In November, the USPS will make all mail smarter & reduce waste

1. In November, the USPS will make all mail smarter & reduce waste Facts the U.S.P.S. Wants You to Know • Each year, over 2 BILLION pieces of mail are discarded by the U.S. Postal Service. • This makes U.S. Post Office the largest recycler of paper in the world! • Effective Nov. 23, 2008 this will change! • All mail must go through Address Correction within the prior95 days.

2. Reasons for this problem? • Recipient moves but list owner chooses not to update their file with USPS approved method. • Faulty address - doesn’t match USPS database. • Mailer uses inefficient, error-prone manual method to update addresses. • Paper stock or design jams in postal equipment.

3. 44 Million Address Changes • Based On Addresses Processed by U.S.P.S. • Economics - Lower income move most often but mid and upper move for jobs, better lifestyle. • Geographics - From north to south. • Metropolitan - From city to suburbia. • 14% of households move annually per U.S.P.S. • Up to 18% of those under 30 or over 55 move.

4. By Not Keeping Addresses Current, You Lose Customers & Prospects

5. What Happens If 14% Move Each Year? • YEAR 1 - 10,000 names, loss is 1,400 • YEAR 2 - 8,600 names, cumulative loss 2,604 • YEAR 3 - 7,396 names, cumulative loss 3,639 • YEAR 4 - 6,361 names, cumulative loss 4,529 • YEAR 5 - 5,470 names, cumulative loss 5,295 TOTAL FIVE-YEAR LOSS IS OVER 50%.

6. The Hidden Costs of Not Updating Assumes 14% of 10,000 Have Moved • 1,400 Did Not Receive the Piece • Lower Response • Higher Promotional Cost because you paid for printing, postage and mailing services. • You lose past, current and future customers!

7. The Marketing Cost • You Should Not Want to “Lose” Your Customers • Best Prospect = Current Customer • Next Best = Past Customer • Next Best = Competitor’s Customer • Next Best = A Prospect Who Matches Your Current Customer

8. The Economic Cost • Wasted Postage, Printing, Mailing Costs • Pieces Mailed: 10,000; Moved 1,400 • Postage Cost: 1400 X .10 Ea.......$140.00 • Printing Cost: 1400 X .30ea......$420.00 • Lettershop Cost: 1400 X .05 Ea......$ 70.00 • Total Cost, Wasted Mail.............$630.00 NCOA: 18-month $92.00 / 48-month $152.20

9. Capturing Address Changes The Post Office Offers Three Choices • Address Correction Service • Change Service Requested • National Change Of Address / NCOA If you are not using one of these options, you are wasting postage and printing, and not maximizing potential response to your mailings.

10. Address Correction Service • Manual Cost: 50-cents ea. (+ 1 cent postage) • Costly And Labor Intensive • Error Prone: Notice sent carrier, who can make mistakes. • Waste: Standard mail not forwarded, only first class. • Paper: Changes come on paper • Labor: Change has to be keyed by your staff which is an unproductive and error prone

11. Change Service Requested • Less Costly, Less Labor • Cost For Standard Mail: 3-cents each first two notices, 18-cents thereafter A.NO PAPER: Done electronically • Waste: Mailing not delivered because person has moved. However, First Class is forwarded • Labor: No keying, only electronic update Used by those who mail often

12. N.C.O.A. National Change Of Address • Least Costly, No Waste • Cost: Varies with quantity and 18-month versus 48-month option, averages 3 to 10-cents each, less with very large quantities • Paper: None. Done electronically, unless you want hard-copy comparison. • Waste: None. Change made before mailing. • Labor: None, other than electronic transfer and update.

13. 18-month vs. 48-month NCOAPros & Cons • 48 month NCOA - do if this is your first time or you have not been updating your file if a vendor has been performing NCOA. Tracks every move in past four years, provides current address. • 18 month NCOA - Use if your file has been through 48-Month NCOA within past year. Cost difference is about $5.00 per 1000 records

14. If You Have Never Done NOCA Then What??? • Do Your Addresses Meet USPS Standards? • If your database has been CASS certified by your mailing service or a vendor but never imported back into your system, you need to be concerned about Address Standardization • USPS has strict criteria on the elements that make up an address so it can be matched to the NCOA database. They cover spelling, abbreviations, zip plus four, etc. Are your addresses standardized?

15. Frequency Depends Upon Your Mailings • 95 Days - U.S.P.S. requires N.C.O.A. within 95 days of mail date for all mailings earning discounts. So include this in your schedule. • ALWAYS - Before a major campaign, mailing an alumni magazine, fundraising solicitation. • Keep NCOA Documentation you will receive because you will need them when you mail.

16. N.C.O.A. Becomes Mandatory November 23, 2008 • Must Be Done 95 Days Or Sooner Than The Date Of The Mailing. • NCOA minimizes waste. • NCOA increases your marketing response. • NCOA eliminates keying address changes. • Minimize printing and postage costs by knowing how many you should mail before setting your print order.

17. How You Can Use N.C.O.A. Aceware + Labels & Letters Make It Easy. • Export your file. • Go to aceware.com - Click LINKS. Go to dmi-mail.com - Clink NCOA. Complete the form, click EMAIL - Attach your file. Or, • If super large, inquire about FTP.

18. Contact Information To learn more about NCOA and how you can get your mailing list certified: Email: waltheeney@dmi-mail.com Web: www.dmi-mail.com