Lundmark

It is highly anticipated that Patrick R. Donahoe, postmaster general and CEO of USPS, will announce the suspension of Saturday mail deliver beginning in August at a press conference later today. USPS research indicates that nearly 70% of Americans support the much-debated move to reduce cost. Earlier talks included the suspension of both mail and package delivery, however, it looks as though package delivery will continue as usual. Also, USPS retail locations will maintain current operations on Saturday.

How will the $2 billion cost reduction plan impact marketers? Implications to consider include…

CLUTTER - The elimination of Saturday mail will obviously increase adverting clutter Monday - Friday. As it does today, direct mail competes for time and attention with all other mediums (promotional letters, postcards, magazines, catalogs) as well as personal mail. However, this is also an opportunity for brands and retailers to develop stronger relationships with consumers. Good creative and targeted, relevant content will always get noticed. Carefully crafted messages directed to consumers will build brand equity and ultimately result in increased sales. Look for an increase in personalized materials and content as marketers look to cut through the clutter and attract attention.

POSTAGE RATES - If the cost reduction plan is successful how will it affect rates? Only time will tell. However, it's possible that the frequency of increases may be reduced allowing marketers to plan and budget more accurately. We can only hope.

NEWSPAPER DELIVERY - There's possible upside for the newspaper industry in the suspension of Saturday mail. It essentially elevates the medium to the only home delivery system for printed materials on Saturday & Sunday. However, with ever declining subscriptions the industry struggles to reach younger demographics.

RETAIL - USPS package delivery is not anticipated to change at this time. However, if your retail operation currently relies on USPS Saturday delivery, be prepared. Enough said.

The announcement is sure to stir much debate in the coming days and months. As an independent agency, the service receives no tax dollars for its day-to-day operations. However, the agency is subject to congressional control. During the past several years, the USPS has repeatedly and unsuccessfully appealed to Congress to eliminate Saturday deliveries. It is said that the USPS must feel that with pubic opinion on their side the move will be successful. There will no doubt be more to come on this topic.