Move Update

Mailers Technical Advisory Committee

August 12, 2009

Maura Robinson

VP Pricing

Overview

Good addresses are good businessActionable data drives results

Tough economic timesAll costs are under scrutinyNeed the right solution to ensure good addresses

Move Update

62%

21%

First-Class Mail

Error Rate > Threshold

5.4%

April 2009

Error Rate > Threshold

3.8%

June 2009

0.5%

0.2%

1.5%

39%

27%

18%

11%

3.2%

0%

20%

40%

0%

0 -

10%

10-

20%

20-

30%

30-

40%

40-

50%

50-

70%

70-

100%

1.0%

0.6%

0.4%

38%

27%

24%

7%

1.8%

0%

20%

40%

0%

0 -

10%

10-

20%

20-

30%

30-

40%

40-

50%

50-

70%

70-

100%

Error Rate > Tolerance

5.4%

Error Rate > Tolerance

3.8%

April 2009

July 2009

Move Update

Standard Mail

April 2009

Error Rate > Threshold

5.8%

Error Rate > Threshold

5.0%

June 2009

3.0%

0.9%

0.9%

21%

8%

62%

3%

1.5%

0%

20%

40%

60%

0%

0 -

10%

10-

20%

20-

30%

30-

40%

40-

50%

50-

70%

70-

100%

1.0%

0.5%

0.5%

3.1%

2%

70%

8%

15%

0%

20%

40%

60%

0%

0 -

10%

10-

20%

20-

30%

30-

40%

40-

50%

50-

70%

70-

100%

Error Rate > Tolerance

6.3%

Error Rate > Tolerance

5.1%

Does not include

or Current Resident mailings

Does not include

or Current Resident mailings

April 2009

July 2009

Move Update

Concerns

Size of assessmentAssessment does not vary with address qualityContext

Economic uncertainty

New Standard Mail requirement

PBV can evaluate Move Update performance

Collaborative approach working with MTAC & industry representativesDelay PBV use at acceptance until January 2010

Move Update

Story: Account Rep for Morin County in Ca just received her ballot Non-profit Standard Mail.

Inconsistent interpretation - rate eligibility (OIG Investigation/Complaint)

Goals

Reasonable assessmentIncentives for high-quality addressesReflect level of address qualityExtremely poor performance

Assessment approaches Single-Piece for First-Class Mail

Comparable assessment for Standard Mail

Move Update

Story: Account Rep for Morin County in Ca just received her ballot Non-profit Standard Mail.

Inconsistent interpretation - rate eligibility (OIG Investigation/Complaint)

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

Move-Update

Move Update

[

Failed COAS

Total COAs

- 30 %

]

* 7 * (pieces in mailing)

Story: Account Rep for Morin County in Ca just received her ballot Non-profit Standard Mail.

Inconsistent interpretation - rate eligibility (OIG Investigation/Complaint)

Current vs. New

Move Update

New

$0

$2,000

$4,000

$6,000

$8,000

$10,000

0%

20%

40%

60%

80%

100%

Current

$0

$2,000

$4,000

$6,000

$8,000

$10,000

0%

20%

40%

60%

80%

100%

First-Class Mail

Standard Mail

First-Class Mail

& Standard Mail

Summary

Incentive to improve address qualityReasonable initial tolerances

30% tolerance before any assessment

5 or fewer failed COAs: no assessment

Lower assessments for better address qualityModified assessment for multi-client mailings

Move Update

Current New

Mailing Size 100,000 100,000

Postage, 5-D Auto ($0.335) $33,500 $33,500

Assessment $0.105 (= 0.44-0.335) $0.07

for each piece in mailing for failed percentage

above tolerance

Assessment if 40% of COAs not-updated

Pieces paying assessment 100,000(100%) 10,000 (10%=40-30)

Assessment$10,500 $700

Percent of postage 31% 2.1%

Assessment if 80% of COAs not-updated

Pieces paying assessment 100,000(100%) 50,000 (50%=80-30)

Assessment$10,500 $3,500

Percent of postage 31 % 10.2%

First-Class Mail

Move Update

Story: Account Rep for Morin County in Ca just received her ballot Non-profit Standard Mail.

Inconsistent interpretation - rate eligibility (OIG Investigation/Complaint)

Current New

Mailing Size 100,000 100,000

Postage, 5-D Auto ($0.233) $23,300 $23,300

Assessment $0.070 $0.070

for each piece in mailing for failed percentage

above tolerance

Assessment if 40% of COAs not-updated

Pieces paying assessment 100,000 (100%) 10,000 (10%=40-30)

Assessment $7,000 $700

Percent of postage 30% 3.0%

Assessment if 80% of COAs not-updated

Pieces paying assessment 100,000 (100%) 50,000 (50%=80-30)

Assessment$7,000 $3,500

Percent of postage 30.0% 15.0%

Standard Mail

Move Update

Story: Account Rep for Morin County in Ca just received her ballot Non-profit Standard Mail.

Inconsistent interpretation - rate eligibility (OIG Investigation/Complaint)