Mailing Industry Task Force Spring 2002 Progress Report Improve Address Quality Report Recap The October 2001 report of the Mailing Industry Task Force recommended reducing undeliverable mail by improving address quality and by providing a "feedback loop" that captures and reports addressing errors. To achieve this objective, the Task Force suggested: 1) revising existing mailer requirements to drive more frequent use of move update and address matching software, 2) scanning PLANET or two-dimensional bar codes on undeliverable mail, and capturing its data for mailers, and 3) supporting amendments to privacy laws to allow use of credit header and driver's license information for address quality improvement efforts. Through teleconferences and meetings in several cities, the Task Force narrowed its immediate focus to the first two initiatives proposed. The initiative to promote amendment of privacy laws -- the Task Force concluded -- would be better managed by the proposed Mailing Industry CEO Council in its policy-shaping role. The Address Quality Vision As the number of technology-savvy consumers grows, they demand more from businesses. They expect greater personalization and more control over their mail and its delivery. Delivery of critical business mail and one-to-one marketing - including reducing undeliverable mail - are integral parts of communicating with those customers and acquiring their business. Targeting relevant offers to the right prospects, coupled with improving the overall response rate to the offers, will allow businesses to lower the cost per response. Targeted one-to-one marketing - where address quality is paramount - is recognized as the future of business communication and cost-effective marketing. A key issue is the availability and production of valid mailable addresses. Address quality affects both mailers and processors. Undeliverable mail circulating through USPS systems represents over $1.5 billion in costs each year. Because of the costs associated with undeliverable mail, the Postal Service grants automation rate discounts to mailers who use high-quality mailing lists. Current policy provides mailers discount opportunities for addresses that have a delivery point barcode derived from a match to ZIP+4 range-based data. First-Class mailers must meet the defined Move Update requirement. However, even after meeting these requirements, billions of mail pieces per year are still undeliverable-as-addressed (UAA) when delivery is attempted. During the last several years the Postal Service has introduced new policies and programs to help further increase the quality of mailing lists. Progress to Date Federal Register Notice. In order to drive out the cost of the system, and reduce the volume of undeliverable-as-addressed mail, the Task Force supports publishing a Federal Register notice that will propose: - Eliminating manual address corrections generated from Ancillary Service Endorsements as a means to meet the Postal Service's Move Update requirement. - Increasing the frequency from 180 to 90 days for addresses to be required to be Move Update-qualified by USPS. - Increasing the frequency from 180 days to 90 days for addresses that are ZIP + 4 coded via Coding Accuracy Support Software (CASS)-certified address matching software in order to obtain a USPS discounted automation rate. - Requiring monthly updating of address matching directories used by Coding Accuracy Support Software (CASS) in order to obtain a USPS discounted automation rate. - Extending the USPS Move Update requirement concept for bulk mailings to Periodicals, Standard Mail, and Package Services. The Federal Register Notice is scheduled to be published on May 1 -- allowing a 90-day comment period that will end July 31. Responses to comments will be published by September 15, when final rules will be announced and the need for any subsequent further action determined. The outcome of this process will be presented at the Fall National Postal Forum. This and other Task Force address quality efforts are aligned with work being done by the Postal Service's Product Redesign team. Product Redesign has a target implementation of no later than 2004. NCOA Data Test. The Task Force is supporting a test to validate the accuracy of National Change Of Address information returned to mailers. The test will include 10 large mailers across all mail classes and will take place from April through July. The results will be analyzed in August and reported at the National Postal Forum in September. "The purpose of these tests," noted Task Force Steering Committee member Charles Morgan, "is to increase mailers' confidence in the NCOA system. I feel good that the USPS is committed to making necessary improvements." "Feedback Loop" Development. Working together with the Task Force, the Postal Service has identified several systems which could eventually support such a loop: Address Change Service (ACS), the Fast Forward Move Update Notification option, and Postal Automated Redirection System (PARS). The Task Force will continue to work closely with USPS to find ways to integrate the systems into a tracking loop process. Delivery Point Codes. The Task Force and the Postal Service agreed to continue to discuss the introduction of delivery point specific codes for all mail. The Task Force concluded the industry should move to delivery point codes. Planned Action The Task Force agreed to support the following next steps: - Improve operation compliance with ACS-prepared mail handling procedures at the carrier and clerk levels. - Support Phase II proof-of-concept testing of the Postal Service's Address Element Correction (AEC) process, scheduled for the spring. AEC is computer-based and designed to get quick and efficient feedback from delivery units on addresses that cannot be ZIP+4 coded. - Investigate additional opportunities with industry and USPS for further analysis to improve address quality. - Redesign and update Form 3553 (CASS Summary Report). - Secure Postal Service permission for address change service participant codes to be pre-printed on envelopes, allowing mailers to use electronic ACS without changing the envelope window size or making costly program changes. Task Force Process The Task Force formed a committee to further develop and move forward the recommendation and its initiatives. Members represent Acxiom, Advance Services Presort Inc., Prudential Financial, First USA, Progressive Insurance, Time Customer Service, Inc., Harte-Hanks, and Fingerhut. The committee is co-chaired by Charles Morgan, Company Leader of Acxiom, and by Postal Service Senior Vice President, Chief Technology Officer, Charles Bravo, and supported by a team of USPS technology specialists.