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CLEVELAND PCC CLOSING THE LOOP ON MOVE UPDATE. WHY MOVE UPDATE?. Each year, 17% of Americans move or change their mailing address 1 out of every 6 families moves each year Approximately 19% of all businesses move

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Presentation Transcript
why move update
WHY MOVE UPDATE?
  • Each year, 17% of Americans move or change their mailing address

1 out of every 6 families moves each year

  • Approximately 19% of all businesses move
  • USPS® processes over 45 million permanent Change of Address (COA) orders each year
  • The USPS adds ~1.8 million new delivery points each year

DUBASIK

Moving & Storage

why move update3
24 of every 100 mail pieces contain Address Errors

5 of every 100 mail pieces are Undeliverable-as- Addressed (UAA)

75% of UAA Mail is Move-related

WHY MOVE UPDATE?
move update requirement
MOVE UPDATE REQUIREMENT
  • November 2008, the Postal Service required all addresses on mailings that receive discounts for First-Class Mail or Standard Mail service… be updated with an approved method within 95 days prior to the mailing.
  • Effective January 4, 2010 began to assess a penalty of $.07 per piece in mailings with an error rate greater than 30% based on PBV samplings.
  • <6% of mailings are non-compliant

Addresses must be Current, Correct and Complete

move update
MOVE UPDATE
  • Pre-Mailing
    • NCOA - National Change of Address
    • MLOCR with FASTforward® (FFMUN option)
  • Post-Mailing
    • Ancillary Service Endorsements
    • ACS – Address Change Service
      • Traditional
      • OneCode
      • Full Service
  • Alternative Move Update
    • 99% Rule
    • Legal Constraint
address updates
ADDRESS UPDATES

How are addresses being updated?

  • 64% use NCOA
  • 54% use ACS
  • 33% manually update UAA returned mail
  • 22% have multiple databases – a key constraint!
move update7
MOVE UPDATE

Postage Statements

  • Whoever signs postage statement may be liable for Move Update compliance and penalties
move update compliance
MOVE UPDATE COMPLIANCE
  • MERLIN systems test for Move Update compliance
  • Performance-Based Validation (PBV) score:

Total COAs Updated By Mailer

Total COAs found by MERLIN

>=70%

*Less than 5 COA are excluded from PBV

move update compliance10
MOVE UPDATE COMPLIANCE

Mailing 100,000

Sample Size 1,000

Addresses with COA 50

Addresses with Updates

reflected on mail pieces 35

Addresses NOT updated 15

PBV SCORE (Update/COA) 70%

100,000

1,000

50

34

16

68%

FAILED

Assessment (2% x 100,000 x .07) $140.00

move update compliance11
MOVE UPDATE COMPLIANCE
  • Matches include:
    • COA between 95-days and 18-months
    • New Addresses
    • Moved Left No Address *
    • Closed PO Box*
    • Moved to Foreign Address*

*Should be removed from mailing

  • Matches excluded:
    • COA within 95-days or older than 18-months
    • NIXIES (near matches, new address not validated)
move update compliance12
MOVE UPDATE COMPLIANCE

“The PBV process does not establish compliance or non-compliance with the Move Update Standard; it is a tool that the Postal Service uses to test mailings.”

-Federal Register

usps audits
USPS AUDITS
  • Even if passing MERLIN, may not pass an audit
  • Postal Inspectors from Office of Inspector General
  • Audit of your internal update process
  • Primarily looking to get processes corrected
  • Also investigating intentional violators:
    • False Claims Act
    • Penalty is 2x or 3x Revenue Deficiency – 1 to 3-year window
    • Plus: $11,000 per violation (each mailing statement)
usps audits14
USPS AUDITS
  • What do you need / Best Business Practice?
    • Records of all mailings
    • Copies of update data files
    • Process Maps & paper trail of updates
    • Report Tracking – proof of compliance
    • Backup support of over-riding transactions
    • Written standards, policies and enforcement mechanisms to ensure compliance of eligibility rules based upon method specified on Statements
    • Demonstrated communications with employees, vendors and mail service providers regarding compliance
summary
SUMMARY
  • The USPS must reduce the cost of UAA mail
  • The tools and services are now available to
    • Determine compliance risk factors
    • Implement compliant and best practice solutions
  • The cost of non-compliance can be significant
  • The USPS will continue driving down their UAA costs, which means tighter rules and/or higher fees and penalties
  • This also mean more or your mail will reach your intended customer in the most efficient manner at the lowest possible cost.
move update compliance16
MOVE UPDATE COMPLIANCE

Move Update take-aways:

  • Ask about your PBV score
  • Use 1 or 2 Move Update methods
  • Update your database & mailing files
  • Document your update processes