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