director of solution strategies grayhair software essentials of great addressing what’s in your...
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Director of Solution Strategies
GrayHair Software
Essentials of Great Addressing What’s in your toolbox?
Paula Stoskopf
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
Poor Address Quality Equals…
Cost to the USPS
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¢
Turning….
…Opportunity!
Over a 30:1 ROI!
The Situation
• CASS analysis– 15% (10,493) could not
have their Delivery Point verified
• NCOALink analysis– 7.3% (5,106) had moved
and needed COA processing
MovedNo DPV
American Red Cross NY: 69,826 Addresses
Donor List
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
Address Quality Goal
ValidateValidate
StandardizeStandardize
UpdateUpdate
Standardize and Validate
Paula Stoskopf2858 Smitth Valey Onalaska WI 54603PAULA STOSKOPF
N2858 SMITH VALLEY RDLA CROSSE WI 54601-2935
Solutions! Basic Tools
CASS Certified Software
CASS Certified Software
LACSLinkLACSLink TMTMDPV®DPV®
SuiteLink™SuiteLink™
EWSEWS
• 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
Feedback from SoftwareDPV Footnote Codes
AA Input Address Matched to the ZIP+4 file P1Input Address RR or HC Box number
invalid
A1Input Address Not Matched to the ZIP+4
file P3Input Address PO, RR, or HC Box
number invalid
BBInput 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 Number F1
Input Address Matched to a Military Address
M1 Input Address Primary Number Missing G1Input Address Matched to a General
Delivery Address
M3 Input Address Primary Number Invalid U1Input Address Matched to a Unique ZIP
Code
Proposed CASS Cycle O
Solutions! Advanced Tools
Beyond CASSBeyond CASS
AEC IIAEC IIAECAEC
Proprietary Proprietary AlternativeAlternative
• 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
AEC and AECII
After Standardize and Validate
• CASS analysis– 15% (10,493) could not
have their Delivery Point verified
• Propriety Software– 34% (3,552) rescued
MovedNo DPV
American Red Cross NY: 69,826 Addresses
Donor List
Update
PAULA STOSKOPF1129 AMBERWOOD LN
WEBSTER NY 14580-1129
PAULA STOSKOPFN2858 SMITH VALLEY RDLA CROSSE WI 54601-2935
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
Address Quality ROI
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
Update Tools
NCOALinkNCOALink ®®
ANKLinkANKLink TMTM
Move UpdateMove Update ®®
ACSACSTMTMFastForwardFastForward
TM TM
Proprietary Proprietary
• Pre-Mailing Solutions
• Post Mailing Solutions
• Alternative Move Update
(First-Class only)
Goal: Update
Pre-Mailing Solutions
• NCOALink
– Full Service Provider– Limited Service Provider– End User
• FASTforward®
NCOA Return Codes1. Match to COA File - New Address Provided
– A The 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
MLNA / BCNO
Post-Mailing Solutions
• ACS™– Traditional– OneCode– Full Service
• Ancillary service endorsements– Address Service Requested– Return Service Requested– Change Service Requested
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
The Updated Situation
• CASS analysis– 15% (10,493) could not have their
Delivery Point verified• Propriety Software
– 34% (3,552) rescued
• NCOALink 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
MovedNo DPV
American Red Cross NY: 69,826 Addresses
Donor List
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 NCOALink® 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!
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!
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 – NCOALink
– Post-mailing – Ancillary service endorsements
Success!Success! ®®
More Information
• National Customer Support Center– (800) 238-3150
• Local Postal Customer Council– http://www.usps.com/nationalpcc/welcome.htm
• Address Quality Methodologies – Best Practices– MTAC Workgroup 97 Report– http://ribbs/bestpractices.pdf
• Quality Address Management White Paper– Association of Mailers for Electronic Enhancements – Located at http://ribbs.usps.gov/files/amee/
