The PRC could back cutting a delivery
from the crippling obligation to pre-fund day, but needs more details, such as what new techniques and an ROI calculator. different kinds of media, including mobile
future retiree healthcare costs,” said American day would be cut, whether it would be year The decision to create this new division and Websert programs, said Chris DeMar-
Postal Workers Union President William round or seasonal, and if it would be for the and services comes with the recognition of tine, director of business development for
Burrus in his House testimony last week. whole country or regional, Blair said. the “evolution of list companies becoming Nextmark, based in Hanover, NH.
As of March 27 the proposed legislation Further, he said, while cutting a delivery “I think there is a lot going on in technol-
was still before the House Subcommittee on day would likely save money, it also will ogy and analytics and modeling − really
Federal Workforce, Postal Service. further reduce volume in the mailstream. in the past two years it’s been taking off,”
National Association of Letter Carriers “We estimated (reducing a mail deliv- he said. “When you take it down to list
President William H. Young also backed the ery day) could save $2 billion a year, but level, talking about that, it’s really being
reforms, citing the survival of the USPS. it comes at a cost,” he said. “The Postal able to choose data cards for many differ-
“We are not here today to ask for a tax- Service needs to quantify that cost.” ent kinds of media. It’s important to add
payer bailout, but we are here to ask the Jerry Cerasale, SVP of government value and diversify.”
Congress for help,” he told the hearing. affairs for the Direct Marketing Associa- The most important thing for a list bro-
Modifying the USPS’ payments to the tion, agreed that more information on cut- ker hasn’t changed: Being able to offer their
retirement health benefit is vital to its con- ting a delivery day is needed, but that the client the right list in whatever medium
tinuing operation, said Dan Blair, chairman Postal Service needs to keep all its options that may be, DeMartine said.
of the Postal Regulatory Commission, an on the table. List brokers still have a valuable ser-
independent agency, which exercises regula- “They have to look at everything in order vice to offer even though there may be a
tory oversight over the USPS. to remain viable,” he said. diminished focus on them in the industry,
“We believe that legislative relief is war- Cerasale said it would be difficult for pri- he said, citing the Direct Marketing Asso-
ranted in that respect,” he said. vate shippers to pick up the extra 180 billion ciation’s elimination of the “list visions”
Potter also reiterated the idea of reducing pieces of mail should the worst happen and conference as one example.
the delivery schedule from six to five days, the USPS can’t continue operating. more like data agencies,” Schwedelson said. Like Schwedelson, DeMartine believes
noting the removal of a legal requirement “The transition could be traumatic, and “If companies are not transforming their list brokers will continue to offer a variety
regarding days of delivery could result in it would really hurt marketers if you have business and doing unique and exciting of services.
annual savings of $3.5 billion. get parcels delivered,” he said. things, they will not survive,” Schwedelson “List companies have become much
The USPS also is looking to trim employ- Hamilton Davison, president of the Amer- said. “If you are a list company and that’s all more well-versed in providing marketing
ees and delivery routes to cut costs. ican Catalog Mailer’s Association, said Pot- that you do, you are in bad shape now. Our strategy, rather than just offering list recom-
Since December, the USPS has sent vol- ter has made strides to reign in costs at the clients will view us as a data partner and mendations,” he said. “A list broker today
untary early retirement offers to nearly USPS, and hoped Congress wouldn’t be agency, and that’s the model of future.” has a lot more to know.”
161,000 of its employees. skeptical of his requests due to past financial Infinite Media, based in White Plains,
Of those, 9,157 employees accepted the mismanagement by the Postal Service. NY, in conjunction with Nextmark, also
offer, said USPS spokesman Greg Frey. “I am hopeful Congress will see the wis- announced a new service last week,
“That’s around what we expected,” he dom in relaxing the prefunding obligation,” relaunching its MailingLists.com Web site.
said. “We expected around 3% to 5% and he said. “I don’t know what will happen if The site features 60,000 mailing lists by
got about 5.5%.” Congr