The ROI of

Address Quality

Charles HuntAddress ManagementUSPS®

Chris LienExecutive Vice PresidentBCC Software IncA Böwe Bell + Howell Company

QUALITY ADDRESSING PROFESSIONAL QUALITY ADDRESSING PROFESSIONAL CERTIFICATECERTIFICATE

This session This session qualifies as one of qualifies as one of the four Addressing the four Addressing sessions, in addition sessions, in addition to the Tuesday, May to the Tuesday, May 2020thth General Session General Session needed for theneeded for the Address Quality Address Quality Specialist Certificate!Specialist Certificate!

15 Presentations 15 Presentations focusing on Intelligent focusing on Intelligent MailMail

See Page 20 of the CatalogSee Page 20 of the Catalog

7 Presentations 7 Presentations focusingfocusingon Direct Mail and the on Direct Mail and the EnvironmentEnvironment

See Page 21 of the See Page 21 of the CatalogCatalog

Announcing 2 New SymposiumsAnnouncing 2 New Symposiums

Agenda

The Hidden Cost Factor

Address Quality Products & Services

The Road Map to Quality

Optimizer Guide

The Numbers

Affects your ability to reach your valued customers

Depends on accurate addresses with complete and correct address elements

Not dependent on carrier knowledge

Allows automated sortation

JOHN DOE2200 CLARENDON BLVD STE 1000ARLINGTON VA  22201-3381

Address Quality

Increased Acquisition CostMissed customersMultiple attemptsLower response ratesWasted production costWasted postage Lost discounts

Lower Customer Lifetime Value Investment in customersRepeat purchasesValue of customer retention

Poor Address Quality Results In

America is on the Move and Growing!

Pennsylvania

New Jersey

New York1.8 million new

addresses

147 million total addresses

45 million Americans move

8

Old Address

New Address

Forward21.3¢ / pc.

1.985 Billion pieces$421.9 Million

Return51.3¢ / pc.

1.60 Billion pieces$822.5 Million

Waste4.4¢ / pc.

6.136 Billion pieces$269.8 Million

x9.724 Billion pieces$1.856 Billion

2004 Christensen UAA Report

 

Cost* Volume

Percent of Total

UAA Volume

Move-Related UAA $1,195,828,705 7,367,885,402 75.77%

Physical-Related UAA $184,542,947 1,201,315,945 12.35%

Other-Related UAA $133,853,699 1,155,127,311 11.88%

Total $1,514,225,351 9,724,328,658 100.00%

2004 Christensen UAA Report

* Directly Attributable Cost Only

Changes to the Move Update Requirement:

Effective November 23, 2008

Increase the minimum frequency of Move Update processing from 185 days to 95 days prior to the date of mailing

Extend the revised Move Update standards to include all Standard Mail® (letters, flats, parcels, and Not Flat-Machinables), as well as automation- rate and presort-rate First-Class Mail®

CASS Certified™ Address Matching Software: ZIP + 4® / LACSLink® / DPV®

AEC & AEC II® Address Correction

NCOALINK®

Pre-Mailing Change of Address Process

ACS™/ OneCode ACS™Post-Mailing Change of Address Process

A Strategy to Improve Your R.O.I.

Addressing Products that Can Make a Difference

CASS™

USPS® certified benchmark

Sets minimum performance standards for commercial ZIP + 4® address matching software

Developers must pass USPS test for CASS certification

Address matching software attempts to match addresses against range- based records on USPS ZIP + 4 file

Pre-Mailing process

100 MAIN ST ANYTOWN TN 38138-6038 Confirmed

104 MAIN STANYTOWN TN 38138-6038 Not Confirmed

DPV®

Extension of CASS Certified™ Address Matching software

Available through software vendors Enables ZIP + 4® coding & identifies potentially

undeliverable addresses DPV® - Extra step to attempt validation of

each specific address in the file Pre-Mailing process

AEC & AEC II®

USPS® provided service for all customers Resolves physical address deficiencies Sent to the USPS on electronic media

AEC Cost - $15.00 per thousand

Average correction rate - 35%

AEC II® Cost - $0.25 per record

Average: 95% resolution rate

Average: 87% correction rate

Pre-Mailing process

NCOALINK®

USPS® licensed product using address change information when individuals or businesses inform the USPS of their move

Provides electronic Change-of-Address information

Average correction rate – 4.32%

Three Different Licenses

Variable costs

Pre-Mailing process

ACS™/ OneCode ACS™

Provides electronic Change of Address notices for mailpieces undeliverable due to customer move

Mailers apply a participant code and an optional keyline OR Intelligent Mail® Barcode to mailpiece

Requires an ancillary service endorsementCan reduce costs associated with manual

returns & manual keying of data Centralized billingPost-Mailing Process

ACS™/OneCode ACS™ Current Price Manual, each $0.50

ACS Electronic First-Class Mail® $0.08Other $0.25

OneCode ACS (Letters Only)    First-Class Mail

First 2 notices, each Free  Additional notices, each $0.06

Standard Mail®First 2 notices, each $0.03Additional notices, each $0.18

Code address via CASSTM ZIP + 4® address matching software

with DPV® and LACSLINK®

2

7

Bad addressfixed/ZIP + 4

coded?

Did the address ZIP + 4

match or DPV Confirm?

3

Apply ACSTM participant code to mail piece (post mailing update)

Mail

Update address list withnew ACS information

Send badaddresses

to AEC

8

9

10

YES

NO

4

5

YES

Suppress badaddresses from

mailing list

NO

6

Build mailing list1

1. Build mailing list

Update movers (NCOALINK ®)(pre mailing update)

2. Code address via CASSTM ZIP + 4®

address matching software

with DPV® and LACSLINK®

Did the addressZIP + 4®

Match or DPV®

confirm?

Y/N

NOSend badaddresses

to AEC

2

7

Bad addressfixed/ZIP + 4

coded?

Did the address ZIP + 4

match or DPV Confirm?

3

Apply ACSTM participant code to mail piece (post mailing update)

Mail

Update address list withnew ACS information

Send badaddresses

to AEC

8

9

10

YES

NO

4

5

YES

Suppress badaddresses from

mailing list

NO

6

Build mailing list1

Bad addressfixed / ZIP + 4®

coded?Y-NNO

Send badaddresses

to AEC

Suppress badaddresses from

mailing list

NO

Code address via CASSTM ZIP + 4® address matching software

with DPV® and LACSLINK®

Update movers (NCOALINK ®)(pre mailing update)

Code address via CASS™ ZIP + 4® address matching software with

DPV® and LACSLINK®

2

Update movers (NCOALINK®)(pre mailing update)

7

Bad addressfixed/ZIP + 4

coded?

Did the address ZIP + 4

match or DPV Confirm?

3

Apply ACSTM participant code to mail piece (post mailing update)

Mail

Update address list withnew ACS information

Send badaddresses

to AEC

8

9

10

YES

NO

4

5

YES

Suppress badaddresses from

mailing list

NO

6

Build mailing list1

Update movers (NCOA LINK®)(pre-mailing update)

Did the addressZIP + 4®

Match or DPV®

confirm?

Y/N

Apply ACS™participant code tomail piece (post mailing update)Mail

For crying out loud!

!

Then update that address list with new ACS™ information…do NOT forget !!

if “Yes”

2

Update movers (NCOALINK®)(pre mailing update)

7

Did the address ZIP + 4

match or DPV Confirm?

3

Apply ACSTM participant code to mail piece (post mailing update)

Mail

Update address list withnew ACS information

Send badaddresses

to AEC

8

9

10

YES

NO

4

5

YES

Suppress badaddresses from

mailing list

JOB

WELL

DONE!

6

Bad addressfixed/ZIP + 4

coded?

NO

Build mailing list1

Code address via CASSTM ZIP + 4® address matching software

with DPV® and LACSLINK®

Tool Impact ROI 7.65:1

47.8

$752.78

7.0%

Tool Impact ROI 27:1

34

StandardizeStandardizeStandardizeStandardize

An Address Quality

Foundation

CASS Certified SoftwareCASS Certified SoftwareTMTM

ValidateValidate

LACSLinkLACSLink ®®

DPVDPV ®®

AEC / AEC IIAEC / AEC II ®®

UpdateUpdateNCOALinkNCOALink ®®

ANKLink™ANKLink™

ACSACSTMTM

Question 1: The goal of the USPS® for reducing Undeliverable As Addressed Mail is 25% by year 2010.Answer 1: False – the goal is to reduce UAA Mail by 50% by year 2010.

Question 2: The Move Update requirement will extend to Standard Mail® in November 2008.Answer 2: True – November 23, 2008.

Question 3: The only reason for returned mail is physical address errors.Answer 3: False – physical address errors are part of the problem. Moves account for more than 75% of UAA Mail.

Knowledge Validation

FOR MORE INFORMATION

www.usps.com/ncscwww.usps.com/ncsc ribbs.usps.govribbs.usps.gov

Customer SupportCustomer Support

1-800-238-31501-800-238-3150

Quality Addressing TrackQuality Addressing Track

MondayTools & Techniques that Make the Case for Address QualityTools & Techniques that Make the Case for Address Quality

Ruth Jones/Gary Seitz - Period 5, 10:00 - 11:00am - Room 212AB

What are “Bad” Addresses & What to do With ThemWhat are “Bad” Addresses & What to do With ThemCharles Hunt/Kevin Conti - Period 6, 11:15am - 12:15pm - Room 212AB

TuesdayMove Update – How to Keep in Touch With Moving CustomersMove Update – How to Keep in Touch With Moving Customers

Audrey Conley/Adam Collinson - Period 10, 10:00 - 11:00am - Room 212AB

Intelligent Addressing to Achieve 100% Mail IntegrityIntelligent Addressing to Achieve 100% Mail IntegrityJim Wilson/Eric Houger - Period 11, 11:15am - 12:15pm - Room 210AB

How Government Agencies use Address Quality to Better Serve the How Government Agencies use Address Quality to Better Serve the CommunityCommunity Gail Milton/Mike Sexson - Period 13, 3:15 - 4:15pm - Room 212AB

WednesdayThe ROI of Address QualityThe ROI of Address Quality

Charles Hunt/Chris Lien - Period 16, 2:15 - 3:15pm - Room 212AB

Stump the Experts with Your Un-codable UAA MailStump the Experts with Your Un-codable UAA MailJim Wilson/Alice VanGorder - Period 17, 3:30 - 4:30pm - Room 212AB