DMA President and CEO John A. Greco, Jr. Affirms DMA's Commitment to Keeping Postal Service, and All Marketing Channels, Open and Economically Viable

February 6, 2009 — Direct Marketing Association President and CEO John A. Greco, Jr. yesterday sent a letter to DMA members regarding the challenges currently facing the US Postal Service. In the letter, Greco affirmed DMA’s commitment to keeping every channel open and economically viable.

“We are committed to keeping every channel open and economically viable for our entire multichannel membership,” Greco wrote. “That includes the mail, internet, emerging mobile and broadcast channels, and perhaps new channels yet to be identified. We do this so that ultimately the marketer and consumer can engage in a relationship when, where and how they are mutually benefiting, unconstrained by unnecessary barriers.”

The Full text of the letter appears below.

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Dear DMA Member:

Postmaster General Potter recently testified before a Senate Homeland Security and Governmental Affairs subcommittee stating that, "If current trends continue, we could experience a net loss of $6 billion or more this fiscal year." PMG Potter asked lawmakers for the authority to drop the six-day schedule, which Congress mandated in 1983, allowing the USPS to suspend delivery on the lightest volume days.

Many of you may have been following this in the press where the Direct Marketing Association has been prominent in stating our opinion on this matter. We are committed to keeping every channel open and economically viable for our entire multichannel membership. That includes the mail, internet, emerging mobile and broadcast channels, and perhaps new channels yet to be identified. We do this so that ultimately the marketer and consumer can engage in a relationship when, where and how they are mutually benefiting, unconstrained by unnecessary barriers.

We will not waver from this task and the USPS proposal flies in the face of our mission. Going from six to five day delivery is trimming around the edges instead of going straight to the heart of the problem.

A healthy, viable, sustainable Postal Service is in the national interest. We support the USPS efforts to restructure their retiree benefit payments, and encourage them to explore other cost-cutting measures to find savings solutions. We believe that a reduction in service should be looked at only as a last resort.

A vast majority of our members are engaged in multichannel marketing and while our other channels show consistently higher growth rates, mail still plays an important role in the overall integrated marketing communications mix. As a marketing community we still rely on the USPS and any degradation of services could have a negative impact on the economy. We believe that a reduction in delivery days could drive some marketers away from using the mailstream which would further reduce mail volume and cause greater strain on the USPS current fixed costs. The solution? The USPS should pursue a fundamental cost restructuring along with stimulus/incentives that would reward marketers to continue to use mail in their multichannel mix.

The USPS needs to focus on its long term viability. We recognize and encourage their need to adapt to a changing marketplace; however the answer does not lie in increased rates and a degradation of service. The USPS must focus on ways to cut costs while maintaining their current levels of service. A service reduction would almost certainly result in the further loss of sales and jobs throughout the direct marketing community. Indeed, it would have a negative impact on the economy by inhibiting, instead of stimulating commerce.

Aren't jobs and positive economic activity what we need these days? As always, we welcome your questions, feedback, and comments on our position. Please feel free to contact me at president@the-dma.org.

Best regards,

John A. Greco, Jr.
President & CEO
Direct Marketing Association

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