MOVE UPDATE STANDARDS

Keeping Track of Your CustomersAssessment charges for Standard and First-Class Mail effective January 4, 2010

Theresa PeterleinMid-Michigan PCC

Lansing MI

“Address” means specific address associated with specific occupant name

Reduces the number of your mailpieces that require forwarding, returning, or disposal

Requires periodic matching of your address records with USPS® Change-of-Address (COA) orders

Use of an Authorized Move Update Method

MOVE UPDATE REQUIREMENT

Move Update is required for mailpieces claiming Presorted or Automation prices for First-Class and Standard Mail (letters, flats, parcels and not flat-machinables)

To meet Move Update, mailers must be using addresses on mailpieces that have been updated using an approved method within 95 days prior to mailing

MOVE UPDATE REQUIREMENT

Undeliverable As Addressed (UAA) costs the USPS more than $1.9 billion each year to process.

More than 6 billion mail pieces are disposed (recycled) of every year because of poor address quality – that means that they never left the Post Office and went straight into the recycle dumpster.

Main reason: incorrect and outdated addressed on business-to-consumer mail.

Almost 5 out of every 100 mailpieces are Undeliverable-as-Addressed (UAA) Mail

First-Class Mail® UAA Rate: 3.4%

Standard Mail® UAA Mail Rate: 6.4%

Standard Mail accounts for almost 63% of all UAA Mail

75% of UAA Mail is move-related by reason

First-Class Mail Move UAA Rate: 2.6%

Standard Mail Move UAA Mail Rate: 4.8%

DID YOU KNOW?

UAA COST & VOLUME BY REASON*

Cost Volume

75.8%7.368 Billion

Address Quality-Related

11.9% 1.155 B

12.4% 1.201 B

* Directly Attributable Cost Only

79.0%$1.196 Billion

8.8%$133.9 MM

12.2% $184.5

MM

Move-Related

Move-Related

Non-Address Quality-Related

MOVE UPDATE REQUIREMENT Updated addresses on mailpieces at one class of mail are

qualified to be used for other classes during current Move Update cycle

EACH ADDRESS IN MAILING SUBJECT TO MOVE UPDATE

EXCEPTION: Mailpieces using Alternative Address Format are not subject to Move Update

“Jane Doe or Current Resident”“Postal Customer”, “Occupant”, etc.

WHY IS IMPLEMENTING A MOVE UPDATE SOLUTION IMPORTANT?

Impact associated with return mail to your company

Lost postage (initial mail piece and postage if re-mail)

Cost of producing documents (paper, envelopes, content, design, labor, sorting return mail, analysis and system update)

Customer service (increased call volumes, collection notices and handling, cost of lost customers)

Green initiatives (decreased waste and carbon footprint)

The estimated average industry cost of Return Mail to an organization is $3.00 per piece.

For many companies, the amount surpasses $10.00 per piece when there is a direct financial association to the mailpiece (bill/invoice).

WHY IS IMPLEMENTING A MOVE UPDATE SOLUTION IMPORTANT?

NCOALink® Processing ACS™ OneCode ACS® – Intelligent Mail® Barcode FASTforward® MLOCR Processing Appropriate Ancillary Service Endorsement Alternative Method (First-Class Mail® Only)

Requires Separate Approval:

Legal Restriction 99 Percent

NATIONAL CHANGE OF ADDRESS(NCOALINK®)

Expands mailer’s accessibility to USPS® National Change-Of-Address

Provides electronic Change-of-Address information prior to mailing

Updated change-of-address information for the entire country is provided on a regular basis to the licensee by the USPS through the NCOAlink database.

Typical match rate – 75%

Optional name-matching routines (individual, family, business)

FASTforward® MLOCR

Mailpieces are updated against the USPS change-of-address data base as the mail is transported for barcoding.

If a change of address is found, the new address is printed directly on the mailpiece

When FASTforward® is used in conjunction with either MLOCR processing, mailpieces avoid the delays associated with traditional mail forwarding.

FASTforward®

Ms N. Formation, Esq.Dewey Cheatem & Howe PC123 Main StMemphis TN 38101-1234

456 ELM STJUDGE A. MENTALL

MEMPHIS TN 38188-0001STE 201

COA-AA 1000 SE 17TH ST 38119

FASTforward®: EXAMPLE OF AN MLOCR REDIRECTED MAILPIECE

Window must be a minimum of 5/8th inch from bottom to enable printing COA information

JOHN DOE10 ELM AVEANYTOWN OR 97654-3218

► On-piece mailing instructions ► Same handling for all classes of mail► Very different fees applicable for First-Class and Standard!

Return

Address

Change

Endorsements keywords

Endorsement

Service Requested

ANCILLARY SERVICE ENDORSEMENTS

Followed by…

•Forwarding, Return, & New Address Notification Provided

If Forwarded, A Separate COA Notification Is Provided

If Returned, New Address Or Reason For Non-delivery Is Provided

Fees may apply (Class of Mail, ACS or no ACS) and vary by time period

Forwarding Or Return Service Provided

If Forwarded, Separate COA Notification Is NOT Provided

If Returned, Reason For Non-delivery Is Provided

This Endorsement DOES NOT Meet the Move Update Requirement!

17

Separate COA Notification With New Address Or Reason For Non-Delivery Provided.

Mailpiece is not forwarded or returned, but disposed of as waste by the USPS

On First-Class Mail®, CHANGE SERVICE REQUESTED Is Only Available When Used in Conjunction With ACS™

CHANGE SERVICE REQUESTED

For an address to meet Move Update requirements, the mailer must send at least one letter or card to an address with an approved ancillary endorsement within 95 days before reuse of the address

To complete the Move Update process, the mailer must make the address change received as a result of the use of approved ancillary endorsement

It is recommended that the mailer retain address correction records for up to two years

ANCILLARY SERVICE ENDORSEMENTS

Mailers who claim they are restricted from incorporating the Postal Service COA information into their mailing lists without permission from the addressees may request approval from the Postal Service’s National Customer Support Center

Unless the mailer is a federal, state, or local government entity, the request must be accompanied by citation of the specific legal restriction, including copies of the statutes or regulations.

Federal, state, or local government entities must still make a request, but will receive a letter of approval without having to submit a citation

LEGAL RESTRAINT METHOD

MAILERS APPROVED TO USE THE LEGAL RESTRAINT METHOD MUST HAVE A PROCESS IN PLACE TO:

Identify customer change-of-address using approved Move Update programs within 95 days of mailing

Contact customer within 30 days to request address correction from customer

Make changes to address information within 30 days of receiving change from customer

Keep documentation of above steps for 2 years

LEGAL RESTRAINT METHOD

MAILERS WHO BELIEVE THEIR MAILING LISTS ARE ALREADY ACCURATE BECAUSE THEIR CUSTOMERS DILIGENTLY NOTIFY THEM OF ADDRESS CHANGES MAY MEET MOVE UPDATE REQUIREMENTS BY:

Getting approval from the National Customer Support Center and following a 4 step validation process

99 PERCENT ACCURACY METHOD

TO DETERMINE IF THE MAILER HAS CURRENT ADDRESS INFORMATION FOR THEIR CUSTOMER, THE USPS EVALUATES THE ADDRESS LIST FOR ACCURACY.

If less than 1% of the customer addresses in the address list have a change-of-address detected, the mailer is given written approval to use the 99% method to satisfy Move Update requirement for the address list tested.

The Postal Service will periodically review the mailing list to determine if it is being kept up-to-date.

99 PERCENT ACCURACY METHOD

Address Change Service (ACS™ - Traditional)

Post-Mailing Service – Provides electronic COA Notices for undeliverable mailpieces

Mailers apply a Participant Code and an Optional Keyline to each mailpiece

Participant Code assigned for each class of mail

Using ACS customers can reduce cost associated with manual keying of data

EXAMPLE OF AN ACS™ MAILPIECE

Tanya Hyde-Goode IncNanny Placement Service123 Main StMemphis TN 38101-1234

Address Service Requested

DEW

456 ELM ST

CANDICE WAITE

MEMPHIS TN 38188-0001STE 201

#BXBJDCK ************* 5-Digit 38188#WAIC 381 SEP 2009#

Participant Code >

Optional Keyline >

Participant Code and Keyline always preceded by # For window envelopes – Tap Test from top & bottom

PROCRASTINATORS ANNOYMOUS LLC

5/8”

ONECODE ACS® OneCode ACS using the standardized Intelligent Mail™

barcode (IMB)

Eliminates need for participant code and keyline

Provides electronic address correction notifications

Flexibility of standardized IMB barcodes enables future enhancements without altering mailpiece design

IMB contains data to sort mail and data to support ACS™

Numeric Mailer Identifier in place of ACS information - one code for all classes of mail

1

Kay Shira Weather Forecasting Limited123 Main StMemphis TN 38101-1234

Electronic Service Requested

6060 PRIMACY PKWY STE 201

LES ISMORE

MEMPHIS TN 38188-0001

EXAMPLE OF AN ONECODE ACS® MAILPIECE

DEPRECIATION CONSULTANTS

Must print ancillary service endorsement for Standard Mail® – recommended for First-Class Mail®

CASS™ / DPV® Meets The Move Update Requirement

Mail Will Get Delivered To The Old Address Instead Of Becoming UAA

Implementing Move Update Will Eliminate My Return Mail

If I use an Ancillary Endorsement or ACS™; I am in compliance

-not true

-not true

-not true

-not necessarily

Date of First Mailing on or after Nov 23,

2008

Address does not meet Move Update standard

Waseach address used

in mailing exposed to a Move Update method within

95 days ?

Wasaddress directly

acquired from yourcustomer within 95

days ?

Does mailpiece bear an

alternative address format ?

Was address matchedto a New (COA)

record ?

Wasupdated address

applied to mailpiece?

Continue to use existing address for

remainder of 95 days - address currently

meets Move Update standard

No

No

No

Yes

No

Yes

YesAddress does not

have to meet Move Update

standard

Address currently

meets Move Update

standard

Yes Yes

No

JANUARY 4, 2010

MOVE UPDATE ASSESSMENT CHARGE $.07

The USPS has implemented several steps to assist mailers in improving the quality of their addresses and in obtaining the optimum results from

Move Update compliance efforts

MOVE UPDATE VERIFICATION

Signature on the Postage Statement by either the Mail Owner or Agent certified compliance

Mailer must record Move Update method

USPS can request substantiation of Move Update compliance

Postage Statement Move Update Method Checkbox

ACCEPTANCE UNIT TESTING

A process to measure a sample of a mailing and determine the quality of the mailer’s Move Update process and provide feedback to mailers

Mailings are selected randomly by PostalOne! for verification

A sample is selected from the mailing for processing on MERLiN

MERLiN captures barcode, name and address information into a data file that is electronically transmitted to National Customer Support Center (NCSC)

NCSC processes the data file using NCOAlink and returns the results to the PostalOne! System where the results can be discussed with the mailer

ACCEPTANCE UNIT TESTING

Electronic data file Contains name, address and barcode (if available)

Sample extracted from the mailing isprocessed on MERLIN

Mailpiece ID can be used to identify anypiece found as an Error.

MOVE UPDATE VERIFICATION PROCESS

BME clerk selectssample mailpieces for MERLIN verification

The NCSC performs a DPV & Move Updatevalidation

Move Update Verification results are displayed in PostalOne!

Results forwardedto PostalOne!

Mailpieces are run on MERLIN, data file sent to NCSC

MOVE UPDATE WORKSHEET

VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS

A mailing with 5 or fewer pieces with a COA on file that were not updated by the mailer will pass the verification regardless of the passing percentage

A mailing with a passing score of 70% (tolerance 30%) or higher will pass verification

A mailing with a score below 70% will fail verification if there are also more than 5 pieces with COA’s that were not updated by the mailer

The passing score will be calculated using the total number of pieces with a Move Update on file divided into the number of pieces that the mailer updated with the change (within the date range, 95 days – 18 month)

VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS

VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS

EXAMPLE 1

15 Mail Pieces With A Change Of Address Are Found In Sample

The Mailer Used The New Address On 10 Of The Pieces

The Score Is 66.7%.....However, Since Only 5 Pieces Were Not Updated By The Mailer, The Mailing Passes

VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE CALCULATIONS

EXAMPLE 2

A Total Of 20 Pieces With Change Of Address Are Found In The Sample

For 13 Of The Pieces, The Mailer Used The New Address (Coa Updated By Mailer)

13 Is Divided By 20 = Score Of 60%

More Than 5 Pieces Were Not Updated And The Score Is Under 70% = The Mailing Fails

MAILINGS THAT FAILBOTH FIRST-CLASS AND STANDARD

MAIL

The assessment will be calculated based on only the percentage of failed pieces in excess of the tolerance (30%) multiplied by the total number of pieces in the mailing.

The fee is $0.07 per assessed piece

MAILINGS THAT FAILBOTH FIRST-CLASS AND STANDARD

MAIL

A mailing with a score of 60% and more than 5 pieces that were not updated will be assessed additional postage of $.07 per piece for 10% of the pieces in the mailing.

This is the 10% difference between the not-updated percentage (40%) and the tolerance (30%).

EXAMPLE

A mailing consisting of 100,000 pieces would be charged $0.07 per piece on 10,000 pieces (10%) of the total mailing = $700.00

MAILINGS THAT FAILBOTH FIRST-CLASS AND STANDARD MAIL

Standard Mail and First-Class Mail mailings that have not performed Move Update are not eligible for the presorted (including automation, non-automation and carrier route) prices and MUST be mailed at a price that does not require Move Update

e.g. First-Class single-piece price

www.usps.com/ncscwww.usps.com/ncsc Customer SupportCustomer Support

1-800-238-31501-800-238-3150

ADDITIONAL RESOURCES

A GUIDE TO ACCESSING MOVEUPDATE REPORTS available on ribbs.usps.gov

http://ribbs.usps.gov/move_update/documents/tech_guides/PUB363.pdf

ribbs.usps.govribbs.usps.gov

For a copy of this presentation:

www.mipccs.homestead.com

QUESTIONS?