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Address Quality Tools & New Requirements to Improve Mail Delivery Baltimore PCC April 27, 2007. Darron K. Holland Marketing Specialist Direct Mail / Product Management. Today’s Agenda. Making the Case for Address Quality Reviewing New Addressing Requirements Putting It All Together.

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address quality tools new requirements to improve mail delivery baltimore pcc april 27 2007

Address Quality Tools & New Requirements to Improve Mail DeliveryBaltimore PCCApril 27, 2007

Darron K. Holland

Marketing Specialist

Direct Mail / Product Management

today s agenda
Today’s Agenda
  • Making the Case for Address Quality
  • Reviewing New Addressing Requirements
  • Putting It All Together
address quality
Address Quality
  • Affects your ability to reach your valued customers
  • Depends on accurate addresses with complete,correct, and current address elements
  • Allows automated sortation
  • Not dependent on carrier knowledge

JOHN DOE2200 CLARENDON BLVD STE 1000ARLINGTON VA  22201-3381

increased acquisition cost

Poor Address Quality Results In

Increased Acquisition Cost
  • Missed customers
  • Multiple attempts
  • Lower response rates
  • Wasted production cost & Wasted postage
  • Lost discounts

Lower Customer Lifetime Value

  • Investment in customers
  • Repeat purchases
  • Value of customer retention
slide5

Four Basic Address Quality Questions

  • What Are You Doing Now?
  • What Should You Be Doing?
  • Why Does It Matter?
  • How Can You Succeed?
slide6

What Are You Doing Now?

  • Address List Management
    • Purchase
    • Rent
    • In house (Building/Maintaining)
  • Verifying address quality?
  • Accepting current response rates?
  • Worrying about your postage costs?
america is on the move and growing

New York

New Jersey

Pennsylvania

America is on the Move and Growing!

41 million

Americans move

145 million total addresses

1.8 million new addresses

slide8

UAA Mail Study

Return

51.3¢ / pc.

1.60 Billion pieces

$822.5 Million

9.724 Billion pieces

$1.856 Billion

Old address

x

Forward

21.3¢ / pc.

1.985 Billion pieces

$421.9 Million

Waste

4.4¢ / pc.

6.136 Billion pieces

$269.8 Million

New Address

PRC LR-L-61 for R-2006-1 Rate Case (Christiansen UAA Study –Table 3.1)

slide9

The Address Quality Equation

Physical Address Quality

+ Move Update Quality

= Deliverable Mail

It

Just

Adds

Up!

slide10

What Should You BeDoing?

  • Insist on high standards from suppliers
  • Manage your address files
    • CASS™:ZIP+4® /LACSLink™/DPV™

Cass Certified™ Address Matching Software /

Locatable Address Conversion System /

Delivery Point Validation

    • AEC I & IIAddress Element Correction I & II
    • NCOALINK™National Change of Address Link
    • ACS™/OneCodeACS™Address Change Service
slide11

Why Does It Matter?

  • BECAUSE it impacts your:
    • Costs
    • Postage
    • Response Rates
    • R.O.I.

It’s

Your

Bottom

Line!

slide12

How Can You Succeed?

  • Implement a comprehensive address quality strategy
  • Utilize available addressing products and services
  • Track your mail channel’s R.O.I.
direct mail costs
Direct Mail Costs

Creative 11.25¢

Postage 23¢

Art & Preparation 9.75¢

Allocated Fees 13.55¢

Printing Production 33.76¢

Lettershop Production 4.02¢

Mailing Lists 12.35¢

Computer Processing 2.32¢

DMA Statistical Fact Book 2005

slide15

TM

ACS

TM

ANKLink

TM

NCOALink

TM

AEC / AEC II

DPV

TM

TM

LACSLink

What Should You Be Doing?

Update

Correction

Validate

Standardize

CASS™ZIP+4® Codes

slide16

A Strategy to Improve Your R.O.I.

Addressing Products that Can Make a Difference

  • CASS Certified™ Address Matching Software:

ZIP+4/LACSLink™/DPV™

  • Address Element Correction I & II (AEC I & II)
  • National Change of Address Link (NCOALINK™)
  • ACS™/ OneCodeACS™
slide17
CASS™ (Coding Accuracy Support System)

ZIP + 4®

  • USPS certified benchmark
  • Sets minimum performance standards for commercial ZIP + 4®address matching software
  • Must pass USPS test for CASS-certification
  • ZIP + 4 address matching software attempts to match addresses against range-based records on USPS ZIP + 4 fileExample: 100-110 MAIN ST ANYTOWN TN 38138-6038
slide18
CASS™

LACSLink™ (Locatable Address Conversion System)

  • Integrated into CASS Certified™ Address Matching Software
  • Updates rural-style addresses to city-style format due to 911 emergency purposes
  • Updates existing city-style address that have been renamed or renumbered
  • 5 million converted addresses
slide19
CASS™

DPV™ (Delivery Point Validation)

  • Extension of ZIP + 4® 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

Example: 100 MAIN ST

ANYTOWN TN 38138-6038Confirmed

104 MAIN ST

ANYTOWN TN 38138-6038Not Confirmed

slide20
Address Element Correction

(AEC Service Level I & II)

  • USPS provided service for all customers
  • Resolves physical address deficiencies
  • Submitted on electronic media to USPS
  • AEC I Cost - $15.00 per thousand
  • Average correction rate - 35%
  • AEC II™ Cost - $0.25 per record
  • Average resolution rate - 75%
slide21
National Change of Address

(NCOALINK™)

  • USPS licensed product
  • Pre-Mailing Process
  • Provides electronic Change-of-Address information
  • Variable costs
  • Average correction rate - 5.51%
acs onecode acs
ACS™/ OneCodeACS™
  • USPS Service
    • New OneCodeACS automated option
      • Leverages Intelligent Mail Barcode
  • Post-Mailing Process
  • Current Pricing
    • Manual (hardcopy) .75¢
    • ACS Electronic .21¢
    • OneCodeACS Automated

First-Class Mail (ltrs only) .21¢

acs onecode acs current future rates
ACS™/OneCodeACS™Current & Future Rates

  Address Correction Service

Current Future

  • Manual, each $0.75 $0.50 
  • ACS Electronic
    • First-Class Mail® 0.21  0.06 
    • Other 0.21  0.25
  • OneCodeACS™ (Letters Only)    
    • First-Class Mail

- First 2 notices, each 0.21 Free

- Additional notices, each 0.21 0.05

    • Standard Mail (Fall 2007)

- First 2 notices, each N/A  0.02

- Additional notices, each N/A  0.15

slide25
The Goal
  • PMG has called for a 50% reduction in UAA mail by 2010

Effective August 1, 2007

  • All CASS/MASS certified ZIP+4 software will incorporate DPV Primary Number Confirmation as a Standard Process
slide26
New CASS RequirementCurrent CASS/MASS ZIP+4 Process
  • Assigns +4 Codes using range-based matching
  • Does not discern if address is valid delivery point
slide27
New CASS RequirementZIP+4 Process Example
  • Mailer Address:

123 Mail Street Anytown, NY 12345

  • Matches to USPS record:

121-129 Main Street, Anytown NY 12345-3356

slide28
New CASS RequirementDPV Process Example
  • Mailer Address after ZIP+4 match:

123 Mail Street Anytown, NY 12345-3356

  • After the ZIP+4 match DPV will check if the Primary Number 123 exists within the range (121-129)
    • Yes - +4 code is retained and address returned
    • No - +4 code is removed and address returned
slide30
New CASS RequirementZIP+4 Vendor Requirements

Today: DPV is an optional processing feature

Tomorrow: DPV Primary Number confirmation will be required

slide31
New CASS RequirementMailer Requirements
  • No change
  • Automation Rate Qualification requires the use of CASS-certified ZIP+4 software
slide32
March 21, 2007, PMG Announced:
  • Extending Move Update Requirement to Standard Mail at a frequency of 95 Days Prior to Mailing
  • For First-Class Mail, Increasing Frequency of Processing from 185 Days to 95 Days
    • Federal Register Notice Will be Published in April, 2007
    • 18-Month Implementation for Date of Publication
slide34

Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM

2. Code address via

CASSTM ZIP + 4®

address matching software

with DPV

and LACSLINKTM

Did the address

ZIP + 4

Match or DPV

confirm?

Y/N

NO

Send bad

addresses

to AEC

Build mailing list

1

1. Build mailing list

2

4

3

5

NO

Send badaddressesto AEC

Bad addressfixed/ZIP + 4 coded?

NO

Did the address ZIP + 4match or DPV Confirm?

YES

YES

7

Update movers (NCOALINKTM)(pre-mailing update)

6

Suppress badaddresses frommailing list

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

8

Mail

9

Update address list withnew ACS information

10

slide35

Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM

NO

Bad address

fixed / ZIP + 4

coded?

Y-N

Suppress bad

addresses from

mailing list

NO

Send bad

addresses

to AEC

Build mailing list

1

2

4

3

5

NO

Send badaddressesto AEC

Bad addressfixed/ZIP + 4 coded?

NO

Did the address ZIP + 4match or DPV Confirm?

YES

YES

7

Update movers (NCOALINKTM)(pre-mailing update)

6

Suppress badaddresses frommailing list

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

8

Mail

9

Update address list withnew ACS information

10

slide36

participant code to

Apply ACS

mail piece (post-mailing update)

Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM

!

For crying out loud!

Mail

Did the address

ZIP + 4

Match or DPV

confirm?

Y/N

)

TM

Update movers (NCOA

LINK

(pre-mailing update)

Then update that address list

with new ACS information…do NOT forget !!

Build mailing list

1

2

4

3

5

NO

Send badaddressesto AEC

Bad addressfixed/ZIP + 4 coded?

NO

Did the address ZIP + 4match or DPV Confirm?

if “Yes”

YES

YES

7

Update movers (NCOALINKTM)(pre mailing update)

6

Suppress badaddresses frommailing list

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

8

Mail

9

Update address list withnew ACS information

10

slide37

JOB WELL DONE!

Build mailing list

1

2

Code address via CASSTM ZIP + 4® address matching software with DPVTM and LACSLINKTM

4

3

5

NO

Did the address ZIP + 4match or DPV Confirm?

NO

Send badaddressesto AEC

Bad address fixed / ZIP + 4 coded?

YES

YES

7

Update movers (NCOALINKTM)(pre-mailing update)

6

Suppress badaddresses frommailing list

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

8

Mail

9

Update address list withnew ACS information

10

slide38

How Can You Succeed?

For more information on USPS Addressing products

  • http://ribbs.usps.gov RIBBS - NCSC Products, Services & Publications
  • http://www.usps.com/ncsc usps.com – Address Quality Page
  • http://ribbs.usps.gov/files/mtac/annual Address Quality Methodologies - Best Practices
  • Contact the USPS National Customer Support Center @
    • 1-800-238-3150
    • Go to www.usps.com