# Presentation: 432232

## List or Lemon?

- The Ap-“peal” of Address Hygiene
**National Postal Forum May 18 – 21, 2008**

- DeWitt Crawford, Address Management, USPSElizabeth Lombard, Postal-Carrier Specialist, Pitney Bowes

- Illustration:  Microsoft® Clip Art

**Notes:**
Slide 1 (cover slide) 
Session synopsis:
Attendees will learn how to determine if a list owner has been keeping up with quality address hygiene practices and will learn what value a quality address list has on their ROI.

## QUALITY ADDRESSING PROFESSIONAL CERTIFICATE

***This session qualifies as one of the four Addressing sessions, in addition to the Tuesday, May 20******th****** General Session needed for the****** ******Address Quality Specialist Certificate!***

## Announcing 2 New Symposiums

*15 Presentations focusing on Intelligent Mail*
*See Page 20 of the Catalog** *

*7 Presentations focusing*
*on Direct Mail and the Environment*
*See Page 21 of the Catalog*

***Announcing 2 New Symposiums***

## Session Objectives 

- Ensure the accuracy, and thus, the resulting effectiveness of mailing lists
- Understand how to apply address hygiene in list rental to Return On Investment (ROI)

**Notes:**
List rental is big business and mailers need to know how to determine if a list they are renting is of highest quality.

In this session attendees learn what questions to ask a list owner to determine if the mailing list has been updated and validated recently enough to bring value to their mailing.  Attendees will also gain valuable insight on how to apply the value of address hygiene in list rental to ROI (Return on Investment)

## Agenda

- Success of a Direct Mail Campaign
- The Challenge – Undeliverable as Addressed Mail (UAA)
- The Business Impact of UAA
- USPS® Solutions to Ensure Address Quality
- Questions to Ask of Your List Provider to Maximize Deliverability
- Using the Reports

## 40/40/20

- Success of a Direct Mail campaign
- 20% attributed to the CREATIVE
- 40% attributed to the OFFER
- 40% attributed to the LIST
- Getting message _delivered_ is critical!

**Notes:**
There is an old adage in the retail industry: Location, Location, Location.
Within the mailing and shipping industry, the address list is the vital ingredient to the success of any Direct Mail campaign.  In fact, marketers estimate that the quality of a mailing list can account for as much as 40 percent of the results of a campaign.  But your list is only as good as the quality (accuracy and deliverability) of the addresses you put on your mailpieces.

## What’s the Challenge? UAA !!!

*** Christensen UAA Study 2004 (All Classes)**

**9.7 Billion UAA Volume***** **
- 75.8 % Move Related
- 5.2 % Missing/Incorrect Apt/Ste Numbers
- 0.1 % Missing/Incorrect Directionals
- 0.8 % Rural/Highway Contract Box Numbers
- 4.4 % Missing/Incorrect Street Name/Numbers
- 0.13 % Missing/Incorrect City/St/ZIP
- 13.6 % Other (Missing Recipient, Illegible Handwritten Address, Deceased, Unclaimed, No Mail Receptacle)

**Notes:**
So what’s the challenge?
Based on the last UAA study completed by the independent company Christensen in 2004.

## What’s the Challenge?

- People are on the move!
- Over 45 million individual/family COA filings every year
- 2.5 million businesses file COA each year
- Approximately two million new addresses are created every year
- _Mailing lists deteriorate over 1% a month_

- Illustration:  Microsoft® Clip Art

**Notes:**
(Source:  USPS PCC 2006_Smart Addressing for Tomorrow)
There are great challenges facing mailers – people are on the move.
45 million Americans move each year!
2.5 million businesses move each year as well! 
Approximately two million new addresses are created every year
On average, mailing lists deteriorate over 1 percent a month.

## Business Impact

- Poor quality customer data cost US businesses $611 billion a year in postage, printing and overhead *plus* the costs associated with losing and alienating a customer
- Address quality can mean the success or failure of a Direct Mail campaign
- Notice of a sale or event after it has occurred or offer never received =       LOST OPPORTUNITY

**Notes:**
According to a report published by The Data Warehousing Institute in 2002, “poor quality customer data cost US businesses a staggering $611 billion a year in postage, printing and staff overhead.”  This amount does not include the costs associated with losing and alienating a customer, which are much greater.  

Relative to Direct Mail marketing, incorrect or invalid addresses can mean the difference between a successful campaign or a failed campaign.  Time-sensitive promotions may be ineffective as inaccurately addressed mail may be delayed... receiving notice of a sale or event after it has happened not only means lost opportunity but even perhaps disgruntled prospects!  And clearly, if the offer never is received, prospects cannot respond at all!  

## List Provider Guarantees

- List providers actually guarantee accurate, high-quality data
- Lists are processed via CASS CertifiedTM software and validated against DPV® and NCOALink®
- Some guarantee 90% deliverability
- Some guarantee to replace any UAA data with new data at no cost

**Notes:**
So, what do List Providers guarantee?
Some list providers actually guarantee accurate, high quality data with the most current addresses available in every list ordered. They state that their lists are USPS® CASSTM processed and “regularly scrubbed” using DPVTM to confirm the Post OfficeTM actually delivers mail to that particular address.  
They state that their lists are continuously updated with NCOA software (National Change of Address), CASS Certification, and “every standard accuracy process”.
Some guarantee 90% deliverability and/or accuracy on their lists.
Some further guarantee that they will replace any undeliverable as addressed (UAA) data with new data at no cost.

Keep in mind though, because we live in a free society,  no list on the market can be 100% deliverable at any one point in time. People move, change jobs, marry, have children, buy homes, sell homes and make other lifestyle changes every moment of every day.  

**Standardize**

**CASS CertifiedTM Software**

**Validate**

**AEC / AEC II****®**

**Update**

**NCOA****Link®**

**ANK****LinkTM**

**DPV****®**** & LACS****Link®**

**Suite****LinkTM**

**OneCode ACSTM**

**Notes:**
These are USPS products that list providers can use to achieve total address quality.  Let’s briefly review these solutions and then discuss how you can utilize reports generated by these solutions to ensure the effectiveness (or deliverability) of the list you obtain from a list provider.

The first solution is CASS-certified software (Coding Accuracy Support System to standardize the address.
And within CASS-certified software, a list provider can validate that the address is deliverable using DPV (Delivery Point Validation).  Addresses that may have been changed, such as for a 911 conversion, can be updated with LACSLink (Locatable Address Conversion System – Linkage System).

List providers can also use AEC and AECII  (Address Element Correction) to get ZIP+4 codes for hard-to-code addresses. AEC attempts to assign a ZIP+4 Code to addresses that fail standardization and validation through traditional CASS address matching software.  AEC uses sophisticated address hygiene algorithms developed by the USPS that go beyond typical capability of commercial address-matching software, and attempts to “improve” addresses that currently do not Delivery Point Validate (DPV).
AEC corrects incomplete and incorrect addresses, but cannot verify customer name or occupancy information.  AEC II includes processing of records through additional avenues, including the USPS historical file (developed from carrier knowledge), and, in some cases, presentation of the address to delivery units for resolution through eUARS, an internal USPS web application that enables delivery units to correct incomplete and incorrect addresses using a click application.

And finally, to ensure that the individual, family or business resides at the address, list providers can update the list for moves with NCOALink (National Change of Address Linkage System), ANKLink (Addressee Not Known Linkage System), and ACS  (Address Change Service).
NCOALink used prior to mailing to help identify if a customer has moved and gives the customer’s new address
ANKLink is designed for users of the NCOALink 18-month service to tell you that a change of address order has been filed within the last 19 to 48 months for the customer
ACS is a post-mailing operation where ACS participants print an ACS keyline or participant code on mail pieces and are notified of the new address to which the mailpiece was forwarded.

## Questions to Ask Your List Vendor

- When was the last time this list was updated using the results from CASS CertifiedTM software?
- Are there any addresses in this list that were not DPV® confirmed the last time you used CASS Certified software?
- What processes do you use to correct addresses that cannot be ZIP + 4® coded with CASSTM processing? Do you use AEC?
- When was the last time this list was updated using the results from NCOALink® or ACSTM or *FASTforward**®*?
- Has your list been de-duped?
- Are processing reports available for review?

**Notes:**
It’s important to talk to list vendors about what they do to their lists to ensure that they are using the best practices possible to maintain good address quality.

The first thing you should talk to your list vendor about is their CASS processing.  You want to know how often they process and you want to know when they last had the list processed that you are about to get from them.  You might even get them to process their list immediately prior to your receipt of the addresses.

If you are renting a list you also want to know what percentage of the list does not have a 9 digit ZIP Code assigned.  Since CASS software is only allowed to give back a ZIP + 4 when the record DPV confirms you can get a decent handle on the overall quality of a list by asking how many of the records in the list would not DPV confirm with the last processing.

Depending on what’s going on with regards to the number of records the DPV confirm you may also want to find out what other actions the list vendor is taking to bring the address list up to par.  Two processes available to the industry from the USPS are AEC and AEC II.  These processes use special USPS knowledge to help correct addresses that might not otherwise be able to be corrected and the processes require that the address list owner send the list to the USPS.

Once you’ve been able to evaluate that a list vendor has quality addresses you will also want to ensure that the list vendor keeps their list updated with the latest move information from the USPS.  That means that the vendor should be making use of one of the approved Move Update methodologies such as NCOALink, ACS or FASTforward.  And for the purposes of qualifying for automation rate discounts, one of these processes must be used on the address list (and updates applied) a maximum of 185 days prior to the mailing date...and that time frame will change to a maximum of every 95 days starting in late November.

Also, since it is estimated that 10 percent of the names and addresses in the average mailing list are duplicates, request that de-duplication efforts have take place. If your mailing list contains 10,000 records with production and postage costs averaging $.83 per piece, your total mailing cost would be $8,300. If 10 percent of your list is made up of duplicate records, you are wasting $830 on duplicate records every time you mail.

Finally, you are going to want to make sure that reports generated from all of the processing applied to the list are available to you and you should scan those reports to make sure that everything is as it has been represented

## Documentation From Your List Vendor

- CASSTM Report 3553
- DPV®
- LACSLink®
- Total ZIP + 4® Coding
- CASS Summary Report
- AEC Summary Reports
- NCOALink® Summary Report

**Notes:**
So...what are some of those reports that your list vendor should have available to you?

Well first there is the Form 3553 from the CASS process.  This report shows how many records were processed; on what day the records were processed, how many records DPV confirmed (essentially that means how many of the addresses on the list will qualify for automation rates) and summary information regarding how many records received a ZIP + 4 because the address DPV confirmed even though better address information would have allowed for a more accurate + 4 Code.  More on that later.

There should also be CASS summary reports.  Whereas the 3553 is a common form that must be produced with each run, there is often also a summary report that is specific to the CASS vendor. This type of report gives detailed information about what types of matches were made such as a match was made without an apartment number or maybe the city name had to change in order to get a match.  Since this report is not tested for as a part of the CASS test I cannot give you specifics about how to look at and evaluate this type of report. Nor can I even guarantee that this report is available.  However, it’s a good idea to ask the vendor if such a report is available.

If the address list was further processed using the USPS AEC or AEC II processes there should be a report for that as well.  This report again provides information about what changes were made to the address list.

And finally, the NCOALink processing report.  This tells you what type of NCOALink processing was performed (Individual, Family or Business) and what types of results were had from the process.

## Slide 14

**Notes:**
Here we have a mock up of a 3553 Report.  I know its hard to see here but its important that you see that there is a lot of information here and some of it has meaning to the USPS but less meaning to the mailer.

The USPS can request copies of this report to verify that mailing meets the CASS Coding requirements for automation rate price incentives.  The USPS needs to know about who the list owner is and who performed the CASS processing.

There are two parts of this report that are helpful in understanding the quality of the list.

## Form 3553 – Important Numbers

**Notes:**
In this blow up of the middle part of the form you can see several very important numbers.  

The first number to note is the “Total Records Submitted”  This number indicates the total number of addresses that were processed by the CASS engine in a single run.  If a list vendor is renting you more records than are listed here you know that some records in that list were not processed through CASS  on the same day.  Sometimes list vendors compile several lists before renting them so a higher number of records than what is recorded on a single 3553 does not mean that something is wrong.  If you are being sold more records than are reported here simply ask the vendor to provide you with the rest of the 3553 reports.

The second number to take note of is the number is section C, Line A, Box 1.  This number tells you how many of the records were able to be ZIP + 4 coded and therefore qualify for automation rates.  The other number, in Section C, Line D, Box 1, is the number of records from the file that were able to be 5 digit coded but not ZIP + 4 coded.  This number of records in the file can qualify for presort rates only.

Also note the dates on the form.  CASS processing is good for 185 days.  This does not change with the move update requirement change to 95 days that takes affect in November.  Obviously, if the “validation Period” date has already passed by then the CASS processing that this form represents is no longer valid.  The key here is that you have to remember is that if you plan to mail to this list after that date, the list will have to be processed again in order for the CASS processing to be valid.  In this case, If I was planning on mailing on September 1, I would need to be certain that the list was processed again because the CASS processing in not valid for mailing after August 22.

## Form 3553 – Other Significant Information

**Notes:**
Qualitative Statistical Summary (QSS) - This information allows mailers and list processors to evaluate the quality of their address list processed through CASS software before its contents enter the mailstream. A significant number of High-rise default/rural route default matches, although these addresses remain eligible for postal automation rate discounts at this time, increase the costs and reduce the efficient delivery of this mail. Mailer’s should research to obtain secondary unit designator address information or highrise addresses and specific box number information for rural route addresses which are coded to default records on the National ZIP + 4 File.
Highrise Default/RR Default
Entries in this box show the number of addresses that were default matched. Defaults are matches made to addresses that contain invalid/missing secondary
address or box information. A highrise default contains the building street address in the primary range field and spaces in the secondary range field. A rural route default contains the route number in the primary name but also has spaces in the primary address range.
LACSLinkTM System
Entries in this box show the number of addresses which have been converted through the LACSLink process. LACSLink is a data product provided by the Postal Service to allow addresses that have been converted due to USPS changes or for 911 emergency systems to be linked with their new address.
Early Warning System (EWS)
Entries in this box show the number of addresses on the processed address list that are new addresses not in the current US Postal Service ZIP + 4 File.  These addresses are, however, valid addresses as formatted and should not be changed in any way since the Postal Service will assign ZIP + 4’s to these addresses on the next monthly ZIP + 4 File.
SuiteLinkTM System
Entries in this box show the number of ZIP+4/DPV confirmed addresses that matched to a highrise default, and the SuiteLink process returned the appropriate suite number. Only SuiteLink enabled software will return a value in this box (Check with your software vendor for obtaining this option). These address records are valid delivery points by the US Postal Service. Addresses that are not confirmed by DPV are either new addresses not available on the current Delivery Sequence File, or are not valid and the list holder should further investigate to determine the accuracy of these addresses. Mailers should make every effort to ensure the quality of their address list(s).

## AEC Summary Report

-  USPS 67-1126                NATIONAL CUSTOMER SUPPORT CENTER         02/24/2008
-                                UNITED STATES POSTAL SERVICE
-  REPORT AEC017P1         ADDRESS ELEMENT CORRECTION SUMMARY REPORT    PAGE: 1
-  --------------------------------------------------------------------------------
-  CUSTOMER NAME: SUGAR BAKED PIES
-  CUSTOMER ID  : 16414
-  --------------------------------------------------------------------------------
-  CODE  ELEMENT RESOLUTION MESSAGE                               TOTAL     PERCENT
-  --------------------------------------------------------------------------------
-   Y    THE ADDRESS MATCHED USPS ZIP+4 ENGINE AND DPV            1,076     28.45%
-   N    ADDRESS HAS NOT BEEN RESOLVED TO A SPECIFIC              2,442     64.53%
-        DELIVERY POINT
-   1    ADDRESS RESOLVED TO HIGHRISE OR RURAL ROUTE DEFAULT        154      4.07%
-   P    STREET ADDRESS INVALID - PO BOX ONLY ZIPCODE               111      2.95
-  --------------------------------------------------------------------------------
-        TOTAL                                                    3,783    100.00%
- ---------------------------------------------------------------------------------
-  CODE  RESOLVED ADDRESSES RECORD TYPES                          TOTAL     PERCENT
-  --------------------------------------------------------------------------------
-   F    FIRM                                                         0      0.00%
-   G    GENERAL DELIVERY                                             0      0.00%
-   H    HIGHRISE                                                   223     18.17%
-   >    HIGHRISE DEFAULT                                           154     12.51%
-   P    PO BOX                                                      47      3.81%
-   R    RURAL/HIGHWAY CONTRACT ROUTE                                 4      0.32%
-   <    RURAL/HIGHWAY CONTRACT ROUTE DEFAULT                         0      0.00%
-   S    STREET                                                     794     64.58%
-   M    MILITARY                                                     0      0.00%
-   U    UNIQUE                                                       1      0.09%
-   L    LACS                                                         7      0.41%
-  --------------------------------------------------------------------------------
-        TOTAL                                                    1,230    100.00%
-  --------------------------------------------------------------------------------

**Notes:**
Here we have a sample of an AEC summary report.  

If your vendor is doing everything they can to make their list the absolute best then they might be using AEC.  AEC allows the USPS to make corrections and to code addresses to their finest level when a vendor cannot get that from their CASS product.  There are a couple of reason why any particular CASS engine might not be able to code an address: 

The address might be so new that it hasn’t been added to the USPS products that the vendor uses in their CASS engine.
The address may be so poor that there is no way a CASS engine, or a Move Update product, can get you to the right address or an address might have multiple potential addresses to match to so the CASS product can’t make a choice about which address is correct.

If your vendor is using AEC then they will have an AEC Summary Report.  The important information to look at here is the total line at the bottom.  This number represents the number of addresses AEC was able to correct and code out of the total records presented.  In this case there were 3, 783 records sent to AEC.  Note that this number matches the number of records that only received a 5 digit ZIP code from CASS in our previous slide.  Out of this total number only 1,230 were able to be coded by AEC.  

So, to determine the total number of records that the USPS knows it can deliver, you add the 141,217 records that were coded by CASS to the 1,230 that were coded by AEC

This is an approximate 33% improvement.

## No Standardized Format

Contains Information About The Records Updated from NCOALink

Includes Summary of NCOALink Return Codes

Primarily to Ensure That Move Update Qualification Has Been Met

- Contains Information About The Records Updated from NCOALink
- Includes Summary of NCOALink Return Codes
- Primarily to Ensure That Move Update Qualification Has Been Met

- NCOALink® Summary Report

**Notes:**
Put notes here

## Be Inquisitive
Don’t Just Ask the Questions We Gave You
Know as Much About Quality Addressing as Possible

Examine The Documentation
Know What to Look For
Talk to Your Vendors
Reputable Vendors Want You to be Informed

- Don’t Just Ask the Questions We Gave You
- Know as Much About Quality Addressing as Possible
- Examine The Documentation
- Know What to Look For
- Talk to Your Vendors
- Reputable Vendors Want You to be Informed

- Action to Take

**Notes:**
Mailing lists that are passed through the CASS processes of ZIP+4, DPV and LACS receive multiple return codes, markers or flags that can be invaluable in maximizing the effectiveness of the list.  Work with the various codes to improve the general hygiene of your mailing lists.  

Here’s something we haven’t mentioned.  Just because a record won’t DPV confirm doesn’t mean that the USPS can’t deliver that mail piece.  Often the local carrier knows exactly how to get your mail to the intended recipient.  So ask your vendor about response rates for addresses that don’t DPV confirm.  You may find value in mailing those pieces too.  But, be prepared to pay non-automation rates for that privilege. 

## Questions?

- Thank You!

## Question 1

- To validate list quality, i.e., that a list owner employs good address hygiene practices, list renters can request forms such as PS Form 3553, the NCOALink® Summary Report and the AEC Summary Report from List Owners.
- True or False?

**Notes:**
Question 1: List Renters can request forms like the PS Form 3553, NCOALink Summary Report, & AEC Summary Data Report from the list owner be able to show good address hygiene practices
Answer 1: true

## Question 2

- Section “C” from PS Form 3553 is indicative of a quality address list.
- True or False?

**Notes:**
Question 2: Section “C” from a PS Form 3553 is indicative of a quality address list.
Answer 2: true

## Question 3

- The primary reason that address quality helps manage mailing costs is because more mail will qualify for airmail discounts.
- True or False?

**Notes:**
Question 3: More mail qualifies for airmail discounts is the primary reason that address quality helps with your mailing costs.
Answer 3: false

## Quality Addressing Track

***Quality Addressing Track***

_**Monday**_
*Tools & Techniques that Make the Case for Address Quality*
- Ruth Jones/Gary Seitz - Period 5, **10:00 - 11:00am - Room 212AB**
*What are “Bad” Addresses & What to do With Them*
- Charles Hunt/Kevin Conti - Period 6, **11:15am - 12:15pm - Room 212AB**
_**Tuesday**_
*Move Update – How to Keep in Touch With Moving Customers*
- Audrey Conley/Adam Collinson - Period 10, **10:00 - 11:00am - Room 212AB**
*Intelligent Addressing to Achieve 100% Mail Integrity*
- Jim Wilson/Eric Houger - Period 11, **11:15am - 12:15pm - Room 210AB**
*How Government Agencies use Address Quality to Better Serve the Community**               *                 Gail Milton/Mike Sexson - Period 13, **3:15 - 4:15pm - Room 212AB**
_**Wednesday**_
*The ROI of Address Quality*
- Charles Hunt/Chris Lien - Period 16, **2:15 - 3:15pm - Room 212AB**
*Stump the Experts with Your Un-codable UAA Mail*
- Jim Wilson/Alice VanGorder - Period 17, **3:30 - 4:30pm - Room 212AB**

## Thank You!

- DeWitt Crawford, Address Management, USPS _[dewitt.crawford](mailto:dewitt.crawford@usps.gov)__[@usps.gov](mailto:dewitt.crawford@usps.gov)_
- 901-681-4612
- Elizabeth Lombard MQC, EMCM, CMDSM, CMDSSPostal-Carrier Specialist, Pitney Bowes_[elizabeth.lombard@pb.com](mailto:elizabeth.lombard@pb.com)_