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A journey to address the Undeliverable Mail problem NAMMU Toronto Chapter meeting - November 26,2009. Early stages in the journey. December 11, 2008 Toronto NAMMU Chapter Meeting Exploring the problem Results of initial quantitative mailer research Elements under evaluation - PowerPoint PPT Presentation
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1Canada Post – June 2009
A journey to address the Undeliverable Mail problem
NAMMU Toronto Chapter meeting - November 26,2009
2Canada Post – June 2009
Early stages in the journey
December 11, 2008 Toronto NAMMU Chapter Meeting
• Exploring the problem
• Results of initial quantitative mailer research
• Elements under evaluation
• A plan for in-market mailer data pilots
3Canada Post – June 2009
The volume of Undeliverable Mail
Annually, Canada Post estimates that more than 140 million pieces of mail are incorrectly addressed
4Canada Post – June 2009
Drivers of Undeliverable Mail
Inaccurate addresses
Movers
Deceased
72%
27%
1%
5Canada Post – June 2009
A lack of marketer knowledge surrounds this problem
67% estimate file is 95% accurate or greater
74% do not measure undeliverable mail
69% could not estimate the financial impact
6Canada Post – June 2009
Service% stated
usageConcerns
Address Accuracy 26% 21% could not estimate value
Change of Address
16% “deceased” not top of mind
Address Correction Service
14% 76% do not run every time
Return Postage Guaranteed
56% 15% incidence rate
Mailers do not appear to be taking advantage of today’s data hygiene tools
Mailer Rationale: Most believe customers proactively contact them with updates and corrections
7Canada Post – June 2009
Current CPC Standards – Product Configuration
Incentive Threshold
Accuracy Threshold
Volume Threshold
Evaluation
Data Currency
Financials
Address Accuracy Required
95%
5,000 +
Annually on Sample File
Within 1 year
$0.05 piece below threshold
8Canada Post – June 2009
Canada Post major data pilot study with 13 Mailers
•A representative sample of mailers across industries, mailing regions and use of data tools were selected
•Mail file segments were prepared to validate the effectiveness of tools
•All returned mail records were captured and attributed back to the mail segments
•Analysis is conducted to understand effectiveness of tools and implications for the mailer
MailerSelection
Application of Data Tools
Capture Return Data
Summarize Findings
9Canada Post – June 2009
The pilots analyzed both current and proposed tools
Proposed Enhancements
Current Tools
Address Accuracy Range Point of Call
Change of Address
3 year 6 year
Deceased 1 year in NCOAUniversal
Suppression Deceased & Opt-out COA
10Canada Post – June 2009
Continuing the journey
June 11, 2009 Toronto NAMMU Chapter Meeting
• Results of pilots
• Focus of CPC efforts
11Canada Post – June 2009
Current tools can drive efficiencies and new tools show promising results
Proposed EnhancementsCurrent Tools
Address Accuracy
Corrected: 3.6%Invalid: 4.7%
Missing Apt/Suite 3.9%
Change of Address
2.2% correction0.8% suppression
Improvement of 16-38%
Universal Suppression
Identified 1.4%
Over 11.3% of the file was impacted by current tools alone
12Canada Post – June 2009
Campaign return rates are improved with tool usage
Current tools reduced returns by 17% and beta tools by 27%
4.1%
3.4%
3.0%
0%
17%
27%
0%
5%
10%
15%
20%
25%
30%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
Control Baseline Enhanced
Impact of Tools on Return Rates
13Canada Post – June 2009
Return rates varied by the type of address
Return Rates Highest for Apartments
5.8%
4.0%
9.8%
2.7%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Rural /Lock / PO Box RR/Civic Apt Urban
Return % by Delivery Type
14Canada Post – June 2009
Enhanced
Baseline
Control
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
6.4%
2.4%
8.8%
2.4%
9.8%
2.7%
Aggregate Pilot Mailers Delivery Type Mailed by Return Rates Percent
Apartment returns can be reduced
Apartment returns reduced by 10% for Current tools and 35% by Beta Tools
15Canada Post – June 2009
Understanding a mailer’s risk profile
Data Risk List Profile
Higher likelihood to be clean
• Sourced from billing database• Frequent contacts or active loyalty program/publication• Regular updates applied back to database• Regular validation at customer contact points• Low apartment/suite penetration• Low rural penetration
Lower likelihood to be clean
• Infrequent contact or lapsed customers• No billing or purchase history • Prospect list acquired through promotions/online• Long-term warranty or long purchase cycles • High apartment/suite penetration• High rural penetration
16Canada Post – June 2009
Where we are today in the journey
November 27, 2009 Toronto NAMMU Chapter Meeting
• Focus of effort
• Activities underway
17Canada Post – June 2009
Focus of Effort to Address Undeliverable Mail
Focus on largest driver – movers
Present the Value Proposition
Tool Improvement
Market Awareness and Education
18Canada Post – June 2009
The ongoing cycle of mail communications
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
19Canada Post – June 2009
Pre-Mailing is the first step in the process
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
20Canada Post – June 2009
When executing your mailing, data hygiene is a critical step
• Apply certified address accuracy software
• Apply merge/purge rules to reduce duplicates
• Apply the CMA’s Do Not Mail file and internal suppressions
• Correct name/address through NCOA moves software and consider removing deceased records
Pre-Mailing: List cleansing up front
21Canada Post – June 2009
Estimated Pre-Mailing Benefits
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
Best Practices show identification of:• 70% of incorrect addresses • 30% of movers
22Canada Post – June 2009
Pre-Mailing Benefits
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
23Canada Post – June 2009
Returns management: end-to-end
• Collecting returned and undelivered pieces quickly
• Extracting as much relevant data as possible from each piece (inside & out)
• Ensuring that data is captured and updated back into customer/prospect databases
Post-Mailing: Gain insight through Returns
24Canada Post – June 2009
Estimated Post-Mailing Benefits
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
Should identify an additional: •25% of incorrect addresses •40% of movers
25Canada Post – June 2009
Pre and post-mailing information should be integrated back into the mailers organization
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
26Canada Post – June 2009
Applying best practices in data management internally
• Validate address accuracy at point-of-entry
• Clean your internal database regularly for incorrect or missing fields
• Update address information at customer touch points
• Create an in-house preference, contact or suppression file
Internal Mailer Processing: apply learnings
27Canada Post – June 2009
Maximizing effectiveness is a fully circle process
Pre-Mailing: List cleansing up front Mailing
Occurs
Post-Mailing: Gain insight through
Returns
Internal Mailer Processing: apply
learnings
Should target identification of 95% of address errors and 70% of movers
28Canada Post – June 2009
Your program ROI should be higher with data cleansing
Without Data
Cleansing
With Data Cleansing
Undeliverable/Incorrect % 10.5% 5.0%
Quantity 500,000 500,000
Total Campaign budget $750,000 $754,000*
Undeliverable/incorrect pieces 52,500 25,000
Net response rate 2% 2%
Number of sales attained 8,950 9,500
Gross profit per sale $250 $250
Average cost per sale $84 $79*Include data hygiene processing costs
29Canada Post – June 2009
The benefits of reducing Undelivered Mail
Improve campaign metrics
• Improve response rates and cost per order
Reduce costs
• Eliminate Direct costs; minimize Indirect
Become more green
• Reduce waste
Be a privacy leader
• Respect and protect your customers’ information
30Canada Post – June 2009
Tool Improvements
Address Accuracy Rules for Validation and Correction (completed)• Apartment building addresses (suite information)
• Rural Addresses (‘0’ in the 2nd position of the postal code)
NCOA changes and improvements for 2010• 6 year file
• Consent changes to allow update
• COA marketing efforts to drive enrolment and opt-in
31Canada Post – June 2009
Market Education
White Paper – Launched October; update in 2010
Webinars – October; November and into 2010
Conferences – Print in the Mix; CPC Out-of-the-Box; CMA more in 2010
32Canada Post – June 2009
Market Education continued
Collateral – educational sheets
• Customized for mailer, agencies
• Checklist for working with VAM
33Canada Post – June 2009
In 2010 the journey continues…..
34Canada Post – June 2009