Demystifying UAA - Where did it come from? How can we fix it?
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Transcript of Demystifying UAA - Where did it come from? How can we fix it?
2013 National Postal ForumSan Francisco, California
Christine J. ErnaGary A. Seitz
Industry Challenge - UAA◦ Why?◦ What it is and what it is not
What are common causes of UAA?◦ What are some actionable take aways?
How do CASS & NCOA affect UAA?◦ More than processing your files
Hidden Cost of UAA◦ ROI – Capturing Costs ◦ Understanding the Options & Benefits
Solutions
Undeliverable as Addressed (UAA) MailReturn mail volume is not decreasing, even though mail volume is decreasing◦ USPS® 2011/2012:◦ Mail Volume: 168/160 Billion◦ UAA Volume: 7.02/6.76 Billion (4.18%/4.23%)◦ UAA Cost: $1.315 / $1.318 Billion
Mailing Industry:◦ Postage: 2% required to cover cost of Returns◦ Business: $7+ Billion Costs*
$20+ Billion Business Impact◦ Top UAA Reasons:◦ 75.8% Move‐Related◦ 12.5% Address‐Related
What Can You Do:◦ Implement a comprehensive Address Quality◦ Strategy◦ Use ALL applicable addressing products &◦ services◦ Track your mail channel’s R.O.I.
* Based on DMA per piece cost estimates
What does undeliverable mail mean? Wasted costs◦ Industry estimate $3 per piece in operational costs (Postage, Print, Handling, Research, Re‐Mailing)
Lost / Delayed Revenue Impact to Clients◦ Reduced Customer Satisfaction ◦ Lost Marketing Opportunities◦ Lost Customers
100,000 addressesIn 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
A mailing list will deteriorate 1% each month
24 of 100 mail pieces contain Address Errors 5 of 100 mail pieces are Undeliverable As
Addressed (UAA)
◦ First‐Class UAA Mail 3.4%
◦ Standard Class UAA Mail 6.4%
Movers 75% of UAA mail ◦ 2.6% of all First Class Mail◦ Includes failure to update files◦ Failure to utilize NCOA Nixie information
Vacant addresses 6% of UAA mail
Missing Secondary addresses 5% of UAA
Invalid address information
Each year, 17% of Americans move or change their mailing address
◦ 1 out of every 6 families moves each year Approximately 19% of all businesses move USPS® processes over 45 million permanent Change of Address (COA) orders each year
Reducing operational costs associated with wasted mail Manual and decentralized
processes that are difficult to measure Low correction rate of bad
addresses Managing updated data Large investment in
technology and IT resources Risk of Postal Inspection
Service return mail audits
What Are Customers Doing With Return Mail?
45%
28%
10%
36%
3% 1%
8%
0%5%
10%15%20%25%30%35%40%45%50%
Return UAAto Dept
MeasureVolume
Scan &Image
UpdateAddresses
Update SOR Remail SecureDestruction
Issues With Current Processes
16%
47%
16%
26%
44%
0%5%
10%15%20%25%30%35%40%45%50%
Decentralized Reactive Low CorrectionRate
Not Measured Manual
Data Entry of Names & Addresses Name formats Physical addresses – using CASSMove Update – using NCOA
At Point of Entry!
Correct◦ Consider implementing a solution at point of capture◦ Work with your mail preparer to identify records that do not DPV
Complete◦ Break into reason why◦ Take action
Current◦ Pre‐mailing – NCOALink
◦ Post‐mailing – Ancillary service endorsements
Check your database• First and Last names• No “mixed” data fields!
• No Titles in name• No Names in the Address• No Company Names in the Address
• Name fields are used for postal matching
Check your database• Enough space (30 to 50)• Secondary address information• Proper Address elements• Proper Abbreviations
Publication 28Pickup a copy at the USPS booth or down load from https://www.usps.com/business/address‐management‐pubs.htm?
CASS + DPV◦ CASS Correct address, assigns Zip+4◦ DPV Validates that USPS delivers to street number, Complete address, including secondary
CASS assigns error codes
Not all CASS systems are the same◦ Parsing logic varies◦ Coding variances from 80% to 90% on same file
Standard processes with CASS:• SUITELINK – adds suites to business addresses• LACS – converts rural addresses – 1‐yr delivery window
Optional processes:• VACANT – vacant in last 90‐days • APARTMENT APPEND ‐ adds missing secondary address on residential and improves VACANT and NCOA matching
Mailers frequently fail to update their databases with this info ~ leading to increased UAA mail
• Utilize NCOA (National Change of Address)• 18‐month or 48‐month• Individuals, Families & Businesses that filed COA• Tight match criteria on NAME and ADDRESS • NIXIES = close matches• Are you updating?
• NCOA Nixie codes• Close match ~ but new address not provided• May be forwarded or may be returned• Some sample Nixie codes returned with NCOA
04 Street address with secondary
05 New address cannot be provided
09 Highrise default
12 Middle Name test failed
19 New Address Not Zip+4 or DPV ~ or “Temp Move”
“So what happened…?
NCOA requires an exact match◦ NAME and ADDRESS◦ Only Zip+4 complete addresses matched◦ NIXIES “close” matches
Over 35% of movers never tell the USPS
• RUN‐ON 145SOUTHMILLS ST
• EXTRA DIGITS/CHARACTERS 10000 EUCLID AVE
• PRE‐DIRECTIONALS 17 SO WATT CT
• SUFFIX ABBREVIATION 492 JACKSON BL
• MISPLACED SECONDARY 47 A CEDAR RD
• ALPHA/NUMERICS 5!7 M0SS ST
• Used to request new address and instructions on handling UAA mail
• Proper placement on piece required• Manual and automated notice options• Intelligent Mail Barcode (IMB) offers low cost alternatives
Why use them? First class mail◦ Forwarded for 12‐months, and you never know it
◦ After 12‐months, returned as “UAA”
◦ Valuable or confidential info: forward or return?
Standard class mail◦ Might be forwarded, returned or destroyed
◦ You never know it
JOHN DOE10 ELM AVEANYTOWN OR 97654-3218
ReturnAddressChange
Endorsements keywords
Endorsement >
Service Requested
Ancillary Service Endorsements
Followed by…
• On‐piece mailing instructions • Same handling for all classes of mail• Differing fees
ENDORSEMENT FIRST CLASS STANDARD MAILADDRESS SERVICE REQUESTED Forwarding and Return New notice provided
Forward or Return –No charge to FwdAddress Correction fee
Forward or Return – No charge to FwdAddr Corr or Wgt Fee
RETURN SERVICE REQUESTED No Forwarding, only Return New address or UAA reason
No Charge First Class Mail price
CHANGE SERVICE REQUESTED No Forwarding or Return New address or UAA reason
Address Correction fee Address Correction fee
FORWARDING SERVICE REQUESTED Forwarding and Return New address only with Return
No Charge Forward no chargeReturn Weighted fee
ELECTRONIC SERVICE REQUESTED Service type code in IMb determines
General rules. Services and prices vary by class
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
Eliminate physical return mail
◦ Service that integrates multiple technologies for capturing return mail, converting physical mail to usable data, updating addresses and numerous post‐processing options
◦ Automate and centralize return mail management to reduce wasted cost
◦ Reconnect with your customers, updating 60 – 80% of your undeliverable addresses
Document Type How We Determine Value
Estimated Value
What Tools can Fix Addresses?
Invoices Generates Revenue
$100 Postal – Pre-Mail3rd Party – If Returned
Correspondence Customer Satisfaction
$7 call center cost
Postal – Pre-MailNote Account – If Returned
Marketing Generates Leads
$100 for every response
Postal – Pre-Mail3rd Party – Pre-Mail
Regulated Notifications
Customer Satisfaction
$7 call center cost
Postal – Pre-MailNote Account – If Returned
Customer Benefits
Reduce volume & expense of return mail process
Centralize & automate manual process, improve cycle time from weeks to days
Increase visibility with real‐time centralized reporting
Improve deliverability by updating (60‐80%) of bad addresses
Improve confidence in address updates through strict logic to verify updated addresses
Apply intelligence on decisions related to bad addresses
Reconnect with your customers, updating 60 – 80% of your undeliverable addresses
Central visibility to the quality of addresses and returned mail to make decisions
Deliver more invoices to improve cash collected
Industry Challenge ‐ UAA
What are common causes of UAA?
How do CASS & NCOA affect UAA?
Hidden Cost of UAA
Solutions
AddressQuality
Is Essential!
Resources
USPS – Address Quality
https://www.usps.com/business/address‐quality‐services.htm
USPS – Addressing
https://ribbs.usps.gov/index.cfm?page=addressing
Publication 28 – USPS Addressing StandardsPick up a copy at the USPS Booth or download from
https://www.usps.com/business/address‐management‐pubs.htm?
For more information:
Questions and Answers
Christine J. Erna MDP, AQSEngagement Manager Enterprise Postal ConsultingPitney Bowes Management [email protected]
Gary A SeitzExecutive Vice President
C.TRAC440.268.2540