The Emergence of Digital Mailbox Services - InfoTrends

1 The Emergence of Digital Mailbox Services : Moving Beyond Online Bill Consolidation in the Project Director: Matt Swain, Associate Director Senior Advisors: Jeff Hayes, President Megan McCarthy, Primary Research Specialist Eve Padula, Corporate Writer Contributors: Elizabeth Corr, Researcher Creative Services : Georgia MacDonald, Desktop Publisher Editorial/Proofreading: Mark DiMattei, Corporate Editor This report is copyrighted by InfoTrends and is made available to a limited number of clients subject to the following conditions: InfoTrends retains all rights to this report in its entirety. Reproduction and/or disclosure in whole or in part to parties other than the InfoTrends client to whom the document was originally sent is prohibited without the express written consent of InfoTrends . This report should be treated as confidential and proprietary for internal use only. The information is believed to be accurate and reliable, but cannot be guaranteed to be correct or complete.

2 InfoTrends , Inc. 97 Libbey Industrial Parkway, Suite 300 Weymouth, MA 02189 (781) 616-2100 November 2011 The Emergence of Digital Mailbox Services November 2011, InfoTrends , Inc. Page 2 Table of Contents Executive Summary .. 8 Key Findings .. 10 Consumer Research .. 10 Business Research .. 10 In-depth Interviews .. 10 Recommendations .. 11 For Business that Send Critical Customer Communications .. 11 For Outsourcing Service 11 For Vendors with Significant Ties to Print and Mail .. 12 For Digital Mailbox Service Providers .. 12 Introduction .. 13 Project Objectives .. 13 Methodology .. 13 Market Sizing and Forecast .. 15 Borrowing Adoption Insight from Pageonce .. 17 Modeling for Accelerated and Decelerated Growth 18 Digital Mailbox Transaction Document Delivery Fees .. 22 Current State Analysis and Review of Key Digital Mailbox Services Players .. 23 Overview .. 23 Partnerships .. 23 Business Models .. 24 Address-based .. 24 Screen Scrape.

3 24 Connect .. 25 Foreword to Review of Key Players .. 25 doxo .. 26 Manilla .. 30 Volly .. 34 Zumbox ..38 Digital Mailbox Services Outside of the United States .. 43 Digipost .. 44 e-Boks .. 44 44 45 NetPosti .. 45 Consumer Survey Findings .. 46 November 2011 The Emergence of Digital Mailbox Services November 2011, InfoTrends , Inc. Page 3 Key Findings: Consumer Research .. 46 Demographics .. 47 Responsibility for Mail 47 Gender and Age .. 47 Income .. 48 Home Ownership Status .. 49 Approach to Technology Adoption .. 50 Communications Received .. 51 Total Number of Communications Received Per 51 Distribution of Traditional Mail .. 52 Interacting Online .. 52 Frequency of Forgetting Passwords .. 53 Account Consolidation .. 53 Paperless versus Paper-Based Statements .. 55 Bill 58 Most Time-Consuming Bills to Pay .. 58 Payment Channels .. 59 Missed Payments .. 61 Digital Mailbox Services .. 62 Defining Digital Mailbox Services for Consumers.

4 62 Willingness to Use .. 63 Preferred Documents to Receive and/or Store in a Digital Mailbox .. 63 Most Trusted Organizations for Account Consolidation and Digital Mailbox 64 Reaching Critical Mass of Bill and Statement Volume .. 67 Most Important Digital Mailbox Features .. 68 Least Important Features .. 69 Factors in Choosing One Service over Another .. 70 Preferred Digital Mailbox Model .. 71 Postal Service .. 72 Perceived Value .. 72 Reaction to Delivery Changes .. 72 Closing Thoughts on the Consumer Research .. 73 Business Survey 74 Taxonomy Note .. 74 Key Findings: Business Research .. 74 Business Background Information .. 75 Primary Industry .. 75 Number of Employees .. 76 Position .. 77 Monthly Mail Volume .. 78 Billing or Marketing Qualification .. 78 Division of Monthly Print Volume .. 79 Customer Base .. 79 Online Presence with Customer Login .. 79 Bills, Statements, and Electronic Delivery .. 80 Bills & Statements Sent to Residential 80 Top Priorities for Billing.

5 81 Primary Stakeholders for Paperless Delivery and Payment ..82 Consumers Use of Online Accounts ..82 Goals for Paperless Delivery ..83 November 2011 The Emergence of Digital Mailbox Services November 2011, InfoTrends , Inc. Page 4 Frequency of Reverting Back to Paper .. 84 Electronic Delivery Channels Supported .. 85 Marketing and Customer Communications .. 86 Primary Factors Driving Use of Marketing Channels .. 86 Primary Goal of Direct Mail .. 86 Top Priorities for Direct Mail .. 87 Plans to Use Marketing Channels .. 88 Marketing Channel that Yields Highest ROI .. 89 Online Accounts and e-Mail .. 90 Online Accounts .. 90 Lack of Valid e-Mail Addresses .. 90 Digital Mailbox Services .. 91 Defining Digital Mailbox Services for Businesses .. 91 Familiarity .. 91 Importance of Digital Mailboxes to Paperless Delivery and Payment .. 92 Approached by Service Provider .. 94 Complementary or Competitive to Existing Channels .. 96 Impact of Digital Mailboxes on Paperless Delivery and Payment.

6 97 Partnership with Digital Mailbox Services .. 99 Timeline for Partnership Plans .. 100 Expectations for Future Adoption of Digital Mailbox Services .. 101 Document Types Delivered .. 103 Strategy Expectations for Marketing .. 104 Reasons for Not Partnering with a Digital Mailbox Service .. 104 Factors for Choosing One Partnership over 105 Perceived Benefits and Barriers of Partnership .. 106 Most Important Qualities .. 106 Trusted Partners .. 107 Preferred Business Model .. 109 Support for Standards Committee .. 110 Perspective on the Postal Service .. 111 Perceived Value .. 111 Reaction to Delivery Changes ..112 Closing Thoughts on the Business Research ..112 Perspectives from Influential Stakeholders ..113 Scenario Planning .. 118 A Leading Consumer Technology Service Vendor Enters the Market .. 118 Amazon .. 118 Apple .. 118 Facebook .. 119 Google .. 119 119 Financial Institutions Enter the Market ..121 Payments: The Financial Institution Advantage.

7 121 Transactional Designation as a Limiting Factor .. 122 The Postal Service Enters the Market .. 123 Partner Play .. 123 Independent Competitive Offering .. 124 Strategy Recommendations .. 125 November 2011 The Emergence of Digital Mailbox Services November 2011, InfoTrends , Inc. Page 5 For Business that Send Critical Customer Communications .. 125 For Outsourcing Service 125 For Vendors with Significant Ties to Print and Mail .. 125 For Digital Mailbox Service Providers .. 126 InfoTrends Opinion .. 126 Appendix A: Definitions .. 127 November 2011 The Emergence of Digital Mailbox Services November 2011, InfoTrends , Inc. Page 6 List of Tables and Figures Figure 1: Expected Distribution of the Transaction Delivery Market (Volume) .. 8 Figure 2: Digital Mailbox Services Market Sizing and Forecast: Alternative Scenarios .. 9 Figure 3: Expected Volume Distribution of the Transaction Delivery Market .. 15 Table 1: Key Assumptions for Expected Forecast.

8 15 Figure 4: Approximated Pageonce User Adoption .. 17 Figure 5: Digital Mailbox Services Market Sizing and Forecast: Alternative 18 Figure 6: Accelerated Volume Distribution of the Transaction Delivery Market .. 20 Table 2: Key Assumptions for Accelerated Forecast .. 20 Figure 7: Decelerated Volume Distribution of the Transaction Delivery Market .. 21 Table 3: Key Assumptions for Decelerated Forecast .. 21 Figure 8: Digital Mailbox Transaction Document Delivery Fees ($MM USD) .. 22 Figure 9: doxo Provider Profile Page .. 26 Figure 10: Account Summary Page in Manilla .. 30 Figure 11: Volly Consumer Home Page .. 34 Figure 12: Zumbox User Experience ..38 Figure 13: Sample of Digital Mailbox Services Available Globally .. 43 Figure 14: Age .. 47 Figure 15: Income .. 48 Figure 16: Home Ownership (By Age) .. 49 Figure 17: Approach to Adoption of New Technologies (By Age) .. 50 Figure 18: Communications Received from Providers .. 51 Figure 19: Communications Received from Non-Providers.

9 51 Figure 20: Distribution of Mail Received Each Month .. 52 Figure 21: Preference for Consolidation of Multiple Online Accounts (By Age) .. 53 Figure 22: Most Beneficial Online Accounts to Consolidate .. 54 Figure 23: Paperless Bills and Statements .. 55 Table 4: Paperless Bills and Statements by Age (Means) .. 55 Figure 24: Reasons for Continuing to Receive Paper Bills and Statements .. 56 Table 5: Primary Disadvantage of Online Accounts in Multiple Locations (By Age) .. 57 Figure 25: Most Time-Consuming Bills to Pay .. 58 Table 6: Bill Payment Channels (By Age) .. 59 Figure 26: Primary Bill Payment Channel (By Age) .. 60 Figure 27: Preferred Bill Payment Channel (By Age) .. 60 Figure 28: Reasons for Missed Payment .. 61 Figure 29: Use of Digital Mailbox Services (By Age) .. 63 Figure 30: Types of Organizations Trusted for Account Consolidation .. 64 Figure 31: Digital Mailbox Services Consumers Would MOST Likely Try (Top Responses) .. 65 Figure 32: Digital Mailbox Services Consumers Would LEAST Likely Try (Top Responses).

10 66 Figure 33: Percentage of Bills/Statements that Would Need to be Available .. 67 Figure 34: Most Important Digital Mailbox Features .. 68 Figure 35: Least Important Digital Mailbox Features .. 69 Figure 36: Most Important Factors in Choosing One Provider over Another .. 70 Table 7: Preferred Method for Managing Digital Mailbox (By Age) .. 71 Figure 37: Perceived Value of USPS .. 72 Figure 38: Reaction to Various USPS Delivery Changes .. 73 Figure 39: Industry .. 75 Figure 40: Number of Employees in Organization .. 76 Figure 41: Mean Number of Employees (By Industry) .. 76 Figure 42: Role within Organization (By Company Size) .. 77 Figure 43: Mean Monthly Mail Volume (By Company Size and Industry) .. 78 Figure 44: Division of Monthly Print Volume (By Company Size) .. 79 Figure 45: Percentage of Bills & Statements Sent to Residential Addresses (By Company Size and Industry) .. 80 Figure 46: Priorities for Billing (Top Responses) .. 81 Figure 47: Share of Customers with Online Accounts (By Company Size).