March 3, 2010
AM 980 KFWB in Los Angeles, California interviewed CEO of AIS Media Thomas Harpointner regarding the recent halt on the delivery of mail through the United States Postal Service on Saturdays and why the cost of Interactive marketing more efficient. Harpointner’s comments included:
“There are two primary reasons for the decline in the Postal Service. One is the cut back of businesses’ spending of direct mail advertising and two, the emergence and success of email. The second reason being that most companies require some type of adjustment in the way they do business over the years which is why it is important for the Post Office to re-evaluate their business model. As it turns out, consumers today want less junk mail and they are looking for more efficient ways to do everything. There will always be a future for mail and all existing traditional media – it will always be emerging and evolving — but the Postal Service as we known it, really is dead.”
Harpointner’s Key Points Included :
- Bigger Loss Ahead: Post Master General John Potter recently stated that without drastic action, the agency could face a cumulative loss of $238 billion dollars over the next 10 years.
- Halt on Saturday Mail: Shutting down the Postal Service on Saturday will reduce the amount of money the USPS is losing. Consumer’s lack of use of the Post Office is causing major inconveniences. Today’s consumers are conditioned to opening their postal mail over the trash and turning to their email and online billing to save time and money on postage.
- Interactive Marketing on the Rise: Interactive marketing has been emerging for 10 years now and is expected to double by 2014, reaching 55 billion dollars. Interactive marketing makes it easier for businesses to track and measure their return on investment (ROI) when visitors go to a company’s website.
- Newer Model: Facing a $7 billion deficit this year amid dwindling mail volume, the Post Office must make an adjustment in their business model. As a whole – the USPS needs to reinvent themselves and implement smarter, more digital strategies and realize that ultimately what the customer does decides their survival.