The USPS provided some interesting data about its loyalty program for people who purchase shipping labels on its website and why it is sunsetting the program and reverting back to making Commercial rates available online.
It was hard to understand why the US Postal Service had eliminated discount pricing offered to people buying shipping labels on its website 7 years ago, since the Click-N-Ship program reduces the amount of people buying postage at Post Office windows.
The USPS introduced a loyalty program to entice people to use Click-N-Ship (CNS) in 2020, four years after it eliminated Commercial Base pricing for those buying shipping labels using CNS – but it kept CNS prices at full retail – only participants who spent at least $20,000 would qualify for Commercial Base pricing.
With the full reintroduction of Commercial rates to Click-N-Ship on May 18, 2023, the USPS provided some details about the loyalty program that ends on June 10th.
Click-N-Ship Loyalty Program Dollar Credits
The USPS issued $16.8 million in loyalty program credits in fiscal year (FY) 2021 (October 2020 through September 2021). As the following details show, the number decreased the following year:
- FY 2021 (10/1/2020-9/30/2021): $16,841,930
- FY 2022 (10/1/2021-9/30/2022): $14,513,010
- FY 2023 YTD (10/1/2022-5/18/2023): $8,318,420
Click-N-Ship Loyalty Program Unit Volume
The total Priority Mail volume shipped by Loyalty Program participants on Click-N-Ship was 60,296,801, and the total Priority Mail Express volume was 1,679,782 (from the beginning of the program through the most recent available data, presumably May 2023).
Click-N-Ship Loyalty Program Number of Participants
Unique CNS Loyalty Program participant count by fiscal year:
- FY 2021, 10/1/2020-9/30/2021: 889,332
- FY 2022, 10/1/2021-9/30/2022: 226,138
- FY 2023 YTD, 10/1/2022-5/18/2023: 103,297
Note that the CNS Loyalty program offered three tiers as of January 1, 2021:
- Basic (no minimum spending): Earn $40 credit for every $500 spent
- Silver (at least $10,000 spent): Earn $50 credit for every $500 spent
- Gold (at least $20,000 spent): Qualify for Commercial Base pricing.
The USPS considered Base customers (those spending under $10,000) to be “micro or small” businesses.
In 2023, there were 4,336 Silver participants who spent between $10,000 – $20,000 in the previous calendar year, considered “small” businesses.
In 2023, there were 1,521 Gold participants who spent at least $20,000 in the previous calendar year, considered “Small/Mid-sized” businesses.
Rationale for Adding Commercial Rates and Ending the Loyalty Program
According to a June Postal Regulatory Commission filing, “Because small and micro businesses have struggled to attain Gold Tier status under the existing Loyalty Program, the Postal Service asserts that the immediate availability of Commercial rates is likely to provide a stronger incentive for those customers to remain on the Click-N-Ship platform.”
According to the USPS, “Retaining the Loyalty Program in present form, and not extending Commercial rates on Click-N-Ship, would have required more work in administering the program in terms of tracking credits, tier status, and redemption periods. Ultimately, this would not lead to as many Click-N-Ship customers accessing Commercial rates through Gold tier status. Through these collective actions, the Postal Service expects to grow its CNS customer base, increase revenue and volume, and further incentivize customers to ship with the Postal Service.”
In a May 9th filing on FederalRegister.gov, the Governors of the Postal Service announced the end of the loyalty program, writing in part:
“First introduced in August 2020 at the height of the COVID-19 pandemic, the Loyalty Program proved to be a valuable incentive program for the Postal Service’s small and micro business customers who utilize Click-N-Ship to ship packages at Retail rates.
“Despite the successes of the Loyalty Program, management has determined to offer a new opportunity for its small and micro business customers by permitting them to access commercial rates via Click-N-Ship. Accordingly, management has deemed it appropriate to begin to sunset the existing Loyalty Program over the next twelve months.”
The Postal Service estimated that as of May 18, 2023, there were approximately $1.5 million worth of outstanding credits eligible for redemption – participants have until June 9, 2024, to redeem them (at Commercial rates).
In a FAQ section on the USPS website, it stated the following information for participants:
“Rather than accumulating points and credits, all customers are now eligible for discounted pricing when they upgrade to enhanced Click-N-Ship®️ (CNSv2). Customers can save on every order with discounted shipping rates – up to 20% off retail rates.
“All customers using CNSv2 will receive Commercial pricing, the current Loyalty Program Gold Tier benefit.
“Starting June 10, 2023 at 12:00am EDT, the current point and credit system will be discontinued. You can still earn points through June 9, 2023, and can use your earned credits through June 9, 2024. You will still have access to your Loyalty account dashboard to view your earned credit balance.”
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June 05, 2023 at 03:38AM
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