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The ROI of Address Quality

The ROI of Address Quality. Charles Hunt Address Management USPS ®. Chris Lien Executive Vice President BCC Software Inc A Böwe Bell + Howell Company. QUALITY ADDRESSING PROFESSIONAL CERTIFICATE.

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The ROI of Address Quality

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  1. The ROI of Address Quality Charles Hunt Address Management USPS® Chris Lien Executive Vice President BCC Software Inc A Böwe Bell + Howell Company

  2. QUALITY ADDRESSING PROFESSIONAL CERTIFICATE This session qualifies as one of the four Addressing sessions, in addition to the Tuesday, May 20th General Session needed for theAddress Quality Specialist Certificate!

  3. Announcing 2 New Symposiums 15 Presentations focusing on Intelligent Mail See Page 20 of the Catalog 7 Presentations focusing on Direct Mail and the Environment See Page 21 of the Catalog

  4. The Hidden Cost Factor • Address Quality Products & Services • The Road Map to Quality • Optimizer Guide • The Numbers Agenda

  5. Address Quality • 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

  6. 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

  7. New York New Jersey Pennsylvania America is on the Move and Growing! 45 million Americans move 1.8 million new addresses 147 million total addresses

  8. 2004 Christensen UAA Report Old Address Return 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 New Address 8

  9. 2004 Christensen UAA Report * Directly Attributable Cost Only

  10. 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®

  11. A Strategy to Improve Your R.O.I. Addressing Products that Can Make a Difference • 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

  12. 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

  13. DPV® 100 MAIN ST ANYTOWN TN 38138-6038 Confirmed 104 MAIN ST ANYTOWN TN 38138-6038 Not Confirmed • 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

  14. 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

  15. 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

  16. 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 endorsement • Can reduce costs associated with manual returns & manual keying of data • Centralized billing • Post-Mailing Process

  17. ACS™/OneCode ACS™ Current Price • Manual, each $0.50 • ACS Electronic • First-Class Mail® $0.08 • Other $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 $0.03 • Additional notices, each $0.18

  18. Code address via CASSTM ZIP + 4® address matching software with DPV® and LACSLINK® 2. Code address via CASSTM ZIP + 4® address matching software with DPV® and LACSLINK® Did the address ZIP + 4® Match or DPV® confirm? Y/N Did the address ZIP + 4match or DPV Confirm? NO Send bad addresses to AEC Build mailing list 1. Build mailing list 1 2 4 3 5 NO Send badaddressesto AEC Bad addressfixed/ZIP + 4 coded? NO YES YES 7 Update movers (NCOALINK ®)(pre mailing update) 6 Suppress badaddresses frommailing list Apply ACSTM participant code to mail piece (post mailing update) 8 Mail 9 Update address list withnew ACS information 10

  19. NO Did the address ZIP + 4match or DPV Confirm? Bad address fixed / ZIP + 4® coded? Y-N Suppress bad addresses from mailing list NO Send bad addresses to AEC Build mailing list 1 2 Code address via CASSTM ZIP + 4® address matching software with DPV® and LACSLINK® 4 3 5 NO Send badaddressesto AEC Bad addressfixed/ZIP + 4 coded? NO YES YES 7 Update movers (NCOALINK ®)(pre mailing update) 6 Suppress badaddresses frommailing list Apply ACSTM participant code to mail piece (post mailing update) 8 Mail 9 Update address list withnew ACS information 10

  20. ) Update movers (NCOA ® LINK Code address via CASS™ ZIP + 4® address matching software with DPV® and LACSLINK® (pre-mailing update) ! For crying out loud! Did the address ZIP + 4® Match or DPV® confirm? Y/N Mail participant code to Apply ACS™ mail piece (post mailing update) Did the address ZIP + 4match or DPV Confirm? Then update that address list with new ACS™ information…do NOT forget !! Build mailing list 1 2 4 3 5 NO Send badaddressesto AEC Bad addressfixed/ZIP + 4 coded? NO if “Yes” YES YES 7 Update movers (NCOALINK®)(pre mailing update) 6 Suppress badaddresses frommailing list Apply ACSTM participant code to mail piece (post mailing update) 8 Mail 9 Update address list withnew ACS information 10

  21. JOB WELL DONE! Build mailing list 1 2 Code address via CASSTM ZIP + 4® address matching software with DPV® and LACSLINK® 4 3 5 NO Did the address ZIP + 4match or DPV Confirm? Bad addressfixed/ZIP + 4 coded? NO Send badaddressesto AEC YES YES 7 Update movers (NCOALINK®)(pre mailing update) 6 Suppress badaddresses frommailing list Apply ACSTM participant code to mail piece (post mailing update) 8 Mail 9 Update address list withnew ACS information 10

  22. Tool Impact ROI 7.65:1

  23. 47.8

  24. Tool Impact ROI 27:1 $752.78 7.0%

  25. An Address Quality Foundation TM ACS ® NCOALink ® AEC / AEC II DPV ® ® LACSLink TM CASS Certified Software ANKLink™ Update Validate Standardize 34

  26. Knowledge Validation 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.

  27. FOR MORE INFORMATION ribbs.usps.gov www.usps.com/ncsc Customer Support 1-800-238-3150

  28. Quality Addressing Track Monday Tools & 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 Them Charles Hunt/Kevin Conti - Period 6, 11:15am - 12:15pm - Room 212AB Tuesday Move 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 Integrity Jim Wilson/Eric Houger - Period 11, 11:15am - 12:15pm - Room 210AB How Government Agencies use Address Quality to Better Serve the Community Gail Milton/Mike Sexson - Period 13, 3:15 - 4:15pm - Room 212AB Wednesday The ROI of Address Quality Charles Hunt/Chris Lien - Period 16, 2:15 - 3:15pm - Room 212AB Stump the Experts with Your Un-codable UAA Mail Jim Wilson/Alice VanGorder - Period 17, 3:30 - 4:30pm - Room 212AB

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