Managing UAA Mailfrom ALL Aspects

National Postal ForumMarch 16 - 19, 2014

Jim Wilson, Manager, Address Management, USPS®

Bob Schimek, Sr. Director of Postal Affairs, Satori Software Inc.

Defining Undeliverable-As-Addressed (UAA) Mail

Undeliverable-As-Addressed (UAA) Means the mailpiece cannot be delivered to either the address or to the recipient shown on the mailpiece and must be:

Forwarded to new address Returned to sender Disposed as waste

2

Forward23.1¢ / pc.1.055 Billion pieces$244.1 Million

Waste6.1¢ / pc.4.233 Billion pieces$257.6 Million

New Address

Return51.4¢ / pc.1.496 Billion pieces$768.9 Million

2013 Christensen UAA Report

Original Address

Mailer

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

FY04 421,927$ 1,985,160 822,494$ 1,603,290 269,804$ 6,135,879

FY08 401,353$ -4.9% 1,777,364 -10.5% 780,027$ -5.2% 1,434,640 -10.5% 337,579$ 25.1% 6,097,089 -0.6%FY09 321,381$ -19.9% 1,343,180 -24.4% 806,027$ 3.3% 1,579,341 10.1% 252,629$ -25.2% 4,306,328 -29.4%FY10 294,738$ -8.3% 1,234,646 -8.1% 817,463$ 1.4% 1,593,368 0.9% 246,214$ -2.5% 4,120,591 -4.3%FY11 271,842$ -7.8% 1,116,245 -9.6% 777,643$ -4.9% 1,504,490 -5.6% 266,394$ 8.2% 4,400,072 6.8%FY12 271,842$ 0.0% 1,116,642 0.0% 789,433$ 1.5% 1,530,049 1.7% 257,387$ -3.4% 4,112,809 -6.5%FY13 244,081$ -10.2% 1,055,467 -5.5% 768,966$ -2.6% 1,495,966 -2.2% 257,613$ 0.1% 4,233,078 2.9%

FY04 vs FY13 -42.2% -46.8% -6.5% -6.7% -4.5% -31.0%FY08 vs FY13 -39.2% -40.6% -1.4% 4.3% -23.7% -30.6%

Forwarded Returned to Sender Treated As Waste

Total UAA - All ClassesTotal UAA Mail Trending

4

FY08 FY09 FY10 FY11 FY12 FY13

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

UAA Cost % Change

ForwardedCost % Chg

RTSCost % Chg

WasteCost % Chg

FY08 FY09 FY10 FY11 FY12 FY13

-35.0%-30.0%-25.0%-20.0%-15.0%-10.0%

-5.0%0.0%5.0%

10.0%15.0%

UAA Volume % Change

ForwardedVol % Chg

RTSVol % Chg

WasteVol % Chg

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

FY04 350,468$ 1,819,366 584,735$ 1,466,006 3,813$ 45,980

FY08 317,252$ -9.5% 1,621,540 -10.9% 520,610$ -11.0% 1,292,474 -11.8% 5,012$ 31.4% 43,952 -4.4%FY09 255,503$ -19.5% 1,226,096 -24.4% 611,041$ 17.4% 1,489,470 15.2% 3,681$ -26.6% 31,095 -29.3%FY10 238,992$ -6.5% 1,134,155 -7.5% 634,316$ 3.8% 1,507,631 1.2% 5,365$ 45.7% 45,285 45.6%FY11 220,264$ -7.8% 1,025,579 -9.6% 604,887$ -4.6% 1,423,497 -5.6% 7,362$ 37.2% 61,172 35.1%FY12 218,897$ -0.6% 1,027,451 0.2% 613,796$ 1.5% 1,446,215 1.6% 7,708$ 4.7% 63,477 3.8%FY13 193,451$ -11.6% 964,552 -6.1% 587,878$ -4.2% 1,405,623 -2.8% 8,628$ 11.9% 74,698 17.7%

FY04 vs FY13 -44.8% -47.0% 0.5% -4.1% 126.3% 62.5%FY08 vs FY13 -39.0% -40.5% 12.9% 8.8% 72.1% 70.0%

First-Class MailForwarded Returned to Sender Treated As Waste

First-Class Mail® UAA Trending

5

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

-25.00%-20.00%-15.00%-10.00%

-5.00%0.00%5.00%

10.00%15.00%20.00%

UAA Cost % Change

ForwardedCost % Chg

RTSCost % Chg

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

-30.00%-25.00%-20.00%-15.00%-10.00%

-5.00%0.00%5.00%

10.00%15.00%20.00%

UAA Volume % Change

ForwardedVol % Chg

RTSVol % Chg

Standard Mail® UAA Trending

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

Cost(000) % Chg

Volume(000) % Chg

FY04 11,222$ 32,866 165,733$ 93,893 248,392$ 5,981,937

FY08 11,967$ 6.6% 31,197 -5.1% 169,793$ 2.4% 95,517 1.7% 312,419$ 25.8% 5,952,796 -0.5%FY09 10,985$ -8.2% 25,731 -17.5% 107,214$ -36.9% 48,453 -49.3% 227,612$ -27.1% 4,173,949 -29.9%FY10 8,194$ -25.4% 23,754 -7.7% 101,676$ -5.2% 46,518 -4.0% 221,854$ -2.5% 3,984,514 -4.5%FY11 7,728$ -5.7% 21,290 -10.4% 92,539$ -9.0% 41,921 -9.9% 238,182$ 7.4% 4,244,915 6.5%FY12 6,439$ -16.7% 20,386 -4.2% 85,613$ -7.5% 42,529 1.5% 227,743$ -4.4% 3,951,921 -6.9%FY13 6,745$ 4.8% 24,890 22.1% 84,562$ -1.2% 40,681 -4.3% 227,734$ 0.0% 4,060,549 2.7%

FY04 vs FY13 -39.9% -24.3% -49.0% -56.7% -8.3% -32.1%FY08 vs FY13 -43.6% -20.2% -50.2% -57.4% -27.1% -31.8%

Standard MailForwarded Returned to Sender Treated As Waste

6

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

UAA Cost % Change

WasteCost % Chg

FY08 FY09 FY10 FY11 FY12 FY13

-35.00%-30.00%-25.00%-20.00%-15.00%-10.00%

-5.00%0.00%5.00%

10.00%

UAA Volume % Change

WasteVol % Chg

MailVolume UAA %

MailGrowth/Decline

UAA Growth/Decline

109,244,891 2.52% FY1981 - -170,623,520 2.84% FY1993 56.18% 75.74%197,513,848 4.71% FY1998 15.76% 92.22%205,261,930 4.74% FY2004 3.92% 4.47%202,702,926 4.59% FY2008 -1.25% -4.27%176,744,823 4.09% FY2009 -12.81% -22.35%170,573,704 4.07% FY2010 -3.49% -3.88%168,297,342 4.17% FY2011 -1.33% 1.04%159,858,854 4.23% FY2012 -5.01% -3.72%158,384,271 4.28% FY2013 -0.92% 0.37%

Average Yearly Decline since 2008 -4.14% -5.47%

Historical Mail Volume to UAA Volume Trend

Reasons Why Mail Is Undeliverable Customer No Longer Receives Mail at Address:

75.8%• Requires Forwarding: 29.1%• Forwardable, Not Eligible: 19.2%• Not Forwardable: 27.5%

Address Element(s) Incorrect:

12.4%

Other Reasons:

11.8%• Vacant 7.7%• No Mail Receptacle 2.9%• Refused 0.9%• Other 0.3%

8

But My “Bad” Addresses Get Delivered! 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

9

Tools-of-the-Trade You Should Be Using To Improve Address Quality!

CASS™

Address Element Correction

LACSLink®

DPV® – Vacant Table

DPV®

ACS® Full Service-OneCode-Traditional

10

Use The Right Tools – CASS™/DPV®

First-line tool to standardize addresses and determine correct Postal codes• Verify or correct street name elements• ZIP Code™, ZIP + 4® code, Carrier Route

CASS/DPV validates the specific accuracy of street numbers and apartment or suite numbers

• Prevent entry of incomplete addresses at point-of-capture and update with the correct address

• Identify addresses in a mailing list with known deficiencies that may affect deliverability

11

Access the Vacant Table to reduce UAA Mail sent to vacant addresses accounts 7.7% of all UAA

• Second most common reason for UAA mail Identify addresses that may be vacant before you mail! Ask your CASS vendor about how to incorporate the

Vacant Table in your address hygiene processing.

12

Use The Right Tools – CASS™/DPV®CASS/DPV Vacant Table

Use The Right Tools – CASS™/LACSLink®

LACSLink updates addresses changed due to local community address conversions or 9-1-1 implementation

Approximately 400,000 rural route/box numbers changed each year since 1994

Also used for street name changes or address renumbering

13

Example of 9-1-1 address conversion

Original: RR 2 Box 1948Somecity US 01234-6789

Converted: 1 Bryant LNSomecity US 01234-9876

Mail delivery following an address conversion• USPS® policy is to deliver mail bearing original

address for one year following address conversion.• After one year mail with original address may be

returned to sender.

Use The Right Tools – CASS™/LACSLink®

14

Address Element Correction

15

Return To Sender

Insufficient Information

Have Addresses That Just Won’t Match? Address Element Correction (AEC) may be the solution!

• Send any addresses that can’t be matched using CASS™/DPV® to USPS® for correction

AEC• Advanced address-matching based on USPS-

developed algorithms Typically resolves approximately 30% of addresses Costs $21 per 1,000 records processed

AEC II® • Unresolved AEC addresses sent to local delivery office

for Delivery Force Knowledge™ resolution 32¢ charge for corrected or resolved addresses

AEC II® with Delivery Force Knowledge™

17

Check out the AEC Calculator on RIBBS®

18

19

ACS is a post-mailing address correction service that allows mailers to receive change-of-address (COA) information and other reasons for non-delivery electronically

ACS is available for use with all classes of mail Can and in most cases must be combined with Ancillary

Service Endorsements, such as

• Address Service Requested

• Change Service Requested

• Return Service Requested ACS will support the upcoming Secure Destruction program

ACS™ Service

Some people don’t provide a forwarding address 10 – 30% don’t report anything to USPS®

• It’s not required by law• They forget, don’t care or don’t want to be found

Leverage Additional Resources – Hidden Moves

20

Leverage Additional Resources

Uses Social Security Administration data

Identify the deceased

Focus on reaching the people who are receptive to

receiving your message

Flag those on the “Do Not Mail” Database

21

Leverage Additional Resources

An ECOA service compiles moves from magazines,

utilities, etc.

Locate people who haven’t filed their move with USPS®

Complete residential addresses to reach more people on your target list

Append Apartment Numbers

22

Geocode

Improves the effectiveness of your direct marketingcampaigns with more targeted campaign lists. 23

Mail Costs Take a step back…what are the obvious costs?

• Printing, paper and labor• Postage• Any return service and address correction fees

All ju$t mailing-related co$t$!

24

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001

CASS™

Geocoding

25

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001

DPV®

Geocoding

26

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001

LACSLink®

27

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001

DPV® Vacant

Deceased

Suppression

28

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001 AEC

Apartment

Append

29

NATIONAL CUSTOMER SUPPORT CENTER225 N HUMPHREYS BLVD STE 501MEMPHIS TN 38188-1001 Full-Service ACS™

NCOALink®

Deceased

Suppression

ECOA30

Summary

Be aware of the impact of undeliverable records Know the quality of the records you are mailing Correct undeliverable records to reduce costs

incurred by returned mail or pieces that get thrown out by the carrier

Improve customer service — ensure recipients actually get their mail in a timely manner

31

It is important to everyone in the mailing industry to make effective delivery of all mail a goal and reduce the volume and cost of UAA!

Your United States Postal Service® provides many products and services to assist you in reducing undeliverable-as-addressed mail

Reducing Your UAA is Achievable!

32

For More Informationwww.usps.com/ncsc ribbs.usps.gov

Customer Care

1-800-238-3150 33

MondayNCOALink® vs. ACS™ – Which is the Best?

Lisa West / Michael Tate – National Harbor 11 – Period 7, 11am – 12:00 pm

Managing UAA Mail from All AspectsJim Wilson / Bob Schimek – National Harbor 11 – Period 8, 1:30 – 2:30 pm

TuesdayKeeping it Simple: ACS™ Services – It’s All in the Service Type ID

Lisa West – Maryland A – Period 12, 11 – 12 pm

Your Software is Talking, Are You Listening?Angela Lawson / Chris Lien – Chesapeake 3 – Period 13, 1:30 – 2:30 pm

Colleges & Universities – Addressing: Issues & OpportunitiesJim Wilson / Richard Boudrero – Chesapeake 6 – Period 14, 2:45 – 3:45 pm

SundayThe ROI of Great Address Quality

Ed Wanta / Paula Stoskopf – Chesapeake 6 – Period 2, 10:15 – 11:15 am

USPS® Co-Presentations Speaker Schedule

Thank You!

35