CLEVELAND PCC

CLOSING THE LOOP ON MOVE UPDATE

Each year, 17% of Americans move or change their mailing address

1 out of every 6 families moves each year Approximately 19% of all businesses move USPS® processes over 45 million permanent

Change of Address (COA) orders each year The USPS adds ~1.8 million new delivery points

each year

WHY MOVE UPDATE?

DUBASIK Moving & Storage

WHY MOVE UPDATE?

24 of every 100 mail pieces contain Address Errors 5 of every 100 mail pieces are Undeliverable-as-

Addressed (UAA)

75% of UAA Mail is Move-related

First-Class Mail Move Related UAA Rate: 2.6%

Standard Mail Move Related UAA Mail Rate: 4.8%

First-Class Mail UAA Rate: 3.4%

Standard Mail UAA Mail Rate: 6.4%

November 2008, the Postal Service required all addresses on mailings that receive discounts for First-Class Mail or Standard Mail service… be updated with an approved method within 95 days prior to the mailing.

Effective January 4, 2010 began to assess a penalty of $.07 per piece in mailings with an error rate greater than 30% based on PBV samplings.

<6% of mailings are non-compliant

MOVE UPDATE REQUIREMENT

Addresses must be Current, Correct and Complete

Pre-Mailing◦ NCOA - National Change of Address◦ MLOCR with FASTforward® (FFMUN option)

Post-Mailing◦ Ancillary Service Endorsements◦ ACS – Address Change Service

Traditional OneCode Full Service

Alternative Move Update◦ 99% Rule◦ Legal Constraint

MOVE UPDATE

How are addresses being updated?

64% use NCOA

54% use ACS

33% manually update UAA returned mail

22% have multiple databases – a key constraint!

ADDRESS UPDATES

Postage Statements

Whoever signs postage statement may be liable for Move Update compliance and penalties

MOVE UPDATE

MERLIN systems test for Move Update compliance

Performance-Based Validation (PBV) score:

Total COAs Updated By Mailer Total COAs found by MERLIN

MOVE UPDATE COMPLIANCE

>=70%

*Less than 5 COA are excluded from PBV

9

MOVE UPDATE COMPLIANCE

Mailing 100,000Sample Size 1,000Addresses with COA 50Addresses with Updates

reflected on mail pieces 35Addresses NOT updated 15PBV SCORE (Update/COA)

70%

MOVE UPDATE COMPLIANCE

100,000 1,000 50

34 16

68%

Assessment (2% x 100,000 x .07) $140.00

FAILED

Matches include:◦COA between 95-days and 18-months◦New Addresses◦Moved Left No Address *◦Closed PO Box*◦Moved to Foreign Address*

*Should be removed from mailing

Matches excluded:◦COA within 95-days or older than 18-months◦NIXIES (near matches, new address not validated)

MOVE UPDATE COMPLIANCE

“The PBV process does not establish compliance

or non-compliance with the Move Update

Standard; it is a tool that the Postal Service

uses to test mailings.”-Federal Register

MOVE UPDATE COMPLIANCE

Even if passing MERLIN, may not pass an audit Postal Inspectors from Office of Inspector General Audit of your internal update process Primarily looking to get processes corrected Also investigating intentional violators:

◦ False Claims Act◦ Penalty is 2x or 3x Revenue Deficiency – 1

to 3-year window◦ Plus: $11,000 per violation (each mailing statement)

USPS AUDITS

What do you need / Best Business Practice?◦ Records of all mailings◦ Copies of update data files◦ Process Maps & paper trail of updates◦ Report Tracking – proof of compliance◦ Backup support of over-riding transactions◦ Written standards, policies and enforcement

mechanisms to ensure compliance of eligibility rules based upon method specified on Statements

◦ Demonstrated communications with employees, vendors and mail service providers regarding compliance

USPS AUDITS

The USPS must reduce the cost of UAA mail The tools and services are now available to

◦ Determine compliance risk factors◦ Implement compliant and best practice solutions

The cost of non-compliance can be significant The USPS will continue driving down their UAA

costs, which means tighter rules and/or higher fees and penalties

This also mean more or your mail will reach your intended customer in the most efficient manner at the lowest possible cost.

SUMMARY

Move Update take-aways:

Ask about your PBV score

Use 1 or 2 Move Update methods

Update your database & mailing files

Document your update processes

MOVE UPDATE COMPLIANCE

17

Questions?