Intelligent AddressingTo Achieve

100% Mail IntegrityNational Postal Forum

Anaheim, CAMay 18th – 21st, 2008

Jim WilsonAddress ManagementUnited States Postal Service®

QUALITY ADDRESSING PROFESSIONAL QUALITY ADDRESSING PROFESSIONAL CERTIFICATECERTIFICATE

This session This session qualifies as one of qualifies as one of the four Addressing the four Addressing sessions, in addition sessions, in addition to the Tuesday, May to the Tuesday, May 2020thth General Session General Session needed for theneeded for the Address Quality Address Quality Specialist Certificate!Specialist Certificate!

15 Presentations 15 Presentations focusing on Intelligent focusing on Intelligent MailMailSee Page 20 of the CatalogSee Page 20 of the Catalog

7 Presentations 7 Presentations focusingfocusingon Direct Mail and the on Direct Mail and the EnvironmentEnvironmentSee Page 21 of the See Page 21 of the CatalogCatalog

Announcing 2 New SymposiumsAnnouncing 2 New Symposiums

Today’s Session Understanding 100% Address Integrity

Why It’s Important For Mailers, Customers, And The USPS®

How The Lack Of Address Integrity Affects The Delivery Of Mail – Including Yours!

The Top 5 List • Things You Need To Know About To Help You

Achieve 100% Address Integrity

Defining 100% Address Integrity It’s A Complete Address

It’s A Correct Address

It’s A Current Address

Defining 100% Address Integrity It’s A Complete Address

• DMM® 602.1.4.1

A complete address has all the address elements necessary to allow an exact match with the current USPS® ZIP+4® Product to obtain the finest level of ZIP+4 code for the delivery address. A complete address may be required on mail at some automation rates.

Defining 100% Address Integrity Elements Of A Complete Address

• Addressee name and/or firm name where applicable.

• Private mail box designator and number - PMB 300 or #300

• Urbanization name (Puerto Rico only)

• Street name and number• Including pre-directional, suffix, and post-directional values• Rural / Highway contract route and box number - RR 5 BOX 10• Post office box number - PO BOX 458

• Secondary address unit designator and number - APT 202, STE 100

• City and state

• Correct 5-digit ZIP™ Code or ZIP+4® code

Defining 100% Address Integrity 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

Defining 100% Address Integrity It’s A Correct Address

What’s The Difference Between A “Complete” And A “Correct” Address?• A Complete Address Is An Address That

Matches To The USPS® ZIP+4® Database• A Correct Address Is The Officially-

Designated Representation Of The Address• Includes Locally Preferred Address Formats

Defining 100% Address Integrity Complete Versus Correct Addresses

Complete: 1095 Reams RdBells TN 38006-3711

Correct: 1095 Oak Crest Farms RdBells TN 38006-3711

Local Addressing Authority Officially Changed The Street Name

Defining 100% Address Integrity Complete Versus Correct Addresses

Complete: RR 1 Box 2085East Machias ME 04630-4059

Correct: 1 Bryant LNEast Machias ME 04630-4059

9-1-1 Address Conversion• USPS® Policy Is To Deliver To Original Address

For One Year Following Conversion

Defining 100% Address Integrity It’s A Current Address

• Is Your Customer Still Residing At This Address?

• Census Bureau Indicates 14% - 15% Of Americans Move During A One Year Period

• USPS® Processes Over 45 Million Changes-of-Address Annually

• A Typical Address List Deteriorates At An Average Rate Of 1.25% Each Month

Defining 100% Address Integrity It’s A Current Address

• Do You Know Whether The Address Is Vacant Or Not?

• Studies Indicate That Mail Sent To Vacant Addresses Accounts For 6.5% Of All Undeliverable-As-Addressed Mail

Defining 100% Address Integrity It’s A Current Address

• Have The Addressing Components Changed Or Does USPS® Data Indicate They Are Going To Change?

• 9-1-1 Addressing Conversions• 400,000 Annually

• Annual ZIP™ Code Changes• 24 ZIP Codes Added Or Realigned In June 2008• 178,000 Addresses Affected

Address Quality Improves Mailer’s Business Efficiency • Enhances The Cross-Functional Uses Of

Address Information

The Address Shown On Your Mailpiece Is Your Customer’s First Perception Of Your Attention To Quality• What Impression Are You Conveying?

Why 100% Address Integrity Is Important!

Mail Bearing A Complete, Correct, And Current Address Is More Accurately Delivered • Protects Customer Privacy

Mail With An Address That Is Complete, Correct, And Current Reduces Customer’s Receipt Of Unwanted Mail• Helps Improve Customer Perception Of Mail As

Effective Communication

Why 100% Address Integrity Is Important!

Strategic Transformation Plan • Postal Service™ Goal To Cut Cost Of Processing

Undeliverable-As-Addressed (UAA) Mail In Half By 2010

Improving Address Quality Enables More Efficient Automation Processing

• 1% Improvement In Delivery Point Sequenced Mail Volume Saves $70 Million/Year

Getting To 100% Address Integrity Depends Upon Mailers And Postal Service Working Together To Achieve The Goal!

Why 100% Address Integrity Is Important!

FY04-FY08 UAA Volumes / CostsFY04-FY08 UAA Volumes / CostsFY04 FY08

Vol(Billions)

Cost(Millions)

Vol(Billions)

Cost(Millions)

Forwarding 1.985 $ 422 1.789 $ 326Return-To-Sender 1.603 $ 822 1.436 $ 727

Waste 6.135 $ 270 6.851 $ 365

Other $ 343 $ 221

Total 9.724 $ 1,856 10.076 $ 1,639

Total Addresses Processed: 336 Billion

Total Addresses ZIP+4® Coded: 317 Billion 94.43%

Total Addresses ZIP+4 Coded That DPV® Confirmed:

304 Billion 95.89%

Percentage of Total Addresses Processed That DPV® Confirmed:

90.55%

Total Addresses ZIP+4 Coded To Building Addresses Needing Apt/Ste 45 Billion

Total Building Addresses With A Bad or Missing Apt/Ste Number 11.7 Billion 26.14%

Average Mailing List Address Quality

When The Address Was: The Mailpiece Was Typically Delivered Returned Forwarded

ZIP+4® Coded And Delivery Point Validated

92.11% 5.48% 2.41%

Not ZIP+4 Coded Because Address Information Could Not Be Determined

67.79% 27.93% 4.28%

More Likely to Be:( Less Likely To Be: ) ( 26.4% ) 409.7% 77.6%

Address Quality Affect On Mail Delivery

When The Address Was: The Mailpiece Was Typically Delivered Returned Forwarded

ZIP+4® Coded Without A Valid Apt/Ste Number

60.34% 31.43% 8.23%

ZIP+4 Coded With A Valid Apt/Ste Number 83.00% 11.98% 5.02%

Improvement / (Reduction) When Valid Apt/Ste Number 37.6% ( 61.9% ) ( 39.0% )

Apartment Address Quality Affect On Delivery

Top 5 Things You Should Know To Achieve 100% Address Integrity!

CASS™ CASS™

Address Element CorrectionAddress Element Correction

NCOANCOALinkLink®

Intelligent MailIntelligent Mail®® – OneCode ACS – OneCode ACS™™

ANKANKLink™Link™

Getting And Keeping Your Addresses Complete, Correct, And Current

CASS™ System• Use The DPV® Data To Validate

Accuracy Of Street Numbers And Apartment/Suite Numbers Before You Add Records To Your Address Files

• Update Your Address With The Correct Address Format

Getting And Keeping Your Addresses Complete, Correct, And Current

CASS™ System• Perform Regular CASS Processing To

Keep Your Addresses Updated• Identify Addresses That May Be Vacant

Before You Mail• Ask Your CASS Vendor About How You

Can Get The Vacant Table Today!

Now Available!

What To Do With The Leftovers? Address Element Correction (AEC)

• Send Any Addresses That Can’t Be Matched Using CASS™/DPV® To USPS® For Correction

AEC• Advanced Address-Matching Based On USPS-

Developed Algorithms

AEC II® • Addresses Sent To Local Delivery Office For

Manual Correction

Correct Customer Addresses That Have Moved Before You Mail

Catch Any Additional Customer Moves After You’ve Mailed

Identify Other Reasons That An Address May Be Undeliverable

Keeping It Current

NCOALink®

Change-of-Address Updating Tool

147160+Condensed to 5-GigabytesCondensed to 5-Gigabytes

Million Change-of-Address RecordsMillion Change-of-Address Records

NCOALink® is a Secure Dataset Containing Change-of-Address Data For Customers Who Have Moved

• 60 Million Records in 18 Month File• 160 Million Records in 48 Month File

Using NCOALink Allows Mailers To Update Their Customer Addresses Before Mailing

Keeping It Current

Mailers Can License NCOALink® Data For Use Within Their Business / Mail Processing Environment

Commercial Address-Hygiene Software Vendors Have Developed Standard Interfaces To NCOALink Data

Keeping It Current

Don’t Need Customers New Addresses But Don’t Want To Send Mail If The Customer Isn’t There?

Use ANKLink™ To Enhance Your Knowledge!• “Alice Doesn’t Live Here Anymore” • Identifies When A Customer Has Moved

But Doesn’t Give New Address

Keeping It Current

Do You Know If Your Mailpiece Was Delivered? OneCode ACS™ Can Help!

Harness The Power Of The Intelligent Mail® Barcode To Know If Your Mailpiece Has Been Forwarded, Returned, Or Disposed• Obtain New Address Information For

Customer’s That Have Moved• Identify The Reason Why A Mailpiece Was

Undeliverable

FROM THIS

TO THIS

Keeping It Current

Rates Effective May 12th, 2008

OneCode ACS™ First Two Notices

Additional Notices

First-Class Mail® .06¢

Standard Mail ® .03¢ .18¢

Traditional ACS™ All Notices

First-Class Mail .08¢

Other Classes .25¢

FREE!

It Is Important To Everyone In The Mailing Industry To Make Mail Effective

Accurate Addressing Improves Mail Delivery And Helps To Keep Postage Costs Down

Your United States Postal Service® Provides Many Products And Services To Assist You In Achieving 100% Address Integrity!

100% Address Integrity Is Achievable!

The Mail Moment

www.usps.com/ncsc ribbs.usps.govribbs.usps.gov

1-800-238-3150

Your Postal Customer Council® Is Also A Great Resource For Information!

For More Information

Customer SupportCustomer Support

Quality Addressing TrackQuality Addressing Track

MondayTools & Techniques that Make the Case for Address QualityTools & 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 ThemWhat are “Bad” Addresses & What to do With ThemCharles Hunt/Kevin Conti - Period 6, 11:15am - 12:15pm - Room 212AB

TuesdayMove Update – How to Keep in Touch With Moving CustomersMove 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 IntegrityIntelligent Addressing to Achieve 100% Mail IntegrityJim Wilson/Eric Houger - Period 11, 11:15am - 12:15pm - Room 210AB

How Government Agencies use Address Quality to Better Serve the How Government Agencies use Address Quality to Better Serve the CommunityCommunity Gail Milton/Mike Sexson - Period 13, 3:15 - 4:15pm - Room 212AB

WednesdayThe ROI of Address QualityThe ROI of Address Quality

Charles Hunt/Chris Lien - Period 16, 2:15 - 3:15pm - Room 212AB

Stump the Experts with Your Un-codable UAA MailStump the Experts with Your Un-codable UAA MailJim Wilson/Alice VanGorder - Period 17, 3:30 - 4:30pm - Room 212AB

QUALITY ADDRESSING PROFESSIONAL CERTIFICATEQUALITY ADDRESSING PROFESSIONAL CERTIFICATE Knowledge QuestionsKnowledge Questions

1. The Definition Of 100% Address Integrity Refers To Addresses That Are Complete, Correct, And Current? True/False

2. There Is No Way To Determine If An Address May Be Vacant Except To Send A Mailpiece To The Address And See What Happens?True/False

3. The Quality Of The Address Used On A Mailpiece Has No Affect On The Delivery Of The Mailpiece? True/False