Transcript Slide 1

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
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 DOE
2200 CLARENDON BLVD STE 1000
ARLINGTON VA 22201-3381
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
Four Basic Address Quality Questions
 What Are You Doing Now?
 What Should You Be Doing?
 Why Does It Matter?
 How Can You Succeed?
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!
145 million total addresses
41 million
Americans move
New York
Pennsylvania
1.8 million new
addresses
New Jersey
UAA Mail Study
Return
Old address
51.3¢ / pc.
1.60 Billion pieces
$822.5 Million
9.724 Billion pieces
$1.856 Billion
x
Forward
21.3¢ / pc.
1.985 Billion pieces
$421.9 Million
Waste
4.4¢ / pc.
6.136 Billion pieces
$269.8 Million
PRC LR-L-61 for R-2006-1 Rate Case (Christiansen UAA Study –Table 3.1)
New
Address
The Address Quality Equation
Physical Address Quality
+ Move Update Quality
= Deliverable Mail
It
Just
Adds
Up!
What Should You Be Doing?
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 & II
Address Element Correction I & II
 NCOALINK ™
National Change of Address Link
 ACS™/OneCodeACS™
Address Change Service
Why Does It Matter?
 BECAUSE it impacts your:
Costs
Postage
Response Rates
R.O.I.
It’s
Your
Bottom
Line!
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
Creative 11.25¢
Postage 23¢
Art &
Preparation 9.75¢
Allocated Fees 13.55¢
Printing Production
33.76¢
Lettershop Production 4.02¢
Computer Processing 2.32¢
Mailing Lists 12.35¢
DMA Statistical Fact Book 2005
How Can You Succeed?
What Should You Be Doing?
Update
Correction
Validate
Standardize
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™
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 file
Example:
100-110 MAIN ST
ANYTOWN TN 38138-6038
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
CASS™
DPV™ (Delivery Point Validation)

Extension of ZIP + 4® CASS-certified Address Matching
software


Available through software vendors

DPV - Extra step to attempt validation of each
specific address in the file
Enables ZIP + 4 Coding & identifies potentially
undeliverable addresses
Example:
100 MAIN ST
ANYTOWN TN 38138-6038
104 MAIN ST
ANYTOWN TN 38138-6038
Confirmed
Not Confirmed
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%
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™/ 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™/OneCodeACS™
Current & Future Rates
Address Correction Service
Current
 Manual, each
$0.75
 ACS Electronic
 First-Class Mail®
 Other
0.21
0.21
 OneCodeACS™ (Letters Only)
 First-Class Mail
- First 2 notices, each
- Additional notices, each
 Standard Mail (Fall 2007)
- First 2 notices, each
- Additional notices, each
Future
$0.50
0.06
0.25
0.21
0.21
Free
0.05
N/A
N/A
0.02
0.15
New Addressing Requirements
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
New CASS Requirement
Current CASS/MASS ZIP+4 Process
Assigns +4 Codes using range-based
matching
Does not discern if address is valid delivery
point
New CASS Requirement
ZIP+4 Process Example
Mailer Address:
123 Mail Street Anytown, NY 12345
Matches to USPS record:
121-129 Main Street, Anytown NY 12345-3356
New CASS Requirement
DPV 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
DPV Return Codes
Return
Code
Definition
Record
Types
N
No Delivery Point Validated
All
Y
Delivery Point Validated /Primary Valid
and Secondary Number (When
Present) Valid
All
S
Valid Primary Number; But Secondary
(Primary for Rural Route) Present and is
Not Confirmed
All
D
Valid Primary; Input Missing Secondary
(Primary for Rural Route)
All
New CASS Requirement
ZIP+4 Vendor Requirements
Today: DPV is an optional
processing feature
Tomorrow: DPV Primary Number
confirmation will be required
New CASS Requirement
Mailer Requirements
No change
Automation Rate Qualification
requires the use of CASS-certified
ZIP+4 software
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
Putting It All Together
1
2
Build mailing list
2. 1.
Code
address
via
Build
mailing
list
Code address via CASS ZIP + 4
®
TM
address matching
software with
CASS
ZIP + 4
DPV and LACS Did the
address matching
address
4
NO
software
3
5
Send
bad
ZIP
+ NO
4
Send bad
with
DPV addresses
addresses
to
AEC
Match
or
DPV
LINKTM
and LACS
to AEC YES
confirm?
YES
®
TM
LINKTM
7
Did the address ZIP +
4
match or DPV
Confirm?
Bad address
fixed/ZIP + 4
coded?
Update movers (NCOALINKTM)
(pre-mailing update)
6
Y/N
8
Apply ACSTM participant code to
mail piece (post-mailing update)
9
Mail
10
Update address list with
new ACS information
NO
Suppress bad
addresses from
mailing list
1
2
Build mailing list
Code address via CASSTM ZIP + 4®
address matching software with
DPV and LACSLINKTM
NO
3
Did the address ZIP +
4
match or DPV
Confirm?
4
NO
Bad address
fixed / ZIP + 4
coded?
Y-N
5
Send
bad
Send bad
addresses
addresses
to
AEC
to AEC YES
Bad address
fixed/ZIP + 4
coded?
NO
NO
YES
7
Update movers (NCOALINKTM)
(pre-mailing update)
8
Apply ACSTM participant code to
mail piece (post-mailing update)
9
Mail
10
Update address list with
new ACS information
6
Suppress bad
addresses from
mailing list
Suppress bad
addresses from
mailing list
1
2
Build mailing list
Code address via CASSTM ZIP + 4®
address matching software with
DPV and LACSLINKTM
3
Did the
address 4
ZIP + NO
4
Match or DPV
confirm?
Did the address ZIP +
4
match or DPV
Confirm?
YES
7
Send bad
addresses
to AEC
Bad address
fixed/ZIP + 4
coded?
if “Yes”
LINK
Apply ACSTM participant code to
mail piece (post mailing update)
9
Mail
TM
Mail
Then update that address list
with
Updatenew
addressACS
list with information…do NOT forget !!
new ACS information
NO
YES
)
Update movers (NCOA
code to
Apply ACS
Y/Nparticipant
(pre-mailing
update)
!
For crying out
mail piece (post-mailing
update)
loud!
Update movers (NCOALINKTM)
(pre mailing update)
8
10
5
6
Suppress bad
addresses from
mailing list
1
2
Build mailing list
Code address via CASSTM ZIP +
4® address matching software
with DPVTM and LACSLINKTM
4
3
5
Did the address
ZIP + 4
match or DPV
Confirm?
NO
Send bad
addresses
to AEC
Bad address
fixed / ZIP + 4
coded?
NO
YES
YES
7
Update movers (NCOALINKTM)
(pre-mailing update)
8
Apply ACSTM participant code to
mail piece (post-mailing update)
9
Mail
10
Update address list with
new ACS information
6
Suppress bad
addresses from
mailing list
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