The ROI of Address Quality Charles Hunt Address Management USPS ® Chris Lien Executive Vice President BCC Software Inc A Böwe Bell + Howell Company

QUALITY ADDRESSING PROFESSIONAL CERTIFICATE This session qualifies as one of the four Addressing sessions, in addition to the Tuesday, May 20 th General Session needed for the Address Quality Specialist Certificate!

15 Presentations focusing on Intelligent Mail See Page 20 of the Catalog 7 Presentations focusing on Direct Mail and the Environment See Page 21 of the Catalog Announcing 2 New Symposiums

Agenda  The Hidden Cost Factor  Address Quality Products & Services  The Road Map to Quality  Optimizer Guide  The Numbers

 Affects your ability to reach your valued customers  Depends on accurate addresses with complete and correct address elements  Not dependent on carrier knowledge  Allows automated sortation JOHN DOE 2200 CLARENDON BLVD STE 1000 ARLINGTON VA Address Quality

Increased Acquisition Cost  Missed customers  Multiple attempts  Lower response rates  Wasted production cost  Wasted postage  Lost discounts Lower Customer Lifetime Value  Investment in customers  Repeat purchases  Value of customer retention Poor Address Quality Results In

America is on the Move and Growing! Pennsylvania New Jersey New York 1.8 million new addresses 147 million total addresses 45 million Americans move

8 Old Address New Address Forward 21.3¢ / pc Billion pieces $421.9 Million Return 51.3¢ / pc Billion pieces $822.5 Million Waste 4.4¢ / pc Billion pieces $269.8 Million x Billion pieces $1.856 Billion 2004 Christensen UAA Report

Cost*Volume Percent of Total UAA Volume Move-Related UAA $1,195,828,705 7,367,885, % Physical-Related UAA $184,542,947 1,201,315, % Other-Related UAA $133,853,699 1,155,127, % Total $1,514,225,3519,724,328, % 2004 Christensen UAA Report * Directly Attributable Cost Only

Changes to the Move Update Requirement:  Effective November 23, 2008  Increase the minimum frequency of Move Update processing from 185 days to 95 days prior to the date of mailing  Extend the revised Move Update standards to include all Standard Mail ® (letters, flats, parcels, and Not Flat-Machinables), as well as automation- rate and presort-rate First-ClassMail ®

 CASS Certified™ Address Matching Software: ZIP + 4 ® / LACS Link® / DPV ®  AEC & AEC II ® Address Correction  NCOA LINK®  Pr ing Change of Address Process  ACS™/ OneCode ACS™  Post-Mailing Change of Address Process A Strategy to Improve Your R.O.I. Addressing Products that Can Make a Difference

CASS ™  USPS ® certified benchmark  Sets minimum performance standards for commercial ZIP + 4 ® address matching software  Developers must pass USPS test for CASS certification  Address matching software attempts to match addresses against range- based records on USPS ZIP + 4 file  Pr ing process

100 MAIN ST ANYTOWN TN Confirmed 104 MAIN ST ANYTOWN TN Not Confirmed DPV ®  Extension of CASS Certified ™ Address Matching software  Available through software vendors  Enables ZIP + 4 ® coding & identifies potentially undeliverable addresses  DPV ® - Extra step to attempt validation of each specific address in the file  Pr ing process

AEC & AEC II ®  USPS ® provided service for all customers  Resolves physical address deficiencies  Sent to the USPS on electronic media  AEC Cost - $15.00 per thousand  Average correction rate - 35%  AEC II ® Cost - $0.25 per record  Average: 95% resolution rate  Average: 87% correction rate  Pr ing process

NCOA LINK®  USPS ® licensed product using address change information when individuals or businesses inform the USPS of their move  Provides electronic Change-of-Address information  Average correction rate – 4.32%  Three Different Licenses  Variable costs  Pr ing process

ACS™/ OneCode ACS™  Provides electronic Change of Address notices for mailpieces undeliverable due to customer move  Mailers apply a participant code and an optional keyline OR Intelligent Mail ® Barcode to mailpiece  Requires an ancillary service endorsement  Can reduce costs associated with manual returns & manual keying of data  Centralized billing  Post-Mailing Process

ACS™/OneCode ACS™ Current Price  Manual, each $0.50  ACS Electronic  First-Class Mail ® $0.08  Other $0.25  OneCode ACS (Letters Only)  First-Class Mail  First 2 notices, each Free  Additional notices, each $0.06  Standard Mail ®  First 2 notices, each $0.03  Additional notices, each $0.18

Code address via CASS TM ZIP + 4 ® address matching software with DPV ® and LACS LINK® 2 7 Bad address fixed/ZIP + 4 coded? Did the address ZIP + 4 match or DPV Confirm? 3 Apply ACS TM participant code to mail piece (post mailing update) Mail Update address list with new ACS information Send bad addresses to AEC YES NO 4 5 YES Suppress bad addresses from mailing list NO 6 Build mailing list 1 1. Build mailing list Update movers (NCOA LINK ® ) (pre mailing update) 2. Code address via CASS TM ZIP + 4 ® address matching software with DPV ® and LACS LINK® Did the address ZIP + 4 ® Match or DPV ® confirm? Y/N NO Send bad addresses to AEC

2 7 Bad address fixed/ZIP + 4 coded? Did the address ZIP + 4 match or DPV Confirm? 3 Apply ACS TM participant code to mail piece (post mailing update) Mail Update address list with new ACS information Send bad addresses to AEC YES NO 4 5 YES Suppress bad addresses from mailing list NO 6 Build mailing list 1 Bad address fixed / ZIP + 4 ® coded? Y-N NO Send bad addresses to AEC Suppress bad addresses from mailing list NO Code address via CASS TM ZIP + 4 ® address matching software with DPV ® and LACS LINK ® Update movers (NCOA LINK ® ) (pre mailing update)

Code address via CASS™ ZIP + 4 ® address matching software with DPV ® and LACS LINK® 2 Update movers (NCOA LINK® ) (pre mailing update) 7 Bad address fixed/ZIP + 4 coded? Did the address ZIP + 4 match or DPV Confirm? 3 Apply ACS TM participant code to mail piece (post mailing update) Mail Update address list with new ACS information Send bad addresses to AEC YES NO 4 5 YES Suppress bad addresses from mailing list NO 6 Build mailing list 1 Update movers (NCOA LINK ® ) (pr ing update) Did the address ZIP + 4 ® Match or DPV ® confirm? Y/N Apply ACS™ participant code to mail piece (post mailing update) Mail For crying out loud! ! Then update that address list with new ACS™ information… do NOT forget !! if “Yes”

2 Update movers (NCOA LINK ® ) (pre mailing update) 7 Did the address ZIP + 4 match or DPV Confirm? 3 Apply ACS TM participant code to mail piece (post mailing update) Mail Update address list with new ACS information Send bad addresses to AEC YES NO 4 5 YES Suppress bad addresses from mailing list JOB WELL DONE! 6 Bad address fixed/ZIP + 4 coded? NO Build mailing list 1 Code address via CASS TM ZIP + 4 ® address matching software with DPV ® and LACS LINK ®

Tool Impact ROI7.65:1

47.8

$ % Tool Impact ROI27:1

34 StandardizeStandardize An Address Quality Foundation CASS Certified Software TM Validate LACS Link ® ® DPV ® ® AEC / AEC II ® ® Update NCOA Link ® ® ANK Link™ ACS TM

Question 1: The goal of the USPS ® for reducing Undeliverable As Addressed Mail is 25% by year Answer 1: False – the goal is to reduce UAA Mail by 50% by year Question 2: The Move Update requirement will extend to Standard Mail ® in November Answer 2: True – November 23, Question 3: The only reason for returned mail is physical address errors. Answer 3: False – physical address errors are part of the problem. Moves account for more than 75% of UAA Mail. Knowledge Validation

FOR MORE INFORMATION ribbs.usps.gov Customer Support

Quality Addressing Track Monday Tools & Techniques that Make the Case for Address Quality Ruth Jones/Gary Seitz - Period 5, 10: :00am - Room 212AB What are “Bad” Addresses & What to do With Them Charles Hunt/Kevin Conti - Period 6, 11:15am - 12:15pm - Room 212AB Tuesday Move Update – How to Keep in Touch With Moving Customers Audrey Conley/Adam Collinson - Period 10, 10: :00am - Room 212AB Intelligent Addressing to Achieve 100% Mail Integrity Jim Wilson/Eric Houger - Period 11, 11:15am - 12:15pm - Room 210AB How Government Agencies use Address Quality to Better Serve the Community How Government Agencies use Address Quality to Better Serve the Community Gail Milton/Mike Sexson - Period 13, 3:15 - 4:15pm - Room 212AB Wednesday The ROI of Address Quality Charles Hunt/Chris Lien - Period 16, 2:15 - 3:15pm - Room 212AB Stump the Experts with Your Un-codable UAA Mail Jim Wilson/Alice VanGorder - Period 17, 3:30 - 4:30pm - Room 212AB