1. Advertising Growth Incentive

2. In this presentation… The incentive defined How it works Requirements
Real Examples
Calculating the baseline & targets
Postage credit rates
Forecasting for change
The application process
Receiving postage credits
Frequently asked questions 3 4 5 6 8 9 10 11 12 13

3. Campaigns with mail achieve
Advertising Growth and Commitment Incentives
Grow your business by using Advertising mail…
Send more advertising mail than the previous year and see the benefits it can provide to your company
Campaigns with mail achieve
market share growth* 2X
… and enjoy the added reward of postage credits
Receive postage credits of 15% per item on incremental advertising mail posted during a 12 month period
15%
* When compared to campaigns without mail. Source: A meta-analysis by Peter Field on the IPA Databank, 2014

4. Enjoy rewards for growth for up to 3 years…
Growth Incentive
You will be rewarded with postage credits if you send incremental advertising volume over a 12-month period
Year 1
After enjoying a year of growth and being rewarded with postage credits, you will now be eligible to use the Advertising Volume Commitment Year 1 Incentive – simply post the same or higher volume of advertising mail that you sent during the year of your use of the growth incentive
Year 2
After completing the year of using the Advertising Volume Commitment Year 1 Incentive you will have the opportunity to apply for another year – totalling 3 years of not only seeing the benefits that mail can provide to your company, but also being rewarded for it!

5. Real Examples
A clothing based ecommerce company selling branded, high value fashion through their website tested direct mail for the first time to acquire new customers. They have now tested different approaches and are forecasting growth of 86%.
A women’s fashion e-tailer used mail to acquire new prospects. They tested a concertina leaflet to showcase more products and used the growth incentive to grow volumes by 3.1m items. The customer is now using the volume commitment incentive to grow again this year

6. Growth Incentive Requirements
Earn 15% postage credits on incremental volume that you send in addition to your volume “baseline”, which we calculate based on your historic volume and growth trend
Available for letter and large letter items sent using Advertising Mail or Responsible / sustainable Mail
Send a minimum of 150,000 incremental letter items, or 75,000 incremental large letter items
*We define the Mail Originator as the participant on whose behalf the items are being produced.

7. Calculating your baseline
for the growth incentive
Growing customer example
Declining customer example 4m 3m 3m 2m 2m 2m
Volume
Volume
Baseline
Baseline
Year -2
Year -1
Year -2
Year -1
Date of application
Date of application
Your baseline is the volume of advertising mail you posted in the year before the application plus your annual growth rate.
The annual growth rate is the total volume from the year before the application date (Year -1) minus the total volume for the preceding year (Year -2).
To calculate your baseline, if you have declined in volume, we will use the same volume you posted in the 12 months leading up to your application

8. Commitment Incentive Requirements
After completing your Advertising Growth Incentive apply for the Advertising Volume Commitment Year 1 Incentive
Match the total volume of advertising mail you sent under the Growth Incentive to earn 7.5% postage credits on the volume that was incremental volume during the year of your Advertising Growth Incentive
Continue to grow and earn 15% postage credits on new incremental volume
After completing your Advertising Commitment Year 1 Incentive apply for your Advertising Volume Commitment Year 2 Incentive
*We define the Mail Originator as the participant on whose behalf the items are being produced.

9. Calculating your targets
for the volume commitment incentives
Advertising Volume Commitment
Year 2 Incentive
Advertising Volume Commitment
Year 1 Incentive
Incremental Volume
0.2m items
Incremental Volume
Matched Volume
Matched volume target 2.8m items
Advertising Growth Incentive
0.3m items
0.3m items
Incremental Volume
Cumulative total 2.5m items
Matched Volume
Matched volume target 2.5m items
Agreed Base Volume Commitment
0.5m items
0.5m items
2.5m items
Agreed Base Volume Commitment
Agreed Base Volume Commitment
2m items
2m items
Earn credits on Incremental Volume
Earn credits on Incremental Volume & matched volume
Earn credits on Incremental Volume & matched volume

10. Postage Credits 2019
We will calculate the amount of Postage Credits to be awarded to you by applying the relevant Postage Credit Rate to the volume of incremental items and committed volume items posted during your 12 month incentive period
Incentive
Committed Volume Credit Rate
Incremental Volume Credit Rate
Growth Incentive NA
15%
Volume Commitment Year 1 Incentive
7.5%
Volume Commitment Year 2 Incentive
Test type
Committed Volume Credit Rate
Incremental Volume Credit Rate
Growth Incentive NA
15%
Volume Commitment Year 1 Incentive
7.5%
Volume Commitment Year 2 Incentive

11. Forecasting changes
As part of the application, we ask for your a forecast of your intended number of items for the next year including format and weight.
We understand that things can change, so…
You can increase the level of incremental volume, formats and weights that you declare on your original accepted application
We will however award postage credits on eligible items that exceed your forecast by up to 10%

12. Application process Decide Apply Post
Speak to your account manager or mail provider to discuss the best incentive for you
Ensure you meet the necessary requirements to apply
Apply
On the incentive page on royalmailwholesale.com click on the link ‘apply online’
Complete the application form online and submit
Post
You will be contacted by the group incentive team to discuss your application
Your application will be confirmed and you can then start posting under the incentive
Please complete an application form using the link at royalmail.com/advertising-growth-application

13. Receiving postage credits
Notification
At the end of your incentive we will inform you of the amount of postage credits you have earned
Receive
You can choose to receive your credit as a voucher or have it paid into any Royal Mail postage account you hold. Credit vouchers are valid for 12 months
Redeem
Redeem credits against any future posting. Simply complete the redemption form and send this to your mail provider

14. FAQs How do I apply for the growth incentive?
Please complete an application form using the link at royalmail.com/advertising-growth-application
How do I apply for the volume commitment incentive?
You may apply for an Volume Commitment Incentive anytime during the period of your Growth Incentive or no later than 3 months’ after your Growth Incentive has ended. Please complete an application form using the link at royalmailwholesale.com/avc/ and submit this to
What happens when an agent applies on my behalf?
You and the agent will receive an acknowledgement once the application form is submitted. Royal Mail will check the form and contact the agent if there are any questions. Once checks are complete Royal Mal sends the application form to you to confirm you have read and understood the terms and conditions.

15. FAQs
What happens if I do not send enough incremental items during the growth incentive?
You only receive postage credits if you send a at least 150,000 incremental Letter items or 75,000 Large Letter format items.
What happens if I do not send enough advertising items to match the volume I sent during my commitment incentive?
You only receive postage credits if you match the volume of advertising mail you sent during the Growth Incentive period.
Can I send manual mail items and qualify for postage credits under the scheme?
You do not need to use Mailmark for Advertising Mail mailings that are Large Letter format or non-machine readable Letter format (e.g. Poly-wrapped C5 letters).

16. FAQs
I am looking to change mail provider in the next 12 months, will I be able to continue earning credits with my new provider?
Yes, eligible items can be sent using any participating mail provider.
I’m looking to change mail provider next year, will I be able to use credits earned with my current provider with my new provider?
Yes, the postage credit vouchers can be redeemed with any participating mail provider.
How long will my postage credit vouchers be valid for?
Postage credit vouchers are valid for 12 months from date of issue.
How long is this incentive available for?
The incentive is currently open for new applications until 31st December 2019

17. For more information please visit royalmailwholesale.com