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  1. 1. In November, the USPS will make all mail smarter & reduce waste <ul><li>Facts the U.S.P.S. Wants You to Know </li></ul><ul><ul><li>Each year, over 2 BILLION pieces of mail are discarded by the U.S. Postal Service. </li></ul></ul><ul><ul><li>This makes U.S. Post Office the largest recycler of paper in the world! </li></ul></ul><ul><ul><li>Effective Nov. 23, 2008 this will change! </li></ul></ul><ul><ul><li>All mail must go through Address Correction within the prior 95 days. </li></ul></ul>
  2. 2. Reasons for this problem? <ul><ul><li>Recipient moves but list owner chooses not to update their file with USPS approved method. </li></ul></ul><ul><ul><li>Faulty address - doesn’t match USPS database. </li></ul></ul><ul><ul><li>Mailer uses inefficient, error-prone manual method to update addresses. </li></ul></ul><ul><ul><li>Paper stock or design jams in postal equipment. </li></ul></ul>
  3. 3. 44 Million Address Changes <ul><li>Based On Addresses Processed by U.S.P.S. </li></ul><ul><ul><li>Economics - Lower income move most often but mid and upper move for jobs, better lifestyle. </li></ul></ul><ul><ul><li>Geographics - From north to south. </li></ul></ul><ul><ul><li>Metropolitan - From city to suburbia. </li></ul></ul><ul><ul><li>14% of households move annually per U.S.P.S. </li></ul></ul><ul><ul><li>Up to 18% of those under 30 or over 55 move. </li></ul></ul>
  4. 4. By Not Keeping Addresses Current, You Lose Customers & Prospects
  5. 5. What Happens If 14% Move Each Year? <ul><ul><li>YEAR 1 - 10,000 names, loss is 1,400 </li></ul></ul><ul><ul><li>YEAR 2 - 8,600 names, cumulative loss 2,604 </li></ul></ul><ul><ul><li>YEAR 3 - 7,396 names, cumulative loss 3,639 </li></ul></ul><ul><ul><li>YEAR 4 - 6,361 names, cumulative loss 4,529 </li></ul></ul><ul><ul><li>YEAR 5 - 5,470 names, cumulative loss 5,295 </li></ul></ul><ul><ul><li>TOTAL FIVE-YEAR LOSS IS OVER 50%. </li></ul></ul>
  6. 6. The Hidden Costs of Not Updating <ul><li>Assumes 14% of 10,000 Have Moved </li></ul><ul><li>1,400 Did Not Receive the Piece </li></ul><ul><li>Lower Response </li></ul><ul><li>Higher Promotional Cost because you paid for printing, postage and mailing services. </li></ul><ul><li>You lose past, current and future customers! </li></ul>
  7. 7. The Marketing Cost <ul><li>You Should Not Want to “Lose” Your Customers </li></ul><ul><li>Best Prospect = Current Customer </li></ul><ul><li>Next Best = Past Customer </li></ul><ul><li>Next Best = Competitor’s Customer </li></ul><ul><li>Next Best = A Prospect Who Matches Your Current Customer </li></ul>
  8. 8. The Economic Cost <ul><li>Wasted Postage, Printing, Mailing Costs </li></ul><ul><li>Pieces Mailed: 10,000; Moved 1,400 </li></ul><ul><li>Postage Cost: 1400 X .10 Ea.......$140.00 </li></ul><ul><li>Printing Cost: 1400 X .30ea......$420.00 </li></ul><ul><li>Lettershop Cost: 1400 X .05 Ea......$ 70.00 </li></ul><ul><li>Total Cost, Wasted Mail.............$630.00 </li></ul><ul><li>NCOA: 18-month $92.00 / </li></ul><ul><li>48-month $152.20 </li></ul>
  9. 9. Capturing Address Changes <ul><li>The Post Office Offers Three Choices </li></ul><ul><li>Address Correction Service </li></ul><ul><li>Change Service Requested </li></ul><ul><li>National Change Of Address / NCOA </li></ul><ul><li>If you are not using one of these options, </li></ul><ul><li>you are wasting postage and printing, </li></ul><ul><li>and not maximizing potential response </li></ul><ul><li>to your mailings. </li></ul>
  10. 10. Address Correction Service <ul><li>Manual Cost : 50-cents ea. (+ 1 cent postage) </li></ul><ul><li>Costly And Labor Intensive </li></ul><ul><li>Error Prone : Notice sent carrier, who can make mistakes. </li></ul><ul><li>Waste : Standard mail not forwarded, only first class. </li></ul><ul><li>Paper : Changes come on paper </li></ul><ul><li>Labor : Change has to be keyed by your staff which is an unproductive and error prone </li></ul>
  11. 11. Change Service Requested <ul><li>Less Costly, Less Labor </li></ul><ul><li>Cost For Standard Mail : 3-cents each first two notices, 18-cents thereafter A.NO PAPER: Done electronically </li></ul><ul><li>Waste : Mailing not delivered because person has moved. However, First Class is forwarded </li></ul><ul><li>Labor : No keying, only electronic update </li></ul><ul><li>Used by those who mail often </li></ul>
  12. 12. N.C.O.A. National Change Of Address <ul><li>Least Costly, No Waste </li></ul><ul><li>Cost : Varies with quantity and 18-month versus 48-month option, averages 3 to 10-cents each, less with very large quantities </li></ul><ul><li>Paper : None. Done electronically, unless you want hard-copy comparison. </li></ul><ul><li>Waste : None. Change made before mailing. </li></ul><ul><li>Labor : None, other than electronic transfer and update. </li></ul>
  13. 13. 18-month vs. 48-month NCOA Pros & Cons <ul><li>48 month NCOA - do if this is your first time or you have not been updating your file if a vendor has been performing NCOA. Tracks every move in past four years, provides current address. </li></ul><ul><li>18 month NCOA - Use if your file has been through 48-Month NCOA within past year. </li></ul>Cost difference is about $5.00 per 1000 records
  14. 14. If You Have Never Done NOCA Then What??? <ul><li>Do Your Addresses Meet USPS Standards? </li></ul><ul><ul><li>If your database has been CASS certified by your mailing service or a vendor but never imported back into your system, you need to be concerned about Address Standardization </li></ul></ul><ul><li>USPS has strict criteria on the elements that make up an address so it can be matched to the NCOA database. They cover spelling, abbreviations, zip plus four, etc . </li></ul><ul><li>Are your addresses standardized? </li></ul>
  15. 15. Frequency Depends Upon Your Mailings <ul><li>95 Days - U.S.P.S. requires N.C.O.A. within 95 days of mail date for all mailings earning discounts. So include this in your schedule. </li></ul><ul><li>ALWAYS - Before a major campaign, mailing an alumni magazine, fundraising solicitation. </li></ul><ul><li>Keep NCOA Documentation you will receive because you will need them when you mail. </li></ul>
  16. 16. <ul><li>Must Be Done 95 Days Or Sooner Than The Date Of The Mailing. </li></ul><ul><li>NCOA minimizes waste. </li></ul><ul><li>NCOA increases your marketing response. </li></ul><ul><li>NCOA eliminates keying address changes. </li></ul><ul><li>Minimize printing and postage costs by knowing how many you should mail before setting your print order. </li></ul>N.C.O.A. Becomes Mandatory November 23, 2008
  17. 17. How You Can Use N.C.O.A. <ul><li>Aceware + Labels & Letters </li></ul><ul><li>Make It Easy. </li></ul><ul><li>Export your file. </li></ul><ul><li>Go to aceware.com - Click LINKS. Go to dmi-mail.com - Clink NCOA. Complete the form, click EMAIL - Attach your file. Or, </li></ul><ul><li>If super large, inquire about FTP. </li></ul>
  18. 18. <ul><li>To learn more about NCOA and how you can get your mailing list certified: </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Web: www.dmi-mail.com </li></ul>Contact Information