York University and Canada Post Direct Marketing Presentation November 10th 2010

1. York University and Canada Post Direct Marketing PresentationNovember 10th 2010 CONFIDENTIAL

2. Topics for discussion • The DM Advisor role at Canada Post • Direct Mail in the Marketing Mix • Why DM – research highlights • Case Study • New Products and Services • CPC Resources • Q&A

3. Transaction Mail • - LetterMail • Direct Marketing • - AdMail • Parcels • Strategic initiatives • Canada Post Advisor • Canada Post Corporation What’s new? • CPC’s organizational structure • Canada Post placed a greater importance on Direct Marketing. Canada Post realigned to build a dedicated direct marketing group to support • Product innovation • New product solution take to market strategy • DM Case Study library across all industries and other online tools

4. The Top 3 Direct Mail Advantages… 93% Canadians read their mail the same day You can be creative, including sending oversized postcards for awareness building to complement your media mix You can reach 100% residences and businesses, including all multi-unit business buildings with your Executive Program Message Why Direct Mail? • Source: Household Mail Preference Telephone Study, Pitney Bowes, 2005.

5. Research: Consumer Attitudes towards Direct Marketing CONFIDENTIAL

6. Consumer Attitudes towards Direct Marketing • Consumers attitudes towards Direct Marketing – Study Overview • Objectives • To continue to measure consumer attitudes towards direct mail for advertising purposes. • To track any significant changes from previous waves of research. • To obtain feedback on potential Canada Post mail management services. • New for 2009 was the addition of; • Emerging media such as social networking sites (SNS) and mobile/text messages (SMS) • Traditional media such as radio, television, newspaper, magazine, outdoor and yellow pages • Additional questions about receiving promotional emails. • Methodology • Questionnaire completed by 1,048 Canadians during the period November 13th to December 7th, 2009.  • Close to half completed it online (501) and the rest (547) completed a mail back questionnaire

7. Welcomeness of Direct Marketing – By Age and Income Base: Total Respondents (n=1,048)

8. Attitudes Towards Direct Mail Q: Please indicate to what extent you agree or disagree with each of the statements below. Base: Total Respondents (n=1,048)

9. Likelihood of Opening an Item by Mail Feature or Relationship % Very/somewhat likely Not asked in 2005 and 2007 Q: How likely are you to open an item that comes in the mail if...? Base: Total Respondents (n=1,048)

10. Case Study - Thompson Rivers University Thompson Rivers University, Open Learning Test: Targeted unaddressed admail to cities across Canada Results: DM brought in 24 per cent of all marketing-driven inquiries--one of the top three vehicles for driving inquiries with an overall response rate of 1.43% http://www.canadapost.ca/business/campaigns/sorted/sortednews/stories_09feb/thompson_rivers-e.asp

11. Case Study - Thompson Rivers University • "The sheer volume and ability to geo-target by postal code keeps my cost per inquiry low and helps to build brand awareness.“ • - Jennifer Read, director of marketing, Open Learning Division, Thompson Rivers University

12. Case Study - Thompson Rivers University The direct mail pieces are direct-response driven which means that the call to action includes a toll-free number and website Thompson Rivers University, Open Learning is able to track responses and vary quantity depending on response activity "We are then able to measure results [and] then dial up or cull back quantities depending on what markets we determine to be successful," says Read.

13. Mail Ranks #1 Among Alumni for Information, Solicitations from and Universities • Alumni also have a strong preference for regular mail (54%) versus e-mail (23%) as a communications channel • Only 5% of graduates chose the phone and 1% of respondents chose social networking sites. • Another key survey finding is that graduates are less likely to discard or ignore mail (27%) versus phone (38%), social networking sites (34%) and e-mail (30%). • Above results are consistent to Research Study conducted by SEEC which found that 51% of participants gained awareness of the program through the Brochure (either directly or indirectly passed along) • Source: Commissioned by Pitney Bowes - surveyed approximately 1,100 college graduates and post-graduate school respondents about their preferences for receiving information from the school they attended. • US Based, STAMFORD, Conn., September 29, 2009

14. Driving Mail Channel EffectivenessDelivering to the Intended Recipient!

15. Acquisition Admail™ From anywhere… to anyone • 70% of Canadians are more likely to open mail if it has their address on it.* • Reach prospects who share a similar geo-demographic profile as your best customers • Access more than 12 million Canadian Urban addresses (including multi-dwelling units) * CP March 2008 Consumer Attitudes Towards Direct Mail Study • How is works: • Once you identify the Postal Codes you want to reach AND ONLY THOSE YOU WANT TO REACH, we can use them to select addresses for your mailing list. • For every Postal Code targeted, we’ll provide the addresses included in that Postal Code. • You have the ability to exclude current customers addresses from your list for greater efficiency and ROI and to protect your existing customer relationships or addresses which could have sensitivity to receiving your offer. • Reach prospects living in condos or apartments! • If you don’t have your own list, we can help you identify those that best match your customer profile

16. Acquisition Admail – York University Opportunity • Test Acquisition admail to target the neighbors of best customers based on new student enrollments • For example: • York University to supply Canada Post with 5,000 names of newly enrolled students • CPC to leverage Point of Call database to match the list to neighboring addresses of those customers – targeting at the postal code level

17. Acquisition Admail • Semi-addressed mail at the Postal Code level for acquisition campaigns • Over 12 million urban addresses available • List service with mailing option as below

18. New Address list service Tap into one of the most comprehensive mailing lists for new Canadian addresses They’re out there and they could represent profitable revenue opportunities for your company. What are they? They’re the more than 100,000 new residential addresses that are registered in Canada every year. Now there’s a way to make a direct connection with these households: The New Addresses List from Canada Post.

19. New Address list service • Addresses of recently build residences • One Year Aggregate and Most Recent Month • National and Regional • Annual and One Time use contract terms Movers spend from 6 months prior to 12 months after a move with the highest levels of the “spending frenzy”, occurring in the first 3 months and again 9 to 12 months following the move. • Source: Mover Behaviour in Canada, CP06-16, July 2007

20. You can improve your mailings through cleaner data • Clean data is good for your business… • Reach your intended recipients by ensuring addresses are complete and accurate • Keep track of movers to ensure your piece is sent to the appropriate location • Save money and reduce customer irritation by removing duplicate mail pieces • Lift response rates by excluding undeliverable addresses and deceased individuals • Canada Post now offers a powerful online tool to help mailers improve the cleanliness of their files

21. Pre-mail cleansing through Smart Data Cleaner is the first step in the mail hygiene process CPC Smart Data Cleaner Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer: apply learnings & leverage data Post-Mailing: Gain insight through Returns CPC Licensed Data Products CPC SmartFlow Recover

22. Cleansing benefitsare demonstrated right on your actual file • CPC will assess your mailing file and demonstrate the impact of all possible data hygiene offerings • Best practice recommendations are included in your report to help you improve your ROI

23. Case Study demonstrates bundled Pre-Mail and Return solution • List Cleansing • 20.5% addresses corrected • 2.6% correction for movers • 0.4% movers with no forwarding address • 40% reduction due to dupe-elimination Mailing Occurs Returns 77.6% of returns due to movers Return rates reduced by 29%

24. The benefits of reducing Undelivered Mail • Improve campaign metrics • Improve response rates and cost per order • Reduce costs • Eliminate Direct costs; minimize Indirect • Become more green • Reduce waste • Be a privacy leader • Respect and protect your customers’ information

25. Coming Soon … • Canada Post presents CentrSource • Shopping/search site that facilitates publication of “fresh” offers • Customers can find RELEVANT products/services available to them locally and currently. For advertisers … • A powerful, multi-functional, interactive utility that empowers advertisers to geo-target and time-define their online advertising. • Low risk … Pay for Performance • Easy to use … allows you to build locally targeted offers in just minutes. • FREE TRIAL for our pre-launch advertisers.

26. Resource Library • Canadapost.ca/DMResources Case Studies/Success Stories (75) Webcasts (7) Market Research Studies (11) Environmental Tips Privacy Tips Campaign Management tools Other articles and tutorials