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New Addressing Requirements to Improve Address Quality

New Addressing Requirements to Improve Address Quality. February 2007. Transformation Strategies. By 2010 our goal is to:. Reduce Costs Increase Delivery Point Sequencing to 95% Improve Service Reduce UAA by 50%. Cost of Poor Addressing. Annual cost of incorrect or missing primary number.

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New Addressing Requirements to Improve Address Quality

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  1. New Addressing Requirements to Improve Address Quality February 2007

  2. Transformation Strategies By 2010 our goal is to: Reduce Costs Increase Delivery Point Sequencing to 95% Improve Service Reduce UAA by 50%

  3. Cost of Poor Addressing Annual cost of incorrect or missing primary number REJECTED } 1 Automation Handling $60M Undeliverable 2 Manual Handlings

  4. New Addressing Requirement Current • To qualify for automation rate discounts: • Run Coding Accuracy Support System (CASS™) address-matching software • Standardizes addresses • Provides ZIP + 4 code CASS Cycle L • New requirement effective August 1 • Validates accuracy of delivery point • Potential impact to mailers about 2% • Many mailers reporting lower drops in match rate!

  5. CASS Delivery Point Validation U. S. Postal Service 6060 PRIMACY PKWY STE 201 Memphis TN 38188-0007 John Smith 123 Main Street Memphis TN 38188 Delivery Address Exists? CASS • CASS Cycle L will require that a ZIP + 4 can only be assigned if the primary number DPV validates. • If the primary address cannot be verified, no ZIP + 4 can be returned. The vendor must return only the 5-Digit ZIP Code. Yes 38188-8134 No 38188

  6. New Software Performance Products being delivered: • Servers – PC • Approximately same time • 80 companies offer solutions • Mainframe • 0% to 20% increase • 6 companies offer solutions • 23 certified CASS Cycle L solutions

  7. Business Process Solutions Responding to your issues: • LACSLink™ address update accommodation • Allows interim use of new ZIP + 4 without changing current address • Call center use of DPV • Available now • Allows front-end capture of quality address data • DirectDPV™ • Available upon implementation of CASS Cycle L • Improves processing performance by reducing redundant CASS processing of addresses

  8. Communications/Activities To Date • Provided notice to vendors (Feb ’06) • Discussed at 2006 National Postal Forum Addressing Symposium • Mailers’ Technical Advisory Committee • Presented at May and Nov meetings • Formed workgroup to prepare for August 1 implementation • Presented at over 30 Postal Customer Councils • Numerous trade press articles • Distributed USPS letter through vendors (Feb ’07)

  9. Articles in PCC Insider & Mailers Companion Improve DeliverabilityRequirements for mailers seeking postage automation discounts

  10. Communications Effectiveness • Emailed 174 surveys • NPF Address Quality Specialist Certificate holders • 38% responded • 95.5% aware of CASS Cycle L requirements • 55.7% have known for more than 10 months • 77% more than 7 months • 52.4% have performed quality analysis in preparation • 88.9% started preparations to meet new requirements

  11. Planned Communications/Activities • Presenting at several industry association meetings • Conducting webinar for Business Service Network (Feb ’07) • Sending email blasts via “DMM Advisory” • Conducting special Q&A session at Postal Forum • Partnering with Sales & Business Acceptance on communication / training • Publishing articles (internal / external publications) • Ongoing 1-on-1 consultation services provided to assist individual mailers

  12. How to Prepare for CASS/DPV Mailers should: • Run files against Delivery Point ImmediateValidation tool to determine impact • Review and implement Immediate to August 1new processes within company • Correct bad addresses Immediate to August 1 • Use Address Element Correction (AEC) • AEC I – corrects 30-35% • AEC II – resolves 90% • Evaluate vendor products • Improve internal processes • Test and integrate new software Feb 1 – Aug 1 • ImplementAug 1, 2007

  13. Address Quality Resources • More information about address quality programs and regularly updated Frequently Asked Questions are available on the web: http://ribbs.usps.gov/index.html • The National Customer Support Center can also answer questions at 1-800-642-2914 or CASSMAN.NCSC@USPS.GOV

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