September 25, 2014

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#PIGWebinar

Mail Meets Mobile: Combining Physical

and Digital to Deliver Better Results for

Your Customers

Today’s Speaker

Victoria Stephen

Director of Mailing Service

USPS

Moderator

Barbara Pellow

Group Director

InfoTrends

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• Emerging Technologies Barb Pellow

• The Impact on Direct Mail Victoria Stephen

• Recommendations & Conclusions

• Q&A

Topics

The Customer Experience is Key

Traditional

Media

Digital

Media

“Tradigital”

The New Media Model

Print: An Essential Component in

Building the Customer Experience

How is/will your company’s total spending (be) distributed by the following communication types?

N = 1,026

Source: Understanding Vertical Markets: Enterprise Communication Requirements; InfoTrends 2012

34.1%29.9%

25.3%27.8%

16.2% 16.7%

11.7% 11.2%

10.2% 12.0%

0%

20%

40%

60%

80%

100%

Last 12 Months Next 2 Years

Print Online/Web Video Audio Mobile Other Projected Annual

Growth Rate

8.8%

-2.1%

1.5%

4.9%

-6.2%

Print: Critical to the Mix

Mobile is a Bridge, Linking the Physical

With the Digital

Mobile Codes Augmented RealityNFCs

Connecting Print to Digital Media

• Different code types

• Codes linked to content

associated with the context of a

campaign, program, or initiative

• Consumers interact with codes

through apps

• Codes add measurability and

increase value to media

Mobile Codes: An Easy, Effective Way

to Link Traditional Media with Mobile

85%

24%

88%

43%

0%

20%

40%

60%

80%

100%

Familiar withMobile Barcodes

Interaction withMobile Barcodes

2011 2013

Are you familiar with mobile barcodes?

Have you ever interacted with one?

Sources: Mobile Technology: Making Print Interactive, 2011 and Consumer Media Trends Survey, 2013 (InfoTrends)

15%

18%

19%

21%

23%

30%

47%

59%

0% 20% 40% 60% 80%

Make a purchase

Download mobile app

Contact info

Download music

Enter sweepstakes

Testing a code

Coupon/deal/discount

Additional info

Why do you interact with mobile barcodes?

N = 428 Consumers that have interacted with mobile barcodes

Mobile Barcode Use Among Consumers

QR Codes: Educating and Informing Donors

• Near-field communication

(NFC)-enabled devices

establish a radio connection

with a printed piece embedded

with a transmitter.

• A connection is established

when a mobile device is in

close proximity to printed piece.

• The device reads data from an

NFC tag that is embedded

inside or affixed to the print

What are Near-Field Communications?

Tap to Pay

Touch to Learn

Pair and Share

Types of NFC Applications

1.6%

9.8%

13.0%

15.5%

18.7%

23.3%

24.4%

42.0%

0% 10% 20% 30% 40% 50%

Other

Interacted with an NFC-enabled business card

Interacted with an NFC-enabledposter/outdoor advertisement

Redeemed a ticket or pass for access totransportation

Interacted with an NFC-enabled magazine ad

Redeemed a ticket or pass for an event

Exchanged information with another NFC-enabled phone

Made a payment with your phone at a store

Which of the following activities have you used NFC technology for in the past 12 months?

N = 193 Respondents who own a mobile phone that includes support for near-field communication technology

Source: Consumer Media Trends Survey Q2-2013, InfoTrends

Multiple Responses Permitted

Consumer Use of NFCs

Enhance the value of all print

types by embedding intelligence

in printed objects via NFC tags

NFC in Print Has Arrived

• NFC is flexible for print integration

– The simplest option is a sticker

– NFC-enabled stickers are available “plain” or with

custom color graphics

– More complex “hidden” construction options (e.g.,

fold & glue) are supported; line of sight is NOT a

requirement for NFC tags

– NFC tags are also available in matrix sheets for

integration into sheet-fed processes

• Tags need to be “programmed” or “encoded”

with action or web destination

NFC Integration

iPhone 6

• The increase in NFC-

enabled devices

• Mobile payment

adoption will drive

familiarity

• Awareness-building

efforts with NFC icons

Use Drivers: Access and Awareness

• Consumers are learning

how to use it

• The number of NFC-

enabled mobile devices is

growing

• Markers are engaged

• Interactive print

applications are growing

and will continue to do so

Print Plus NFC: It’s Time to Act!

It’s when the real

world is

“augmented” by

computer data

Augmented Reality

12%

50%

17%

57%

0%

20%

40%

60%

Familiar (No Examples) Familiar (w/ Examples)

2011 2013

Are you familiar with the concept of Augmented Reality?

2011 N = 1,192 Consumers | 2013 N = 1,126 Consumers

12%

13%

17%

19%

21%

26%

27%

35%

50%

0% 20% 40% 60%

Help make a purchase

Coupon/deal/discount

Testing out AR app

Enter sweepstakes

Access video

Additional info

Find location

Gaming

Fun/Entertainment

Why do you interact with Augmented Reality applications?

N = 159 Consumers that have interacted with AR applications

16%

25%

0%

10%

20%

30%

2011 2013

Have you ever interacted with an AR application?

2011 N = 591 Consumers | 2013 N = 639 Consumers

AR is Gaining Awareness

According to Semico Research, the number of

AR-enabled smartphones is…

According to Juniper Research, AR apps

currently generate $300 million in revenues. By

2017, this value will approach…

According to Juniper Research, the number of

mobile AR apps downloaded to smartphones

and tablets by 2017 will exceed…

AR Devices and Apps are Increasing

• AR is surfacing across

application types:– Catalogs

– Publications

– Product packaging

– Books

– Signage

• AR marketing techniques are

shifting from gimmicks to

practical applications

• Usefulness and practical AR

print applications will drive

market demand

Print Plus AR: Enhancing Value

Mail Meets Mobile:

Combining Physical and Digital to Deliver

Better Results for Your Customers

Victoria Stephen

Director of Mailing Service

USPS

The Postal Service is:

• Adapting to a digital world

• Promoting innovation

• Delivering new solutions

• Making it easier

. . a d a p t . . .

Good News!

Embrace technology, encourage mail integration.

• Drive long-term

product value — Relevance

— Effectiveness

— Responsiveness

— Engagement

• Lead

innovation

• Accelerate

best practices

• Promote

awareness and

engagement

• Marketers

and

business

customers

• Consumers

Strategy Targets

NFCMobile Barcode Image Recognition Augmented Reality

USPS Strategy

NFC

QR Code/Mobile

Barcode

Augmented Reality

Mobile Technologies

Near-Field Communication (NFC):

Mail contains NFC smart tag or RFID

chip enabling information transmissions

between NFC enabled devices

Augmented Reality (AR): Mail

facilitates a user experience combining

virtual & real time interactive

experiences, registered in 2-D or 3-D

QR Code/Mobile Barcode: A barcode

is a machine-readable optical label

that contains information about the

item to which it is attached.

Augmented Reality vs “Enhanced” Augmented Reality

Mobile Technologies

Direct Mail Goes Digital: Mobile Barcodes

Mobile Barcodes

• Generate an immediate market response

• Users are more affluent and educated

• Attract Gen X and Y

Source: Pitney Bowes, Feb. 2013; Forrester Research, Nov. 2011

Like on Facebook

Get driving directions

Mobile Technologies

As of January 2014*:

• 90% of American adults have a cell phone

• 58% of American adults have a smartphone

• 32% of American adults own an e-reader

• 42% of American adults own a tablet computer

• Apple has added NFC technology to the new iPhone**

Why Add Mobile Technology to Print?

Mobile Technologies

* Pew Research Internet Project, January 2014

** USA Today, September 2014

Keys for Successful Mobile in Mail/Print

Call to Action Capture Resulting Action

Mobile-in-Mail/Print campaigns require a call to action, mobile

technology to capture the offer, and a resulting consumer action.

USPS Promotes mail innovations

Enhanced mailpiece

Potential for greater response

rate

Increased ROI

opportunity

Mail That Works For You

Mail as a Platform for Mobile

Mail and Mobile: An Optimal Connection

• Provides a “jumping off point”

• Ideally, customers land on:

— Mobile-optimized websites

— Responsive websites

- Dynamically adapt both its content and

layout to fit a multi-screen world

• Content tailored to device type

• Shopping website

• Company websites

Past Mail & Mobile Promotions

July-Aug 2011 July-Aug 2012 Nov 2012 2013

2011

Mobile

Barcode

Promotion

2012

Mobile

Commerce

and

Personalization

Promotion

2012

Holiday

Mobile

Shopping

Promotion

2013

Promotional

Calendar(6 Promotions,

including Emerging

Technology and

Mobile Buy It Now

promotions)

Program Learnings and Growth:

• Mailers need time to prepare

• Increasing emphasis on best practices

• Encourage different uses of mobile technology integration

• Encourage mailers to try new things

2013 Promotion Results

August 1- September 30

• Approximately 90 participants

• Over 1 billion mailpieces qualified

for promotion

• Over $4.6 M in discounts

• 8% of eligible Standard Mail volume received the discount

• Most participants used Augmented Reality

2013 Emerging Technology Promotion

November 1 – December 31

• Approximately 373 participants

• Over 2.4 billion mailpieces qualified

for promotion

• Over $11.8 M in discounts

• Over 17% of eligible Standard Mail

volume received the discount

2013 Mobile Buy It Now Promotion

2013 Promotion Results

39

2014 Promotions

Current List of Promotions Ideas

• First-Class Mail Color/TransPromo Promotion

Continue to grow the value of First-Class Mail and encourage mailers

to invest in color print technology for bills/statements

• Mail Drives Mobile Engagement Promotion

Demonstrate how direct mail, combined with mobile technology,

continues to be a convenient method for marketers to connect with

their customers and facilitate more ways to do their shopping

• 2015 Earned Value Reply Mail

Slow the decline of First-Class Mail (BRM and CRM) pieces through

a postage credit for each returned mailpiece

• Advanced or Emerging Technologies Promotion

Encourage the use of “enhanced” augmented reality, standard NFCs,

or other emerging technologies in mailing campaigns

2015 PROPOSED Promotion Ideas

All promotion ideas are preliminary and subject to change

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Recommendations and Conclusions

• The technology is available

• Industry leaders are pursuing it

• The audience is learning how to use it

• Integrating print with the digital world

engages the audience, educates,

entertains, and creates value

• Interactive print applications are growing

and will continue to do so

• Adding interactivity to print increases

margins and profits for your customers

• USPS makes it affordable to add value

Drive the Customer Experience!

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Mail Meets Mobile Webinar

Today’s Direct Mail is More Complex

• Ensure accuracy of mailpiece and contents when using

personalization

• Lower cost per thousand and increase impact with high quality,

variable data color print for offers and barcodes

• Take advantage of USPS Promotions

• Lower postage costs

with automated presort

• Control timing and

delivery with Full Service

IMb

Question & Answer Session

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For more information about the USPS

Promotions visit the following links:

• Program information on USPS.com:

https://www.usps.com/business/promotions-and-incentives.htm

• Program information on RIBBS

https://ribbs.usps.gov/index.cfm?page=mailingpromotions

• Questions to USPS Program Office: mailingpromotions@usps.gov

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Speak with a Pitney Bowes Direct Mail Solutions expert to

uncover ways to deliver higher impact direct mail at lower costs

Call 877.406.7704 to schedule an appointment or visit

www.pb.com/directmailsolutions

Get started today!

Barb Pellow

Group Director, InfoTrends

Barb@infotrends.com

585-734-2228

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