Intelligent Addressing To Achieve 100% Mail Integrity National Postal Forum Anaheim, CA May 18 th – 21 st, 2008 Jim Wilson Address Management United States Postal Service ®

QUALITY ADDRESSING PROFESSIONAL CERTIFICATE This session qualifies as one of the four Addressing sessions, in addition to the Tuesday, May 20 th General Session needed for the Address Quality Specialist Certificate!

15 Presentations focusing on Intelligent Mail See Page 20 of the Catalog 7 Presentations focusing on Direct Mail and the Environment See Page 21 of the Catalog Announcing 2 New Symposiums

Today’s Session  Understanding 100% Address Integrity  Why It’s Important For Mailers, Customers, And The USPS ®  How The Lack Of Address Integrity Affects The Delivery Of Mail – Including Yours!  The Top 5 List Things You Need To Know About To Help You Achieve 100% Address Integrity

Defining 100% Address Integrity  It’s A Complete Address  It’s A Correct Address  It’s A Current Address

Defining 100% Address Integrity  It’s A Complete Address DMM ® A complete address has all the address elements necessary to allow an exact match with the current USPS ® ZIP+4 ® Product to obtain the finest level of ZIP+4 code for the delivery address. A complete address may be required on mail at some automation rates.

Defining 100% Address Integrity  Elements Of A Complete Address Addressee name and/or firm name where applicable. Private mail box designator and number - PMB 300 or #300 Urbanization name (Puerto Rico only) Street name and number Including pre-directional, suffix, and post-directional values Rural / Highway contract route and box number - RR 5 BOX 10 Post office box number - PO BOX 458 Secondary address unit designator and number - APT 202, STE 100 City and state Correct 5-digit ZIP™ Code or ZIP+4 ® code

Defining 100% Address Integrity  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

Defining 100% Address Integrity  It’s A Correct Address  What’s The Difference Between A “Complete” And A “Correct” Address? A Complete Address Is An Address That Matches To The USPS ® ZIP+4 ® Database A Correct Address Is The Officially- Designated Representation Of The Address Includes Locally Preferred Address Formats

Defining 100% Address Integrity  Complete Versus Correct Addresses Complete:1095 Reams Rd Bells TN Correct:1095 Oak Crest Farms Rd Bells TN  Local Addressing Authority Officially Changed The Street Name

Defining 100% Address Integrity  Complete Versus Correct Addresses Complete:RR 1 Box 2085 East Machias ME Correct:1 Bryant LN East Machias ME  Address Conversion USPS ® Policy Is To Deliver To Original Address For One Year Following Conversion

Defining 100% Address Integrity  It’s A Current Address Is Your Customer Still Residing At This Address? Census Bureau Indicates 14% - 15% Of Americans Move During A One Year Period USPS ® Processes Over 45 Million Changes-of- Address Annually A Typical Address List Deteriorates At An Average Rate Of 1.25% Each Month

Defining 100% Address Integrity  It’s A Current Address Do You Know Whether The Address Is Vacant Or Not? Studies Indicate That Mail Sent To Vacant Addresses Accounts For 6.5% Of All Undeliverable-As-Addressed Mail

Defining 100% Address Integrity  It’s A Current Address Have The Addressing Components Changed Or Does USPS ® Data Indicate They Are Going To Change? Addressing Conversions 400,000 Annually Annual ZIP™ Code Changes 24 ZIP Codes Added Or Realigned In June ,000 Addresses Affected

 Address Quality Improves Mailer’s Business Efficiency Enhances The Cross-Functional Uses Of Address Information  The Address Shown On Your Mailpiece Is Your Customer’s First Perception Of Your Attention To Quality What Impression Are You Conveying? Why 100% Address Integrity Is Important!

 Mail Bearing A Complete, Correct, And Current Address Is More Accurately Delivered Protects Customer Privacy  Mail With An Address That Is Complete, Correct, And Current Reduces Customer’s Receipt Of Unwanted Mail Helps Improve Customer Perception Of Mail As Effective Communication Why 100% Address Integrity Is Important!

 Strategic Transformation Plan Postal Service™ Goal To Cut Cost Of Processing Undeliverable-As-Addressed (UAA) Mail In Half By 2010  Improving Address Quality Enables More Efficient Automation Processing 1% Improvement In Delivery Point Sequenced Mail Volume Saves $70 Million/Year  Getting To 100% Address Integrity Depends Upon Mailers And Postal Service Working Together To Achieve The Goal! Why 100% Address Integrity Is Important!

FY04-FY08 UAA Volumes / Costs FY04 FY08 Vol (Billions) Cost (Millions) Vol (Billions) Cost (Millions) Forwarding1.985$ $ 326 Return-To- Sender 1.603$ $ 727 Waste6.135$ $ 365 Other$ 343$ 221 Total 9.724$ 1, $ 1,639

Total Addresses Processed:336 Billion Total Addresses ZIP+4 ® Coded:317 Billion94.43% Total Addresses ZIP+4 Coded That DPV ® Confirmed: 304 Billion95.89% Percentage of Total Addresses Processed That DPV ® Confirmed: 90.55% Total Addresses ZIP+4 Coded To Building Addresses Needing Apt/Ste 45 Billion Total Building Addresses With A Bad or Missing Apt/Ste Number 11.7 Billion26.14% Average Mailing List Address Quality

When The Address Was: The Mailpiece Was Typically Delivered Returned Forwarded ZIP+4 ® Coded And Delivery Point Validated 92.11%5.48%2.41% Not ZIP+4 Coded Because Address Information Could Not Be Determined 67.79%27.93%4.28% More Likely to Be: ( Less Likely To Be: ) ( 26.4% )409.7%77.6% Address Quality Affect On Mail Delivery

When The Address Was: The Mailpiece Was Typically Delivered Returned Forwarded ZIP+4 ® Coded Without A Valid Apt/Ste Number 60.34%31.43%8.23% ZIP+4 Coded With A Valid Apt/Ste Number 83.00%11.98%5.02% Improvement / (Reduction) When Valid Apt/Ste Number 37.6%( 61.9% )( 39.0% ) Apartment Address Quality Affect On Delivery

Top 5 Things You Should Know To Achieve 100% Address Integrity! CASS™ Address Element Correction NCOA Link NCOA Link ® Intelligent Mail ® – OneCode ACS ™ ANK Link™

Getting And Keeping Your Addresses Complete, Correct, And Current  CASS™ System Use The DPV ® Data To Validate Accuracy Of Street Numbers And Apartment/Suite Numbers Before You Add Records To Your Address Files Update Your Address With The Correct Address Format

Getting And Keeping Your Addresses Complete, Correct, And Current  CASS™ System Perform Regular CASS Processing To Keep Your Addresses Updated Identify Addresses That May Be Vacant Before You Mail Ask Your CASS Vendor About How You Can Get The Vacant Table Today! Now Available!

What To Do With The Leftovers?  Address Element Correction (AEC) Send Any Addresses That Can’t Be Matched Using CASS™/DPV ® To USPS ® For Correction  AEC Advanced Address-Matching Based On USPS- Developed Algorithms  AEC II ® Addresses Sent To Local Delivery Office For Manual Correction

 Correct Customer Addresses That Have Moved Before You Mail  Catch Any Additional Customer Moves After You’ve Mailed  Identify Other Reasons That An Address May Be Undeliverable Keeping It Current

NCOA Link® Change-of-Address Updating Tool Condensed to 5-Gigabytes Million Change-of-Address Records Million Change-of-Address Records

 NCOA Link® is a Secure Dataset Containing Change-of-Address Data For Customers Who Have Moved 60 Million Records in 18 Month File 160 Million Records in 48 Month File  Using NCOA Link Allows Mailers To Update Their Customer Addresses Before Mailing Keeping It Current

 Mailers Can License NCOA Link® Data For Use Within Their Business / Mail Processing Environment  Commercial Address-Hygiene Software Vendors Have Developed Standard Interfaces To NCOA Link Data Keeping It Current

 Don’t Need Customers New Addresses But Don’t Want To Send Mail If The Customer Isn’t There?  Use ANK Link™ To Enhance Your Knowledge! “Alice Doesn’t Live Here Anymore” Identifies When A Customer Has Moved But Doesn’t Give New Address Keeping It Current

Do You Know If Your Mailpiece Was Delivered?  OneCode ACS™ Can Help!  Harness The Power Of The Intelligent Mail ® Barcode To Know If Your Mailpiece Has Been Forwarded, Returned, Or Disposed Obtain New Address Information For Customer’s That Have Moved Identify The Reason Why A Mailpiece Was Undeliverable

FROM THIS TO THIS Keeping It Current

Rates Effective May 12 th, 2008 OneCode ACS™ First Two Notices Additional Notices First-Class Mail ®.06¢ Standard Mail ®.03¢.18¢ Traditional ACS™All Notices First-Class Mail.08¢ Other Classes.25¢ FREE!

 It Is Important To Everyone In The Mailing Industry To Make Mail Effective  Accurate Addressing Improves Mail Delivery And Helps To Keep Postage Costs Down  Your United States Postal Service ® Provides Many Products And Services To Assist You In Achieving 100% Address Integrity! 100% Address Integrity Is Achievable!

The Mail Moment

Your Postal Customer Council ® Is Also A Great Resource For Information! For More Information Customer Support

Quality Addressing Track Monday Tools & Techniques that Make the Case for Address Quality Ruth Jones/Gary Seitz - Period 5, 10: :00am - Room 212AB What are “Bad” Addresses & What to do With Them Charles Hunt/Kevin Conti - Period 6, 11:15am - 12:15pm - Room 212AB Tuesday Move Update – How to Keep in Touch With Moving Customers Audrey Conley/Adam Collinson - Period 10, 10: :00am - Room 212AB Intelligent Addressing to Achieve 100% Mail Integrity Jim Wilson/Eric Houger - Period 11, 11:15am - 12:15pm - Room 210AB How Government Agencies use Address Quality to Better Serve the Community How Government Agencies use Address Quality to Better Serve the Community Gail Milton/Mike Sexson - Period 13, 3:15 - 4:15pm - Room 212AB Wednesday The ROI of Address Quality Charles Hunt/Chris Lien - Period 16, 2:15 - 3:15pm - Room 212AB Stump the Experts with Your Un-codable UAA Mail Jim Wilson/Alice VanGorder - Period 17, 3:30 - 4:30pm - Room 212AB

QUALITY ADDRESSING PROFESSIONAL CERTIFICATE Knowledge Questions 1.The Definition Of 100% Address Integrity Refers To Addresses That Are Complete, Correct, And Current? True/False 2.There Is No Way To Determine If An Address May Be Vacant Except To Send A Mailpiece To The Address And See What Happens?True/False 3.The Quality Of The Address Used On A Mailpiece Has No Affect On The Delivery Of The Mailpiece?True/False