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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)
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)
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)
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)
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
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