**Intelligent Mail Barcode Customer Benefits**

By now most companies that use mail as an integral part of their
business are aware that the Postal Service is implementing a new,
information rich barcode technology to replace several other legacy
barcodes. This new technology, the Intelligent Mail barcode, is
currently supported by the Postal Service, but is not required. It will
co-exist with the existing POSTNET™ barcode and PLANET Code barcode
technologies. The POSTNET, as well as the PLANET Code barcode, will be
phased out in the May 2011 time-frame.

Two options will be offered with the Intelligent Mail barcode, a basic
option and a full-service option. (Full-Service option prices will go
into effect in November 2009). The basic option involves replacing the
POSTNET barcode with an Intelligent Mail barcode so that mailers will be
able to present the mail for verification and acceptance as they do
today. Those that elect to use the full-service option will gain access
to significantly greater capabilities than they have today -- and will
be able to uniquely identify and track individual mailpieces, together
with their associated trays, sacks, pallets, and containers.

At first glance it might seem that the Intelligent Mail barcode
initiative is strictly a technological initiative. The Intelligent Mail
barcode uses a completely new structure that can encode more data with
the barcode without a commensurate increase in barcode size.

However, the Intelligent Mail barcode offers important business benefits
too. Some of the benefits can be realized just by using the Intelligent
Mail basic or full-service option. Other benefits result by combining
other Postal services, such as CONFIRM®, with the basic or full-service
option. Designating these additional services on a piece of mail is
extremely easy since the Intelligent Mail barcode was designed to
readily accommodate optional endorsements, special services, and other
handling instructions.

This whitepaper summarizes a range of increased business benefits that
mailers can realize by adopting the Intelligent Mail barcode, starting
with just the basic adoption of the Intelligent Mail barcode, followed
by the additional benefits of the full-service option, and finally to
benefits that can be gained by combining the full-service option with
other Postal Service offerings.

Subsequent sections describe the type of benefits that mailers can
expect to achieve in the following areas:

-   Optimize Envelope Real Estate

-   Improve Customer Knowledge

-   Improve Supply Chain Efficiencies

-   Low Cost Proof of Mailing

-   Reduce Costs, Track Payments, Drive Revenue

**Optimize Envelope Real Estate**

The Intelligent Mail barcode can encode more data in relatively fewer
barcode bars, than the barcode technologies it replaces, with fields for
barcode ID, service type ID, mailer ID, mailpiece serial number, and the
11-digit routing code. This allows the Intelligent Mail barcode to
combine the information formerly requiring multiple barcodes and
alpha-numeric text-strings, into a single, comprehensive,
information-rich barcode.

With a single Intelligent Mail barcode capable of encoding all this
information, the envelope is less cluttered and cleaner looking. The
space that is freed up by eliminating extraneous barcodes and
information tags can now be used for additional marketing purposes. And
that's a good thing as research shows that mailpieces that stand out in
the mailbox, have impact, and grab attention, are more likely to evoke a
response.

We know that customers are welcoming this change. Here is what one
customer had to say about the benefit of a cleaner mailpiece.

> *"When we heard it (the IM barcode) was available, and we mail a
> significant amount of mail, we were very excited about it! It allowed
> us to remove one of the barcodes off of the piece. That piece can be
> very messy and for a marketing company, you want as much about your
> product on the envelope. You don't want postal "stuff" on the
> envelope. So, we were really happy to remove ACS information, the
> participant code, and the keyline, and that 2nd barcode!"\
> \
> "It makes for a much cleaner envelope; a more seamless way for us to
> get all of the information that we're looking for from the mail!"\
> *

**Improve Customer Knowledge**

An important outcome of customer knowledge is ensuring that critical
communications, like business mail, reach the right recipients at the
right time. That is not an easy task. There are over 145 million US
addresses and 41 million Americans move annually. This scope and scale,
coupled with poor address quality, can lead to a lot of undelivered
mail. This can translate into lost opportunities, delayed invoicing and
remittances, costs to re-mail, costs to handle returned mail, and high
call center call volumes.

Undelivered mail, known in the industry as Undeliverable-As-Addressed
(UAA) mail, is a problem for both the Postal Service and customers. The
Postal Service conducted a study in 2004 which indicated that 9.7
billion pieces of mail were UAA. The cost to the Postal Service was
\$1.8 billion. Because postage is only one component of mailing costs,
some estimates put the cost of UAA mail to business even higher, at
\$2.3 billion. It's no surprise that the Postal Service has a target to
reduce UAA mail by 50% by 2010.

The Intelligent Mail barcode is a fundamental element in USPS plans to
achieve this goal. Full-service option mail will receive free address
correction information. Mailers (owners and/or preparers) can make this
a part of their overall address quality program and improve customer
knowledge. Change of address can allow companies to keep track of
customers and may signal different or additional service or product
opportunities. Simply put, improved address quality allows targeted
messages to reach targeted recipients in a timely manner.

Reaching more recipients means more responses to promotions, invoices,
and bills; leading to incremental revenue and improved cash flow. Less
UAA or returned mail can reduce costs significantly. The cost of wasted
mail varies widely, but estimates range from \$1 to \$3 or more per
piece. With large mailings, it's easy to see that the cost of wasted
mail can rapidly add up to a major expense. With the free address
correction information provided by the full-service option, mailers will
be able to monitor the quality of their mailing lists and use the
provided information to correct their mailing lists and reduce the
expense of UAA or returned mailpieces. Improved address quality can
easily translate into increased ROI.

Here's what several customers are saying about the address change
notices that are being supplied with an existing Postal Service product,
OneCode ACS™. Remember, this service will be free to full-service option
adopters.

> *"To be able to get that (OneCode ACS) return mail information back,
> so that you can suppress names going forward! If you know that someone
> has returned, and you know why, why would you mail them again, when
> you could mail to another name where you may get a responder, rather
> than one that's gonna' be tossed?"\
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--*
>
> *"The other information that's coming back is the forwarding
> information. So if we can find out that somebody has moved we can
> update that name and address, and get that piece to the right
> person."**\
> \-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--\
> "**With OneCode ACS, we had a client...a national company, who swore
> that their list was pretty current, and we were able to demonstrate to
> them, even after we did National Change Of Address 18 month
> processing, that it wasn't as current as it could have been**."***

**Improve Supply Chain Efficiencies**

The Intelligent Mail barcode and address correction information helps
with the delivery of mail to its intended recipients, but it can also
aid the mailers' supply chain and improve internal processes.
Full-service option mail requires unique IDs on each mailpiece,and
container. It also requires that electronic documentation be generated
and provided to the Postal Service when mail is presented for
acceptance. These features can be used by mailers to automate and
improve document management processes, quality control, and hand-off to
third- party suppliers.

By uniquely coding each mailpiece and container, it is possible to track
what's going on as mail is being processed. Production bottlenecks or
trouble spots can be identified so that processing and preparation
issues can be resolved, resulting in improved productivity. Some manual
processes, like job reconciliation, document delivery, and hand-off, can
be automated due to the full-service option's requirement for electronic
documentation, thus reducing workhours (and costs) associated with these
processes.

With electronic documentation, driven by the full-service option,
mailers will no longer need to print and provide hard copy qualification
reports and paper postage statements -- not only reducing paper usage,
but eliminating the associated costs for handling, storing, managing,
and disposing of paper-based documentation.

Reducing print and paper resources not only improves efficiencies in the
supply chain, but is good for the environment and will create good PR -
not just for the industry but for each company that moves to electronic
documentation. There is a growing expectation that businesses become
"greener" - and the full-service option's electronic documentation
provides tangible results that are easy to demonstrate.

Coding mailpieces and containers with the Intelligent Mail barcodes and
using electronic documentation allows for more efficient hand-offs to
suppliers and the Postal Service. Tracking mail hand-off electronically,
in lieu of using resources to call and check on transportation or mail
induction, will reduce the amount of time and manual effort to monitor
mail hand-off. For businesses that depend upon third parties such as
mail consolidators or logistics providers, it will be possible to track
the performance of these service companies. Improving internal
efficiencies and lowering costs, as just discussed, can increase your
return on investment. Several customers provided the following
testimonials about supply chain efficiency:

> *"We saw where the Postal Service was going with Intelligent
> Mail...and when you talk about efficiencies...we were producing
> paperwork for 80 to 100 mailings a day, which is kind of nuts to do
> that. We decided that obviously, the eDoc side of Intelligent Mail
> would be good for us because we could eliminate all of that paperwork
> and all that processing"\
> \-\-\-\-\-\-\-\-\-\-\-\-\--\
> "We work in an environment where a customer can submit a job to us,
> printing and mailing, and 3 days later we put it in the mail. It
> (eDoc) was something that we saw as giving us an opportunity to be on
> the leading edge"**\
> ***

**Low Cost Proof of Mailing**

For full-service option mail, the Postal Service will provide free
start-the-clock information to mailers when the USPS takes possession of
the mailings. This information can be used in a variety of ways to
improve business knowledge and gain confidence in accurate delivery.

Container scans, performed by the Postal Service, will let mailers know
when mail was inducted into the mail stream. This will provide customers
near real time information about the status of their mailings. Scans
taken at Postal Service facilities will help confirm that the right
containers were inducted in the right facilities, and at the right time.
Start-the-clock information can serve as a low cost alternative to other
forms of proof of mailing. It can help reduce risk and detect possible
fraud of high value mail. Proof of mailing knowledge can also help avoid
unnecessary re-mails.

Also, with start-the-clock container scans, mailers will be able to
better manage their transportation and logistics suppliers. They won't
need to call the Postal Service to try to track down where their mail
is. They will have scan information that they can access electronically.
And they can feed that electronic data into other business applications,
increasing its value. Several customers had this to say about the
benefits of proof of mailing:

> *"'No one (has) ever gotten my mail'. That's one of the calls we get
> (from customers). 'No one (has) received my mail...because no one
> (has) called and told me they got it'. We're able to now tell them
> exactly when...the mail was delivered."\
> **\-\-\-\-\-\-\-\-\-\-\-\--***
>
> *"We really love intelligent mail...to track our letter shops. This
> gives us a way of making sure that the mail is leaving (for the Postal
> Service) at the right time. When the mail is late, we used to blame
> the Postal Service. And now we can get back (to our letter shops) and
> say 'Hey, this (mailing) dropped early, or this (mailing) dropped
> late'. We're doing that actually on all of or marketing mail today."-*

**Reduce Costs, Track Payments, Drive Revenue**

Perhaps one of the most important benefits of full-service option mail
is that it will be relatively easy and inexpensive to track individual
mailpieces. The possibilities for improving operations are almost
limitless. Businesses can reduce costs, improve cash flow, track
payments, provide efficient, cost-effective customer care, do more
effective marketing, and generally respond more effectively to their
customers.

As an example, consider cash flow and payment tracking. By combining the
full-service option Intelligent Mail barcode with USPS' electronic
Confirm service on remittance mail, finance departments will be able to
monitor and predict payments more easily. The serial number within the
Intelligent Mail barcode allows mailers to uniquely identify customers,
so they can have advanced knowledge of who is responding with a payment
and when they've responded. For payments, early notification that the
check is in the mail can help avoid making collection calls, sending out
dunning notices, or canceling and then having to immediately re-instate
accounts. It can also help to improve cash management. Knowledge of when
mail was sent and when returned payment mail was scanned by the Postal
Service will provide better information if businesses have to make
individual decisions on waiving or not waiving late fees. Improved
tracking can reduce costs by avoiding unnecessary re-mails. Leveraging
free address correction can help expedite invoicing and improve cash
flow by getting critical mail to intended recipients in a timely manner.

Information about the mail, as provided by the full-service option and
Confirm service, will help businesses staff call/service centers more
efficiently. Businesses will be able to track when bills, messages,
promotions, etc., are reaching the homes of customers. This will allow
call centers, service centers, check processing and other operations to
be appropriately staffed based on anticipated call demand generated by
mailings. Having access to information about when mail was sent and when
responses were scanned will help reduce the time Customer Service
Representatives (CSRs) have to spend with customers. They will be able
to provide accurate delivery status on statements, offers, and payments,
allowing them to resolve inquiries more quickly, reducing costs,
improving efficiencies and customer satisfaction. Tracking information
can also be re-directed to customer self-serve outlets such as voice
response systems or customer-facing websites, resulting in fewer calls
to call/service centers, saving customer support costs.

Mailpiece tracking information helps improve marketing efforts. Mailers
will be able to monitor campaigns to determine which day of the week
brings the best response allowing them to plan optimum in-home dates
based on delivery and response patterns. For time sensitive campaigns,
they can monitor what's going on to ensure marketing messages reach
target audiences in time to support promotions. Mailers can use the
tracking data to improve the effectiveness of telemarketing follow-up,
or quickly test the effectiveness of different offers or creative images
without having to resort to conventional seeding campaigns.
Post-campaign analysis results will be more accurate when the timing of
mail delivery is known precisely, and more accurate addressing ensures
that specific mail reaches intended respondents.

Businesses can better synchronize their messaging across mail and other
media outlets when they know mail delivery patterns and responses. They
can boost response rates by timing follow-up email or telemarketing
calls to coincide with in-home deliveries. Mailers can also analyze
customer payment and response patterns allowing them to determine
mailing priority for future mailings. Delivery predictability and
knowledge will strengthen customer relationships. Dependable companies
have loyal customers.

Tracking where new credit cards, checks, and rebates are in the
mailstream and being able to accurately predict delivery will help
reduce fraud risks.

Having access to tracking information will also allow companies to
anticipate demand for order fulfillment. This will allow mailers to
optimize inventory and manage staffing based on workload that can be
predicted by monitoring the timing and volume of response mail. Not
surprisingly, one customer, who is participating in a pilot test of the
full-service option, had this to say:

> *"We actually track delivery, and then tie it back to response. If
> somebody receives a (mail) piece on a Friday, and we can tie it back
> to delivery on a Friday, that person may be more responsive than if
> they had received that piece on a Monday. So we're using the unique
> tracking so that we can go back and then target the in-home-dates for
> our mail."\
> \-\-\-\-\-\-\--\
> "That (unique reference number) is also very helpful when you're
> tracking for response! You want to know exactly what piece that
> customer responded to, not necessarily that the customer responded! We
> may mail somebody multiple times throughout the month. We're
> interested in [which]{.underline} piece did you respond to, not simply
> that you responded! We have a reference number that's associated with
> that 9 digit unique number, and that's the way we can use this (IMB)
> data."*
>
> *\-\-\-\-\-\-\-\-\--*
>
> *"I think is the most exciting way (that we're using IMB) is actually
> putting the (IMB) barcode on our remittance statements for our
> customers. If we have customers that are in collections, and they've
> sent a payment in, we'll know that that payment is in the mail, we
> will not call them...remove them from our caller list...makes for a
> much better customer experience!"*

**Summary**

The Postal Service's Intelligent Mail barcode initiative will provide
mailing customers with two key mailing options for automation mail:
basic and full-service.

The basic option fundamentally replaces the POSTNET barcode. The
full-service option creates an opportunity to truly transform direct
mail management, by virtue of the requirement for unique piece
identification and electronic documentation, which will provide mailers
and mail owners with the infrastructure to obtain and analyze
information about the mail in new and dramatically different ways. For
companies adopting the full-service option, the value of information
about individual mailpieces and customer responses can be leveraged to
create significant business value and competitive advantage that far
exceeds any additional investment required to make use of the
Intelligent Mail barcode full-service option.

**Benefits-Savings Estimator**

In an effort to help businesses get a handle on potential savings, the
Postal Service has developed a Benefits-Savings Estimator tool for
customers to evaluate the Full-Service option. This tool is implemented
as a Microsoft™ Excel spreadsheet. Customers are able to select items
from dropdown lists and/or enter data values to reflect their business,
such as the investment cost to implement the Full-Service option, annual
volume of mail, etc. The Benefits-Savings Estimator calculates several
financial metrics based on the data that's input; Net Present Value
(NPV), Return-on-Investment, and Cash Payback period. While we believe
this tool provides guidance, it is not intended to replace more formal
investment calculators that customers might require to make investment
decisions.

The Benefit-Savings Estimator spreadsheet has several supporting
worksheets (tabs) that roll-up to a summary worksheet called "Mailer
Total Return". Each supporting worksheet models the potential savings of
a particular benefit area, which may or may not apply to each business.
Users can simply skip populating a particular supporting worksheet if
the benefit area does not apply to them. The data entered into each
benefit area worksheet is automatically rolled up to the summary "Mailer
Total Return" worksheet. The potential savings areas in the
Benefits-Savings Estimator and associated worksheet names are as
follows:

+-----------------------------------+-----------------------------------+
| **Benefits-Savings Area**         | **Worksheet Name**                |
+-----------------------------------+-----------------------------------+
| Potential Savings from free       | FCM ACS                           |
| Full-Service Address Change       |                                   |
| Service                           | STD ACS                           |
|                                   |                                   |
|                                   | PER ACS                           |
|                                   |                                   |
|                                   | PER ACS Publisher                 |
+-----------------------------------+-----------------------------------+
| Potential Savings from Paperwork  | Paperwork                         |
| Reduction (from electronic        |                                   |
| documentation)                    |                                   |
+-----------------------------------+-----------------------------------+
| Potential Savings from Postage    | Payment Timing                    |
| Payment Timing                    |                                   |
+-----------------------------------+-----------------------------------+
| Potential Savings from Optimized  | Message Timing                    |
| Message Timing                    |                                   |
+-----------------------------------+-----------------------------------+
| Potential Savings in Payment      | Payment Collections Management    |
| Collection Management             |                                   |
+-----------------------------------+-----------------------------------+
| Potential program-wide savings    | Mailer Total Return (note, except |
| (all areas) from implementing the | for the Net Present Value         |
| Intelligent Mail Barcode          | Discount Rate, users cannot edit  |
| Full-Service option               | values directly into this         |
|                                   | worksheet. Values from supporting |
|                                   | worksheets populate this          |
|                                   | worksheet.)                       |
+-----------------------------------+-----------------------------------+

Please note the following:

1.  The Benefit-Savings estimator allows implementation costs to be
    input for five (5) years and projects benefits for five years. Total
    implementation costs, total savings, net cash flow, and cumulative
    cash flow are calculated for each year.

2.  The Benefit-Savings Estimator uses Excel's Internal Rate of Return
    (IRR) function to calculate return on investment. This function will
    return a "N/A" return on investment value, if there isn't at least
    one project year with a net negative value.

3.  Cells highlighted in yellow provide a dropdown list of options the
    user can select from. Cells highlighted in purple allow values to be
    directly input. All other cells are password protected to prevent
    user errors from inadvertently altering formulas.

**Potential Savings from Address Change Service (ACS)**

There are four (4) ASC benefits-savings worksheets, one for First Class
Mail™ (FCM ACS), Standard Mail™ (STD ACS), periodicals mail (PER ACS),
and a special-case periodicals publisher ACS model. The requested input
parameters for the first three models are the same but the values in
several dropdown lists change depending upon the class of mail. The
periodicals publisher ACS model is described in a subsequent section of
this document. The ACS models are based upon estimating savings from
avoiding traditional costs associated with receiving address change
notices (if applicable) and from reducing the amount of wasted mail due
to improved address quality from receiving free address change
information (cost to re-handle a mailpiece and the cost to re-mail the
piece).

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

> Total number of pieces per Year: direct input (annual mail volume in
> pieces)
>
> Has Mailer Purchased ACS?: select from dropdown list
>
> Service Requested: select from dropdown list
>
> ACS Type: select from dropdown list
>
> Percent UAA Yr1 -- Yr5: direct input (estimated % UAA improvement)
>
> Cost to rehandle piece: direct input (estimated cost to rehandle a
> piece)
>
> Cost to remail piece: direct input (estimated cost to re-mail a piece)

**Implementation Costs**

> Total Implementation Costs Yr1 -- Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provided by finance, dept.)

**Potential Savings from Address Change Service (ACS), Periocials
Publisher's View**

This model (PER ACS Publisher) is similar to the Periodicals ACS model,
but has additional cost provisions (incremental service charges) for a
periodicals publisher. This model estimates savings from avoiding
traditional costs associated with receiving address change notices (if
applicable) and from reducing the amount of wasted mail due to improved
address quality from receiving free address change information (cost to
re-handle a mailpiece and the cost to re-mail the piece).

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

> Total number of pieces per Year: direct input (annual mail volume in
> pieces)
>
> Has Mailer Purchased ACS? select from dropdown list
>
> Service Requested: select from dropdown list
>
> ACS Type: select from dropdown list
>
> Percent UAA Yr1 -- Yr5: direct input (estimated % UAA improvement)

**Incremental Service Charges**

> Per Piece Cost: direct input (other incremental service charges/piece)
>
> Overall Cost (if applicable) Yr1 -- Yr5: direct input (other fixed
> costs, not per piece)

**Implementation Costs**

> Total Implementation Costs Yr1 -- Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provided by finance dept.)

**Potential Savings from Paperwork Reduction**

This worksheet estimates savings due primarily to the electronic
documentation requirement for Full Service option mail. Savings are due
to reducing the amount of printed and stored documentation and
estimating annual labor savings from not having to print, handle, store,
and manage hardcopy documentation.

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

> Mailing Type: select from dropdown list
>
> Total Pieces per Mailing: direct input (estimated average \# pieces
> per mailing)
>
> Number of Mailings per Year: direct input (estimated \# mailings
> annually)
>
> Document Sheets per Mailing: direct input (estimated \# pages of
> documentation)
>
> Document Retention Period (days): direct input (# days documentation
> retained)
>
> Cost per Printed Sheet: direct input (estimated cost to print a page
> of doc.)
>
> Yearly Cost to Retain Documents: direct input (estimated average
> annual cost to retain each printed document)
>
> Hrs Saved from Paperwork Reduction: direct input (estimated annual
> hours saved not printing hardcopy mailing documentation)
>
> Hourly Wage of Staff: direct input (estimated fully burdened wage
> rate)

**Implementation Costs**

> Total Implementation Costs Yr1 -- Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provided by finance dept.)

**Potential Savings from Optimized Postage Payment Timing**

The "Payment Timing" worksheet estimates the savings from optimizing the
timing of postage payment afforded by electronic documentation.

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

> Mailing Type: select from dropdown list
>
> Total Dollar Amount of One Mailing: direct input (average revenue from
> a mailing)
>
> Number of Mailings per Year: direct input (# mailings annually)
>
> Current Payment Delay Time (in days): direct input (estimated current
> delay)
>
> Future Payment Delay Time (in days): direct input (estimated delay
> after IMB implementation)
>
> Cost of Capital: direct input (usually provided by finance dept.
> Depending on the company, may or may not be the same value as the NPV
> Discount Rate)

**Investment Costs**

> Total Implementation Costs Yr1 -- Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provided by finance dept.)

**Potential Savings from Optimized Message Timing**

The "Message Timing" worksheet estimates the cost of mail not arriving
at customers in the time required due poor address quality, having to
perform a re-mail, and lost opportunity costs.

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

> Mailing Type: select from dropdown list
>
> Total Number of Pieces per Year: direct input (annual manual volume in
> pieces)
>
> Percent Improvement: direct input (estimated improvement)
>
> Cost of Late Piece: direct input (estimated cost of late piece)
>
> Percent of Responses Lost Due to
>
> Message Delay: direct input (estimated % loss)
>
> Average Sale Per Response: direct input (average \$ for each response)

**Investment Costs**

> Total Implementation Costs Yr1 -- Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provided by finance dept.)

**Potential Savings in Payment Collection Management**

The "Payment Collection Management" worksheet estimates savings from
avoiding the costs to regenerate a mailpiece (e.g., an invoice), cost to
contact the customer, and the cost of waiving a late fee. The model
calculate savings based upon optimizing call cent / help desk staffing
achieved through better visibility of the mail (when
payments/remittances are being returned). Savings from cash flow
management are also calculated from improved cash flow due to better
addressing.

The user entered parameters and method of input for this benefit area
are as follows:

**Mailer Profile Data**

Mailing Type: select from dropdown list

Total number of Pieces per Year: direct input (annual mail volume)

**Dunning Notices**

> Percent not paying bills on time: direct input (estimated % not paying
> on time)
>
> Cost to Regenerate Piece: direct input (estimated costs to re-mail)
>
> Cost of Phone Call to Customer: direct input (estimated cost to
> contact customer)
>
> Cost of Waiving Late Fee: direct input (estimated cost of waiver fee)

**Call Center Staffing**

> Hours Saved from Improved Staffing: direct input (estimated hrs
> savings
>
> Hourly Wage of Call Center Staff: direct input (estimated fully
> burdened wage rate)

**Cash Flow Management**

> Current Payment Receipt Delay: direct input (current delay in days)
>
> Future Payment Receipt Delay: direct input (future, estimated delay in
> days)
>
> Cost of Capital: direct input (usually provided by finance dept.
> Depending on the company, may or may not be the same value as the NPV
> Discount Rate)
>
> Bill Amount Received per Piece: direct input (average \$ amount of
> payment)

**Investment Costs**

> Total Implementation Costs Yr1--Yr5: direct input (investment costs;
> enter as positive value)

**Return on Investment**

> NPV Discount Rate: direct input (usually provide by finance dept.)

**Mailer Total Return**

This is the summary spreadsheet that rolls up all the costs and savings
from all supporting worksheets (savings models). The user entered
parameters and method of input for this worksheet are follows:

Net Present Value Discount Rate: direct input (usually provided by
finance dept.)