1 Move Update February 2009

2 Move Update Nov. 23, 2008  Move Update required for mailpieces claiming Presorted or Automation prices for First-Class® Mail  Move Update required for all mailpieces claiming Standard Mail® prices (Letters, Flats, Parcels and Not Flat-Machinables)  To meet the Move Update standard, mailers must be using addresses on mailpieces that have been updated using an approved method within 95 days prior to the mailing date  First-Class Mail or Standard Mail mailpieces that use an alternative address format are not required to meet the Move Update standard

3 Move Update Verification  Signature on the Postage Statement by either the Mail Owner or Agent certifies compliance  Postage Statements revised to indicate Move Update method  Mailers must record Move Update method  USPS can request substantiation of Move Update compliance  Move Update reports will be furnished in sites with MERLIN and Performance Based Verification (PBV) activated

4 Postage Statement Move Update Method Checkbox

5  PBV is a new Intelligent Verification model  Integrated with PostalOne!  Prompts Clerks to Perform Verification based upon: » Past Verification History of Mailer » Verification labor costs » Estimated Cost Avoidance or Additional Postage Collected » PBV deployed to all PostalOne! acceptance sites by March 2009 » With MERLIN Enables Move Update Verification and Reports Performance Based Verification

6 Electronic data file Contains name, address and barcode (if available) Sample extracted from the mailing is processed on MERLIN Mailpiece ID can be used to identify any piece found as an Error. Move Update Verification Process BME clerk selects sample mailpieces for MERLIN verification The NCSC performs a Move Update validation Move Update Verification results are displayed in PostalOne! Results forwarded to PostalOne! Mailpieces are run on MERLIN, data file sent to NCSC PBV Triggers Verification

7 Reports  “Guide to Accessing Move Update Reports” on RIBBS  Two Report Formats:  Move Update Worksheets: Near real time reports during acceptance by mailing  Move Update Microstrategy Reports: Analytical reports updated nightly and aggregated across mailings (work in progress)

8 Move Update Reports  Mailing Information  Detailed MERLIN Information  Summary Move Update Information  Detailed Piece Information

9 Move Update Verification  Verifications being performed at sites with MERLIN  Threshold effective May 11, 2009  Must be more than 5 errors before mailing is assessed  Passing score requires over 70% of the COAs must be updated (all COAs on file per range type)  Threshold evaluated every 4 months  Assessments based upon thresholds after May 11, 2009  First-Class Mail assessed at Single Piece Rates  Standard Mail assessed at 7 cents for each piece  Current Appeal Process Applies

10 Move Update Verification  Mail Preparers that do not have control over the addressing of the mail piece may be allowed to isolate individual mail owner pieces  Have been pre-identified on the client list  Provide adequate documentation of client’s mailing  Are not subject to separate assessment values  The USPS is evaluating legal constraints in developing a method of deferred payment for mailing identified to be noncompliant with he move update requirement  Payments can be made against another PERMIT

11 Move Update Training/Awareness  BME Trained on Sharing Reports  Customer Awareness sessions on Intelligent Mail and Move Update  Internal Training Feb. 20 – Mar. 6  Customer Sessions: Mar. 9 – Apr. 10  Updating Verification procedures for May 11, 2009 assessment

12 Southeast Area Feedback  Southeast Area first to deploy Verification  Mailers are provided copies of mailpiece images  Mailpiece Design Analysts working with Owners and Preparers when results are below 95%  Feedback from clients indicate investing in Move Update saves money in long run  A Client expressed appreciation for NCOA Link ® recommendation

13 Move Update Resources  Business Mail Acceptance for your Move Update Reports  ribbs.usps.gov/ Latest News  Move Update Methods  Move Update Advisement Policy  Guide to Accessing Move Update Reports  Move Update USPS Site Activation Report  Pub 363  FAQs  Intelligent Mail and Move Update DVD  Customer Awareness Sessions  DVD  Discussion Guide

Move Update Value Steve Lopez Vice President of Postal Products and Affairs Experian Marketing Services

* The response performance we have seen that occurs on records where Move Update was not applied * The response performance we have seen on other records that have potential deliverability issues.

NCOA Link® performance

NCOA Link® for three other mailings Mailer 1 mailed in excess of 200 million pieces per year Mailer 2 mailed in excess of 100 million but less than 200 million pieces per year Mailer 3 mailed between million pieces per year

NCOA Link® for three other mailings (cont’d) Records Mailed to NCOA Link® Old Address –Mailer 113 –Mailer 219 –Mailer 332 –Average21 This means that the response of the records mailed to an old address was, on average, 1/5 th the response rate of records that were mailed to people at their current address.

Recent Case Study results from mailing records with other potential deliverability issues Mailing was 17 million pieces on a primarily consumer file mailed as a Standard Mail ® FLAT The performance score is as follows: The score shown is the percentage of response for records mailed with that deliverability issue in comparison to the other records in the mailing which performed at an index of 100. Example: Missing secondary number score of a 15 means these records performed at 15% the response rate of all records in the mailing.

Case Study Average sale per book was $ % of mailing was CRRT qualified and performed at an index of % of the mailing was 5 Digit qualified and performed at an index of % was 3 Digit qualified and performed at an index of 71.1% were the remainder records and they performed at an index of 52

Case Study Records mailed with potential deliverability issues –DPV ® N records and non ZIP + 4 ® coded records performed at an index of < 25 –Seasonal marked records performed at an index of 50 or so –Vacant marked records performed at an index of < 40 –Missing or Invalid PO Box performed at an index of < 10

Case Study –Missing secondary numbers performed at an index of < 30 –Invalid secondary numbers performed at an index of about 80 –Throwbacks (business addresses that do not receive mail at the physical location but have a PO Box) performed at an index of < 50 –IGNORED NCOA Link® moves performed at an index of < 20

23 Substantiation  Ancillary Service Endorsement » Copies of mailpieces with endorsement » Copies of address notices received » Demonstrate how address updates are used to update addresses  Address Change Service/OneCode ACS » Billing reports or invoices » Copies of mailpieces » Demonstrate how address updates are used to update addresses  FASTforward » MLOCR confirms FASTforward is turned on » FASTforward identifier on mailpiece » Demonstrate how address updates are used to update addresses

24 Substantiation (continue)  NCOA Link ® » Processing Summary Report » Mailer System Output Reports » Billing Reports or Invoices » Demonstrate how address updates are used to update addresses  Alternative Method » Letter of approval from NCSC  Directly Acquired Addresses » Records to demonstrate how addresses were acquired