Demystifying UAA - Where did it come from? How can we fix it?

33
2013 National Postal Forum San Francisco, California Christine J. Erna Gary A. Seitz

description

This session will help attendees understand the common causes of UAA mail. A basic understanding of CASS, NCOA and improper address collection that all contribute to UAA mail. We’ll also answer your burning questions like; what are the hidden costs of UAA? How do they affect your company? What solutions are there to decrease costs and manage returned/undeliverable mail?

Transcript of Demystifying UAA - Where did it come from? How can we fix it?

Page 1: Demystifying UAA - Where did it come from? How can we fix it?

2013 National Postal ForumSan Francisco, California

Christine J. ErnaGary A. Seitz

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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

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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

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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

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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

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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%

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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

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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

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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

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Data Entry of Names & Addresses Name formats  Physical addresses – using CASSMove Update – using NCOA

At Point of Entry! 

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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

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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

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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?

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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

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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

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• 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?

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• 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”

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“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

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• 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

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• 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

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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

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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

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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

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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

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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

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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

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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

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Industry Challenge ‐ UAA

What are common causes of UAA?

How do CASS & NCOA affect UAA?

Hidden Cost of UAA

Solutions 

AddressQuality

Is Essential!

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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?

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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

[email protected]