Address Your Bottom Line - The Big Picture 8 2 07 Slide 1: United States Postal Service Logo in the far left top corner. Has the heading: Addressing & Your $Bottom Line$ “THE BIG PICTURE” The words included are: Presented by: Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Hello, my name is and I will be speaking to you today about “Addressing and Your Bottom Line.” End of Slide 1. Slide 2: United States Postal Service Logo in the far left top corner. Has the heading: Address Quality The words included are: (arrow used for bullet)Affects your ability to reach your valued customers (arrow used for bullet)Depends on accurate addresses with complete, correct, and current address elements (arrow used for bullet)Allows automated sortation (arrow used for bullet)Not dependent on carrier knowledge JOHN DOE 2200 CLARENDON BLVD STE 1000 ARLINGTON VA  22201-3381 Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Today we’re going to discuss how Address Quality can help you make better decisions, smarter investments and increase your R.O.I. All businesses, nonprofit organizations, charitable organizations, and government agencies, can benefit from investing in Address Quality. A commitment to Address Quality is a great way to improve your bottom line. Accurate, complete addresses are needed to obtain automation rates and the tools available work for all types of mailers. Your decisions about address quality directly affect your ability to reach your valued customers. Cost-effective and timely delivery of every mailpiece depends on an accurate address containing complete and correct address elements, in other words, “total” address quality. Address Quality = Improved Effectiveness of direct mail programs; Delivers your message to the intended audience; Reduces mailing & shipping costs. Quality Addresses = Complete, correct, and current elements; Accurate barcodes for automated delivery point processing; Does not require carrier knowledge. (Click) End of Slide 2. Slide 3: United States Postal Service Logo in the far left top corner. Has the heading: Poor Address Quality Results In The words included are: Increased Acquisition Cost (arrow used for bullet)Missed customers (arrow used for bullet)Multiple attempts (arrow used for bullet)Lower response rates (arrow used for bullet)Wasted production cost & Wasted postage (arrow used for bullet)Lost discounts Lower Customer Lifetime Value (arrow used for bullet)Investment in customers (arrow used for bullet)Repeat purchases (arrow used for bullet)Value of customer retention Image Information: There are 4 one dollar bills that the corners are in flames - burning, towards the bottom. PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: It costs you more to acquire new customers when prospects get missed due to undeliverable mail. You often must make multiple attempts to simply reach the same audience. In the arena of Direct Mail, advertisers must incur higher than necessary costs to achieve expected response. Losing touch with valuable customers because they have moved is opportunity lost, which results in wasted production cost, wasted postage, and lost discounts! Updating your address list is a key to profitability. Think of what a customer is worth over the lifetime of their relationship with you! “Their Lifetime Value!” You must factor in how much you have invested in a customer and consider the frequency and number of repeat purchases to determine the customer’s value. Poor address quality can reduce the lifetime value of your customer because of the higher costs incurred to acquire them. (Click) End of Slide 3. Slide 4: United States Postal Service Logo in the far left top corner. Has the heading: 4 Basic Address Quality Questions The words included are: (arrow used for bullet)What Are You Doing Now? (arrow used for bullet)What Should You Be Doing? (arrow used for bullet)Why Does It Matter? (arrow used for bullet)How Can You Succeed? Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: (bullet)There are four questions that I want to pose to you today that need to be answered to fully understand the impact that addressing has to the bottom line of your business. 1. What Are You Doing Right Now? 2. What Should You Be Doing? 3. Why Does It Matter? 4. How Can You Succeed? (bullet)I’m going to answer all of these questions for you today. End of Slide 4. Slide 5: United States Postal Service Logo in the far left top corner. Has the heading: What Are You Doing Now? The words included are: (arrow used for bullet)Address List Management (arrow used for bullet)Purchase (arrow used for bullet)Rent (arrow used for bullet)In house (Building/Maintaining) (arrow used for bullet)Verifying address quality? (arrow used for bullet)Accepting current response rates? (arrow used for bullet)Worrying about your postage costs? Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: You probably use one or a combination of methods to acquire addresses. (bullet)Address List Management (bullet)Purchase (bullet)Rent (bullet)In house (Building/Maintaining) Then What? (bullet)Do you verify the quality of addresses when you capture them? (bullet)Maybe you think that the response rates or results you are getting from your mailings are good enough! (bullet)I am sure all of you worry about current and future postage rates! (bullet)Maybe you think that “addressing stuff is a nuisance” or just an “added cost of doing business” (bullet)So you settle for the address information you receive versus managing that information! (bullet)Or, they may just do the minimum to meet the requirements to obtain postage discounts. That’s good enough! Right? In today’s market, good enough, will never make them an industry leader. I suggest that their postage expense is NOT their biggest worry! End of Slide 5. Slide 6: United States Postal Service Logo in the far left top corner. Has the heading: America is on the Move and Growing! Image Information: Image of the United States. Far left corner: Yellow boxes with the words '1.8 million new addresses' inside of it. Image with buildings and a sunset with word 'Hollywood' inside it. Far right corner: Yellow boxes with the words '41 million Americans move' inside of it. Red box with the words 'New York' inside it. Green box with the words 'New Jersey' inside it. Orange box with the words 'Pennsylvania' inside it. Bottom right corner: Yellow boxes with the words '145 million total addresses' inside of it. At the far left bottom corner is the words: 'www.theodora.com/maps'. PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: There are great challenges facing mailers – America is on the move. (bullet)41+ Million Americans move each year! (bullet)2.3+ Million businesses move each year as well! (bullet)On average, mailing lists deteriorate over 1% a month. If a list has not been updated recently, a sizable number of addresses in your database may not be accurate. The Postal Service conducted a Cost Study on Undeliverable-as-Addressed Mail - or UAA as it’s called. Our initial findings: (bullet)Major challenges to address quality still exist (bullet)Move-Related UAA appears to be the big contributor (bullet)But, physical address accuracy is still a major issue (bullet)The results so far support our Address Quality strategies. Perspective - Over 41 million Americans move every year – that’s more than the combined populations of the states of New Jersey, New York, and Pennsylvania! Delivery - Postal Service delivers to 145+ million addresses Adds More than 1.8 million new delivery points each year. Perspective - That’s like building a new city larger than the city of Los Angeles CA – EVERY YEAR! (Click) End of Slide 6. Slide 7: United States Postal Service Logo in the far left top corner. Has the heading: UAA Mail Study Image Information: On the left side is a box with the words 'Return 51.3¢ / pc. 1.60 Billion pieces $822.5 Million' inside it and a arrow pointing to a image of a house and a arrow pointing from that house to a enevelope; a arrow pointing from that envelope to what appears to be a bag with paper and envelopes inside it and a box next to it with the words 'Waste 4.4¢ / pc. 6.136 Billion pieces $269.8 Million' inside it. Below all that is the words 'PRC LR-L-61 for R-2006-1 Rate Case (Christiansen UAA Study –Table 3.1)'. In the middle of the image is a big green star with the words '9.724 Billion pieces $1.856 Billion' inside it. On the right is the words 'Old address'. Below that is an image of a house. Below that is a box with the words 'Forward 21.3¢ / pc. 1.985 Billion pieces $421.9 Million' inside it; below that is a image of a house and the words 'New Address' on the right of the house; on the left of the house is an cartoon image of a postal man delieverying mail. PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Incorrect addresses are a serious problem. If mail cannot be delivered to the address on the piece it may be: (bullet)Forwarded 21.3 Cents (bullet)Returned 51.3 Cents (bullet)Treated as Waste 4.4 Cents Each option involves large volumes of mail and major expenses to the Postal Service and its customers. If we add up the volumes and costs of all these possibilities, the numbers are staggering. How Big? 9,724,000,000 Total Pieces of UAA Annually $1,856,435,000 Total USPS Cost of UAA Annually This cost is attributed to: Forwarded $ 421.9 Million Returned $ 822.5 Million Treated as Waste $ 269.8 Million (Click) End of Slide 7. Slide 8: United States Postal Service Logo in the far left top corner. Has the heading: The Address Quality Equation The words included are: Physical Address Quality + Move Update Quality = Deliverable Mail It Just Adds Up! Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: When I began this talk, I asked the question “Why does it matter?” Let’s talk about the things you could be doing to improve your Return On Investment (ROI). Using this Address Quality Equation will help your R.O.I. & your Bottom Line! There are two distinct components that affect Addressing: 1. Physical Address Quality, addressing elements to construct a specific delivery address. Street name, street number, apartment number (if any), city, state, ZIP Code or Zip+4 code. 2. Move Update Quality, the name of the addressee AND the new physical address they reside at. Said another way, Move Update Quality links the intended recipient to his/her new physical address. Is you address for John Doe the current one where he is living now or is it where he lived five years ago and has moved three times since? Combine two components = Accurate Deliverable Address End of Slide 8. Slide 9: United States Postal Service Logo in the far left top corner. Has the heading: What Should You Be Doing? The words included are: (arrow used for bullet)Insist on high standards from suppliers (arrow used for bullet)Manage your address files CASS™;ZIP+4®/LACSLink™/DPV™ Cass-Certified Address Matching Software / Locatable Address Conversion System / Delivery Point Validation (arrow used for bullet)AEC I & II Address Element Correction I & II (arrow used for bullet)NCOALink National Change-of-Address Link (arrow used for bullet)ACS™/OneCodeACS™ Address Change Service Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: And now – What should you be doing? Insist on high standards from your suppliers. Regardless of how you acquire your addresses you need to know: (bullet)ZIP+4 Coded by CASS-Certified Address Matching software? (bullet)When was it done? (bullet)At very least within 185 days of the mailing date. (bullet)Delivery Point Validation (DPV) function of the CASS-certified software? (bullet)Allows you to confirm whether or not each address in your mailing list is recognized as a valid delivery point by USPS. (bullet)How many addresses could not be DPV confirmed? (bullet)AND what was done with the addresses that did not confirm? (bullet)Address Element Correction (AEC) service? (bullet)We’ll talk more about AEC later. (bullet)NCOALink and/or OneCode ACS? (bullet)Do they use a pre-mailing or post-mailing Move Update method? (bullet)When was the last time the addresses were processed (NCOALink)? (bullet)Are they using the new addresses? These questions should be easily answered by your service provider, supplier or vendor, or your internal database management team. If the supplier can’t answer these questions, you need to require these steps or find a different supplier. If I used some acronyms that are unfamiliar to you, hang on, we'll be explaining each product or service in more detail later on in this presentation. End of Slide 9. Slide 10: United States Postal Service Logo in the far left top corner. Has the heading: Why Does It Matter? The words included are: (arrow used for bullet)BECAUSE it impacts your: (arrow used for bullet)Costs (arrow used for bullet)Postage (arrow used for bullet)Response Rates (arrow used for bullet)R.O.I. It’s Your Bottom Line! Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Why does good Address Quality matter? Because it impacts: (bullet)Your Overall Costs (bullet)Your Postage Bill (bullet)Your Response Rates (bullet)AND, Your R.O.I. for your mailing campaigns The fundamental fact is that Address Quality WILL affect your bottom line! In an example I will show, you will readily see that postage represents the smallest cost – or “loss” related to poor address quality. In today’s business environment we are all looking for a competitive advantage. High Quality Addressing can give you that advantage! I will demonstrate to you today how a small “INVESTMENT” to manage your address file can yield an enormous return to your bottom line! End of Slide 10. Slide 11: United States Postal Service Logo in the far left top corner. Has the heading: How Can You Succeed? The words included are: (arrow used for bullet)Implement a comprehensive address quality strategy (arrow used for bullet)Utilize available addressing products and services (arrow used for bullet)Track your mail channel’s R.O.I. Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Now, as I’ve stated, your postage bill should be the lesser of your concerns relating to Address Quality. Sounds surprising, doesn’t it? However, for you to succeed, we recommend that you develop a comprehensive Address Management strategy. But don’t let the sound of that scare you. Addressing is not just “data”, think of it as the vital link to your customer base by which you can make informed business decisions. We’re going to discuss some key products and services that are readily available today, that, if utilized, will have a positive impact to your bottom line. First, let’s look at some industry averages of the cost components of a typical mailing. End of Slide 11. Slide 12: United States Postal Service Logo in the far left top corner. Has the heading: Direct Mail Costs The words included are: DMA Statistical Fact Book 2006 There is a pie chart and the chart can color are as follows: Blue (this color and pie slice is slightly raised up: Postage 24¢ Purple: Creative 11.25¢ Yellow: Art & Preparation 9.75¢ Orange: Printing Production 23.43¢ Maroon: Mailing Lists 12.35¢ Brown: Computer Processing 2.32¢ Green: Lettershop Production 4.02¢ Red: Allocated Fees 13.55¢ End of Pie Chart. Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: (bullet)The cost factors for the chart you see here came from the Direct Marketing Association (DMA) Statistical Fact Book for 2006 and the most recently published USPS rate schedule for Standard Letter mail. (bullet)As you can see from all of the various components that go into the creation and mailing of a direct mail campaign, postage accounts for about 24¢ or 24% of the total costs for Mailing. (bullet)Again as significant as it is, postage is only one small piece of the pie as shown on this pie chart. (bullet)Based on the DMA’s 2006 Fact Book, out of every dollar spent on direct mail, a mailer can expect to spend: (bullet)Over 11¢ on Creative (bullet)Over 9¢ on Art & Preparation (bullet)Almost 24¢ on Printing Production (bullet)About 12¢ on Mailing Lists (bullet)About 2¢ on Computer Processing (bullet)About 4¢ on Lettershop Production (bullet)A little more than 13¢ on Other Allocated Fees Overall Postage – at about 24¢ postage is a small part of the pie! But ALL of these costs are wasted IF mail is not deliverable due to POOR address quality. (Click) End of Slide 12. Slide 13: United States Postal Service Logo in the far left top corner. Has the heading: How Can You Succeed? Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Managing Mailing costs isn’t just about postage! It’s about how address quality affects your overall business, your ROI, and your bottom line! But the picture doesn’t have to look this way! It will take some proactive measures and investment, but I will show you how these measures will pay for themselves in a short period of time. End of Slide 13. Slide 14: United States Postal Service Logo in the far left top corner. Has the heading: What Should You Be Doing? The words included are: Update Correction Validate Standardize There an image of a cone like pyramid and it has the words and colors as follows, starting with the base going up to the peak: almost black blue: CASS™ZIP+4® Codes dark blue: LACSLink blue: DPV light blue: AEC / AEC II dark gray: NCOALink gray: ANKLink light gray: ACS Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Address quality can only be achieved through a multi-step process to standardize, validate, and update your address database. Many different Address Quality products and services are offered through licensed service providers to help business mailers resolve addressing problems, keep postage budgets in line, and attain address quality. This is how the USPS views address quality. Seen as a building block (bullet)Step 1: Standardize – Basically means a “complete address” (bullet)Step 2: Validate – Not just correct addresses but valid point of delivery for the Postal Service (bullet)Step 3: Update – Helps you keep up with moving customers and ensure that the customer and the address are current These three steps mean nothing in your pursuit of address quality if regular and routine updates are not performed to incorporate the new knowledge and data back into your address list. End of Slide 14. Slide 15: United States Postal Service Logo in the far left top corner. Has the heading: A Strategy to Improve Your R.O.I. Addressing Products that Can Make a Difference The words included are: (arrow used for bullet)CASS Certified™ Address Matching Software: ZIP+4/LACSLink™/DPV™ (arrow used for bullet)Address Element Correction I & II (AEC I & II) (arrow used for bullet)National Change of Address Link (NCOALink™) (arrow used for bullet)ACS™/ OneCodeACS™ Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: We have now seen the impact of doing nothing beyond the minimum requirements (ZIP+4 CASS-Certified Address Matching software and Presorting). Now I will give a brief overview of the USPS’s Addressing Products, then provide a more in-depth explanation of each. (bullet)ZIP+4/DPV Coding Accuracy Support System (CASS) - CASS-certified software is the standard range based method used to assign +4 (sector/segment) codes to mailing addresses for postal sortation and delivery. The DPV function allows mailers to both ZIP+4 code their addresses and identify potentially undeliverable addresses for physical address problems on a mailing list PRIOR to mailing. (bullet)Address Element Correction I & II (AEC I & II) – A USPS offered service which is designed to resolve the “worst of the worst” addresses (those that cannot be ZIP+4 Coded and/or DPV confirmed). (bullet)National Change of Address Link (NCOALink) – The NCOALink product is licensed to both service providers and mailers in order for them to correct mailings lists due to customer moves PRIOR to mailing. (bullet)ACS / OneCode ACS – Address Change Service is a post-mailing Move Update method that mailers attain directly from the U.S. Postal Service. Now, let me provide a more in-depth explanation of these products. End of Slide 15. Slide 16: United States Postal Service Logo in the far left top corner. Has the heading: CASS™ (Coding Accuracy Support System) ZIP + 4® The words included are: (arrow used for bullet)USPS certified benchmark (arrow used for bullet)Sets minimum performance standards for commercial ZIP + 4® address matching software (arrow used for bullet)Must pass USPS test for CASS-certification (arrow used for bullet)ZIP + 4 address matching software attempts to match addresses against range-based records on USPS ZIP + 4 file Example: 100-110 MAIN ST ANYTOWN TN 38138-6038 Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Let’s talk about ZIP+4 CASS Certified Address Matching software and the other two products. ZIP+4 CASS Certified Address Matching software is the most commonly used address hygiene software in the marketplace today. The reason for this is that it is a REQUIREMENT to obtain automation discount postage rates across all classes. It is available through commercial vendors for approximately $0.85 to $0.94 per thousand on a mailing list. USPS CASS certification is the benchmark test that establishes minimum performance standards for commercially sold ZIP+4 software. Software vendors must pass a rigorous CASS test where the minimum passing grade is 98.5% accurate when compared to the base USPS ZIP+4 file. It is marketed to the mailing industry via numerous software vendors who build their ZIP+4 address matching products from the base USPS ZIP+4 file. The ZIP+4 file used by address matching software uses a range-based approach to look up addresses so as not to violate TITLE 39 OF THE US CODE, which prohibits USPS from providing ANY name OR Address List for any reason. The example on the screen shows a typical ZIP+4 record that would be available to be matched to a mailer’s address record. It represents 10 potential addresses on Main Street, each having a potential of 10 address points. All addresses that match within this range would be assigned the same +4 code (6038). The +4 range is assigned to cover a street block face for mail sortation and delivery purposes. There is no requirement that all of the addresses within the range actually exist as USPS deliveries. In many cases, all of the potential addresses within the range do not exist. End of Slide 16. Slide 17: United States Postal Service Logo in the far left top corner. Has the heading: CASS™ LACSLink™ (Locatable Address Conversion System) The words included are: (arrow used for bullet)Integrated into CASS Certified™ Address Matching Software (arrow used for bullet)Updates rural-style addresses to city-style format due to 911 emergency purposes (arrow used for bullet)Updates existing city-style addresses that have been renamed or renumbered (arrow used for bullet)5 million converted addresses Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Locatable Address Conversion System software (LACSLink): (bullet)Will also be integrated into CASS as a requirement, effective August 1 (bullet)LACSLink updates rural-style addresses to city-style format due to 911 emergency purposes (bullet)Updates existing city-style addresses that have been renamed or renumbered (bullet)Not as big of a deal because there are only about 5 million records left to convert, because most of them were already converted. (bullet)Keep in mind that the Postal Service delivers to over 145 million addresses and adds over 1.8 million addresses each year so 5 million is not as big of a deal in the scheme of things End of Slide 17. Slide 18: United States Postal Service Logo in the far left top corner. Has the heading: CASS™ DPV™ (Delivery Point Validation) The words included are: (arrow used for bullet)Extension of ZIP + 4® CASS-certified Address Matching Software (arrow used for bullet)Available through software vendors (arrow used for bullet)Enables ZIP + 4 Coding & identifies potentially undeliverable addresses (arrow used for bullet)DPV - Extra step to attempt validation of each specific address in the file Example: 100 MAIN ST ANYTOWN TN 38138-6038 Confirmed 104 MAIN ST ANYTOWN TN 38138-6038 Not Confirmed Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Next, we’ll talk about the Delivery Point Validation (DPV) function of CASS-certified address matching software– Available today as an additional step in CASS-certified software processing currently provided by many of the commercial vendors. DPV: (bullet)Made possible in year (2000) due to advanced encryption techniques (Link) that enabled USPS to make this address specific matching available to mailers as part of our standard product line WITHOUT VIOLATING TITLE 39 OF US CODE. (bullet)Can only work in conjunction with ZIP+4 CASS Certified Address Matching software, both from a technical and a policy perspective. What does it do? (bullet)Allows you to both ZIP+4 code your addresses and identify potentially undeliverable addresses for physical address problems on a mailing list PRIOR to mailing. (bullet)Result in the identification and validation of a specific address delivery point within a ZIP+4 range. Using our previous example, here’s two addresses that could occur within the range (100 Main St. is confirmed by DPV as a live delivery point where 104 Main St is not. But is still ZIP+4 Coded, today. Beginning August 1, 2007, all CASS-certified address matching software must process addresses through DPV. Any address where the primary number cannot be DPV confirmed will NOT have a ZIP+4 add-on returned and therefore will not qualify for automation rate. End of Slide 18. Slide 19: United States Postal Service Logo in the far left top corner. Has the heading: Address Element Correction (AEC Service Level I & II) The words included are: (arrow used for bullet)USPS provided service for all customers (arrow used for bullet)Resolves physical address deficiencies (arrow used for bullet)Submitted on electronic media to USPS (arrow used for bullet)AEC I Cost - $15.00 per thousand (arrow used for bullet)Average correction rate - 32% (arrow used for bullet)AEC II™ Cost - $0.25 per record (arrow used for bullet)Average resolution rate - 90% Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: Next is Address Element Correction (AEC) – A USPS offered service which is designed to resolve the “worst of the worst” addresses (Those that were CASS processed but cannot be ZIP+4 Coded and/or DPV confirmed). AEC resolves many physical address deficiencies, it does not resolve any move-related problems. (bullet)Mailers may send their addresses that cannot be matched/coded by ZIP+4 CASS Certified Address Matching software (qualification criteria for submission) to the National Customer Support Center in Memphis on electronic media (CD-ROM, or Magnetic Tape/Cartridge) (bullet)Or upload the address list to the secure NCSC- AEC website. AEC offers two levels of service: AEC I and AEC II AEC I - is available for $15.00 per thousand addresses processed average correction rate runs currently around 32% of all addresses submitted. Addresses that cannot be corrected via AEC I are candidates to be submitted to AEC II. Here the addresses are sent out to the USPS delivery units for carrier resolution. There are three possible responses: (bullet)Addresses are corrected to a DPV confirmed status; Or (bullet)addresses cannot be corrected or do not exist. (bullet)“Timed out” due to the requested address return period requested by the customer, 30, 60, or 90 days. Currently, the program has an average 90% resolution rate and that’s pretty darn good. (Verified percent rates - AEC 9/13/06) (bullet)Addresses that cannot be confirmed should not be used for mailing. (bullet)If the process timed out you could re-submit them to AEC II for another pass. The cost for AEC II is $0.25 cents per record. End of Slide 19. Slide 20: United States Postal Service Logo in the far left top corner. Has the heading: National Change of Address (NCOALINK™) The words included are: (arrow used for bullet)USPS licensed product (arrow used for bullet)Pre-Mailing Process (arrow used for bullet)Provides electronic Change-of-Address information (arrow used for bullet)Variable costs (arrow used for bullet)Average correction rate - 5.51% Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: We also have National Change of Address Link (NCOALink), a “Pre-Mailing” process - The NEW and Improved NCOALink product is now being licensed to both service providers and mailers in order for them to correct their mailing lists due to customer moves PRIOR to mailing. NCOALink (bullet)Processes electronic mailing lists (bullet)Provides mailers with electronic change-of-address notifications of customer moves. Today there are three types of licenses that can be obtained: (bullet)18 Full Service Providers which have a 48-month COA database, their license fee is $175,000. (bullet)177 Limited Service Providers which are outfitted with an 18-month COA database, their license fee is $15,000. (bullet)88 End User Mailers that are licensed with an 18-month COA database, their license fee is $7,500. Cost from service providers varies based on volume and frequency but by and large are reasonable. (Average: $1.20 per thousand) The average match rate is 5.51% of all addresses submitted for updating. What this means is that for every 1,000 addresses submitted, 55 addresses will be updated with the new customer address. Remember 13.7% or 41 million Americans move each year. And every address corrected is one more that makes it to your customer prospect list. This may not seem like much, but it adds up. This match rate is the result of conservative name and address matching logic to protect customers’ privacy and ensure accuracy of the COA notifications. We’d rather miss a few matches rather than systemically misdirect mail. End of Slide 20. Slide 21: United States Postal Service Logo in the far left top corner. Has the heading: ACS™/OneCodeACS™ The words included are: (arrow used for bullet)USPS Service (arrow used for bullet)New OneCodeACS automated option (arrow used for bullet)Leverages 4 State Customer Barcode (arrow used for bullet)Post-Mailing Process (arrow used for bullet)Fees (arrow used for bullet)Manual, each $0.50  (arrow used for bullet)ACS Electronic  (arrow used for bullet)First-Class Mail® 0.06  (arrow used for bullet)Other 0.25 (arrow used for bullet)OneCodeACS™ (Letters Only)     (arrow used for bullet)First-Class Mail (arrow used for bullet)First 2 notices, each Free  (arrow used for bullet)Additional notices, each 0.05  (arrow used for bullet)Standard Mail (Fall 2007) (arrow used for bullet)First 2 notices, each 0.02 (arrow used for bullet)Additional notices, each 0.15 Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: The last step in the update process is Address Change Service (ACS) as a way to achieve optimal Address Quality. ACS – is a “Post Mailing” process where ACS participants print an ACS keyline participant code or the new OneCode ACS barcode on mailpieces and are notified by the USPS of the new address that the mailpiece was forwarded. Also, we have OneCode ACS - A NEW and Improved option of the traditional electronic ACS service. Adding to the versatility of the recently introduced Intelligent Mail Barcode, mailers can now request a new option for automated address corrections through ACS, the Postal Service’s address change service. OneCode ACS along with OneCode Confirm™ are the first offerings that support the Postal Service’s OneCode Vision® of providing tracking, sorting and customer optional services through a single barcode.  The Intelligent Mail Barcode is the vehicle that realizes that optimal result for letters and flats.  OneCode ACS will benefit mailers by providing address correction information electronically in a more cost efficient manner. Address Correction Service (bullet)Electronic  (bullet)First-Class Mail 0.06  (bullet)Other   0.25 OneCode ACS (Letters Only)     (bullet)First-Class Mail - First 2 notices, each Free  - Additional notices, each 0.05  (bullet)Standard Mail (Fall 2007) - First 2 notices, each 0.02 - Additional notices, each 0.15 End of Slide 21. Slide 22: United States Postal Service Logo in the far left top corner. The words included are: Putting It All Together Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 22. Slide 23: United States Postal Service Logo in the far left top corner. There are a series of colored boxes with words inside. They are as follows: Dark Blue: Build mailing list Dark Blue: Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM Dark Blue: (turned as a diamond shape)Did the address ZIP + 4 match or DPV Confirm? The word 'yes' below this diamond shape box above. Dark Blue: Update movers (NCOALINKTM) (pre-mailing update) Dark Blue: Apply ACSTM participant code to mail piece (post-mailing update) Dark Blue: Mail Dark Blue: Update address list with new ACS information The word 'no' before the box below. Dark Blue: Send bad addresses to AEC The word 'yes' below this diamond shape box above. The word 'no' before the box below. Dark Blue: (turned as a diamond shape)Bad address fixed/ZIP + 4 coded? Dark Blue: Suppress bad addresses from mailing list Yellow is on top of the Dark Blue Boxes. Yellow: Build mailing list Yellow: Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM Yellow: No Send bad addresses to AEC Red is on top of all the boxes and turned as a diamond shape. Red: Did the address ZIP + 4 Match or DPV confirm? Y/N Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 23. Slide 24: United States Postal Service Logo in the far left top corner. There are a series of colored boxes with words inside. They are as follows: Dark Blue: Build mailing list Dark Blue: Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM Dark Blue: (turned as a diamond shape)Did the address ZIP + 4 match or DPV Confirm? The word 'yes' below this diamond shape box above. Dark Blue: Update movers (NCOALINKTM) (pre-mailing update) Dark Blue: Apply ACSTM participant code to mail piece (post-mailing update) Dark Blue: Mail Dark Blue: Update address list with new ACS information The word 'no' before the box below. Dark Blue: Send bad addresses to AEC The word 'yes' below this diamond shape box above. The word 'no' before the box below. Dark Blue: (turned as a diamond shape)Bad address fixed/ZIP + 4 coded? Dark Blue: Suppress bad addresses from mailing list Yellow is on top of the Dark Blue Boxes. Yellow: No (has an arrow pointing to the next yellow box as follows: Yellow: Send bad addresses to AEC Yellow: Bad address fixed / ZIP + 4 coded? Y-N Yellow: No Send bad addresses to AEC Yellow: NO (has an arrow pointing to the next yellow box as follows: Yellow: Suppress bad addresses from mailing list Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 24. Slide 25: United States Postal Service Logo in the far left top corner. March 21, 2007 There are a series of colored boxes with words inside. They are as follows: Dark Blue: Build mailing list Dark Blue: Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM Dark Blue: (turned as a diamond shape)Did the address ZIP + 4 match or DPV Confirm? The word 'yes' below this diamond shape box above. Dark Blue: Update movers (NCOALINKTM) (pre-mailing update) Dark Blue: Apply ACSTM participant code to mail piece (post-mailing update) Dark Blue: Mail Dark Blue: Update address list with new ACS information The word 'no' before the box below. Dark Blue: Send bad addresses to AEC Dark Blue: (turned as a diamond shape)Bad address fixed/ZIP + 4 coded? The word 'yes' below this diamond shape box above. The word 'no' before the box below. Dark Blue: Suppress bad addresses from mailing list Yellow: Update movers (NCOA LINK) (pre-mailing update) Yellow: Apply ACS participant code to mail piece (post-mailing update) Yellow: Mail (ther eis a cartoon man pointing to the word 'Mail' and a balloon over his head with the words 'For crying out loud!'. (Red is on top of the yellow and blue boxes) Red: Then update that address list with new ACS information…do NOT forget !! Red: (turned as a diamond shape)Did the address ZIP + 4 Match or DPV confirm? Y/N Green sunburst shape on top of all boxes with the words 'if “Yes”'. Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 25. Slide 26: United States Postal Service Logo in the far left top corner. There are a series of colored boxes with words inside. They are as follows: Dark Blue: Build mailing list Dark Blue: Code address via CASSTM ZIP + 4® address matching software with DPV and LACSLINKTM Dark Blue: (turned as a diamond shape)Did the address ZIP + 4 match or DPV Confirm? The word 'yes' below this diamond shape box above. Dark Blue: Update movers (NCOALINKTM) (pre-mailing update) Dark Blue: Apply ACSTM participant code to mail piece (post-mailing update) Dark Blue: Mail Dark Blue: Update address list with new ACS information The word 'no' before the box below. Dark Blue: Send bad addresses to AEC Dark Blue: (turned as a diamond shape)Bad address fixed/ZIP + 4 coded? The word 'yes' below this diamond shape box above. The word 'no' before the box below. Dark Blue: Suppress bad addresses from mailing list Image Information: There is an image of what appears to be a 'scroll' with the words 'JOB WELL DONE!' on it with a mailbox with the red flag up and the mail box door open on top of the 'scroll'. PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 26. Slide 27: United States Postal Service Logo in the far left top corner. Has the heading: How Can You Succeed? The words included are: For more information on USPS Addressing products (arrow used for bullet)http://ribbs.usps.gov RIBBS - NCSC Products, Services & Publications (arrow used for bullet)http://www.usps.com/ncsc usps.com – Address Quality Page (arrow used for bullet)http://ribbs.usps.gov/files/mtac/annual Address Quality Methodologies - Best Practices Contact the USPS National Customer Support Center @ 1-800-238-3150 Go to www.usps.com Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. Notes: So what can you do to succeed? Businesses waste billions in production costs, postage and lost opportunity because they aren’t connecting with customers as efficiently as they could.   The other thing you should be doing is to be aware of our core Address Quality reference and informational aids, which many of you may not even know exist. These aids were developed and designed to provide you with a wealth of knowledge, assistance and guidance. You can get more information and product details from the good people at our National Customer Support Center at the number shown or go to the WEB under the Products & Services Tab on USPS.COM. http://ribbs.usps.gov RIBBS – NCSC Products, Services & Publications http://usps.com/ncsc/ usps.com – Address Quality Page http://ribbs.usps.gov/files/mtac/annual Address Quality Methodologies – Best Practices Contact the USPS National Customer Support Center @ 1-800-238-3150 Go to www.usps.com End of Slide 27. Slide 28: United States Postal Service Logo in the far left top corner. Has the heading: 'Questions?' which is in yellow and 3D. Image Information: PCC (Us Postal Service Postal Customer Council) Logo in far right corner. End of Image information. End of Slide 28.