Business Model Canvas of United States Postal Service Essay
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USPS caters the mail and package delivery services to a mass of different customers. It has different variety of services depending on what the customer wants. So customer segments are divided according to the type of services the USPS provides. 1. Individual citizens: The USPS has the first class mail and standard mail that the citizens can use to use to send personal cards, letters, bill payments, etc. Basically anything that is less than 13 ounces can be sent through first class, and is delivered within 2 to 3 days in the contiguous states.
First class mail is sealed and protected, while standard mailed is not (standard mail may also receive deferred handling but it is more cost effective for customers). Also package services are provided to send packages more than 70 lbs. 2. Businesses: The USPS also caters to all the mailing needs of businesses. Banks use first class mail for delivery of debit or credit cards, and other confidential information as it is protected and handled properly. Also the standard mail, which is a cost-effective bulk mail class, is used by businesses for mailing advertisements, product samples, etc. and is delivered within 9 to 10 days.
Businesses even use package services for delivery of delivery of customer orders. a. These customers include business to consumer delivery (e-commerce) such as Amazon and EBay. 3. Publishers: The USPS has Periodicals, which is a mail class for authorized publishers to send magazines, newspapers, journals, etc. 4. Other mail providers: The USPS has partnered with FedEx and UPS for their “last mile” mail delivery. Since the cost of delivery in rural areas is high for both FedEx and UPS, they have partnered with the USPS to deliver their mail and packages in areas where the cost for delivery would be higher for them; the USPS delivers about 30.
4% of the ground shipments of FedEx. Besides this, the USPS also offers services as Post Office Box, tracking of the mail etc. It also provides insurance on items shipped to domestic or international areas, if they have a value of above 200 dollars. Value Proposition The mission of the postal service is to provide the nation with reliable, affordable, universal mail service. By law, its basic function is “… to bind the Nation together through the personal, educational, literary, and business correspondence of the people.
It [the Postal Service] shall provide prompt, reliable, and efficient services to patrons in all areas and shall render postal services to all communities. ” Affordable Prices: The price of sending a package or mail by USPS is much lower than its competitors. Ubiquitous presence: The Postal Services has large number of offices in the United States making it accessible to almost every customer of the USPS. They have 31,272 retail offices. Reliable service: The Postal Service delivers to 151 million addresses six days a week, and collects outgoing mail and packages at the time of delivery.
It provides mailing and shipping services through tens of thousands of postal and non-postal retail outlets as well as usps. com. The USPS provides many different services; First-Class Mail, Standard Mail, Packages and Shipping, International Mail and Periodicals each catering to different needs of their customers. Channels The USPS provides direct delivery to the customer. They have all US addresses and their delivery system is direct, from the sender to the receiver. They are spread out in the entire United States and have huge amount of deliveries every week.
The USPS operates over 30,000 Post Offices all over the United States where customers can come to send their packages and mail. Customers can also drop their mail in post boxes located at multiple locations in every town and city. Stamps and postage can be bought at numerous locations such as supermarkets, drug stores and post offices. The USPS also operates a service where the postman can come to pickup a shipment from your house free of charge. USPS also uses traditional advertisements and promotions to reach their customers on a daily basis. Figure 1: USPS’ services (source: USPS Annual Report 2012)
Customer Relationships USPS’s customers demand reliable, fast and affordable service and they serve each customer segment in a different way. For individuals, customer service is mainly through sending and receiving letters and packages. For businesses the USPS offers various business solutions such as advertising campaigns, e-commerce solutions and special mass mail business prices. For other mail providers such as FedEx and UPS the USPS provides delivery of their packages both in rural areas and of small packages. For all customers the USPS also offers customer service by phone, online and in Post Offices.
The USPS has good brand recognition, most US citizens are aware of the USPS’ services and the “postman” that comes to every house every day. Therefore the customers expect good service and the USPS uses customer outreach programs, both for individuals and businesses, to get feedback and information about how they can improve their services. According to the American Customer Satisfaction Index (ACSI) from June 2013, both FedEx and UPS score higher than the USPS in the Express/Priority Service Mail Sector. Overall the regular mail services of USPS are at a new ACSI high of 77 points.