2013 National Postal Forum                     San Francisco, CaliforniaChristine J. ErnaGary A. Seitz
   Industry Challenge - UAA    ◦ Why?    ◦ What it is and what it is not   What are common causes of UAA?    ◦ What are ...
   Undeliverable as Addressed (UAA) Mail    Return mail volume is not decreasing, even though mail     volume is decreasi...
   What does undeliverable mail mean?   Wasted costs    ◦ Industry estimate $3 per piece in operational costs (Postage, ...
100,000 addressesIn just 90 days… 4.5% (4,500) will move and need COA      processing 2% (2,000) will likely be UAA due ...
 24 of 100 mail pieces contain Address Errors 5 of 100 mail pieces are Undeliverable As      Addressed (UAA)    ◦ First‐...
   Movers                               75% of UAA mail     ◦ 2.6% of all First Class Mail    ◦ Includes failure to updat...
   Each year, 17% of Americans move or change        their mailing address    ◦ 1 out of every 6 families moves each year...
 Reducing operational costs                                     What Are Customers Doing With Return Mail? associated wit...
At Point                              of Entry!  Data Entry of Names & Addresses Name formats  Physical addresses –    ...
   Correct    ◦ Consider implementing a solution at point of capture    ◦ Work with your mail preparer to identify record...
Check your database• First and Last names• No “mixed” data fields! • No Titles in name • No Names in the Address • No Comp...
Check your database•   Enough space (30 to 50)•   Secondary address information•   Proper Address elements•   Proper Abbre...
   CASS + DPV    ◦ CASS  Correct address, assigns Zip+4    ◦ DPV  Validates that USPS delivers to street       number, Co...
Standard processes with CASS:• SUITELINK – adds suites to business addresses• LACS – converts rural addresses – 1‐yr deliv...
•   Utilize NCOA (National Change of Address)    • 18‐month or 48‐month    • Individuals, Families & Businesses that filed...
•   NCOA Nixie codes    • Close match ~ but new address not provided    • May be forwarded or may be returned    • Some sa...
   “So what happened…?   NCOA requires an exact match    ◦ NAME and ADDRESS    ◦ Only Zip+4 complete addresses matched  ...
•   RUN‐ON                    145SOUTHMILLS ST•   EXTRA DIGITS/CHARACTERS   10000 EUCLID AVE•   PRE‐DIRECTIONALS          ...
•   Used to request new address and instructions     on handling UAA mail•   Proper placement on piece required•   Manual ...
Why use them?   First class mail    ◦ Forwarded for 12‐months, and you never know it    ◦ After 12‐months, returned as “U...
Ancillary Service Endorsements                                            Endorsements                                    ...
ENDORSEMENT                            FIRST CLASS              STANDARD MAILADDRESS SERVICE REQUESTED              Forwar...
   AEC & AECII® Service    ◦ AEC provides a crucial “last resort” approach to stubborn       addresses    ◦ USPS® service...
Eliminate physical return mail ◦ Service that integrates multiple    technologies for capturing return    mail, converting...
Document Type    How We         Estimated        What Tools can Fix                 Determine      Value            Addres...
Customer Benefits          Reduce volume & expense of return mail process          Centralize & automate manual process,...
   Industry Challenge ‐ UAA   What are common causes of UAA?   How do CASS & NCOA affect UAA?   Hidden Cost of UAA    ...
Resources  USPS – Address Quality  https://www.usps.com/business/address‐quality‐services.htm  USPS – Addressing  https://...
Questions and AnswersFor more information:Christine J. Erna MDP, AQS                   Gary A SeitzEngagement Manager     ...
Demystifying UAA - Where did it come from? How can we fix it?
Demystifying UAA - Where did it come from? How can we fix it?
Demystifying UAA - Where did it come from? How can we fix it?
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Demystifying UAA - Where did it come from? How can we fix it?

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This session will help attendees understand the common causes of UAA mail. A basic understanding of CASS, NCOA and improper address collection that all contribute to UAA mail. We’ll also answer your burning questions like; what are the hidden costs of UAA? How do they affect your company? What solutions are there to decrease costs and manage returned/undeliverable mail?

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Demystifying UAA - Where did it come from? How can we fix it?

  1. 1. 2013 National Postal Forum San Francisco, CaliforniaChristine J. ErnaGary A. Seitz
  2. 2.  Industry Challenge - UAA ◦ Why? ◦ What it is and what it is not What are common causes of UAA? ◦ What are some actionable take aways? How do CASS & NCOA affect UAA? ◦ More than processing your files Hidden Cost of UAA ◦ ROI – Capturing Costs ◦ Understanding the Options & Benefits Solutions
  3. 3.  Undeliverable as Addressed (UAA) Mail Return mail volume is not decreasing, even though mail  volume is decreasing ◦ USPS® 2011/2012: ◦ Mail Volume: 168/160 Billion ◦ UAA Volume: 7.02/6.76 Billion (4.18%/4.23%) ◦ UAA Cost: $1.315 / $1.318 Billion Mailing Industry: ◦ Postage: 2% required to cover cost of Returns ◦ Business: $7+ Billion Costs* $20+ Billion Business Impact ◦ Top UAA Reasons: ◦ 75.8% Move‐Related ◦ 12.5% Address‐Related What Can You Do: ◦ Implement a comprehensive Address Quality ◦ Strategy ◦ Use ALL applicable addressing products & ◦ services ◦ Track your mail channel’s R.O.I. * Based on DMA per piece cost estimates
  4. 4.  What does undeliverable mail mean? Wasted costs ◦ Industry estimate $3 per piece in operational costs (Postage, Print,  Handling, Research, Re‐Mailing) Lost / Delayed Revenue Impact to Clients ◦ Reduced Customer Satisfaction  ◦ Lost Marketing Opportunities ◦ Lost Customers
  5. 5. 100,000 addressesIn just 90 days… 4.5% (4,500) will move and need COA  processing 2% (2,000) will likely be UAA due to a foreign  or “no forwarding” moves Total: 6,500 pieces may never reach their  intended audience A mailing list will deteriorate 1% each month
  6. 6.  24 of 100 mail pieces contain Address Errors 5 of 100 mail pieces are Undeliverable As  Addressed (UAA) ◦ First‐Class UAA Mail          3.4% ◦ Standard Class UAA Mail  6.4%
  7. 7.  Movers  75% of UAA mail  ◦ 2.6% of all First Class Mail ◦ Includes failure to update files ◦ Failure to utilize NCOA Nixie information Vacant addresses  6% of UAA mail Missing Secondary addresses  5% of UAA Invalid address information
  8. 8.  Each year, 17% of Americans move or change  their mailing address ◦ 1 out of every 6 families moves each year Approximately 19% of all businesses move USPS® processes over 45 million permanent  Change of Address (COA) orders each year
  9. 9.  Reducing operational costs What Are Customers Doing With Return Mail? associated with wasted mail 50% 45% 45% Manual and decentralized 40% 36% 35% 28% 30% processes that are difficult to 25% 20% 15% 10% 8% measure 10% 3% 5% 1% 0% Return UAA Measure Scan & Update Update SOR Remail Secure Low correction rate of bad to Dept Volume Image Addresses Destruction addresses Issues With Current Processes Managing updated data 50% 45% 47% 44% 40% Large investment in 35% 30% 25% 26% technology and IT resources 20% 16% 16% 15% 10% 5% Risk of Postal Inspection 0% Decentralized Reactive Low Correction Rate Not Measured Manual Service return mail audits
  10. 10. At Point  of Entry!  Data Entry of Names & Addresses Name formats  Physical addresses – using CASS Move Update – using NCOA
  11. 11.  Correct ◦ Consider implementing a solution at point of capture ◦ Work with your mail preparer to identify records that do  not DPV Complete ◦ Break into reason why ◦ Take action Current ◦ Pre‐mailing – NCOALink ◦ Post‐mailing – Ancillary service endorsements
  12. 12. Check your database• First and Last names• No “mixed” data fields! • No Titles in name • No Names in the Address • No Company Names in the Address• Name fields are used for postal matching
  13. 13. Check your database• Enough space (30 to 50)• Secondary address information• Proper Address elements• Proper Abbreviations Publication 28 Pickup a copy at the USPS booth or down load from  https://www.usps.com/business/address‐management‐pubs.htm?
  14. 14.  CASS + DPV ◦ CASS  Correct address, assigns Zip+4 ◦ DPV  Validates that USPS delivers to street  number, Complete address, including secondary CASS assigns error codes Not all CASS systems are the same ◦ Parsing logic varies ◦ Coding variances from 80% to 90% on same file
  15. 15. Standard processes with CASS:• SUITELINK – adds suites to business addresses• LACS – converts rural addresses – 1‐yr delivery windowOptional processes:• VACANT – vacant in last 90‐days   • APARTMENT APPEND ‐ adds missing secondary address on  residential and improves VACANT and NCOA matching Mailers frequently fail to update their databases with this info ~ leading to increased UAA mail
  16. 16. • Utilize NCOA (National Change of Address) • 18‐month or 48‐month • Individuals, Families & Businesses that filed COA • Tight match criteria on NAME and ADDRESS       • NIXIES = close matches • Are you updating?
  17. 17. • NCOA Nixie codes • Close match ~ but new address not provided • May be forwarded or may be returned • Some sample Nixie codes returned with NCOA 04     Street address with secondary 05     New address cannot be provided 09     Highrise default 12     Middle Name test failed 19     New Address Not Zip+4 or DPV ~ or “Temp Move”
  18. 18.  “So what happened…? NCOA requires an exact match ◦ NAME and ADDRESS ◦ Only Zip+4 complete addresses matched ◦ NIXIES “close” matches Over 35% of movers never tell the USPS
  19. 19. • RUN‐ON 145SOUTHMILLS ST• EXTRA DIGITS/CHARACTERS 10000 EUCLID AVE• PRE‐DIRECTIONALS 17  SO WATT CT• SUFFIX ABBREVIATION 492 JACKSON BL• MISPLACED SECONDARY 47  A  CEDAR RD• ALPHA/NUMERICS 5!7 M0SS ST
  20. 20. • Used to request new address and instructions  on handling UAA mail• Proper placement on piece required• Manual and automated  notice options• Intelligent Mail Barcode (IMB) offers low cost  alternatives
  21. 21. Why use them? First class mail ◦ Forwarded for 12‐months, and you never know it ◦ After 12‐months, returned as “UAA” ◦ Valuable or confidential info:  forward or return? Standard class mail ◦ Might be forwarded, returned or destroyed ◦ You never know it
  22. 22. Ancillary Service Endorsements Endorsements keywords Return AddressEndorsement > Change JOHN DOE 10 ELM AVE ANYTOWN OR 97654-3218 Followed by…• On‐piece mailing instructions  Service Requested• Same handling for all classes of mail• Differing fees
  23. 23. ENDORSEMENT FIRST CLASS STANDARD MAILADDRESS SERVICE REQUESTED Forward or Return – Forward or Return – NoForwarding and Return No charge to Fwd charge to FwdNew notice provided Address Correction fee Addr Corr or Wgt FeeRETURN SERVICE REQUESTED No Charge First Class Mail priceNo Forwarding, only ReturnNew address or UAA reasonCHANGE SERVICE REQUESTED Address Correction fee Address Correction feeNo Forwarding or ReturnNew address or UAA reasonFORWARDING SERVICE REQUESTED No Charge Forward no chargeForwarding and Return Return Weighted feeNew address only with ReturnELECTRONIC SERVICE REQUESTEDService type code in IMb determines General rules. Services and prices vary by class
  24. 24.  AEC & AECII® Service ◦ AEC provides a crucial “last resort” approach to stubborn  addresses ◦ USPS® service to help correct addresses that CASS Certified™  software cannot fix AECII expands AEC processing ◦ Leverages Delivery Force knowledge™ for addresses that AEC  cannot correct
  25. 25. Eliminate physical return mail ◦ Service that integrates multiple  technologies for capturing return  mail, converting physical mail to  usable data, updating addresses  and numerous post‐processing  options  ◦ Automate and centralize return mail  management to reduce wasted cost ◦ Reconnect with your customers,  updating 60 – 80% of your  undeliverable addresses
  26. 26. Document Type How We Estimated What Tools can Fix Determine Value Addresses? ValueInvoices Generates $100 Postal – Pre-Mail Revenue 3rd Party – If ReturnedCorrespondence Customer $7 call center Postal – Pre-Mail Satisfaction cost Note Account – If ReturnedMarketing Generates $100 for every Postal – Pre-Mail Leads response 3rd Party – Pre-MailRegulated Customer $7 call center Postal – Pre-MailNotifications Satisfaction cost Note Account – If Returned
  27. 27. Customer Benefits  Reduce volume & expense of return mail process  Centralize & automate manual process, improve cycle time from  weeks to days  Increase visibility with real‐time centralized reporting  Improve deliverability by updating (60‐80%) of bad addresses   Improve confidence in address updates through strict logic to verify  updated addresses  Apply intelligence on decisions related to bad addresses  Reconnect with your customers, updating 60 – 80% of your  undeliverable addresses  Central visibility to the quality of addresses and returned mail to  make decisions  Deliver more invoices to improve cash collected
  28. 28.  Industry Challenge ‐ UAA What are common causes of UAA? How do CASS & NCOA affect UAA? Hidden Cost of UAA Address Quality Is  Solutions  Essential!
  29. 29. Resources USPS – Address Quality https://www.usps.com/business/address‐quality‐services.htm USPS – Addressing https://ribbs.usps.gov/index.cfm?page=addressing Publication 28 – USPS Addressing Standards Pick up a copy at the USPS Booth or download from https://www.usps.com/business/address‐management‐pubs.htm?
  30. 30. Questions and AnswersFor more information:Christine J. Erna MDP, AQS Gary A SeitzEngagement Manager  Executive Vice PresidentEnterprise Postal Consulting C.TRACPitney Bowes Management Services 440.268.2540603.974.1169 GSeitz@ctrac.com Christine.erna@pb.com

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