Managing UAA Mail from ALL Aspects National Postal Forum March , 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

Forward 23.1¢ / pc Billion pieces $244.1 Million Waste 6.1¢ / pc Billion pieces $257.6 Million New Address Return 51.4¢ / pc Billion pieces $768.9 Million 2013 Christensen UAA Report Original Address Mailer

Total UAA Mail Trending 4

First-Class Mail ® UAA Trending 5

Standard Mail ® UAA Trending 6

Mail Volume UAA % Mail Growth/ Decline UAA Growth/ Decline 109,244, %FY ,623, %FY %75.74% 197,513, %FY %92.22% 205,261, %FY %4.47% 202,702, %FY %-4.27% 176,744, %FY %-22.35% 170,573, %FY %-3.88% 168,297, %FY %1.04% 159,858, %FY %-3.72% 158,384, %FY %0.37% Average Yearly Decline since %-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% Vacant7.7% No Mail Receptacle2.9% Refused0.9% Other0.3% 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 LACS Link ® 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 ™ /LACS Link®  LACS Link updates addresses changed due to local community address conversions or 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 address conversion Original:RR 2 Box 1948 Somecity US Converted:1 Bryant LN Somecity US  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 ™ /LACS Link® 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 marketing campaigns 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 CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN

NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN

NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN LACS Link® 27

NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN

NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN

NATIONAL CUSTOMER SUPPORT CENTER 225 N HUMPHREYS BLVD STE 501 MEMPHIS TN

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 Information ribbs.usps.gov Customer Care

Monday NCOA Link® vs. ACS ™ – Which is the Best? Lisa West / Michael Tate – National Harbor 11 – Period 7, 11am – 12:00 pm Managing UAA Mail from All Aspects Jim Wilson / Bob Schimek – National Harbor 11 – Period 8, 1:30 – 2:30 pm Tuesday Keeping 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 & Opportunities Jim Wilson / Richard Boudrero – Chesapeake 6 – Period 14, 2:45 – 3:45 pm Sunday The 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