Overview

1. The ROI ofGreat Address QualityNational Postal ForumMarch 16 – 19, 2014Edward Wanta – Product Information SpecialistUnited States Postal Service®Paula Stoskopf– Director of Industry AffairsFairrington Transportation

2. Overview What is a quality address How address validation tools can help Address validation scenarios Keeping up with your customers

3. Great Addressing Is Important! A quality address helps:  Acquire customers Retain existing customers Increase response rate Keep postage costs in check

4. Address Validation is one of the key components to your mailing process Addresses that do not validate are at risk of non-delivery Databases go “stale” over time without continually updating the information There are many reasons an addresscan fail. You need to ensure they are: Complete Correct Current Why Address Validation Matters

5. Can You Recognize a Bad Address?

6. Can You Recognize A Bad Address?

7. Common Address Quality Problems Physical Address UAA ACME PRODUCTS 4759 WESTERN ST NEW YORK NY 10022-5279 398 CARL SHULER 1414 LARK ST APT 3A CHICAGO IL 60614-1910 CARL BROWN 1414 LAKE ST APT CHICAGO IL 60614-1910 CARL SHULER LAKE ST APT 3A CHICAGO IL 60614-1910 CARL SHULER 1914 LAKE ST APT 3A CHICAGO IL 60614-1910 CARL SHULER PO BOX CHICAGO IL 60614-1910 CARL SHULER 1414 LAKE ST APT CHICAGO IL 60614-1905 226 Millions of Pieces Millions of Pieces 134 56 47 48 Missing Apt or Ste Number Incorrect Number Incorrect Recipient Missing Number Missing RR or Box Number Incorrect Street Name

8. Total Address Quality TM ACS ANKLink® NCOALink® AEC / AECII® SuiteLink® LACSLink®/ DPV® CASS Certified™ Update Validate Standardize

9. TM ACS ANKLink® NCOALink® AEC / AECII® SuiteLink® LACSLink®/ DPV® CASS Certified™ Products to Use to Achieve Quality Addressing Update Validate Standardize

10. What is a Quality Address? A quality address is defined when:Allnecessary elements are complete and correct… • Secondary identifier • Secondary number • City • State • ZIP + 4® code • Pre-directional • Primary address number • Street name • Street suffix • Post-directional

11. What Is A Standardized Address? Address elements are printed on envelopes in standard format: Format all lines of the address with a uniform left margin Uppercase letters are preferred on all lines of the address block Fully spell out or abbreviate words using USPS® standard abbreviations www.usps.com ribbs.usps.gov Publication 28, Postal Addressing Standards

12. Address Standardization Does Help • There are many CASS Certified™ tools; each is unique with different strengths • Evaluate what’s available and choose which best fits your needs • CASS Vendor List available on: • https://ribbs.usps.gov/files/vendors/#index.txt

13. TM ACS ANKLink® NCOALink® AEC / AECII® SuiteLink® LACSLink®/ DPV® CASS Certified™ Products to Use to Achieve Quality Addressing Update Validate Standardize

14. Some Common Scenarios . . .

15. LACSLink®Product Provides a database of municipality-introduced address changes The data is provided by USPS® through the LACSLink product Conversions come into the database from Postal carriers and municipalities Updating the addresses using LACSLink data ensures deliverability and prevents further UAA mail

16. Scenario: LACSLink® Conversion Example: RR 2 Box 317 Beaver Falls, PA Becomes . . . 1444 Halas Ln Beaver Falls, PA 15010-6929 It reassigns rural addresses to a more friendly format that is more easily accessible by emergency services

17. Scenario: LACSLink® Conversion Example: 47785 Forman Rd Polson, MT 59860 Becomes . . . 412634 Forman Rd Polson, MT 59860- 8368 LACS also provides updated rural addresses when they expand an address range - usually because they have run out of numbers - and reassigns addresses within that area.

18. DPV® Product Confirms the existence of a delivery point in AMS Identifies a commercial mail receiving agency Improves address assignments Helps to reduce UAA Is 249 High St in ZIP Code™ 94301 a valid address? Yes or No

19. Scenario: Precise Match With Valid DPV®CASS™ Return Code 31 Be aware that there are multiple scenarios that have a return code of 31, not all ideal A precise match is ideal

20. Scenario: Precise Match With Invalid DPV®CASS™ Return Code 31 This occurs when the address is within a valid ZIP + 4® range BUT the street number doesn’t exist Precise CASS match with invalid DPV cause return code 31, Address Exists fails

21. Scenario: Non Deliverable Address,ALSO – CASS™ Return Code 31 Just because it shows up on the internet doesn’t mean it’s a deliverable address. In cases where there is a known address in the system, but no mail is accepted Example: a warehouse with no mail receptacle

22. Scenario: Multiple Match, Insufficient Information, Return Code 22 This scenario occurs when there are address elements missing (such as Street versus Avenue)

23. Scenario: No Address Found Return Code 21 This scenario occurs when the address is not found and there is no city/state/ZIP Code™ match A CASS™ engine will try to match, but match may not be correct

24. SuiteLink®Product Improves address assignments to business addresses by adding known secondary (suite) numbers Provided a business name and an associated ZIP + 4® coded address matches to a high-rise default, the SuiteLink process will return the appropriate suite number when available

25. Scenario: Default Match Return Code 32 Notice the Suite column. Data is not contiguous in high rises. Address requires additional information for a precise match

26. AEC & AECII®Service AEC provides a crucial “last resort” approach to stubborn addresses USPS® service to help correct addresses that CASS Certified™ software cannot fix AECII expands AEC processing Leverages Delivery Force Knowledge™ for addressesthat AEC cannot correct

27. AEC Processing Flow

28. TM ACS ANKLink® NCOALink® AEC / AECII® SuiteLink® LACSLink®/ DPV® CASS Certified™ Products to Use to Achieve Quality Addressing Update Validate Standardize

29. On the Move! • 35.9 million (11.7%) • US residents moved between 2012 and 2013* • Renters more mobile – 24.9% • 18 – 34’s move most often • Other demographic factors • Average American moved 11.7 times (2011 Census) • *US Census Bureau – Nov 2013 Press Release

30. Keeping Up with the Movers Move Update describes the process of matching a mailer’s address records with customer-filed Change-of-Address orders received and maintained by the Postal Service™ Move Update = Fewer Forwarded and Returned Mailpieces

31. Move Update Requirement • Who must comply with Move Update rules? • First-Class Mail® or Standard Mail® claiming Presort or Automation discounts • How often? • Addresses updated using an approved method within 95 days prior to the mailing date • Are there exceptions? • Exceptional or an alternative address format are not required to meet Move Update (mail is not forwarded) • Or Current Resident • Postal Customer

32. Mailing with passing score of 70% (tolerance 30%) or higher will pass verification Mailing with score below 70% will fail verification if there are also more than 5 pieces with COAs not updated Only failed pieces above tolerance pay assessment If 40% of COAs not-updated Assessment applied to 10% (= 40 - 30) of mailing Assessment = $0.07 per piece at acceptance Both First-Class Mail® and Standard Mail® [ ] Failed COAS Total COAs x 7¢ x (pieces in mailing) - 30 % Move Update Scoring

33. Move Update Cost Breakdown

34. Prior to Mailing NCOALink® NCOALink® MPE (Mail Processing Equipment) From Mailing Process Ancillary Service Endorsements ACS™ Alternative Move Update Methods 99% Accurate Legal Restraint Move Update Methods

35. NCOALink® NCOALink® MPE (Mail Processing Equipment) Prior to Mailing

36. A pre-mailing Move Update method leveraging USPS® provided data Data delivery from USPS to certified licensees Three levels of usage for certified licensees: End User Mailer(18 months of data updated monthly) Limited Service Provider(18 months of data updated weekly) Full Service Provider(48 months of data updated weekly) NCOALink® Service

37. NCOALink®- How does it work? • USPS® Change of Address Database • Entirely separate from the Address Management System (AMS) database • NCOALink® requires software • Contains personal names and business names • Addresses with “no forward on file” are excluded from the database

38. Update PAULA STOSKOPF 1029 AMBER LN WEBSTER NY 14580-1129 PAULA STOSKOPF N258 VALLEY RD LA CROSSE WI 54601-2935

39. A valuable add-on to NCOALink® Limited Service Providers and End User Mailers Provides an indicator that a move may have occurred in months 19 through 48 Does not contain the actual new address Allows for more value out of move update processing Only the flagged addresses need to be sent to a 48-month NCOALink Full Service Provider ANKLink® Service

40. NCOALink® MPE • The use of NCOALink data on multiline optical character readers (MLOCR) to update and spray change-of-address information on mailpieces prior to submission to the USPS® • Can also be used on delivery point barcode sorters to identify, sort, and remove undeliverable-as-addressed (UAA) mail prior to submission to the USPS.

41. Ancillary Service Endorsements ACS™ From Mailing Process

42. Ancillary Service Endorsements can be used as a stand-alone method of meeting the Move Update standard Hardcopy Electronic Ancillary Service Endorsements

43. Address Service Requested Return Service Requested Change Service Requested Forwarding Service Requested Electronic Service Requested Ancillary Service Endorsements

44. ACS is a post-mailing address correction service that allows mailers to receive change-of-address (COA) information and other reasons for non-delivery electronically ACS is available for use with all classes of mail Can and in most cases must be combined with Ancillary Service Endorsements, such as Address Service Requested Change Service Requested Return Service Requested ACS™ Service

45. Benefits Reduce manual address costs Reduce labor-intensive address change functions by eliminating returned mail Choose when to receive fulfillment of time-sensitive information on a daily, weekly, or monthly schedule Retrieve address change information electronically via a secure Internet site Receive notifications that relate specifically to their address files Receive the electronic notices sooner than manual notices would have been received ACS™ Service

46. Mailers have three distinct versions of the ACS service Traditional ACS OneCode ACS® Full-Service ACS ACS™ Service Participant Code Optional Keyline

47. First-Class 99% Accurate Legal Restraint Alternative Move Update Methods

48. CASS™ Report 3553 DPV® LACSLink® Total ZIP + 4® Coding CASS Summary Report AEC Summary Reports NCOALink®Summary Report Documentation From List Vendor

49. TM ACS ANKLink® NCOALink® AEC / AECII® SuiteLink® LACSLink®/ DPV® CASS Certified™ Fundamentals ofGreat Address Quality Update Validate Standardize

50. 1 Code address via CASS CertifiedTM address matching software with DPV® and LACSLink® 4 3 2 Send badaddressesto AEC/AEC II® Bad addressfixed/ZIP + 4® coded? Did the address DPV Confirm? Y/N 6 Update movers (NCOALink)(pre mailing process) 5 Suppress badaddresses frommailing list 7 Apply ACSTM to mail piece (post mailing process) 8 Mail Update address list withnew ACS information 9 NO YES NO YES