1. Director of Solution Strategies GrayHair Software Essentials of Great Addressing What’s in your toolbox? Paula Stoskopf

2. Address Quality Challenges Poor address quality affects your ability to reach valued customers and donors Success depends on accurate addresses with complete and correct address elements Can no longer rely on carrier knowledge Managing data and return mail can be cumbersome Risk to discounts

3. Poor Address Quality Equals…

4. Cost to the USPS

5. DMA Statistical Fact Book Costs to the Industry Art & Preparation 9.75¢ Printing Production 23.44¢ Creative 11.25¢ Postage 24¢ Allocated Fees 13.55¢ Lettershop Production 4.02¢ Computer Processing 2.32¢ Mailing Lists 12.35¢

6. Turning…. …Opportunity! Over a 30:1 ROI!

7. The Situation CASS analysis –15% (10,493) could not have their Delivery Point verified NCOA Link analysis –7.3% (5,106) had moved and needed COA processing Moved No DPV American Red Cross NY: 69,826 Addresses Donor List

8. Poor Address Quality Increased Acquisition Costs –Missed donors –Multiple attempts –Lower response rates –Wasted production cost –Wasted postage –Lost discounts Lower Donor Lifetime Value –Investment in donors –Repeat gifts –Value of donor retention

9. Address Quality Goal Validate Standardize Update

10. Standardize and Validate Paula Stoskopf 2858 Smitth Valey Onalaska WI 54603 PAULA STOSKOPF N2858 SMITH VALLEY RD LA CROSSE WI 54601-2935

11. Solutions! Basic Tools CASS Certified Software LACS Link TM DPV ® Suite Link™ EWS

12. At Data Capture –Ideal spot for best address quality… integrated front-end data capture tools –Capture street number, directional, street name, city, state, ZIP –Identify changes introduced by municipalities After Data Capture –Leverage software (CASS) to correct and add Correct spelling for street, city Add directional Confirm delivery address State abbreviation Full Zipcode Update information due to changes by municipalities CASS Goal: Standardize

13. Feedback from Software DPV Footnote Codes AAInput Address Matched to the ZIP+4 fileP1 Input Address RR or HC Box number invalid A1 Input Address Not Matched to the ZIP+4 fileP3 Input Address PO, RR, or HC Box number invalid BB Input Address Matched to DPV (all components)RR Input Address Matched to CMRA and PMB designator present (PMB 123 or #123) CC Input Address Primary Number Matched to DPV but Secondary Number not Matched (present but invalid)R1 Input Address Matched to CMRA but PMB designator present (PMB 123 or #123) N1 Input Address Primary Number Matched to DPV™ but Address Missing Secondary NumberF1 Input Address Matched to a Military Address M1Input Address Primary Number MissingG1 Input Address Matched to a General Delivery Address M3Input Address Primary Number InvalidU1 Input Address Matched to a Unique ZIP Code

14. Proposed CASS Cycle O

15. Solutions! Advanced Tools Beyond CASS AEC II AEC Proprietary Alternative

16. When CASS isn’t enough… –Could not encode –DPV identified potentially not deliverable How to correct? –Call campaign –First-Class postcard –Proprietary software –AEC and AECII Goal: Validate

17. AEC and AECII

18. After Standardize and Validate CASS analysis –15% (10,493) could not have their Delivery Point verified Propriety Software –34% (3,552) rescued Moved No DPV American Red Cross NY: 69,826 Addresses Donor List

19. Update PAULA STOSKOPF 1129 AMBERWOOD LN WEBSTER NY 14580-1129 PAULA STOSKOPF N2858 SMITH VALLEY RD LA CROSSE WI 54601-2935

20. Goal: Update 17% of Americans change addresses annually 40 - 45 million people move each year Approximately one out of every six families moves each year

21. Address Quality ROI 100,000 addresses In 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

22. Update Tools NCOA Link ® ® ANK Link TM Move Update ® ® ACS TM FastForward TM Proprietary

23. Pre-Mailing Solutions Post Mailing Solutions Alternative Move Update (First-Class only) Goal: Update

24. Pre-Mailing Solutions NCOA Link –Full Service Provider –Limited Service Provider –End User FASTforward ®

25. NCOA Return Codes 1.Match to COA File - New Address Provided –AThe Input record matched new address is provided –91 Secondary Number Dropped from COA –92 Secondary Number Dropped from Input Address 2.Match to COA File - No New Address - Mail Not Forwardable –01 Foreign Move –02 Moved Left No Address (MLNA) –03 Box Closed No Order (BCNO) 3.Match to COA File - Unable to Return New Address - Mail Forwardable –05 New 11-digit DPBC is Ambiguous –14 New Address Would Not Convert to deliverable –19 New Address Not ZIP + 4R Coded 4.Unmatched to COA File –00 The Input record did not match to COA database –66 Daily Delete 5.Match to COA File - Conditional Return Codes Present –04 Street Address with Secondary –06 Conflicting Directions: Middle Name Related –07 Conflicting Directions: Gender Related

26. MLNA / BCNO

27. Post-Mailing Solutions ACS™ –Traditional –OneCode –Full Service Ancillary service endorsements –Address Service Requested –Return Service Requested –Change Service Requested

28. Other Methods and Exemptions Alternative Move Update (First-Class only) Alternative Addressing –“or Current Resident” –Refer to DMM 602.3 Newly Acquired Addresses –Applies when a customer’s newly acquired address is added to a mailing list as “a result of purchasing goods or services or requesting information” –The newly acquired address is valid for 95 days from the date of acquisition –After 95 days, the address must be verified during the next Move Update cycle

29. The Updated Situation CASS analysis –15% (10,493) could not have their Delivery Point verified Propriety Software –34% (3,552) rescued NCOA Link analysis –7.3% (5,106) had moved and needed COA processing 3,210 moved over 18 months ago 1,896 moved within the past 18 months Moved No DPV American Red Cross NY: 69,826 Addresses Donor List

30. ROI … by the Numbers Lost postage and mailpiece cost –Per-mailpiece value of $0.94 = $9,863.42 (for the non-DPV) Investment –$250 for NCOA Link® processing –$150 for proprietary solution to restores pieces to efficient use Return –Generated at least $3,250 in (new) initial ask –3% response rate on the mailings and $30 per donor, those recovered addresses could generate new revenue of $6,800 – from one mailing!

31. ROI … by the Numbers Bottom Line: A $400 investment rescued almost $10,000 in otherwise wasted mailing costs, and should help generate $6,800 in new donor revenue $16,800 Total— Over 30:1 ROI!

32. How to Get Started Standardize –Consider implementing a solution at point of capture –Work with your mail preparer to identify records that do not DPV Validate –Break into reasons why –Take action Update –Pre-mailing – NCOA Link –Post-mailing – Ancillary service endorsements Success! ® ®

33. More Information National Customer Support Center –(800) 238-3150 Local Postal Customer Council –http://www.usps.com/nationalpcc/welcome.htmhttp://www.usps.com/nationalpcc/welcome.htm Address Quality Methodologies – Best Practices –MTAC Workgroup 97 Report –http://ribbs/bestpractices.pdfhttp://ribbs/bestpractices.pdf Quality Address Management White Paper –Association of Mailers for Electronic Enhancements –Located at http://ribbs.usps.gov/files/amee/http://ribbs.usps.gov/files/amee/

34. Paula Stoskopf paulas@grayhairsoftware.com Questions? ® ®