Reward Amount* to PostalOne!

IncentiveCalculation Engine Discount/Rebate

Calculation Sessions (Business Rules &

Events)

Database ServerPostalOne!

dBase

ICE Mailer TablesCRID/Permit/Incentive Type

(Updated nightly 12:00am EST)

PostalOne! Debits Permit Account

Business Rule & Event triggers

Program Registration Incentive Parameters Tables

ICE processes rebate & account for

reconciliation (if applicable)

Rebate is applied to customer’s permit

account

Incentive Calculation Engine: Rebate and Reconciliation

® Agenda

17

• Overview

• Enrollment Methods/Process

• Enrollment Requirements/Benefits

• Incentive Structures

• Questions

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Program Registration enrollment: • Mailer enrolls through Program Registration section of the BCG. • Requirements: Mailers link their CRIDs & permits to the appropriate

Incentive Program, enter qualifying data and contact information. Mailers populate the Incentive Type field in eDoc.

Program Registration Benefits: • USPS can begin qualifying the mailers’ eligibility. • Enrollees will receive communications on eligibility directly from USPS.• Enrollees will also see basic volume and revenue numbers through

PostalOne! reporting based on pre-confirmation of CRIDs/Permits. • Enrollees will be able to track their progress toward an incentive goal with

new incentive-related status in Program Registration. • Mailers will be prompted to provide alternative contact information during

the enrollment process. Someone other than the BSA can be listed.

Enrolling through Program Registration comes with associated requirements and benefits for the mailer and USPS.

Program Registration Benefits

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This graphic is for illustrative purposes only. Mailers will enter alternative contact information and qualification data as well as

manage CRIDs and payment accounts within Program Registration.

Program Registration guides mailers through enrollment process

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eDoc Enrollment: • A select number of Incentive Programs do NOT require enrollment through

Program Registration. The mailers can enroll simply by submitting eDoc. • System captures the Incentive Type, CRID, Permit Number and Permit

Type from the eDoc.

eDoc Requirements: • Mailer must populate the “Incentive Type” field in the eDoc. Note: The

mailer will be able to view active Incentive Types within the Technical Specification.

• Postage Statement must fall within the Incentive Start/End Date. • Mailer must meet the specific parameters of the given incentive. • Mailer must provide proof of basic eligibility (when required) before

incentive is awarded.

*Note: eDoc requirements apply to mailers who enroll through Program Registration as well as those who enroll through eDoc.

eDoc Enrollment

® Agenda

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• Overview

• Enrollment Methods/Process

• Enrollment Requirements/Benefits

• Incentive Structures

• Questions

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System functionality will support the rollout of a variety of different incentives

Below is a sample of the incentive structures that could be rolled out and supported by the new system functionality.

#Incentive Structure

Reward TypeDescription

(Potential Scenarios)Example

Enrollment in Program

Registration Yes/No

1 Volume or Revenue Over Time - Percentage

Discounted postage for mail within a specific timeframe

Rebate a certain percentage off the price of Standard Mail.

Saturation High Density

Yes

2 Volume or Revenue Over Time - Flat Rate

Flat rebate Calculated rebate per price discount; for example, First Class Mail that is 2 ounces receives a rebate to pay only to the 1 ounce rate.

Reply Rides Free Yes

3 Period type Discounted postage for mail within timeframe

Percent off Full Service letters for new mailers who mail within a specific timeframe.

Hypothetical Examples: Outright Discount for a Time Period, New Product Intro Option, Introductory Pricing

No

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Below is a sample of the incentive structures that could be rolled out and supported by the new system functionality.

#Incentive Structure

Reward TypeDescription

(Potential Scenarios)Example

Enrollment in Program

Registration Yes/No

4 Sector Discounted postage for mail that meet sector qualification or flat rebate for mail that meets sector qualifiecation

Percent off for mail owners in a certain Sector or $ rebate for mail owners in a specific Sector.

Hypothetical Examples: Discount Based on Specific Mailer, Program or Account Specific, Small Business, Type or Class of Customer

Yes

5 Processing Category

Discounted postage for mail with a specific Processing Category within timeframe

Discount is awarded for certain Processing Category within timeframe

Hypothetical Examples: New Surcharge, Product Content Identification, Commercial Plus Pricing Option

Yes or NoDepending on Incentive Program

6 One Time Volume or Revenue Per Postage Statement - Discount Percent or Flat Rebate

Discounted postage or flat rebate for one time mailing within timeframe

Percent off or flat rebate for a certain type of mail when a certain number of pieces are mailed per Postage Statement during a certain time period

Hypothetical Example: Small Business Discount

No

System functionality will support the rollout of a variety of different incentives

® Agenda

24

• Overview

• Enrollment Methods/Process

• Enrollment Requirements/Benefits

• Incentive Structures

• Questions