Truman Pope Unveils Q1 2024 MTAC Highlights

The recent Mailers’ Technical Advisory Committee (MTAC) meeting, hosted at the Pink Palace in the snowy backdrop of Washington, DC, unfolded a cascade of crucial updates. Truman Pope, MDP, Director of Planning/National Postal Affairs MTAC at American Litho, was in attendance and sheds some light on the pivotal discussions.

Postmaster General’s Address: A Journey from Catastrophe to Triumph

The gathering commenced with a ninety-minute presentation from the Postmaster General (PMG). He used visual metaphors which included bats and geese as examples, and he made it clear he doesn’t like slide presentations.

The metaphor was intended to show how the Postal Service has changed since he started, comparing it to geese flying together in a V-shape to save energy and reach their destination.

In my view, the Postal Service isn’t exactly flying together in formation like geese. Changes are needed for sure. The General’s idea of fixing things in three years was overzealous and a bit too hopeful (as he admitted). The PMG admitted the problems go back at least 15 years.

Honestly, it’s still unclear if the DAF 10-year plan can turn things around, it’s still uncertain. The General seems more focused on packages than regular mail, probably because of his background. He’s pretty sure that mail volume will keep dropping, no matter how much they raise the rates.

Unveiling Growth Incentives for 2024

Among the highlights:

Registration To-Date Since registration opened on 11/29, we have 550+ registrations in process that are associated with ~22B pieces of eligible mail volume and we have made significant progress in finalizing registrations with Mail Owners. 16 550+ Registrations are in process to-date 22.4B Total volume associated with in[1]process registrations Of registrations have been finalized 44% Of registrations are being evaluated by Mail Owners 41% Of registrations are in discussion with USPS 11% Of registrations have agreed-to baselines and are being reviewed before finalization.

Since registration opened on 11/29, we’ve garnered over 550+ registrations in progress, associated with roughly 22 billion pieces of eligible mail volume. Notably, we’ve made significant strides in finalizing registrations with Mail Owners.

Numbers at a glance:

16500+ registrations in process to date representing 22.4 billion mail pieces.

– 44% of registrations have been finalized.

– About 41% are currently under evaluation by Mail Owners.

– 11% are engaged in discussions with USPS.

– The remaining 4% have agreed to baselines and are undergoing review before finalization.

Insights from 2023 have informed the 2024 promotional strategies.

When promotion periods overlap, mailers opt for the higher discount. To offer more flexibility, the USPS introduced and are currently testing the Emerging & Advanced Technology’s floating promotion period in 2024.

The revisited promotion requirements to streamline processes and better serve mailer needs:

• For Personalized Color Transpromo, a marketing message is now required in 2024 instead of a trans promotional or personalized message.
• Tactile, Sensory, Interactive promotions now include peel and reveal as an eligible element, USPS increased staffing for reviewing TSI submissions to expedite the review process.
• The Mailing Promotions team is continuously assessing ways to simplify and enhance accessibility for mailers.

A Glimpse into 2025 Promotions

The MTAC meeting unfolded exciting prospects for 2025 promotions, including some noteworthy changes:

– Integrated Technology Promotion: Formerly known as the Emerging Technology Promotion, it will witness the elimination of the Mobile Shopping component. Mailers gain the flexibility to choose their preferred six-month period for running Integrated Technology mailings.

– Tactile Promotion: Ranked second after Informed Delivery, this promotion remains popular.

– New Promotions: Introducing the Sustainability promotion, offering discounts for utilizing recycled paper. Additionally, a Marketing Mail-exclusive Continuous Contact promotion caters to mailers targeting the same address with progressively building offers. An intriguing development is the approval of promotion stacking, allowing participation in multiple promotions simultaneously, albeit with some restrictions.

Proposed Base/Primary Promotions for 2025:

1. Integrated Technology: Encourages mailers to incorporate technologies like AI, Augmented Reality (AR), Mixed Reality (MR), Virtual Reality (VR), Near Field Communication (NFC), Video in Print, voice assistants, and more to enhance mail performance.
2. Tactile, Sensory, Interactive: Encourages mailers to boost customer engagement by innovating in paper and stock, substrates, inks, interactive elements, and finishing techniques.
3. First-Class Mail Advertising: Promotes the use of First-Class Mail as an avenue to advertise other offerings.
4. Reply Mail IMbA™: Encourages Qualified Business Reply Mail (QBRM) and high-volume QBRM customers to adopt Intelligent Mail barcode for Business Reply Mail (IMbA™).
5. Continuous Contact: Incentivizes mailers to send mail more frequently to the same household.

(Pending PRC Approval)

Proposed Add-On/Upgrade Options for 2025:

1. Informed Delivery®: Utilize USPS’s omnichannel feature by incorporating a digital element to your mailpiece when using Informed Delivery campaigns.
2. Sustainability: Demonstrates efforts to be environmentally conscious by ensuring the paper used in the mailing originates from responsible sources.

Peering into the Abyss of Rate Increases

Unraveling the projected postal rate increases until 2027, a revelation that might send shockwaves through the industry:

– July 2024: 7.7%

– January 2025: 1.2%

– July 2025: 7.3%

– January 2026: 1.0%

– July 2026: 4.5%

– January 2027: 1.2%

– July 2027: 4.5%

Calculating the compounded effect, this signifies a staggering 30.5% increase in rates over three years, exceeding the CPI rise of 8.5%. This emphasizes the significant impact on postage costs, escalating at 3.6 times the rate of inflation.

The MTAC meeting offered invaluable foresight as the industry faces challenges and opportunities, and adapting to these changes is key for sustained success.

FAQs

1. How do the proposed rate increases impact small businesses in the mailing industry? Small businesses may face increased operational costs, necessitating strategic adjustments to maintain profitability.
2. What steps can mailers take to maximize benefits from the proposed 2025 promotions? Mailers should carefully align their strategies with the specific details of each promotion, considering factors like sustainability and continuous contact.
3. Are the MTAC meeting highlights subject to change? Yes, the promotion changes are proposals and require approval by the Postal Regulatory Commission (PRC).
4. How can mail owners address process issues in utilizing the Growth Incentives for 2024? Collaborative discussions between mail owners and the Postal Service are essential to iron out process issues and ensure a smooth application of incentives.
5. Where can I stay updated on future developments in postal affairs? Regularly checking official announcements from relevant authorities and participating in industry forums can keep stakeholders informed.