Recommendation Recap

During its deliberations, the Task Force developed a strategic vision for its address quality initiatives that encompassed customer expectations for more control over their mail and its delivery, increased response rates for sales and marketing mail, and reduced mailing costs. The costs associated with Undeliverable-As-Addressed (UAA) mail totaled $1.9 billion each year, the Task Force noted. The Task Force eventually narrowed its focus to concentrate on how best to improve the processes used by mailers and the Postal Service to create quality address databases and to ensure that their use is most effectively and efficiently leveraged by Postal Service operations procedures and programs.

“The Task Force members working on address quality improvement are driving a tremendous amount of change,” commented Acxiom Company Leader Charles Morgan. “We intend to keep the momentum going.”

A number of recommendations emerged on how the Postal Service uses its address database to successfully forward mail, and how address correction information is solicited and captured. They include:

• Changes in field procedures

• Additional training for carriers and clerks

• New marketing materials for customers

• Revisions to the Domestic Mail Manual

• A redesign of Form 3575, the official change of address form

• Re-emphasize proper handling of Address Change Service (ACS) mail

• Encouraging NCOA licensees and Coding Accuracy Support Software (CASS) vendors to improve their individual address-matching software logic

• Implementing improved USPS COA software to link multiple moves

“While we have found areas that can be improved,” said Steering Committee member Morgan, “the data is fundamentally sound. Indeed, many of the issues our test uncovered relate to errors in customer input to the system. The change-of-address form redesign should go a long way towards correcting that.”

“Feedback Loop” Development. Funding for the Postal Automated Redirection System (PARS) — a lettermail-only system — was approved by the Board of Governors, and a contract signed with Siemens for its development and implementation. The latter is scheduled to start in July 2003, with full deployment to take two-to-three years. When PARS is operational, some of the address-change input problem will be alleviated by carriers no longer having to copy by hand Form 3575 data onto a second form.

Preprinted Address Change Service Codes. A draft request allowing mailers to preprint ACS participant codes on envelopes will be completed and reviewed by the Postal Service this fall. When approved, mailers will be able to use electronic ACS without changing the envelope window size or making costly program changes. Already successfully tested by one mailer, preprinted codes have potential to generate substantial UAA-related cost reductions for both mailers and the Postal Service. They will be addressed in the next edition of the Domestic Mail Manual.

Federal Register Notice. The Task Force contributed to the preparation of a draft Notice proposing new Postal Service rules and regulations to drive out the cost of the system and reduce the volume of Undeliverable-As-Addressed mail. The notice was published in late May, with public comments due to have been submitted by August 29. The notice called for:

• 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 Move Update-qualified.

• Increasing the frequency from 180 days to 90 days for addresses to be ZIP+4 coded via CASS-certified address matching software in order to obtain a USPS discounted automation rate.

• Requiring monthly updating of address matching directories used by CASS in order to obtain USPS discounted automation rates.

• Extending the USPS Move Update requirement concept for bulk mailings to Periodicals, Standard Mail, and Package Services.

Comments have been generally supportive and reflect the diversity of the mailing industry.

• Conduct a second NCOA test mailing after a recommendation-implementation period, to assess the effect of the proposed changes on the system.

• Encourage the Postal Service to test commercially-available databases to support enhanced address quality.

• Prepare for and conduct focus groups to redesign the change-of-address form. The Postal Service and the Gallup Organization will develop discussion materials and host focus groups to improve Form 3575.

• Ensure that industry input on the Federal Register Notice’s proposed rules and regulations for COA software updates is given full consideration and is reflected in the new regulations when enacted.

• Evaluate a Change-of-Address by Phone service and assess the potential of utilizing the Postal Service call centers to take customer Change of Address requests through a toll-free number, augmenting the COA services available at post offices and on the Postal Service website. The cost of providing such service by phone, the Task Force found, could be substantially less than when hard-copy COA forms are processed by post offices. The service may also produce higher quality results than achieved on the Internet, as there would be a lower drop-out rate since call center agents would be available to assist customers. The Postal Service has agreed to continue its assessment of this service.

• Support Postal Service implementation of a “snowbird” mail-forwarding program, whereby consumers could choose to purchase pre-paid Priority Mail envelopes, and have their local post office collect and send mail to a temporary address on an agreed-upon schedule.