Move Update & Compliance Fundamentals M & W Printers and United States Postal Service

2 FACTORS IMPACTING ADDRESS QUALITY Mobility Annual move rate for Americans – 17% NCOA Link 160 million records; 48 months of data Three types of moves: Businesses – 6% Families – 40% Individuals – 54%

3 FACTORS IMPACTING ADDRESS QUALITY Growth 1.8 million new delivery points per year 66% of mail to multi-family dwelling units without apartment numbers get delivered Address conversions (not a move): 911/LACS Link Five million records

4 THE IMPACT OF ADDRESS QUALITY Incorrect ZIP + 4 (2.6%) City/State/ZIP (3.1%) Pieces w/ Deficiencies** 23.5% Street Name / Number (6.9%) Rural Route / Box Number (0.4%) Directional Suffix (7.0%) Apartment Number (4.9%) Moved (2.8%) No Deficiencies* 76.5% * Pieces with "no deficiencies" include those with correct but non-standardized addresses. More than 9% of pieces sampled had non-standardized address elements. ** Because a single piece may have multiple address deficiencies, the percentages of pieces having each deficiency type do not sum to the overall percentage of pieces with deficiencies. 17% of errors require extra handling or carrier / local knowledge to deliver

5 UNDELIVERABLE-AS-ADDRESSED MAIL UAA mail cost USPS $1.9 billion in 2002 Probably twice that much to the mailing industry Total UAA volume in 2000 was 5.7 billion pieces In 1998, 5.4 billion pieces & $1.5 billion UAA is getting worse, not better FCM volume for UAA continues decline (initially by 29%) Other classes increased Without Move Update Estimated UAA cost to USPS would be over $3 billion This will only result in higher postage

6 PROCESS AN ADDRESS QUALITY PROCESSUpdateValidate Standardize

7 CASS-CERTIFIED SOFTWARE Forms the foundation of your address quality solution All Link related products require the complete ZIP + 4 ® encoded address that only using CASS-Certified software provides Essential for claiming automation rates & postage discounts Parses, standardizes, & matches addresses against USPS ® Address Management System II data using range-based validation It can only imply that an address is deliverable Includes the Early Warning System (EWS) Weekly updates of new address areas that help prevent misassignment Standardize

8 CASS-CERTIFIED SOFTWARE Does: Parses the address into discrete elements House number, street name, directionals Standardizes each element using USPS approved abbreviations Updates and corrects address elements Based on matching data to the AMSII database Appends crucial data for improved deliverability & potential automation discounts ZIP+4 ® Code Delivery Point Barcode Carrier Route Information Generates PS Form 3553, CASS Summary Report Includes important statistical data for further address cleansing processing Standardize

9 CASS-CERTIFIED SOFTWARE DOES NOT DOES NOT : Compare individual name to address Except for some company names (firms) Add street numbers, apartments or suite numbers Process international data Presort a list or guarantee presort discounts Provide Move Update information Guarantee that the actual address exists & is deliverable Standardize

10 DPV PROCESS Confirms the existence of a deliverable address Provides flags & statistics that evaluate the data quality A Y or N flag is associated with the address Identifies a Commercial Mail Receiving Agency Such as The UPS Store Improves address assignments (tiebreak) For example, 123 Main may be North or South Main St By querying both, we can eliminate the one that DPV returns as N Validate

11 LACS UPDATE Provides municipality introduced address changes Database contains roughly 5 million addresses Data is provided by USPS through LACS product Conversions come into their database from postal carriers & municipalities Old style & new style address acceptable for only 18 mos. After 18 months, carrier no longer required to deliver mail to pre-converted address Updating addresses using LACS ensures deliverability & prevents further UAA mail Validate

12 MOVE UPDATE PROCESSING The Move Update standard is a means of reducing the number of mailpieces in a mailing that require forwarding or return by the periodic matching of a mailers address records with change-of address orders received and maintained by the USPS MOVE UPDATE IS A USPS REQUIREMENT The Postal Service offers four preapproved methods National Change of Address (NCOA) Address Change Service (ACS) FASTforward Ancillary Service Endorsements Update

13 MOVE UPDATE PROCESSING First-Class automation mail requires an approved Move Update method (such as NCOA every 95 days) NCOA only changes records with change-of-address orders on file with the Post Office NCOA records drop-off database at 18 or 48 months NCOA can NOT change a record thats not in the database NCOA does help get your mailpiece delivered on 1 st attempt

14 M&W SERVICES n M&W processes all data file using USPS approved software CASS Certification Delivery Point Validation (DPV) National Change of Address (NCOA) n M&W can provide reports will results

15 M&W SERVICES n Printing of Personal Property and Real Estate Tickets n Tangible Personal Property and Business Licenses n Assessment Forms and Notices n Utility Bills n Dog Tags n Complete Direct Mail/Printing Services n Political Products

16 Questions? Questions?