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Best Practices Ensure Address Quality

Best Practices Ensure Address Quality






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    Best Practices Ensure Address Quality Best Practices Ensure Address Quality Document Transcript

    • ® Address Quality White Paper A Pitney Bowes Company Best Practices to Ensure Address Quality
    • ® A Pitney Bowes Company Executive Overview Web Interactive Demo The operational costs of poor address quality are well known – Please click here to perform another search. undeliverable-as-addressed (UAA) mail, lower response rates to marketing campaigns, delayed payments and dissatisfied Input Address Output Address customers. Given the USPS® rate case announcement, 16 Characters 58 Characters companies are taking a look at all the ways they can reduce the impact of the postal rate increase. 4200 Parl GROUP 1 20706 4200 PARLIAMENT PL - STE 600 This White Paper offers useful suggestions to optimize your LANHAM MD 20706-1844 mailstream by keeping your company’s address data clean, complete and deliverable. Keystroke saving of 72.41% On-line Address Correction There are both hosted and in-house solutions. Web services or API calls from your customer care, billing and other business Currently, many mailers batch cleanse addresses with a CASS systems enable real-time address validation and correction. Certified™ software solution just prior to mailing. When There also exists certified connectors that interface with the customers are on the phone or they are browsing your web site, most popular customer-facing applications, such as Microsoft they are live and open to interaction. Companies that incorporate address correction (including DPV™) into CRM, SAP, Siebel and Salesforce.com. customer-facing systems are able to query the customer for corrections or missing information. Going Beyond CASSTM Certification About 40 percent of address errors, (misspelled names, streets and cities, truncated addresses, and abbreviated streets and cities Even if your company already cleans and validates its customer that do not follow USPS standards) can be traced back to data address data and mailing lists using either a service bureau or a entry. To address this problem, some companies have USPS CASS Certified solution, you may not be benefiting from incorporated point-of-entry address “building” and validation all of the address correction options available. In a recent routines to reduce address errors as well as the number of survey, Group 1® Software found that 67 percent of its keystrokes required to update the data. In the screen shot at the customers were not taking advantage of DPV, even though the top of the next column, keystrokes were reduced by about software is included “free” with their CASS software. It is 72 percent. important to note that beginning August 2007, DPV processing will be required as part of the CASS process. 2
    • Address Quality White Paper When DPV is run with a CASS engine, it enables mailers to August 1, 2006. Also note that NCOALinkTM Full Service Providers confirm that an address is a delivery point for the USPS. The are required to offer the LACSLink service and process addresses CASS process checks addresses against a range in a database. against the LACSLink database. So for instance, in a new subdivision, 10 Birch Drive, 12 Birch Drive and 14 Birch Drive are all “valid” addresses because they fall within an acceptable range. However, 12 Birch Drive is an Exception Processing to Enhance empty lot. DPV alerts the mailer that 12 Birch Drive is an undeliverable address. DPV is also helpful for multi-dwelling Addresses units and high rise buildings because it alerts the mailer that a According to the address quality white paper published by the suite or apartment number does not exist for that street address. Mailers’ Technical Advisory Committee (MTAC), “There is no widespread Industry best practice in place at a transactional or RDI™ is another essential technology. RDI does not reduce batch level for assignable addresses. It’s unknown what mailers do your postage, but it can save money. This technology helps to evaluate un-assignable addresses. It’s assumed that they mail at parcel shippers reduce shipping costs by verifying whether an full rate or pre-sort at the full rate or determine not to mail. Most address is residential or business. It enables companies to mailers don’t know what level of evaluation their company does to eliminate the address correction surcharge ($5-15 per package, identify root cause for un-assignable addresses. As a last resort, the depending on the carrier) as well as the residential delivery Mailer initiates customer contact to get resolution.”1 surcharges associated with shipping materials via a third party such as FedEx or UPS. Based on the benchmark data that Group 1 gathered from customer files across various industries, addresses frequently The USPS does not charge a residential surcharge because they cannot be matched against the USPS database because either a key are already set up for local last mile delivery through piece of information is missing or there is conflicting data, such as neighborhoods. However, third party carriers charge fees to help a street address being outside the range for that ZIP Code™. recover the extra handling costs incurred for making residential deliveries (i.e. moving materials off of 18-wheelers to vans). One option available to mailers is the USPS Address Element Companies that maintain an RDI flag on the customer file and Correction (AEC) program. Companies may submit up to append it in real time when customers order goods over the Web 500,000 records a day at a cost of $15/1000 records. The AEC let the shipper calculate and collect the residential surcharge software will parse the address into its elements, match it up front. against their database and provide reports of the resolved and unresolved data elements. LACSLinkTM is another cost-saving tool. It is a database of converted rural route addresses to their city-style addresses. The LACSLink Most address hygiene tools in the market are limited to only Product was initially implemented by the USPS to help emergency using the United States Postal Service® data. The USPS is responders find a physical address. Approximately 400,000 rural responsible for delivering mail, however it does not track every addresses have changed each year since the database was physical address in the United States. For instance, there are implemented in 1994. According to the USPS, approximately 40 millions of households that receive mail at a Post Office™ box percent of rural route addresses cannot be delivery point validated. in communities that do not offer city-style mail delivery, so the To help improve delivery to rural route addresses, LACSLink USPS has no record of these types of addresses in its database, processing will be required to receive CASS certification effective even though they exist. 1 MTAC Workgroup 97, Address Quality Methodologies, Best Practices in Address Quality. February 2006. 3
    • ® A Pitney Bowes Company Many Group 1 customers are benefiting from a unique Pre-mailing Move Update Solutions object-oriented database that conflates the USPS address data Pre-mailing Move Update solutions include: with non-USPS street network data. By combining the two data sources, this technology achieves much higher match rates. In ■ In-house (Group 1’s VeriMove™ solution) addition, the quality of the match results has been consistently ■ Outsource (service provider) proven to further increase the accuracy of address data. ■ MLOCR (post-print) In addition, Group 1 can augment address information by In the pre-mailing processes, when MLOCR and service matching addresses against a consumer credit data file using providers are used, companies neglect to update their databases FineTune Data™. When FineTune Data finds a match, it can with the new address. Best practices to ensure address quality append new address information as well as demographic and would be for mailers, regardless of which update method used, other lifestyle data. These updated addresses are then processed to update their customer data with change-of-address again through a CASS engine, where they receive a higher information immediately upon receipt. ZIP + 4® match rate – sometimes coding an additional 25-30 percent of the exception file. These results not only qualify Post-mailing USPS Provided Move Update Methods mailers for additional postal discounts but reduce costly UAA Post-mailing Move Update methods provided by the USPS mail as well. include: ■ Ancillary Service Endorsements (ASE) Complying with Move Update ■ ACS™ Over 17 percent of Americans change their residence each year In the post-mailing process, mailers include an ACS and nearly 20 percent of all businesses change locations. endorsement line on the mail piece, the USPS forwards the mail Identifying address changes quickly is vital to your business. pieces and charges a fee for the service, then returns a file of Each old address could represent a “lost” customer. Keeping corrected addresses to the mailer. There are companies that do contact with your customers and their revenue stream can easily not update their mailing list with these addresses and are be automated with a Move Update solution so you never lose a therefore out of compliance and subject to USPS penalties. customer or a sale needlessly. The NCOALink database contains more than 160 million permanent address changes, is updated weekly, and covers (on a constantly rolling basis) the past 48 months of change-of-address information. In order for First-Class™ mailers to take advantage of postage discounts, they must be in compliance with Move Update requirements. Currently there are different approaches to compliance – pre-mailing and post-mailing. 4
    • Address Quality White Paper Best Practices Process Flow LinkTM LinkTM 5
    • ® A Pitney Bowes Company What’s on the Horizon for Address products and services in order to enhance customer value and expand the use of these products and services for mutual Quality? benefit.”2 The USPS has a $2 billion UAA mail problem and a stated goal The “Address Quality Methodologies” white paper is available of reducing undeliverable mail by 50 percent. Group 1 for download from the Group 1 web site at www.g1.com. If you anticipates that the USPS will continue to announce rule have any questions regarding your company’s specific address changes to CASS engines to enhance address quality, such as quality, contact Group 1 Software directly at 888.413.6763. the new rule that CASS engines cannot apply a ZIP + 4 to an address without validating both the street and the house number; that is, comparing the address to the DPV database. This rule goes into effect August 1, 2007. About Group 1 Software Group 1 Software, Inc., a wholly owned subsidiary of Pitney In addition, in the Federal Register Notice (August 28, 2003), Bowes, develops software that provides a comprehensive the following Move Update changes were proposed: Customer Communication Management (CCM) solution, which helps maximize the value of customer data and improves the ■ 95 day processing of Move Update efficiency and effectiveness of customer communications. ■ 95 day processing of CASS Group 1 Software’s solutions are an essential component of ■ Use of monthly directory updates for enterprise applications, serving to consolidate, cleanse and address-matching software enrich corporate data, and generate personalized business ■ Disallow Ancillary Service Endorsements as a documents for multi-channel delivery, customer care and standalone Move Update method efficient business processing. The company’s solutions are ■ Move Update for other classes of mail (First-Class utilized by over 3,500 organizations worldwide in the utilities, represents only 50 percent of total mail volume) financial services/banking, GIS/mapping, retail, telecommunications, insurance and other industries, including Entergy, L.L. Bean, Microsoft, QVC, Siemens, Wal-Mart and Summary Wells Fargo. Group 1 Software is uniquely qualified to assess your address quality processes and evaluate them against what is considered the industry standard. Group 1 and Pitney Bowes representatives About Pitney Bowes participate in the MTAC work group which published the Pitney Bowes provides the world’s most comprehensive suite of “Address Quality Methodologies” white paper in February 2006. mailstream software, hardware, services and solutions to help companies manage their flow of mail, documents and packages This MTAC work group focuses on address quality issues and to improve communication. Pitney Bowes, with $5.6 billion in supports MTAC’s purpose which is to be “a venue for the annual revenue, takes an all-inclusive view of its customers’ United States Postal Service (the Postal Service) to share operations, helping organizations of all sizes enjoy the technical information with mailers and to receive advice and competitive advantage that comes from an optimized recommendations from mailers on matters concerning mail-related 2 MTAC Work Group Guidelines, USPS RIBBS, January 20, 2006. 6
    • Address Quality White Paper mailstream. The company’s 86 years of technological leadership have produced many major mailstream innovations, and it is consistently on the Intellectual Property Owners Association’s list of top U.S. patent holders. With approximately 34,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. More information about the company can be found at www.pb.com. 7
    • ® Address Quality A Pitney Bowes Company White Paper ® A Pitney Bowes Company Group 1 Software 4200 Parliament Place • Suite 600 Lanham, MD 20706-1844 1-800-368-5806 For more information about our products and services, please log onto our web site: www.g1.com For more information about Pitney Bowes, visit www.pb.com Group 1 and the Group 1 logo are registered trademarks of Group 1 Software, Inc. Pitney Bowes is a registered trademark and the Pitney Bowes Process Bar Design is a trademark of Pitney Bowes. The following trademarks are owned by the United States Postal Service®, USPS, United States Postal Service, ZIP + 4, RDI, LACSLink, NCOALink, Post Office, ACS, CASS, PAVE, First-Class, ZIP Code, First-Class Mail, DPV and CASS Certified. AD#8.06. Group 1 Software is a non-exclusive Interface Distributor Licensee of the United States Postal Service. All other marks are trademarks or registered trademarks of their respective companies. ©2006 Group 1 Software, Inc. • All Rights Reserved An Equal Opportunity Employer • Printed in U.S.A. • WPP1008/0606G1