Tangible ROI’s for Full Service IMb

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There are several ways to identify the benefits of tracking mail. Now that the implementation of Full Service Intelligent Mail barcode is right before us, your company needs to know how they will recoup the investment. This session will focus on translating benefits to ROI (Return on Investment) to assure that your Full Service IMb projects get approved and funded.

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Tangible ROI’s for Full Service IMb

  1. 1. Calculating the ROI of Intelligent Mail® / Tracking 2013 National Postal Forum San Francisco, CaliforniaJeff Stangle Bruce GreshamVice President of Solutions Product Manager, PresortEngagement Services
  2. 2. Intelligent Mail® Implementation• Original Plan – Meet Industry Regulations• Reality – Dates Changed – Technology Changed – Need to Justify Implementation• Alternate Reality – Companies have figured out how to save money based off intelligent use of data
  3. 3. Opportunities by Vertical CARD Act, Regulation Z, UDAP, Fraud Flag Cancellations, Agent Copies, Interested Party Notifications, Certificates of Mailing HIPAA, Cancellations, Cobra, EOB’s, Denials Standard Class, Campaign Performance, Response Marketing, Call Center Management Carrier Change Confirmation, Third Party Reconciliations
  4. 4. Opportunities by DepartmentMail & Print Marketing Customer Legal Finance Line ofOperations Service BusinessDiscounts Discounts & Piece Level Proof of Cash Flow Improving Promotions Queries Mailing Address QualityJob Tracking Campaign Tracking Collections Tracking Management Responses Responses (Mail / Multi Channel)Delivery InHome™ Tracking Tracking Responses Cancellation NoticesVendor Vendor TrackingManagement Management Cancellation NoticesIdentify TrackingDelivery ResponsesIssues
  5. 5. Public Examples of IMb ROI• Reader’s Digest – Covered the cost of implementation through use of ACS• US Census – Reduced door to door census surveys by measuring response and address quality• Halmark – Increased revenue through in-store postage
  6. 6. Case Studies• Protecting the Discount• Campaign Optimization• Cancellation Notices• Reducing Fraud• Cash Flow Optimization• Real Intangibles
  7. 7. Protecting the Discount• Very basic strategy to ensure compliance with USPS regulations Non- Annual Discounted Mail Pieces Months inMail Type Qualifying Difference Additional Postage Per Month a Year Postage CostFirst Class $0.384 $0.460 $0.076 1,000,000 12 $912,000Standard $0.260 $0.433 $0.173 1,000,000 12 $2,076,000
  8. 8. Campaign Management• Increase response by effectively managing distribution and multi-channel campaigns Average Response Campaign Campaign Net Benefit Order Value Rate * Mail Piece Value Per Piece Mailing Campaign Response Rate 250 1.3% 1,000,000 $3,250,000 $0.50 $2,750,000.00 Multi-Channel Campaign Response Rate 250 9.4% 1,000,000 $23,500,000 $1.00 $22,500,000.00 Totals: $20,250,000 $19,750,000 * Source of Response Rates - Banta White Paper "Developing Effective Multi-Channel Strategies Average Response Campaign Campaign Net Benefit Order Value Rate * Mail Piece Value Per Piece Mailing Campaign Response Rate 250 0.5% 1,000,000 $1,250,000 $0.50 $750,000.00 Multi-Channel Campaign Response Rate 250 1.0% 1,000,000 $2,500,000 $1.00 $1,500,000.00 Totals: $1,250,000 $750,000 * Source of Response Rates - Real Life
  9. 9. Real Life – Campaign ManagementSituation Results• A large Direct Marketing campaign • Over 5 Million pieces were recreated. during the biggest season a large portion of mail was alerted to have – Piece cost = $0.35 no scans, over the Eastern United – Value of responder = $100.00 States. – Response rate = 0.5%• It was determined that the mail may not be recoverable due to a large trucking problem. • $4,250,000 ROI for that mailing.• Because of the IMb we knew which pieces had not been scanned so we created a new file for the lettershop to reprint and expedite using First Class mail to ensure the pieces made it in before the end of the season and to salvage the mailing.
  10. 10. Real Life – Campaign ManagementSituation Results• Mailing alerts found little to low • Piece cost = $0.35 scans at a NDC and SCF’s on • Value of a responder = $500 250,000 pieces of mail. • Response rate = 0.25%• Because of the early alerts the mail was found, expedited and the mail was delivered a few days • $400,000 ROI for that one after the bulk of the mail. mailing.
  11. 11. Cancellation Notices • The insurance industry utilizes an array of data for policy cancellation notices. • Data is utilized in place of bulk certificate of mail ($.44 cents each) and used in court as evidence in an accident trial to prove an uninsured driver was mailed a cancellation notice. Mail Tracking Presorted Certificate of Pieces Months AnnualMail Type Full Rate Difference Data Per Difference Rate Mailing Per in a Year Savings Piece MonthFirst Class +Certificate of $0.433 $0.460 $0.027 $0.010 $0.440 $0.430 1,000,000 12 $5,484,000Mailing “(The) data has saved our company hundreds of thousands of dollars annually in certificate of mailing costs. Once the process is setup, it is seamless and works like a charm.” – Leading Insurance Company that sent approximately 10,000 pieces per day via certificate of mail.
  12. 12. Reducing FraudMSNBC• 8.4 million credit cards are stolen each year• 286 Million instances of fraud each yearStatisticsBrain.com• 7% of all stolen credit cards through the mail• 588,000 credit cards per year are stolen through the mail• 1.4% of all e-commerce sales are lost due to stolen credit cardsOutbound Credit Stolen Through Average Months in aCards Mail - 1.7% Value Monthly Cost Year Annual Cost 100,000 1,600 $ 5,000 $ 8,000,000 12 $ 96,000,000
  13. 13. Real Life – Reducing FraudSituation Results• During a one year period we • Individuals were identified, worked with a large credit card monitored and arrested. company and the USPS Inspection • Over 10,000 cards were stolen in service where we used the IMb of one year from these two the mail piece and fraud data locations generated by the credit card • $500.00 in fraud per card. company to identify two separate fraud rings. • Over $5,000,000 in fraud prevented over a year’s time.• Two SCF’s (East & West Coast)
  14. 14. Cash Flow Analysis Elapsed Days In-home to First Remit Scan 800,000 100.0000% 90.0000% Customer payment behavior analyses  Identify in-home to remittance response time 700,000 80.0000% 600,000  Predict cash flow and necessary processing support 70.0000% 500,000 60.0000% Piece Count 400,000 50.0000% 40.0000%  Establish production to minimize remittance time 300,000 30.0000% 200,000 20.0000% 100,000 10.0000% 0 0.0000% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Elapsed Days Piece Count cumulative percentage Lockbox float efficiency analyses Elapsed days between receipt of statement and remittancesUSPS Performance on Remittances 3 Day Optimize use and location of Lockbox 54% 3 Day USPS SLA 14% operations to improve cash flow (improve control, performance, and 2 Day 32% 66% 2 Day predictability) 4% 1 Day 20% 1 Day Customer Lockbox Customer Location Lockbox Distance Location Location Distance Location
  15. 15. Real Intangibles• Risk Mitigation• Customer Service• Domestic Voter Registration• Overseas Voter Registration
  16. 16. The key is how you present data• Graphical / Easy to read executive reports
  17. 17. The key is how you present data
  18. 18. The key is how you present data• Geographic identification of potential issues
  19. 19. In Closing• Intelligent use of data is an enterprise strategy• Leverage the savings of one project to fund additional revenue and savings opportunities• Demonstrates the value of mail as a integral part of a complete communication strategy
  20. 20. Contact InformationJeff Stangle Bruce GreshamVice President of Solution Product Manager | PitneyEngagement |Grayhair Bowes Presort ServicesSoftwarejstangle@grayhairsoftware.co bruce.gresham@pbpresortserm vices.comOffice: 856.924.2415 Office: 704-391-1229 x 111www.grayhairsoftwre.com www.pbpresortservices.com

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