1 The ROI of Great Address Quality National Postal Forum March 16 – 19, 2014 Edward Wanta – Product Information Specialist United States Postal Service ® Paula Stoskopf – Director of Industry Affairs Fairrington Transportation

2 Overview  What is a quality address  How address validation tools can help  Address validation scenarios  Keeping up with your customers

3 Great Addressing Is Important! A quality address helps:  Acquire customers  Retain existing customers  Increase response rate  Keep postage costs in check

4  Address Validation is one of the key components to your mailing process  Addresses that do not validate are at risk of non-delivery  Databases go “stale” over time without continually updating the information  There are many reasons an address can fail. You need to ensure they are: Complete Correct Current Why Address Validation Matters

5 Can You Recognize a Bad Address?

6 Can You Recognize A Bad Address?

7 Physical Address UAA Missing Apt or Ste Number Incorrect Number Incorrect Recipient Missing Number Missing RR or Box Number Incorrect Street Name ACME PRODUCTS 4759 WESTERN ST NEW YORK NY CARL SHULER 1414 LAKE ST APT CHICAGO IL CARL SHULER 1914 LAKE ST APT 3A CHICAGO IL CARL BROWN 1414 LAKE ST APT CHICAGO IL CARL SHULER LAKE ST APT 3A CHICAGO IL CARL SHULER PO BOX CHICAGO IL Millions of Pieces CARL SHULER 1414 LARK ST APT 3A CHICAGO IL Common Address Quality Problems Millions of Pieces

8 Total Address Quality Update Standardize Validate CASS Certified ™ LACS Link ® / DPV ® Suite Link ® AEC / AECII ® NCOA Link ® ANK Link ® ACS TM

9 Update Standardize Validate CASS Certified ™ LACS Link ® / DPV ® Suite Link ® AEC / AECII ® NCOA Link ® ANK Link ® ACS TM Products to Use to Achieve Quality Addressing

10 What is a Quality Address? A quality address is defined when: All necessary elements are complete and correct… Pre-directional Primary address number Street name Street suffix Post-directional Secondary identifier Secondary number City State ZIP + 4 ® code

11 What Is A Standardized Address? Address elements are printed on envelopes in standard format:  Format all lines of the address with a uniform left margin  Uppercase letters are preferred on all lines of the address block  Fully spell out or abbreviate words using USPS ® standard abbreviations ribbs.usps.gov  Publication 28, Postal Addressing Standards

12 Address Standardization Does Help  There are many CASS Certified™ tools; each is unique with different strengths  Evaluate what’s available and choose which best fits your needs  CASS Vendor List available on:

13 Update Standardize Validate CASS Certified ™ LACS Link ® / DPV ® Suite Link ® AEC / AECII ® NCOA Link ® ANK Link ® ACS TM Products to Use to Achieve Quality Addressing

14 Some Common Scenarios...

15 LACS Link® Product  Provides a database of municipality-introduced address changes  The data is provided by USPS ® through the LACS Link product Conversions come into the database from Postal carriers and municipalities  Updating the addresses using LACS Link data ensures deliverability and prevents further UAA mail

16 It reassigns rural addresses to a more friendly format that is more easily accessible by emergency services Example: RR 2 Box 317 Beaver Falls, PA Becomes Halas Ln Beaver Falls, PA Scenario: LACS Link® Conversion

17 Scenario: LACS Link® Conversion LACS also provides updated rural addresses when they expand an address range - usually because they have run out of numbers - and reassigns addresses within that area. Example: Forman Rd Polson, MT Becomes Forman Rd Polson, MT

18 DPV ® Product  Confirms the existence of a delivery point in AMS  Identifies a commercial mail receiving agency  Improves address assignments  Helps to reduce UAA Is 249 High St in ZIP Code™ a valid address? Yes or No

19 Scenario: Precise Match With Valid DPV ® CASS ™ Return Code 31 A precise match is ideal Be aware that there are multiple scenarios that have a return code of 31, not all ideal

20  This occurs when the address is within a valid ZIP + 4 ® range BUT the street number doesn’t exist  Precise CASS match with invalid DPV cause return code 31, Address Exists fails Scenario: Precise Match With Invalid DPV ® CASS ™ Return Code 31

21 Scenario: Non Deliverable Address, ALSO – CASS ™ Return Code 31 In cases where there is a known address in the system, but no mail is accepted Example: a warehouse with no mail receptacle Just because it shows up on the internet doesn’t mean it’s a deliverable address.

22 Scenario: Multiple Match, Insufficient Information, Return Code 22 This scenario occurs when there are address elements missing (such as Street versus Avenue)

23 Scenario: No Address Found Return Code 21  This scenario occurs when the address is not found and there is no city/state/ZIP Code™ match  A CASS™ engine will try to match, but match may not be correct

24 Suite Link® Product  Improves address assignments to business addresses by adding known secondary (suite) numbers  Provided a business name and an associated ZIP + 4 ® coded address matches to a high-rise default, the Suite Link process will return the appropriate suite number when available

25 Scenario: Default Match Return Code 32 Address requires additional information for a precise match Notice the Suite column. Data is not contiguous in high rises.

26 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

27 AEC Processing Flow

28 Update Standardize Validate CASS Certified ™ LACS Link ® / DPV ® Suite Link ® AEC / AECII ® NCOA Link ® ANK Link ® ACS TM Products to Use to Achieve Quality Addressing

On the Move!

30 Move Update describes the process of matching a mailer’s address records with customer-filed Change-of-Address orders received and maintained by the Postal Service ™ Move Update = Fewer Forwarded and Returned Mailpieces Keeping Up with the Movers

Move Update Requirement  Who must comply with Move Update rules? First-Class Mail ® or Standard Mail ® claiming Presort or Automation discounts  How often? Addresses updated using an approved method within 95 days prior to the mailing date  Are there exceptions? Exceptional or an alternative address format are not required to meet Move Update (mail is not forwarded)  Or Current Resident  Postal Customer 31

32  Mailing with passing score of 70% (tolerance 30%) or higher will pass verification  Mailing with score below 70% will fail verification if there are also more than 5 pieces with COAs not updated  Only failed pieces above tolerance pay assessment If 40% of COAs not-updated Assessment applied to 10% (= ) of mailing  Assessment = $0.07 per piece at acceptance Both First-Class Mail ® and Standard Mail ® [ Failed COAS Total COAs - 30 % ] x 7¢ x (pieces in mailing) Move Update Scoring

33 Mailing Size: 100,000Postage Postage 5-Digit Auto ($0.242)$24,200 Assessment for failed percent above tolerance $0.07 per piece 40% of COAs not updated Pieces assessed: 10,000 (10% = 40 – 30 tolerance) Assessment: 10,000 x $0.07 =$700 + $24,200 = $24,900 80% of COAs not updated Pieces assessed: 50,000 (50% = 80 – 30 tolerance) Assessment: 50,000 x $0.07 =$3,500 + $24,200 = $27,700 Move Update Cost Breakdown

34  Prior to Mailing NCOA Link® NCOA Link® MPE (Mail Processing Equipment)  From Mailing Process Ancillary Service Endorsements ACS ™  Alternative Move Update Methods 99% Accurate Legal Restraint Move Update Methods

35  NCOA Link®  NCOA Link® MPE (Mail Processing Equipment) Prior to Mailing

36  A pr ing Move Update method leveraging USPS ® provided data  Data delivery from USPS to certified licensees  Three levels of usage for certified licensees: End User Mailer (18 months of data updated monthly) Limited Service Provider (18 months of data updated weekly) Full Service Provider (48 months of data updated weekly) NCOA Link® Service

37  USPS ® Change of Address Database Entirely separate from the Address Management System (AMS) database NCOA Link® requires software Contains personal names and business names Addresses with “no forward on file” are excluded from the database NCOA Link® - How does it work?

Update PAULA STOSKOPF 1029 AMBER LN WEBSTER NY PAULA STOSKOPF N258 VALLEY RD LA CROSSE WI

39  A valuable add-on to NCOA Link® Limited Service Providers and End User Mailers  Provides an indicator that a move may have occurred in months 19 through 48 Does not contain the actual new address  Allows for more value out of move update processing Only the flagged addresses need to be sent to a 48-month NCOA Link Full Service Provider ANK Link® Service

NCOA Link® MPE 40  The use of NCOA Link data on multiline optical character readers (MLOCR) to update and spray change-of-address information on mailpieces prior to submission to the USPS ®  Can also be used on delivery point barcode sorters to identify, sort, and remove undeliverable-as-addressed (UAA) mail prior to submission to the USPS.

41  Ancillary Service Endorsements  ACS ™ From Mailing Process

42  Ancillary Service Endorsements can be used as a stand-alone method of meeting the Move Update standard Hardcopy Electronic Ancillary Service Endorsements

43  Address Service Requested  Return Service Requested  Change Service Requested  Forwarding Service Requested  Electronic Service Requested Ancillary Service Endorsements

44  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 ™ Service

45  Benefits Reduce manual address costs Reduce labor-intensive address change functions by eliminating returned mail Choose when to receive fulfillment of time-sensitive information on a daily, weekly, or monthly schedule Retrieve address change information electronically via a secure Internet site Receive notifications that relate specifically to their address files Receive the electronic notices sooner than manual notices would have been received ACS ™ Service

46  Mailers have three distinct versions of the ACS service Traditional ACS OneCode ACS ® Full-Service ACS ACS ™ Service Participant Code Optional Keyline

47  First-Class 99% Accurate Legal Restraint Alternative Move Update Methods

48  CASS ™ Report 3553 DPV ® LACS Link® Total ZIP + 4 ® Coding  CASS Summary Report  AEC Summary Reports  NCOA Link® Summary Report Documentation From List Vendor

49 Update Standardize Validate CASS Certified ™ LACS Link ® / DPV ® Suite Link ® AEC / AECII ® NCOA Link ® ANK Link ® ACS TM Fundamentals of Great Address Quality

50 2 Did the address DPV Confirm? Y/N 7 Apply ACS TM to mail piece (post mailing process) 3 Send bad addresses to AEC/AEC II ® Mail 8 Update address list with new ACS information 9 Bad address fixed/ZIP + 4 ® coded? 4 5 Suppress bad addresses from mailing list Code address via CASS Certified TM address matching software with DPV ® and LACS Link® 1 6 Update movers (NCOA Link ) (pre mailing process) NO YES

51  The quality of your address data directly affects the deliverability of your mail!  USPS ® provides an extensive suite of Address Quality products and services; check out ribbs.usps.gov.  USPS is committed to continuous address hygiene improvements to enhance the value of mail.  Small efforts can bring big results! Summary

52 DPV ® –Identify inaccurate or incomplete addresses LACS –Locatable Address Conversion System. Automated process of obtaining new address when the address has been changed by the local planning authority or building management Suite Link® –Improves address assignments to business addresses by adding known secondary (suite) numbers AEC –Address Element Correction. Corrects and standardizes address elements on the worst addresses not resolved by CASS™ NCOA –National Change of Address. Aids mailers in identifying address changes before mail enters the mail stream ANK –Attempted Not Known. For NCOA Link® limited service providers and end user mailers. ANK Link® is an enhancement to the existing 18 month NCOA Link product. ANK Link provides an additional 30 months of COA information. ACS™ –Cost effective means of obtaining accurate change of address information UAA –Undeliverable As Addressed Glossary

53 Thank You!

54 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 Schedule