The US Postal Service (USPS) is in the midst of a sweeping reorganization and change in focus, which began with the October 2010 appointment of a new postmaster general, followed by significant organizational changes in January, which will continue for some months to come.
What does this mean for cross-channel retailers and others who depend on the use of the mail? According to the new postmaster general, it a means a new focus on improving the customer experience and growing the mailing business.
Changes Began at the Top:
To date, the new PMG has made changes or announced plans which include a 16 to 25 percent reduction in the USPS's headquarters/senior management ranks, a possible reduction in work force and or voluntary early retirement process to come, a new "flatter, leaner" organization. There may be consolidation and elimination of filed organizations at the area and district levels and a more aggressive focus on network design changes, including consolidating processing facilities and post offices.
They also intend to improve the customer experience and grow the mailing business. Both for the USPS and for the companies and service providers that use the mail. The USPS has created a new consumer and industry relations organization as the first step in its efforts to improve the customer experience.
Concrete Changes in Approach Already Being Seen:
Proving that is not only can "talk the talk" but also "walk the walk", the USPS leadership already is putting in place changes that demonstrate its new approach.
The USPS announced that it no longer plans to require mailers to switch to Intelligent Mail bar codes which was to be implemented in 2011. Instead, it plans to increase the value of IMb to the point where it hopes customers will choose to switch from POSTNET bar codes to IMn on their own accord. The USPS has said it will provide enhances mail visibility to IMb customers in the future at no charge.
They also announced an unprecedented move involving refunding postage fees erroneously charged to IMb full-service mailers for some address corrections notices. This is something the USPS had advertised as a "free" feature of that offering. They also changes the way they update the software releases, which impacts not only the presort and mailing software developers, but its end users.
What Does it Mean for You Business?
The changes the USPS is putting in place in terms of its organization, leadership and focus are already having an impact on those cross-channel retailers which use the mail as a marketing vehicle. Catalogers and others may see changes in local or national USPS contacts, as well as a renewed focus on the USPS's behalf to strengthen ts relationships with its customers.
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