# Presentation: 236772

## Address Quality Symposium

**Customer Triumphs**
**Success Stories**

## Customer Triumphs, Success Stories Panel Members

**Michael Monahan**
**Executive Vice President & President**
**Mailing Solutions and Services**
**Patty Melanson**
**Director, Product Development**
**First Data Resources**

- Address Quality
- Symposium

## Michael MonahanExecutive VP & President, Global Mailing Solutions and ServicesPitney Bowes Inc.

- Michael Monahan is Executive Vice President and President, Global Mailing Solutions and Services. Mike works closely with the company’s global channel and operations organizations to drive a worldwide growth strategy for its core mailing business through management of the Pitney Bowes global product portfolio. Mike’s responsibilities include maximizing growth and profitability for the mail finishing, mail creation, distribution solutions, and digital imaging lines of business.  Mike is also responsible for U.S. Postal Service® and global carrier relations.
- Mike is a Board Member and former Board Chairman of the Urban League of Southwestern Connecticut.  He is also a member of the Board of the Sherman Higher Education Fund.  Mike is a Certified Public Accountant who holds B.S. and M.S. degrees from the State University of New York at Albany.

- Address Quality
- Symposium

## “Peter O’Leary, Somewhere Here”

## Why is Address Quality Important?

**Good Business Practice**
**Good for the Environment**
**Good for the Mailstream**
**Good for Your Bottom Line**

## Defining the Challenge:

- _PITNEY BOWES/HARRIS INTERACTIVE: DEC. 2005_
**49%** – said they would be less likely to become or remain a solicitor’s customer due to poorly targeted communications, such as addressing mistakes.
**92%** – reported having received multiple copies of the same piece of mail.
**73%**  – said they are much more or somewhat more likely to respond to solicitations that are timely.

## Initiatives to Increase Deliverable As Addressed 

**Business-to-Employee**
** **Reduce Returned Employee Mail
**Business-to-Customer**
- Reduce Returned Mail
**Business-to-Prospect**
- Reduce Undeliverable Direct Marketing Mail

## Pitney Bowes Employee Mail Initiative:

**Overview:**
- 25,000 Employees in United States
- Undeliverable Rate:	0.93%
- Industry Average:	2.96%

## Pitney Bowes Employee Mail Initiative:

- Process
- Measurement
- Control

**Pitney Bowes Employee Mail Initiative:**

## Pitney Bowes Employee Mail Initiative:

**Objectives:**
- Reduce Undeliverable Mail to 0.15%
- Improve Employee Engagement
- Apply Learning to Customer and Prospect Mailings

## Pitney Bowes Employee Mail Initiative:

**Strategy:**
- Employee Education Program
- Create Employee Self-Service Address Update System
- Utilize Pitney Bowes’ Address Products
- Utilize USPS® Address Products

## The Way to Returns < 0.15% 

**The Way to Returns < 0.15% **

_***Planned Improvements***_*******
***Validate Addresses at Entry***
***Scheduled Prompts (future)***
***Life Event Triggers (future)***

***Employee Education***
***Started***

## Results to Date:
Original Return Rate:	0.93%
Targeted Return Rate:	0.15%
Achieved Return Rate:	0.18%

- Original Return Rate:	0.93%
- Targeted Return Rate:	0.15%
- Achieved Return Rate:	0.18%

**Pitney Bowes Employee Mail Initiative:**

## Pitney Bowes Customer Mail Initiative:

**Invoices & Statements Baseline Test:**
- Mailed:	13,920,451
- Returned:	141,960
- Return Rate:	1.02%
- Industry Average:	2.9%
- Goal:	0.18%

## Pitney Bowes Customer Mail Initiative:

**Process Prior to Test:**
- Mail Returned
- Forwarded to Customer Care
- Contact Customer & Verify Address
- Processed and Corrected
- Customer Master List Corrected
- Statement or Invoice Re-mailed

## Pitney Bowes Customer Mail Initiative:

**Customer Master List Improvements:**
**New Customers**:
- Data Cleanse New Customer Data Prior to Adding to Customer Master List (CASSTM, DPVTM, etc.)
**Existing List Cleansing & Maintenance:**
- Apply Customer Obsolescence Rules
- DPV
- LACSLinkTM
- Quarterly NCOALinkTM
- D&B: Monthly Company Name Updates (Standardization)

## Pitney Bowes Customer Mail Initiative:

**Pitney Bowes Customer Mail Initiative:**

**Measurement Metrics**

## Pitney Bowes Prospect Mail Initiative:

**Overview:**
- PB division targeting small business sends millions of mail pieces per year to prospects
- Mail is metered with Standard Mail® without ancillary endorsements (e.g. ACSTM)
- USPS® disposes of all undeliverable mail
- Percentage of undeliverable mail was unknown

## Pitney Bowes Prospect Mail Initiative:

**Objectives:**
- To increase the % of Deliverable As Addressed (DAA) mail at the current budget spend.
- Partner with the USPS® to increase DAA mail by examining existing data cleansing and identifying process improvements.
- Reduce environmental waste by reducing Undeliverable As Addressed (UAA) mail

## Pitney Bowes Prospect Mail Initiative:

**October 2006 – Baseline Test**
- Sample: 300,000 Standard Mail® pieces using current data cleansing process
- Subscribed to ACSTM Service
- Added Change Service Request endorsement to mail pieces (Do not forward COA – return to sender)
**November 2006 – Re-Mail Test**
- 269,896 mail pieces from Oct 2006 baseline test
- Oldest 2 months of addresses removed
- No further data cleansing performed

## Pitney Bowes Prospect Mail Initiative: New Record Cleansing

**CASS****TM****Certification**

**NCOA****LinkTM****Service**

**DSF2TM ****System**

**New ****Records (Monthly)**

**Merge New **

**Records w/ **

**Existing Records**

- Formats address to USPS® Addressing Standards
- Improves carrier route accuracy, ZIP + 4® and delivery point coding
- Converts rural route to actual address thru LACSLinkTM
- Enhances delivery sequencing thru eLOTTM

- Identifies Change of Address (COA filed with USPS for businesses, individuals & family
- Weekly updates from USPS
- COA downloads covering 4 years as opposed to 18 months
- DPVTM - Matching address list against USPS database of +145MM delivery points to confirm the address is correct and valid

- Identifies business and residential prospects

- New Lists

**Pitney Bowes Prospect Mail Initiative: New Record Cleansing**

## Pitney Bowes Prospect Mail Initiative:

**October 2006 Baseline Test **
**UAA Return Rate****	****– 3.89%**
- Nixie Returns	– 75% of total returns
- COA Returns	– 25% of total returns

## Pitney Bowes Prospect Mail Initiative:

**October Baseline**
- Analyze Nixie Return Codes vs. DPVTM Score
- Analyze Oct Returns vs. Nov. Returns
**March 2007 Mailing**
- 150,000 Standard Mail® pieces after data cleansing.
- Subscribed to ACSTM Service
- Added Change Service Request endorsement Perform a secondary NCOALinkTM matching

## Our Commitment:

**We will Improve Our Connection to:**
- Our Employees
- Our Customers
- Our Prospects

## Why Enhance Address Quality?Why Do It Now?

**It is a Good Business Practice**
**It is a Good Environmental Practice**
**It is Good for the Future of the Mailing Industry**

## Slide 26

## Patty MelansonDirector Core Product DevelopmentFirst Data Resources

- Patty Melanson is the Director of Core Product Development at First Data Resources, a division of First Data Corporation.  Patty has been with FDR for 20 years, serving in roles in operations, customer support, and product development.  In her current role, Ms. Melanson is responsible for delivering address quality solutions for FDR, who provides comprehensive card processing services to more than 1,100 bankcard and retail card issuers, representing more than 544 million accounts.

- Address Quality
- Symposium

## First Data Resources (FDR) is a third party provider of comprehensive card processing services
Provide full range of address hygiene services to support 500M+ addresses on file
Spend over $1.5 million per day on postage
$150 million in annual work share discounts

- Provide full range of address hygiene services to support 500M+ addresses on file
- Spend over $1.5 million per day on postage
- $150 million in annual work share discounts

**First Data Resources **

## Addressing services are critical to stay competitive
Allow mail owner and mail provider to differentiate themselves 
Accurate contact with customers = customer service win
Timely contact with customers = additional revenue opportunities
We want our clients to be successful!

- Allow mail owner and mail provider to differentiate themselves
- Accurate contact with customers = customer service win
- Timely contact with customers = additional revenue opportunities
- We want our clients to be successful!

**Why Address Quality is Important to FDR**

## Less expensive to get good address up front than to correct bad address later
Immediate address results for point of customer contact to require updated information
Web prompt given when validation fails with customer still online
Call center prompt when validation fails with customer still on phone
DPVTM indicator assists with secondary corrections
Full DPBC = immediate automation rates for same day events

- Immediate address results for point of customer contact to require updated information
- Web prompt given when validation fails with customer still online
- Call center prompt when validation fails with customer still on phone
- DPVTM indicator assists with secondary corrections
- Full DPBC = immediate automation rates for same day events

**Value of Real Time ZIP + 4****®**

**Notes:**

Moved from batch to real time process in 2005
Real time DPV implementing in July; DPV and LACS indicators will be integrated into front end systems to allow for additional scripting
CASS, DPV and LACS services provided for online clients free of charge
Current triggers? -- returned mail piece, customer phone call
Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## Customer A
5-digit mail decreased from 14.39% of volume to 5.62% in 12-month period
51% reduction in 5-digit mail 
Able to mail an additional 2M customers at automation rates
Customer B
5-digit mail decreased from 4.31% to 1.55% in 12-month period
62% reduction in 5-digit mail
Able to mail to an additional 100,000 customers at automation rates

- 5-digit mail decreased from 14.39% of volume to 5.62% in 12-month period
- 51% reduction in 5-digit mail
- Able to mail an additional 2M customers at automation rates
**Customer B**
- 5-digit mail decreased from 4.31% to 1.55% in 12-month period
- 62% reduction in 5-digit mail
- Able to mail to an additional 100,000 customers at automation rates

**Tangible Benefits of Enhanced ZIP + 4****®**** Process**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## NCOALink ensures accurate file of record
Allows discount mailing from list at any time with any vendor
Eliminates need for back-end process on every output path
FDR changed standard frequency from 6 months to 3 months in 2005
Client flexibility to run every 30 days
Systematic processes do not allow run > 120 days intervals

- Allows discount mailing from list at any time with any vendor
- Eliminates need for back-end process on every output path
- FDR changed standard frequency from 6 months to 3 months in 2005
- Client flexibility to run every 30 days
- Systematic processes do not allow run > 120 days intervals

**Move Update – Pre-Mailing NCOA****LinkTM**

## Customer A
Timeliness is critical; finding out 60+ days after move is too late
Relocation rewards program
Short incentive interest rate period
Particular types of retailers for post moving expenses
Convenience checks to assist with relocation expenses

- Timeliness is critical; finding out 60+ days after move is too late
- Relocation rewards program
- Short incentive interest rate period
- Particular types of retailers for post moving expenses
- Convenience checks to assist with relocation expenses

**Benefits of More Frequent NCOA****Link**** Runs**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## Customer B
Do Not Forward endorsement on plastics due to fraud concerns
Non-forwardable plastics returned for manual handling
Frequent NCOALink changes picking up moves sooner
Annual cost saves:
Direct: $40,000 reduction in return mail plastics handling
Indirect: Customer receives plastics in timely manner = additional transactions and improved customer service

- Do Not Forward endorsement on plastics due to fraud concerns
- Non-forwardable plastics returned for manual handling
- Frequent NCOALink changes picking up moves sooner
- Annual cost saves:
- Direct: $40,000 reduction in return mail plastics handling
- Indirect: Customer receives plastics in timely manner = additional transactions and improved customer service

**Benefits of More Frequent NCOA****LinkTM**** Runs**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## FDR building closed loop product around OneCode ACSTM and other vendors are doing same thing 
Target delivery October 2007
Cost effective solution due to USPS® pricing
EVA shows 20-90% cost reduction in changing from post-mailing ancillary endorsements to this new post-mailing method

- Target delivery October 2007
- Cost effective solution due to USPS® pricing
- EVA shows 20-90% cost reduction in changing from post-mailing ancillary endorsements to this new post-mailing method

**Move Update – Post-Mailing ACS**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## Manual process for ancillary endorsements
Perform account number look up
Physical entry of address change
Cost: $2.50  -- 50¢ for post card + 15 minutes of work at $8.00 hour
Integrated OneCode ACS process
Sign up with USPS® for BEI and with vendors who have closed loop OneCode ACS solution
Systematic updates of moves
Report monitoring if customer inquiry
Cost: $ .25
Cost reduction – 90%

- Perform account number look up
- Physical entry of address change
- Cost: $2.50  -- 50¢ for post card + 15 minutes of work at $8.00 hour
**Integrated OneCode ACS process**
- Sign up with USPS® for BEI and with vendors who have closed loop OneCode ACS solution
- Systematic updates of moves
- Report monitoring if customer inquiry
- Cost: $ .25
**Cost reduction – 90%**

**Ancillary Endorsements ******** OneCode ACS****TM**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## Value in both pre- and post-mailing Move Update processes
NCOALink keeps multi-purpose file of record up to date
Low cost OneCode ACSTM allows for jump start processes for interim moves
Multiple solutions accommodate various needs of unique clients

- NCOALink keeps multi-purpose file of record up to date
- Low cost OneCode ACSTM allows for jump start processes for interim moves
- Multiple solutions accommodate various needs of unique clients

**Move Update Benefits**

**Notes:**

Moved from batch to real time process in 2005
CASS services provided for online clients free of charge

Full DPBC on day 1 allows us to take full discount for immediate triggers such as same day plastics

## Create an address quality strategy
Break it into bite size pieces
Implement new processes then go back and retrofit old
USPS® can assist with EVA tools to gather numbers for business case
Establish annual budget for investment
Implement pieces of strategy when other events necessitate change
 Harder to justify as stand alone 
 Leverage annual CASSTM cycle changes
 Leverage upcoming Move Update frequency change

- Break it into bite size pieces
- Implement new processes then go back and retrofit old
- USPS® can assist with EVA tools to gather numbers for business case
- Establish annual budget for investment
- Implement pieces of strategy when other events necessitate change
-  Harder to justify as stand alone
-  Leverage annual CASSTM cycle changes
-  Leverage upcoming Move Update frequency change

**FDR Success Strategy**

**Notes:**
Create an address quality strategy
Break it into bite size pieces
Implement new processes then go back and retrofit old
       Don’t get overwhelmed by the fact that there are legacy systems or addresses
       At least begin to 
USPS can assist with EVA tools to gather numbers for business case
Establish annual budget for investment
Implement pieces of strategy when other events necessitate changes
 Harder to justify as stand alone 
 Leverage annual CASS cycle changes
 Leverage upcoming Move Update frequency change

## Symposium Sessions

**Monday Morning**
**Session 1 – The Big Picture**
**Session 2 – Customer Triumphs Success Stories**
**Wednesday Afternoon**
**Session 3 – The Expert’s Corner**
**Session 4 – Making The Case For Address Quality**
**Session 5 – Smart Addressing For Tomorrow**

- Address Quality
- Symposium

## Address Quality Workshops

**Sunday **
- Quality Mailpiece Design & 	2:00 pm – 3:00 pmUnderstanding Barcodes
- 6 Sigma Addressing Practices I	3:15 pm – 4:15 pm
- 6 Sigma Addressing Practices II	4:30 pm – 5:30 pm
**Monday **
- Fundamentals of Quality Addressing	2:00 pm – 3:00 pm
- Addressing & Your Bottom Line	3:15 pm – 4:15 pm
- The ABC’s of File Hygiene	4:30 pm – 5:30 pm

## Address Quality Workshops

**Tuesday**
*Standardize:* The Foundation of Your 	10:00 am – 11:00 amAddress Quality Processes
*Validate:* Make the Most of Your 	11:15 am – 12:15 pmStandardized Address
*Update:* Maintain Contact With Your 	2:00 pm – 3:00 pmMoving Customers with OneCode ACSTM
- Response Optimization Guide	3:15 pm – 4:15 pm
- Change of Address & Potential 	3:15 pm – 4:15 pmCOA Breaches
- New CASSTM Requirements and How They	4:30 pm – 5:30 pmAffect You

## Address Quality Workshops

**Wednesday**
- Stump the Experts With Your 	8:00 am – 9:00 amUncodable UAA Mail

## Address Quality Specialist Certificate

## Key Takeaway in Session 5 

**Address Element Correction Service**
**Address Standardization**
**Validation of delivery point **
**Statistical analysis of element correction**
**Special one-time offer expires ****June 1, 2007**
**Best Practices in Address Quality**

***Address Quality Analysis CD***

## Thank You

- Address Quality
- Symposium

## Address Quality Symposium

**Customer Triumphs**
**Success Stories**

**Notes:**
(Leave this slide up as the session ends and people leave)