How Should the Postal Service Sell Its Products?

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Do you want to supersize that? All businesses upsell . . . Should the Postal Service? picture of french fries

The Postal Service has a long and proud history in public service. It has always been viewed as part of the federal government, yet has also been told to “act like a business” and to be self-sufficient. These distinctions can lead to interesting real-world implications, such as the degree to which retail associates should “upsell” or otherwise assist customers as they transact postal business. On one extreme, some claim that retail associates should do everything to find the lowest price for the customer. On the other extreme, some believe that retail associates should maximize the revenue from each transaction, and if that means selling more than a customer “needs,” then so be it. Of course, there is a wide area between these two extremes, and the Postal Service is challenged to meet these sometimes conflicting goals of providing public service and maximizing profit. But are these goals really conflicting? What balance should the Postal Service strike between finding the best value for the customer and maximizing revenue? What factors should be considered in striking this balance – transaction time (keeping the line moving), customer satisfaction (the customer feels good about the transaction), ease of use (keeping the transaction and choices simple), public service (an obligation to find the best deal for the customer), standardization of retail experience (providing routine guidance to retail associates), or other factors?

Which of these statements best describes your opinion?

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There are a wide variety of transactions, so striking the right balance is difficult. Nonetheless, by looking at specific examples, one can see the implicit tradeoffs. For instance, if a customer is mailing a rather heavy box that the retail associate presumes may contain books, should the retail associate ask the customer if it is solely books and offer the reduced Media Mail price? Or should the retail associate encourage the use of Express Mail or Priority Mail, and suggest additional special services?

What are your thoughts about how the Postal Service should serve customers while generating revenue?

This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).

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Permalink | Comments (39) | Aug 10, 2009

 

 

39 Responses to “How Should the Postal Service Sell Its Products?”

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  1. 39
    Micahel hendrickson Says:
    February 11th, 2010 at 4:50 pm

    I must be one of the “lucky” ones. I receive great service from my local post office. I’m glad the employees offer “extra” or “special” services because sometimes I forget. (It’s like going to the grocery store-you go there frequently but not for the same items every time.) It’s nice to go to the post office and be helped by clerks who suggest things, without a shopping list to remind me.

    Getting to know your post office people, just like your butcher or baker at the grocery store, makes each trip a pleasant experience. They get to know your needs and let you know of new stamps or services that you might need.

    Lucky One

  2. 38
    Nostradamus Says:
    October 21st, 2009 at 7:34 pm

    I think that this is all a joke. Eveyone has there opionions. So leave it at that!!!!!!!

  3. 37
    Rob Says:
    October 21st, 2009 at 6:19 pm

    I think that the Postal Service should be self sufficient there’s enough debt about without adding more to it. Some people will be willing to pay more for additional services so target them!

  4. 36
    r.c Says:
    September 9th, 2009 at 4:35 pm

    As a customer of USPS, I would appreciate retail clerks at the PO to inform me of the best cost to send. I absolutely RESENT a business who has their hands in my pocket as soon as I walk in the door! Its a matter of trust. I want to feel as if they are looking out for me as well. They need my business, I need their services, lets keep it simple. I would suggest “extra services” windows at PO for those who have questions regarding their shipments. With alot of the available employees on “standby” there should be no reason customers should have to wait inside the customer service lobbys. Get all the clerks trained on retail sales. Make the premium products comparable to Fed Ex and UPS. Please make sure managers in area offices AND plant operations constantly keep on top of Express and delivery comfirmations…this seems to wax and wane depending on the amount of pressure to perform. Employees bid on different positions within a plant and their expertise on these products does not go to the next employee without any “real training” resulting in product failures. Managers should keep on it and have accountability with it. Or else the products are waste. Would it hurt managers to learn and perform scanning and tracking processes so they are aware of the products importance? In addition, the Post Office is at every household every day, as an employee of the USPS, we are a walking, talking advertisement to every person in the US. Could we not contract with companies to pitch their products as well as our own? While customers are in lobbies, do we have screens they can view as they are waiting in line? For a certain product..either ours or a clients? (fee based) Would this be to much red tape? Is there a clerk at the window who can assist customers bring in their packages? Do we have an “EXPRESS” window for those only mailing Express mail (especially during holidays) And the simplest question, of which I partially have an answer for, why cant those window clerks at least smile and show a little gratitude to the customers? I rarely visit a post office where the clerk is glad to do business. In fact, I will not go back to a business if I am treated as if I am imposing on some time they might have had if I had not interrupted….but I try to buy only USPS because I am an employee. I will not buy from a business who just contributes to me having a bad day. Come on “lets step it up”

  5. 35
    Anonymous Says:
    August 31st, 2009 at 5:16 pm

    I am a 30 year Postal Employee with several years experience as an SSA and 204-B Acting Supervisor. I am well known and respected by my customers at the window for providing excellent customer service and for my product knowledge. In my opinion the Postal Service is heading in the wrong direction by “standardizing” all Post Offices and requiring SSA’s to follow a “script”. The first example of this I can give you is that a few years back, we tuned in to a local Classic Rock station playing music in the lobby for customers to enjoy while they were waiting for service. We were so popular that the local radio station would mention us on the air frequently and dubbed us the “Rock and Roll Post Office”. What great Public Relations that was! Sadly, someone sitting behind a desk somewhere decided no more radios, TV’s or clocks in the lobbies. Horrible decision!
    As for the “script” we are being forced to follow. I cannot express strongly enough my, my co-workers, and our customers, distaste for this manner of doing business. I have attempted to follow the prescribed script and this is what I have observed. The customer, at first, listens to what I am saying, then a look of impatience crosses their face, and by the time I have finished my spiel, they just want to get the heck out of there and not come back. In my opinion, my job is to professionally assess my customers’ needs, (How soon do you need this to arrive?, is there anything requiring insurance? Do you need someone to sign for the article? etc.) and provide the shipping and services that best fit their needs, whether that is Express Mail or Media Mail. Up selling to increase revenue is a bad, bad idea. In fact, in the POS system, if a customer asks for Media Mail and the article would be cheaper to send by First Class Mail, the software prompts me to ask the customer if they would prefer the lower cost, faster service. This is as it should be, seeing as we are the United States Postal SERVICE. Personally, I have no problem with a business that explains the options that are available to me, but when I go to a business that tries to pressure me to upgrade to their “premium” product, (offer Express Mail first, then force the customer to respond), I will go out of my way to NOT use that business again. As for “do you want fries with that?”, if fries are plainly listed on the menu and I haven’t ordered them, then you have just wasted my valuable time asking me stupid questions. My customers tell me that transaction time, public service, and ease of use are the primary factors in determining customer satisfaction. I would agree with that. If we are to increase revenues, then we should do so by providing our customers quality, efficient, friendly service, so that they will want to return, not by using quotas or up selling techniques

  6. 34
    shell Says:
    August 17th, 2009 at 8:07 pm

    It does help seeing so many other comments that validate the feelings I constantly struggle with. Asking a customer who comes in to mail a book to her sister(no hurry, she says)if she would like to guaranty delivery by tomorrow for $34.95, then having to ask if she would like cash back, and would she like to rent a P O Box, on top of all the other questions, is insulting to the customer and demeaning to me as a SSA.

    I have never been to McD’s and had to listen to “Would you like to buy a jar of mustard and apply for a job here today?” We are the Postal SERVICE. Have a little faith in your employees to help the customers that need it and to promptly give service to the customers who already know what they want.

    Also, think long and hard before trying to retail other items. Remember the phone card debacle?

    Thanks for the forum. I do need to vent sometimes, and discussion and communication is always a good thing.

  7. 33
    Nostradamus Says:
    August 16th, 2009 at 10:31 am

    The fowarding mail after 90-days needs to stop. Just send it back after 90-days WITH THE NEW ADDRESS ON IT. That makes the mailer send it out twice. More revenue…more volume…less cost….and an accurate mailing list which in turn would eventually be used by companies that send out 3rd Class mailings…..again leading to less waste…..making this class of mail more user friendly. I’ve sent this suggestion to the USPS often. I have difficulty believing they still waste over a billion dollars a year subsidizing deadbeats that refuse to take personal responsibility for notifying publishers and correspondents of their correct address. Presently the USPS forwards for 12-months and then from 12-to-18 months returns the piece with the new address attached. Simply changing that to forwarding for 90-days and then returning the piece for months 4 thru 18 would save us billions of dollars while actually inproving service and value for our customers who pay to send out all classes of mail. These are uour REAL customes…the rate payers. The recipients of the mail they pay to send are our patrons. It would cost virtually nothing to impliment this new strategy. Try it. What’s the worst thing that could happen?

  8. 32
    PM Says:
    August 14th, 2009 at 1:37 pm

    Mr. Tyndale above said it best. We need to make meeting the needs of our customers as a first priority. Our needs in the form of increased business and revenue will follow. It has been said that we have focused on being the “best buggywhip maker in the business at a time when there is no demand for buggywhips”. While there is truth to that concept, it is also true that until science comes up with a reliable method for teleportation we will still need some form of reliable hardcopy delivery in this country. The USPS is positioned to fill that need, but its success in this area is at risk for getting lost in the details. There are many changes afoot, and after 30 years, I am in constant amazement, but I think if we keep from letting “the tail wag the dog” the USPS can get back into the business of offering good, reliable, and affordable service. If we don’t lose sight of this need, we will survive.

  9. 31
    OG Says:
    August 12th, 2009 at 9:55 pm

    In my opinion is better to talk to the customers as they are human beings. Each letter, each parcel and each service means a lot to the individual who mails it. Quickly determine if the customer is looking to spend more for additional items or services and offer the best possible advice in your common interest. Help the customer get the best value for their money (or else said, GIVE’EM THE BEST BANG FOR THEIR BUCK!) Oh, and be courteous and polite as much as possible and have a stack of complaints cards ready. Just my 2 cents – please don’t raise the prices.

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