Managing UAA Mail from ALL Aspects National Postal Forum March 16 - 19, 2014

1. Managing UAA Mail from ALL Aspects National Postal Forum March 16 - 19, 2014 Jim Wilson, Manager, Address Management, USPS® Bob Schimek, Sr. Director of Postal Affairs, Satori Software Inc.

2. Defining Undeliverable-As-Addressed (UAA) Mail Undeliverable-As-Addressed (UAA) Means the mailpiece cannot be delivered to either the address or to the recipient shown on the mailpiece and must be: • Forwarded to new address • Returned to sender • Disposed as waste

3. 2013 Christensen UAA Report Return 51.4¢ / pc. 1.496 Billion pieces $768.9 Million 6.784 Billion pieces $1.271 Billion Original Address New Address Mailer Waste 6.1¢ / pc. 4.233 Billion pieces $257.6 Million Forward 23.1¢ / pc. 1.055 Billion pieces $244.1 Million

4. Total UAA Mail Trending

5. First-Class Mail®UAA Trending

6. Standard Mail® UAA Trending

7. Historical Mail Volume to UAA Volume Trend

8. Reasons Why Mail Is Undeliverable • Customer No Longer Receives Mail at Address: 75.8% • Requires Forwarding: 29.1% • Forwardable, Not Eligible: 19.2% • Not Forwardable: 27.5% • Address Element(s) Incorrect:12.4% • Other Reasons:11.8% • Vacant 7.7% • No Mail Receptacle 2.9% • Refused 0.9% • Other 0.3%

9. But My “Bad” Addresses Get Delivered! • A “conservative” estimate is that each year, 2.2 billion mailpieces are delivered without complete address information • Requires carrier’s personal knowledge • Additional $160 million USPS® cost • An additional 1.2 billion mailpieces lack complete address information and have to be returned or disposed • Additional $185 million USPS cost

10. Tools-of-the-Trade You Should Be Using To Improve Address Quality! CASS™ DPV® LACSLink® DPV® – Vacant Table Address Element Correction ACS® Full Service-OneCode-Traditional

11. Use The Right Tools – CASS™/DPV® • First-line tool to standardize addresses and determine correct Postal codes • Verify or correct street name elements • ZIP Code™, ZIP + 4® code, Carrier Route • CASS/DPV validates the specific accuracy of street numbers and apartment or suite numbers • Prevent entry of incomplete addresses at point-of-capture and update with the correct address • Identify addresses in a mailing list with known deficiencies that may affect deliverability

12. Use The Right Tools – CASS™/DPV®CASS/DPV Vacant Table • Access the Vacant Table to reduce UAA • Mail sent to vacant addresses accounts 7.7% of all UAA • Second most common reason for UAA mail • Identify addresses that may be vacant beforeyou mail! • Ask your CASS vendor about how to incorporate the Vacant Table in your address hygiene processing.

13. Use The Right Tools – CASS™/LACSLink® • LACSLink updates addresses changed due to local community address conversions or 9-1-1 implementation • Approximately 400,000 rural route/box numbers changed each year since 1994 • Also used for street name changes or address renumbering

14. Use The Right Tools – CASS™/LACSLink® • Example of 9-1-1 address conversion Original: RR 2 Box 1948 Somecity US 01234-6789 Converted: 1 Bryant LN Somecity US 01234-9876 • Mail delivery following an address conversion • USPS® policy is to deliver mail bearing original address for one year following address conversion. • After one year mail with original address may be returned to sender.

15. Address Element Correction Return To Sender Insufficient Information

16. Have Addresses That Just Won’t Match? • Address Element Correction (AEC) may be the solution! • Send any addresses that can’t be matched using CASS™/DPV® to USPS® for correction • AEC • Advanced address-matching based on USPS-developed algorithms • Typically resolves approximately 30% of addresses • Costs $21 per 1,000 records processed • AEC II® • Unresolved AEC addresses sent to local delivery office for Delivery Force Knowledge™resolution • 32¢ charge for corrected or resolved addresses

17. AEC II®with Delivery Force Knowledge™

18. Check out the AEC Calculator on RIBBS®

19. 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 will support the upcoming Secure Destruction program ACS™ Service

20. Leverage Additional Resources – Hidden Moves • Some people don’t provide a forwarding address • 10 – 30% don’t report anything to USPS® • It’s not required by law • They forget, don’t care or don’t want to be found

21. Leverage Additional Resources Identify the deceased Flag those on the “Do Not Mail” Database Focus on reaching the people who are receptive to receiving your message Uses Social Security Administration data

22. Leverage Additional Resources Locate people who haven’t filed their move with USPS® Append Apartment Numbers An ECOA service compiles moves from magazines, utilities, etc. Complete residential addresses to reach more people on your target list

23. Geocode Improves the effectiveness of your direct marketing campaigns with more targeted campaign lists.

24. Mail Costs • Take a step back…what are the obvious costs? • Printing, paper and labor • Postage • Any return service and address correction fees All ju$t mailing-related co$t$!

25. NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001 CASS™ Geocoding

26. DPV® Geocoding NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001

27. NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001 LACSLink®

28. DPV® Vacant Deceased Suppression NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001

29. AEC ApartmentAppend NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001

30. Full-Service ACS™ NCOALink® Deceased Suppression ECOA NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN 38188-1001

31. Summary • Be aware of the impact of undeliverable records • Know the quality of the records you are mailing • Correct undeliverable records to reduce costs incurred by returned mail or pieces that get thrown out by the carrier • Improve customer service — ensure recipients actually get their mail in a timely manner

32. Reducing Your UAA is Achievable! • It is important to everyone in the mailing industry to make effective delivery of all mail a goal and reduce the volume and cost of UAA! • Your United States Postal Service® provides many products and services to assist you in reducing undeliverable-as-addressed mail

33. For More Information www.usps.com/ncsc ribbs.usps.gov Customer Care 1-800-238-3150

34. USPS®Co-Presentations Speaker Schedule Sunday The ROI of Great Address Quality Ed Wanta / Paula Stoskopf– Chesapeake 6 – Period 2, 10:15 – 11:15 am Monday NCOALink® vs. ACS™ – Which is the Best? Lisa West / Michael Tate – National Harbor 11 – Period 7, 11am – 12:00 pm Managing UAA Mail from All Aspects Jim Wilson / Bob Schimek– National Harbor 11 – Period 8, 1:30 – 2:30 pm Tuesday Keeping it Simple: ACS™ Services – It’s All in the Service Type ID Lisa West – Maryland A – Period 12, 11 – 12 pm Your Software is Talking, Are You Listening? Angela Lawson / Chris Lien – Chesapeake 3 – Period 13, 1:30 – 2:30 pm Colleges & Universities – Addressing: Issues & Opportunities Jim Wilson / Richard Boudrero – Chesapeake 6 – Period 14, 2:45 – 3:45 pm

35. Thank You!