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Frequently Asked Questions about the Intelligent Mail Barcode (IMB): A Printer’s Perspective

Posted on October 23, 2009

 

Don Landis, VP, Postal Affairs

What is the Intelligent Mail Barcode?
The IMB is a new Postal Service barcode used to sort and track letters and flats; it expands the ability to track individual mailpieces and provides customers with greater visibility in the mailstream than the current POSTNET barcode.

When will the IMB be a requirement by the USPS?
Some printers and mailers have already started to implement use of the IMB, but it will not be mandated until May 2011.

Are there different types of the IMB?
Absolutely.

Basic Service: The Basic Service IMB is just like the existing POSTNET barcode, which is simply used for sorting mail.

Full Service: The Full Service IMB will include services such as tracking, free Address Change Service and Start the Clock.

What are the placement requirements for IMB?
The Intelligent Mail Barcode will be printed in the same place as the POSTNET barcode. On flats, the Intelligent Mail barcode can be placed anywhere on the address side as long as it is at least 1/8 inch from any edge of the piece.

Will I receive any sort of discount for applying the IMB to my mailpiece?
Beginning already in November 2009, mailers will start to receive a $1.00/M discount for electing to use the Full Service IMB on their printed pieces. By May 2011, those not printing the Basic or Full Service IMB will not receive automation discounts from the USPS.

Are printers ready to start applying the IMB?
Major printers and mailers started testing the IMB when it was first announced. Arandell started to apply the Basic Service IMB on some of its saddle stitching equipment in August 2009 and will continue to add the capability to all of its binding and mailing lines going forward. We’ll be ready to provide the Full Service option when USPS the discount becomes available in November.

How can printers ensure that they are applying a readable barcode?
The USPS tolerance expectations for the IMB are strict and if printers don’t meet those expectations, the USPS could immediately assess the mail owner (catalogers, retailers, publishers, direct mailers, etc.) for additional postage. The current compliance requirement is 70%, which means that 30% of your Full Service mailpieces could have non-readable Intelligent Mail Barcodes, but still pass USPS acceptance requirements. Do you want to take that risk, though? NO! If I were in a print buyer’s shoes, I would make sure that my printer/mailer of choice can ensure a high readability compliance. At this point in time, Arandell is being proactive by installing IMB evaluation systems on all of its production lines to ensure the IMB will exceed the USPS expectations. We are currently complying at 100%. I would not accept anything less.

Why is the USPS implementing the IMB?
The IMB is intended to benefit you just as much as it will benefit the USPS.

The IMB:

  • provides more information than the POSTNET, but consumes no additional space on the mailpiece;
  • allows for better marketing decision-making by encoding more detailed information about mailings;
  • necessitates the printing of only one barcode on any mailpiece;
  • gives mailers who utilize the Full Service option the ability to participate in multiple USPS service programs at no additional cost.

This is a very high-level FAQ about the IMB but hopefully it has you thinking about how this implementation will affect your company. For more technical information, you can click here or contact our Postal Affairs, reps, Don Landis and Susan Pinter at 800-558-8724 to answer any questions you may have.

No Postal Increase for 2010

Posted on October 15, 2009

Don Landis, VP, Postal Affairs

The following was released from the Postmaster General this afternoon. Some great news for your Thursday afternoon!

For questions regarding this release or other postal issues, please contact Don Landis , Arandell VP of Postal Affairs or Susan Pinter, Director of Postal Affairs at 800-558-8724.

To Postal Service Customers:

Many of you have expressed concerns regarding mailing costs for 2010.  The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.

As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.

The Postal Service will not increase prices for market dominant products in calendar year 2010.

Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post.  There will be no exigent price increase for these products.

This is the right decision at the right time for the right reason.  Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.

While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system.  We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace.  Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration.  We expect to announce a decision in November.

We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing.  Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail.  Mail is a smart investment for the future.

John E. Potter

Catalog “Busy Season” Solutions

Posted on October 05, 2009

Don Treis, CEO

As Americans prepare to carve pumpkins, Trick or Treat, join friends and family in a time of giving thanks and purchase presents for loved ones, the catalog and direct mail world awakens. We in the direct mail business understand the rush of excitement of preparing files for catalog layouts, fine tuning mail files, controlling order fulfillment and optimizing marketing strategies.  A direct mailer’s world is turned topsy-turvy this time of year to ensure we utilize every ounce of what the holiday season has to offer.

Arandell Corporation understands that catalogers and direct mailers are in the midst of an exciting, stress-filled and demanding season.  Earlier in the year, we were preparing for YOUR busy season. During the summer months we performed LEAN initiatives to ensure our equipment was prepared to produce top-quality materials. Early this autumn we met with our sales representatives and sales support to educate them on the latest industry technologies and trends. We are prepared to assist you in all of your catalog and direct mail needs, not limited to just printing and distributing mail.

Perhaps your catalog is not receiving the expected ROI. We can help you inspire solutions such as updating your mail lists or changing formats to better suit your target market. Perhaps you are receiving large returns on an item. Our prepress experts can evaluate the printed color quality to determine precise color matching.  Are you having difficulties understanding the effect your catalog and direct mail piece has on sales? Our data guru can work with your company to optimize your matchback program.

I would like to stress that we at Arandell Corporation can consult in best practice catalog solutions. We have been in the catalog business for decades, proudly working with leading companies to increase their profitability. Our job is to help your “busy season” complete successfully.  Give us a call (800-558-8724) while there is still time to enjoy the season!

Full Service IMB options, is it right for you?

Posted on September 30, 2009

Susan Pinter, Director of Postal AffairsArandell Corporation has printed and mailed many retail and mail-order catalogs. Both have their own unique requirements based on their marketing objectives.  For instance, retail catalogs have particular in-home dates to meet and are planned in meticulous detail with in-store promotions. Our standard mail-order catalogs often have personalized order forms and inserts that need matchback information to correlate in-home dates and Internet traffic.

With the upcoming changes to the USPS method of tracking mail, specifically transitioning to the Intelligent Mail barcode (IMB) system, the needs of our retail and mail-order clients will be adjusted. Click here to learn more about IMB. We have been surveying our customers to determine how they, or if they, plan to use the Full Service IMB option. As of today, only our retail customers have expressed a desire for Full Service IMB to be used for tracking purposes. Additionally, some retailers are toying with the idea of using the Full Service IMB in lieu of printing Point-of-Sale personalized customer barcodes on their direct mail pieces.

I am writing to learn the opinion and perspective of our standard mail-order catalogers. We have already heard several possibilities on how they might use the IMB services, but at this time have not heard of any immediate plans for mail-order catalogers. Our understanding is most catalogers are just looking at “What if?” scenarios.  

Some of the things we have heard being pondered:

  • Using IMB in lieu of matchbacks
  • Using IMB data for segmentations
  • Of course, retail and standard mail-order catalogers are taking in cost considerations with the different IMB options.

It seems the possibilities center around being able to use the IMB for smaller segmentation of files. I would love to learn what you are planning! Do you believe that Full Service IMB will have a large ROI? What information are you most interested in collecting? If you are NOT considering the Full Service, why? Do you fully understand the file requirements to implement your desired IMB service? What possibilities are there for using the IMB in a standard mail-order world other than tracking?

Look forward to hearing from you!

Stay Tuned: USPS Nearing Final Decision on Winter Postage Sale

Posted on September 25, 2009

Don Landis, Vice President, Postal and Government AffairsAs 2009 approaches the end, it appears the USPS is seriously considering the earlier-proposed Winter Postage Sale. The USPS’s final decision should be announced in the upcoming weeks. Like the USPS Summer Sale, the proposed Winter Postage Sale will provide yet another incentive for catalogers and direct mailers to increase their mail volume. In my opinion, the Winter Postage Sale will be an improvement from the previous postage incentives offered.

Unlike previous postage incentives, the Winter Sale will have a less complicate formula to calculate qualifications and savings. (The proposal is to simply base qualifications and savings on  any mail volume increase over the same period last year for the months of January 2010 through March 2010.)  It will also offer the largest incentive (proposed 30% discount) for direct mailers that qualify.

Earlier this week Hamilton Davison, Executive Director of the American Catalog Mailers Association, posted an update on the USPS proposed Winter Postal Sale. Within the article he shares the impact that ACMA has had with the proposed incentive, deadlines and additional details on the postage rebate.

Do You Pass the Droop Test?

Posted on September 17, 2009

Don Landis, Vice President, Postal and Government AffairsFirst of all, I should clarify WHAT the droop test is. I can only imagine what you all thought of when you read the title of this post….

The droop test measures the flexibility of catalogs. If mail pieces are too flexible they will topple over as they travel through the USPS sorters and scanners. Implementing deflections standards, or droop standards, will greatly reduce the amount of direct mail pieces that fall off the machines. Recently, the USPS extended the deadline for the deflections standard implementation from September 8, 2009 to January 4, 2010.

How to test your catalog

Click here to see a brief three minute instructional video. Otherwise, read on! (more…)

Understand Your Customers by Increasing Address Quality

Posted on August 31, 2009

Gary Sierzchulski, Vice President, Arandell Marketing SolutionsOne of the most critical factors that is often overlooked in regards to Address Quality is the ability to better understand and view your customers.  Here’s is what I mean.

Suppose you have customers John Smith at 125 Ferret Street and J Smith at 125 Ferret Avenue Apt 2.

The John Smith at Ferret Street has purchased 9 products from you over the years, but none in the past 12 months.  However since he’s been a customer of yours, he has purchased $1400 worth of your products.

The J Smith at Ferret Avenue Apt 2 has purchased a $65 item from you 5 months ago but nothing before or since then.

Based on their past buying history, you would treat these two customers (or should) very differently.  In fact, if you were doing a mailing to only customers who purchased over $100 from you within the past 6 months or who has spent over $1500 life to date neither one of them would receive your mailing and you and they would miss out on a great opportunity to connect.

However through the proper use of address integrity products and duplicate identification processes we have cleaned up their information and these two customers now become one. 

Bad news is you just lost a customer. 

Great news is that you identified one of your best customers. Now you can communicate with him in a whole different way and acknowledge the fact that he indeed is one of your best customers.

(more…)

USPS First-Class Mail Sale Coming Soon

Posted on August 25, 2009

Don Landis, Vice President, Postal and Government AffairsThis week will be an exciting one for some first-class mailers. On August 21, letters were mailed to all First-Class mailers who qualify for the upcoming First-Class Mail (FCM) Incentive Program. (Think you qualify, but didn’t receive a letter? Click here to contact the USPS.) The sale on First-Class mail is going to be structured similarly the USPS Summer Sale (which will last through September 30) that was rolled out for standard mailers earlier this year.

And, so you ask:

What qualifications do I need to meet in order to participate in the First-Class Mail Sale?

  • Minimum of 500,000 non-parcel First-Class pieces mailed through your Permit account between October 1 and December 31 of both 2007 and 2008.
  • Undergo a 45-day approval period by the Postal Regulatory Commission (PRC).

What Incentive is being offered for participants in the First-Class Mail Sale?

  • 20% postage rebate (credited to your postal Permit account) for qualifying presort letters, flats and cards mailed between October 1 and December 31, 2009.
  • After the rebates are applied, the discounted price, on average, will land somewhere between the First-Class Mail and Standard Mail rates.

Act now!

If you received your participation letter, be sure to visit the program registration Web site. You’ll also need to work with your mail service providers to obtain accurate 2007 and 2008 counts to provide documentation to the USPS Participants. The difference between those two years’ mailing quantities will determine your incentive threshold.

If you have NOT received a participation letter but you think you qualify, click here to contact the USPS directly. Remember…this particular program is for First-Class mail ONLY.

Standard mailers, stay tuned!

These incentive programs may be here to stay. A potential winter sale is being considered, with even more features than the Standard Mail summer sale. My personal perspective is that until the USPS turns itself around, the organization will continue to find new ways to incentivize mailing quantity increases. And, even when the postal service does end up back in “the black,” I can fully see them continuing to offer these incentives during non-peak mailing seasons as long as they continue to see results. So mailers, keep on mailing!

For additional information, please contact Don Landis or Susan Pinter; they can both be reached at 800-558-8724. You can also contact the USPS directly regarding the First Class Mail Incentive Program at firstclassmailincentive@usps.gov.

How Move Update Requirements will Affect YOU the Cataloger

Posted on August 24, 2009

Gary Sierzchulski, Vice President, Arandell Marketing SolutionsThe USPS’s recent announcement to assess charges for mailings that do not comply with the Move Update requirements starting in January should be a non-issue for mailers.  The sad truth however is that it still causes many of you confusion, anxiety, and worry.

Very simply put – In today’s environment, there is no reason not to run NCOA on each and every mailing you do regardless of how small they are.  To do anything else even though it complies with the USPS’s requirements really defeats the overall purpose and does not provide an efficient / effective mailing campaign.  All of the other options approved by the USPS are either done during or after the actual mailing.  So why waste dollars when you have the ability to make the changes before the mailing goes out?

 To recap – Here is what NCOA provides you with:

  • Change of Address
  • Address Standardization
  • Carrier Route Coding
  • Zip Code Correction
  • Zip+4 Coding
  • DPV Coding
  • CASS Certification
  • Identification of non-deliverables

What other product can deliver all of this at an extremely low price with almost immediate turnarounds?  AND before the mailing goes out?

For additional information on the increase for non-compliant mail piece click here.

I am always available as well via email at GASierzchulski@Arandell.com at 414-248-9151.

Canada Post Corp. Rate Changes Effective January 11, 2010

Posted on August 20, 2009

Don Landis, Vice President, Postal and Government AffairsWe received word from Canada Post this morning that rate increases to Canada are expected to occur for all services including new weight band pricing for Oversize LettermailTM items. The proposed increase for Lettermail pieces up to 30 grams (1.05 ounces) is three cents. We will provide an update on the proposed rate increase after official approval by Canada Post.

To see the new Canada Post rates, click on the following links:

Canada Post Publications (PDF)

Canada Post Business Reply Mail (PDF)

Canada Post Lettermail (PDF)

Canada Post Addressed Admail (PDF)

Questions? Contact me at 800-558-8724.

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