Anyone involved in direct mail marketing should pay special attention to all external events affecting the industry. This especially applies to new laws and policies created to address issues affecting the United States Postal Service. Speaking of which, a sweeping bipartisan bill was just passed in the House and moves on to the Senate that may change the industry indefinitely. The following is a closer look at the bill and why it is important for direct mail marketers.
Details about the Bill
In February 2022, the House of Representatives passed a sweeping bipartisan bill called the Postal Service Reform Act of 2021. The goal is to help save the USPS approximately $50 million over the next decade. Specifically, the bill includes the following clauses:
- Six-Day Delivery Model: The bill mandates that mail delivery remains at six days per week, rather than the five-day delivery reform that was recently suggested.
- Pre-Funded Retirement Healthcare Benefits: The bill also eliminates a mandate created in 2006 that required the pre-funding of more than $120 billion in retiree healthcare benefits for current and retired employees, 75 years in advance. This is a unique mandate that no other government department faces, and will save approximately $27 billion over the next 10 years.
- Weekly Performance Dashboards: The bill also requires the USPS to create an online weekly performance dashboard. It must be sectioned off by ZIP codes and is used to measure first-class mail delivery. The ultimate goal is to boost transparency concerning service delays and delivery time.
Why it Matters
On the surface, these seem to be positive changes that can have significant impacts on service and overall performance. For instance, the weekly performance dashboards will likely help boost performance in terms of first-class mail delivery, adding transparency to the government entity. Either way, this seems to be a period of transition in which things may get a tad confusing as they implement these new policies.
Key Takeaways
- The Postal Service Reform Act of 2021 is slated to make significant changes within the USPS.
- These changes may help solve issues in relation to funding and customer service.
- Either way, it’s important to be mindful of these changes as they may cause confusion as the department gets acclimated to them.
Overall, if you are interested in launching a direct mail campaign, we’re here to help. No matter what your preferred marketing method may be, here at Ballantine, we are dedicated to providing you with information and services that will help you avoid obstacles and pitfalls. Contact us today for more details.
I'm the Director of Digital Services and Partner at Ballantine, a family-owned and operated direct mail & digital marketing company based in New Jersey. and started in 1966 by my great uncle!
