1. MOVE UPDATE STANDARDS  Keeping Track of Your Customers  Assessment charges for Standard and  First-Class Mail effective January 4, 2010 Theresa Peterlein Mid-Michigan PCC Lansing MI

2.  “Address” means specific address associated with specific occupant name  Reduces the number of your mailpieces that require forwarding, returning, or disposal  Requires periodic matching of your address records with USPS ® Change-of-Address (COA) orders  Use of an Authorized Move Update Method MOVE UPDATE REQUIREMENT

3.  Move Update is required for mailpieces claiming Presorted or Automation prices for First-Class and Standard Mail (letters, flats, parcels and not flat- machinables)  To meet Move Update, mailers must be using addresses on mailpieces that have been updated using an approved method within 95 days prior to mailing MOVE UPDATE REQUIREMENT

4.  Undeliverable As Addressed (UAA) costs the USPS more than $1.9 billion each year to process.  More than 6 billion mail pieces are disposed (recycled) of every year because of poor address quality – that means that they never left the Post Office and went straight into the recycle dumpster.  Main reason: incorrect and outdated addressed on business-to-consumer mail.

5.  Almost 5 out of every 100 mailpieces are Undeliverable-as-Addressed (UAA) Mail  First-Class Mail ® UAA Rate: 3.4%  Standard Mail ® UAA Mail Rate: 6.4%  Standard Mail accounts for almost 63% of all UAA Mail  75% of UAA Mail is move-related by reason  First-Class Mail Move UAA Rate: 2.6%  Standard Mail Move UAA Mail Rate: 4.8% DID YOU KNOW?

6. UAA COST & VOLUME BY REASON* Cost Volume 75.8% 7.368 Billion Address Quality- Related 11.9% 1.155 B 12.4% 1.201 B * Directly Attributable Cost Only 79.0% $1.196 Billion 8.8% $133.9 MM 12.2% $184.5 MM Move- Related Non- Address Quality- Related

7. MOVE UPDATE REQUIREMENT  Updated addresses on mailpieces at one class of mail are qualified to be used for other classes during current Move Update cycle  EACH ADDRESS IN MAILING SUBJECT TO MOVE UPDATE  EXCEPTION: Mailpieces using Alternative Address Format are not subject to Move Update  “Jane Doe or Current Resident”  “Postal Customer”, “Occupant”, etc.

8. WHY IS IMPLEMENTING A MOVE UPDATE SOLUTION IMPORTANT? Impact associated with return mail to your company  Lost postage (initial mail piece and postage if re-mail)  Cost of producing documents (paper, envelopes, content, design, labor, sorting return mail, analysis and system update)  Customer service (increased call volumes, collection notices and handling, cost of lost customers)  Green initiatives (decreased waste and carbon footprint)

9.  The estimated average industry cost of Return Mail to an organization is $3.00 per piece.  For many companies, the amount surpasses $10.00 per piece when there is a direct financial association to the mailpiece (bill/invoice). WHY IS IMPLEMENTING A MOVE UPDATE SOLUTION IMPORTANT?

10.  NCOA Link® Processing  ACS™  OneCode ACS ® – Intelligent Mail ® Barcode  FASTforward ® MLOCR Processing  Appropriate Ancillary Service Endorsement  Alternative Method (First-Class Mail ® Only) Requires Separate Approval:  Legal Restriction  99 Percent

11. NATIONAL CHANGE OF ADDRESS (NCOA LINK® )  Expands mailer’s accessibility to USPS ® National Change-Of-Address  Provides electronic Change-of-Address information prior to mailing  Updated change-of-address information for the entire country is provided on a regular basis to the licensee by the USPS through the NCOAlink database.  Typical match rate – 75%  Optional name-matching routines (individual, family, business)

12.  FASTforward ® MLOCR  Mailpieces are updated against the USPS change-of- address data base as the mail is transported for barcoding.  If a change of address is found, the new address is printed directly on the mailpiece  When FASTforward ® is used in conjunction with either MLOCR processing, mailpieces avoid the delays associated with traditional mail forwarding. FASTforward ®

13. Ms N. Formation, Esq. Dewey Cheatem & Howe PC 123 Main St Memphis TN 38101-1234 456 ELM ST JUDGE A. MENTALL MEMPHIS TN 38188-0001 STE 201 COA-AA 1000 SE 17TH ST 38119 I I I II I I I I I I I I II I I I I I I I I I I I II I I I II I I I II I I I I I I II I I I I I I I I II I I I I I I II FASTforward ® : EXAMPLE OF AN MLOCR REDIRECTED MAILPIECE  Window must be a minimum of 5/8 th inch from bottom to enable printing COA information

14. JOHN DOE 10 ELM AVE ANYTOWN OR 97654-3218 ► On-piece mailing instructions ► Same handling for all classes of mail ► Very different fees applicable for First-Class and Standard! Return Address Change Endorsements keywords Endorsement Service Requested ANCILLARY SERVICE ENDORSEMENTS Followed by…

15. Forwarding, Return, & New Address Notification Provided  If Forwarded, A Separate COA Notification Is Provided  If Returned, New Address Or Reason For Non- delivery Is Provided  Fees may apply (Class of Mail, ACS or no ACS) and vary by time period

16. Forwarding Or Return Service Provided  If Forwarded, Separate COA Notification Is NOT Provided  If Returned, Reason For Non-delivery Is Provided This Endorsement DOES NOT Meet the Move Update Requirement!

17. 17  Mail Is NOT Forwarded  Mailpiece is returned to sender with new address or reason for non-delivery provided TEMP-RETURN SERVICE REQUESTED (First-Class Mail ® only)  If Temporary COA – Mailpiece is forwarded without temporary address provided  If Permanent COA – Mailpiece is returned with new address provided

18.  Separate COA Notification With New Address Or Reason For Non-Delivery Provided.  Mailpiece is not forwarded or returned, but disposed of as waste by the USPS On First-Class Mail ®, CHANGE SERVICE REQUESTED Is Only Available When Used in Conjunction With ACS™ CHANGE SERVICE REQUESTED

19.  For an address to meet Move Update requirements, the mailer must send at least one letter or card to an address with an approved ancillary endorsement within 95 days before reuse of the address  To complete the Move Update process, the mailer must make the address change received as a result of the use of approved ancillary endorsement  It is recommended that the mailer retain address correction records for up to two years ANCILLARY SERVICE ENDORSEMENTS

20.  Mailers who claim they are restricted from incorporating the Postal Service COA information into their mailing lists without permission from the addressees may request approval from the Postal Service’s National Customer Support Center  Unless the mailer is a federal, state, or local government entity, the request must be accompanied by citation of the specific legal restriction, including copies of the statutes or regulations.  Federal, state, or local government entities must still make a request, but will receive a letter of approval without having to submit a citation LEGAL RESTRAINT METHOD

21. MAILERS APPROVED TO USE THE LEGAL RESTRAINT METHOD MUST HAVE A PROCESS IN PLACE TO:  Identify customer change-of-address using approved Move Update programs within 95 days of mailing  Contact customer within 30 days to request address correction from customer  Make changes to address information within 30 days of receiving change from customer  Keep documentation of above steps for 2 years LEGAL RESTRAINT METHOD

22. MAILERS WHO BELIEVE THEIR MAILING LISTS ARE ALREADY ACCURATE BECAUSE THEIR CUSTOMERS DILIGENTLY NOTIFY THEM OF ADDRESS CHANGES MAY MEET MOVE UPDATE REQUIREMENTS BY:  Getting approval from the National Customer Support Center and following a 4 step validation process 99 PERCENT ACCURACY METHOD

23. TO DETERMINE IF THE MAILER HAS CURRENT ADDRESS INFORMATION FOR THEIR CUSTOMER, THE USPS EVALUATES THE ADDRESS LIST FOR ACCURACY.  If less than 1% of the customer addresses in the address list have a change-of-address detected, the mailer is given written approval to use the 99% method to satisfy Move Update requirement for the address list tested.  The Postal Service will periodically review the mailing list to determine if it is being kept up-to-date. 99 PERCENT ACCURACY METHOD

24. Address Change Service (ACS™ - Traditional)  Post-Mailing Service – Provides electronic COA Notices for undeliverable mailpieces  Mailers apply a Participant Code and an Optional Keyline to each mailpiece  Participant Code assigned for each class of mail  Using ACS customers can reduce cost associated with manual keying of data

25. EXAMPLE OF AN ACS™ MAILPIECE Tanya Hyde-Goode Inc Nanny Placement Service 123 Main St Memphis TN 38101-1234 Address Service Requested DEW 456 ELM ST CANDICE WAITE MEMPHIS TN 38188-0001 STE 201 #BXBJDCK ************* 5-Digit 38188 #WAIC 381 SEP 2009# Participant Code > Optional Keyline >  Participant Code and Keyline always preceded by #  For window envelopes – Tap Test from top & bottom PROCRASTINATORS ANNOYMOUS LLC 5/8”

26. ONECODE ACS ®  OneCode ACS using the standardized Intelligent Mail ™ barcode (IMB)  Eliminates need for participant code and keyline  Provides electronic address correction notifications  Flexibility of standardized IMB barcodes enables future enhancements without altering mailpiece design  IMB contains data to sort mail and data to support ACS™  Numeric Mailer Identifier in place of ACS information - one code for all classes of mail

27. 1 Kay Shira Weather Forecasting Limited 123 Main St Memphis TN 38101-1234 Electronic Service Requested 6060 PRIMACY PKWY STE 201 LES ISMORE MEMPHIS TN 38188-0001 EXAMPLE OF AN ONECODE ACS ® MAILPIECE DEPRECIATION CONSULTANTS  Must print ancillary service endorsement for Standard Mail ® – recommended for First-Class Mail ®

28.  CASS™ / DPV ® Meets The Move Update Requirement  Mail Will Get Delivered To The Old Address Instead Of Becoming UAA  Implementing Move Update Will Eliminate My Return Mail  If I use an Ancillary Endorsement or ACS™; I am in compliance -not true -not necessarily

29. Date of First Mailing on or after Nov 23, 2008 Address does not meet Move Update standard Was each address used in mailing exposed to a Move Update method within 95 days ? Was address directly acquired from your customer within 95 days ? Does mailpiece bear an alternative address format ? Was address matched to a New (COA) record ? Was updated address applied to mailpiece? Continue to use existing address for remainder of 95 days - address currently meets Move Update standard No Yes No Yes Address does not have to meet Move Update standard Address currently meets Move Update standard Yes No

30. JANUARY 4, 2010 MOVE UPDATE ASSESSMENT CHARGE $.07

31. The USPS has implemented several steps to assist mailers in improving the quality of their addresses and in obtaining the optimum results from Move Update compliance efforts

32. MOVE UPDATE VERIFICATION  Signature on the Postage Statement by either the Mail Owner or Agent certified compliance  Mailer must record Move Update method  USPS can request substantiation of Move Update compliance

33. Postage Statement Move Update Method Checkbox

34. ACCEPTANCE UNIT TESTING  A process to measure a sample of a mailing and determine the quality of the mailer’s Move Update process and provide feedback to mailers  Mailings are selected randomly by PostalOne! for verification  A sample is selected from the mailing for processing on MERLiN

35.  MERLiN captures barcode, name and address information into a data file that is electronically transmitted to National Customer Support Center (NCSC)  NCSC processes the data file using NCOAlink and returns the results to the PostalOne! System where the results can be discussed with the mailer ACCEPTANCE UNIT TESTING

36. Electronic data file Contains name, address and barcode (if available) Sample extracted from the mailing is processed on MERLIN Mailpiece ID can be used to identify any piece found as an Error. MOVE UPDATE VERIFICATION PROCESS BME clerk selects sample mailpieces for MERLIN verification The NCSC performs a DPV & Move Update validation Move Update Verification results are displayed in PostalOne! Results forwarded to PostalOne! Mailpieces are run on MERLIN, data file sent to NCSC

37. 37 MOVE UPDATE WORKSHEET

38. VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS  A mailing with 5 or fewer pieces with a COA on file that were not updated by the mailer will pass the verification regardless of the passing percentage  A mailing with a passing score of 70% (tolerance 30%) or higher will pass verification

39.  A mailing with a score below 70% will fail verification if there are also more than 5 pieces with COA’s that were not updated by the mailer  The passing score will be calculated using the total number of pieces with a Move Update on file divided into the number of pieces that the mailer updated with the change (within the date range, 95 days – 18 month) VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS

40. VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS EXAMPLE 1  15 Mail Pieces With A Change Of Address Are Found In Sample  The Mailer Used The New Address On 10 Of The Pieces  The Score Is 66.7%.....However, Since Only 5 Pieces Were Not Updated By The Mailer, The Mailing Passes

41. VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS EXAMPLE 2  A Total Of 20 Pieces With Change Of Address Are Found In The Sample  For 13 Of The Pieces, The Mailer Used The New Address (Coa Updated By Mailer)  13 Is Divided By 20 = Score Of 60%  More Than 5 Pieces Were Not Updated And The Score Is Under 70% = The Mailing Fails

42. MAILINGS THAT FAIL BOTH FIRST-CLASS AND STANDARD MAIL  The assessment will be calculated based on only the percentage of failed pieces in excess of the tolerance (30%) multiplied by the total number of pieces in the mailing.  The fee is $0.07 per assessed piece

43. MAILINGS THAT FAIL BOTH FIRST-CLASS AND STANDARD MAIL  A mailing with a score of 60% and more than 5 pieces that were not updated will be assessed additional postage of $.07 per piece for 10% of the pieces in the mailing.  This is the 10% difference between the not-updated percentage (40%) and the tolerance (30%).

44. EXAMPLE  A mailing consisting of 100,000 pieces would be charged $0.07 per piece on 10,000 pieces (10%) of the total mailing = $700.00 MAILINGS THAT FAIL BOTH FIRST-CLASS AND STANDARD MAIL

45. Standard Mail and First-Class Mail mailings that have not performed Move Update are not eligible for the presorted (including automation, non-automation and carrier route) prices and MUST be mailed at a price that does not require Move Update e.g. First-Class single-piece price

46. 46 www.usps.com/ncsc Customer Support 1-800-238-3150

47. ADDITIONAL RESOURCES A GUIDE TO ACCESSING MOVEUPDATE REPORTS available on ribbs.usps.gov http://ribbs.usps.gov/move_update/documents/tech _guides/PUB363.pdf ribbs.usps.gov

48. For a copy of this presentation: www.mipccs.homestead.com QUESTIONS?