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CLEVELAND PCC CLOSING THE LOOP ON MOVE UPDATE

CLEVELAND PCC CLOSING THE LOOP ON MOVE UPDATE. WHY MOVE UPDATE?. Each year, 17% of Americans move or change their mailing address 1 out of every 6 families moves each year Approximately 19% of all businesses move

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CLEVELAND PCC CLOSING THE LOOP ON MOVE UPDATE

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  1. CLEVELAND PCCCLOSING THE LOOP ON MOVE UPDATE

  2. WHY MOVE UPDATE? • Each year, 17% of Americans move or change their mailing address 1 out of every 6 families moves each year • Approximately 19% of all businesses move • USPS® processes over 45 million permanent Change of Address (COA) orders each year • The USPS adds ~1.8 million new delivery points each year DUBASIK Moving & Storage

  3. 24 of every 100 mail pieces contain Address Errors 5 of every 100 mail pieces are Undeliverable-as- Addressed (UAA) 75% of UAA Mail is Move-related WHY MOVE UPDATE?

  4. MOVE UPDATE REQUIREMENT • November 2008, the Postal Service required all addresses on mailings that receive discounts for First-Class Mail or Standard Mail service… be updated with an approved method within 95 days prior to the mailing. • Effective January 4, 2010 began to assess a penalty of $.07 per piece in mailings with an error rate greater than 30% based on PBV samplings. • <6% of mailings are non-compliant Addresses must be Current, Correct and Complete

  5. MOVE UPDATE • Pre-Mailing • NCOA - National Change of Address • MLOCR with FASTforward® (FFMUN option) • Post-Mailing • Ancillary Service Endorsements • ACS – Address Change Service • Traditional • OneCode • Full Service • Alternative Move Update • 99% Rule • Legal Constraint

  6. ADDRESS UPDATES How are addresses being updated? • 64% use NCOA • 54% use ACS • 33% manually update UAA returned mail • 22% have multiple databases – a key constraint!

  7. MOVE UPDATE Postage Statements • Whoever signs postage statement may be liable for Move Update compliance and penalties

  8. MOVE UPDATE COMPLIANCE • MERLIN systems test for Move Update compliance • Performance-Based Validation (PBV) score: Total COAs Updated By Mailer Total COAs found by MERLIN >=70% *Less than 5 COA are excluded from PBV

  9. MOVE UPDATE COMPLIANCE

  10. MOVE UPDATE COMPLIANCE Mailing 100,000 Sample Size 1,000 Addresses with COA 50 Addresses with Updates reflected on mail pieces 35 Addresses NOT updated 15 PBV SCORE (Update/COA) 70% 100,000 1,000 50 34 16 68% FAILED Assessment (2% x 100,000 x .07) $140.00

  11. MOVE UPDATE COMPLIANCE • Matches include: • COA between 95-days and 18-months • New Addresses • Moved Left No Address * • Closed PO Box* • Moved to Foreign Address* *Should be removed from mailing • Matches excluded: • COA within 95-days or older than 18-months • NIXIES (near matches, new address not validated)

  12. MOVE UPDATE COMPLIANCE “The PBV process does not establish compliance or non-compliance with the Move Update Standard; it is a tool that the Postal Service uses to test mailings.” -Federal Register

  13. USPS AUDITS • Even if passing MERLIN, may not pass an audit • Postal Inspectors from Office of Inspector General • Audit of your internal update process • Primarily looking to get processes corrected • Also investigating intentional violators: • False Claims Act • Penalty is 2x or 3x Revenue Deficiency – 1 to 3-year window • Plus: $11,000 per violation (each mailing statement)

  14. USPS AUDITS • What do you need / Best Business Practice? • Records of all mailings • Copies of update data files • Process Maps & paper trail of updates • Report Tracking – proof of compliance • Backup support of over-riding transactions • Written standards, policies and enforcement mechanisms to ensure compliance of eligibility rules based upon method specified on Statements • Demonstrated communications with employees, vendors and mail service providers regarding compliance

  15. SUMMARY • The USPS must reduce the cost of UAA mail • The tools and services are now available to • Determine compliance risk factors • Implement compliant and best practice solutions • The cost of non-compliance can be significant • The USPS will continue driving down their UAA costs, which means tighter rules and/or higher fees and penalties • This also mean more or your mail will reach your intended customer in the most efficient manner at the lowest possible cost.

  16. MOVE UPDATE COMPLIANCE Move Update take-aways: • Ask about your PBV score • Use 1 or 2 Move Update methods • Update your database & mailing files • Document your update processes

  17. Questions? 17

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