Early stages in the journey

1. A journey to address the Undeliverable Mail problemNAMMU Toronto Chapter meeting - November 26,2009

2. 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

3. The volume of Undeliverable Mail • Annually, Canada Post estimates that more than140 million pieces of mail are incorrectly addressed

4. Drivers of Undeliverable Mail 72% Movers 27% Inaccurate addresses 1% Deceased

5. 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

6. 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

7. Current CPC Standards – Product Configuration Incentive Threshold Address Accuracy Required Accuracy Threshold 95% Volume Threshold 5,000 + Evaluation Annually on Sample File Data Currency Within 1 year Financials $0.05 piece below threshold

8. 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 Mailer Selection • All returned mail records were captured and attributed back to the mail segments Application of Data Tools • Analysis is conducted to understand effectiveness of tools and implications for the mailer Capture Return Data Summarize Findings

9. 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 Universal Suppression Deceased & Opt-out COA Deceased 1 year in NCOA

10. Continuing the journey • June 11, 2009 Toronto NAMMU Chapter Meeting • Results of pilots • Focus of CPC efforts

11. Current tools can drive efficiencies and new tools show promising results Over 11.3% of the file was impacted by current tools alone Proposed Enhancements Current Tools Address Accuracy Corrected: 3.6% Invalid: 4.7% Missing Apt/Suite 3.9% Change of Address 2.2% correction 0.8% suppression Improvement of 16-38% Universal Suppression Identified 1.4%

12. Campaign return rates are improved with tool usage Current tools reduced returns by 17% and beta tools by 27%

13. Return rates varied by the type of address Return Rates Highest for Apartments

14. Apartment returns can be reduced Apartment returns reduced by 10% for Current tools and 35% by Beta Tools

15. Understanding a mailer’s risk profile

16. Where we are today in the journey • November 27, 2009 Toronto NAMMU Chapter Meeting • Focus of effort • Activities underway

17. Focus of Effort to Address Undeliverable Mail • Focus on largest driver – movers • Present the Value Proposition • Tool Improvement • Market Awareness and Education

18. The ongoing cycle of mail communications Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

19. Pre-Mailing is the first step in the process Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

20. When executing your mailing, data hygiene is a critical step Pre-Mailing: List cleansing up front • 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

21. Estimated Pre-Mailing Benefits • Best Practices show identification of: • 70% of incorrect addresses • 30% of movers Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

22. Pre-Mailing Benefits Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

23. Returns management: end-to-end Post-Mailing: Gain insight through Returns • 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

24. Estimated Post-Mailing Benefits Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns • Should identify an additional: • 25% of incorrect addresses • 40% of movers

25. Pre and post-mailing information should be integrated back into the mailers organization Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

26. Applying best practices in data management internally Internal Mailer Processing: apply learnings • 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

27. Maximizing effectiveness is a fully circle process Should target identification of 95% of address errors and 70% of movers Pre-Mailing: List cleansing up front Mailing Occurs Internal Mailer Processing: apply learnings Post-Mailing: Gain insight through Returns

28. Your program ROI should be higher with data cleansing

29. 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

30. 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 for2010 • 6 year file • Consent changes to allow update • COA marketing efforts to drive enrolment and opt-in

31. 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

32. Market Education continued • Collateral – educational sheets • Customized for mailer, agencies • Checklist for working with VAM

33. In 2010 the journey continues…..