1

UnderstandThe Differencesin the Change-of-Address Programs

National Postal ForumMarch 17 – 20, 2013 Michael Tate, SVP Enterprise Postal Strategy, Bank of AmericaJames D. Wilson, Manager, Address Management, USPS®

2

Today We’ll Discuss . . . The three ways a Change of Address (COA) request can

enter the USPS® database for processing The flow of COA requests through USPS product and

service programs Quality Control/Fraud Detection Programs

And We’ll Focus On . . .

Pre – and Post – mailing address corrections developed from COA data• The intentional differences between the two methods

3

PS Form 3575 Official Mail Forwarding Change Of Address Order completed by moving customer and sent to USPS®

COA form scanned by PARS

Change of address informationinserted into PARS AddressDatabase (PAD) to be used during mail forwarding process

COA form image and customer data are sent daily to National Customer Support Center (NCSC)

Hardcopy- PS Form 3575

4

ICOA- Internet Change of Addresswww.moversguide.com Requires customer to present

credit card to validate identity Address validation occurs

while customer is online• Allows customer to enter

correction when address not matched

Change of address data transmitted to National Customer Support Center for entry into PAD (PARS Address Database)

5

TCOA- Telephone Change of Address Change of address submitted by customer

calling 1-800-ASK-USPS® (1-800-275-8777) Requires use of credit card to verify identity

PS Form 3575Z• Similar to PS Form 3575 but submitted by Postal

personnel on behalf of customers who have: Moved, Left No Forwarding Address (MLNA) P.O. Box Closed, No Forwarding Order (BCNO)

• Entered after 10-day waiting period once it is determined the customer not retrieving mail at address

Other Means of Entering Change of Address

6

Fraud Detection ProgramsCOA Watch

USPS® internal process that screens all change of address entries

Monitors and reports on potentially fraudulent or suspicious activities

Inspection Service Watch List

7

Customer Notification ProcessesMove Validation

Letter (MVL) sent to “old” address

Printed and mailed daily from NCSC immediately following receipt of the change of address

Mailpiece tracked to delivery

Fraud Detection Programs

8

Quality Assurance InitiativesCustomer Notification ProcessesCustomer Notification

Letter (CNL) or Welcome Kit sent to “new” address

9

Quality Assurance Initiatives COA Correct

• www.managemymove.usps.com PS Form 3546

10

Change of Address Data Processing COA data must be accepted into PAD and transmitted

back to NCSC for inclusion into change of address systems

Results in two separate databases• Internal USPS® file (PARS and CFS) which is used for

mail forwarding & ACS™ fulfillment• External data product (NCOALink®)

11

Change of Address Data Processing

12

CFS – flats and parcels, nonmachinable letters PARS letters – intercept mode PARS letters – carrier identified forward mode

Mail Forwarding Processes

13

Hardcopy Address Correction Either return of the piece with the correction or

reason for nondelivery affixed, or A separate address correction provided as an image

of the piece with the associated old and new address or reason for nondelivery, PS Form 3547

Return postage or address correctionfee may apply

14

#BWNFXZT #P123456789 2572X 7 # JOHN E SMITH916 N 5TH ST APT 3SPRINGFIELD IL 62702-5288

ACS™ Service

Post-mailing service provided by the USPS®

Internal PARS/CFS database used Participants include an identification code on the

mailpieces• Traditional (printed participant code as shown left)• OneCode ACS® or Full Service (IMb™ as shown on

right)

JOHN E SMITH916 N 5TH ST APT 3SPRINGFIELD IL 62702-5288

15

NCOALink® Service Pre-mailing Move Update method Data delivery from USPS® to certified licensees Stored in a secure format using Secure Hash Algorithm Three types of certified licensees:

• Full Service Provider (48 months, updated weekly)

• Limited Service Provider (18 months, updated weekly)

• End User Mailer(18 months, updated monthly)

16

ACS™ - NCOALink® Product DifferencesDPV®

Y, S, DRequired;

Name Matching

Carrier provides COA match direction

DNIRecordsIncluded

Temp Records Included

Manages Multiple & Hyphen-ated Names

Multiple Name Variationsof the Same Name

IgnoresIrrelevant Name Data

PARSIntercept

CFS/PARS Carrier ID’d

NCOALink LSP &End User

NCOALink FSP

Old New Strict Relaxed Single MultiPass Pass

Undeliverable as Addressed (UAA) MailUndeliverable Mail Volume

01234567

Volu

me

(B)

Forwarded 2.093 1.985 1.235 1.116 1.116

Returned 1.311 1.603 1.593 1.504 1.53

Waste 5.904 6.136 4.12 4.4 4.113

1998 2004 2010 2011 2012

Undeliverable Mail Cost to USPS

$-

$200.0

$400.0

$600.0

$800.0

$1,000.0

Cost

(MM

)

Forwarded $437.6 $421.9 $294.7 $271.8 $271.3

Returned $767.9 $822.5 $817.5 $777.6 $789.4

Waste $253.9 $269.8 $246.2 $266.4 $257.4

1998 2004 2010 2011 2012

FY2012 Total UAA Cost $1,318.1B (17% ($2.3MM) increase over FY2011)

FY2012 Total UAA Volume 6.759B (-3.72% (261MM) decrease over FY2011)

Forwarding Volume virtually unchanged but efficiencies saved $500K in cost

Returned Volume rose 1.7% (26MM) at a cost $11.8MM

Waste Volume dropped 6.52% (287MM) pieces at a cost savings of $9.0MM

ACS Notifications

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

ACS COAACS Nixie

ACS COA 146,285,592 196,221,252 185,949,145 226,707,125 247,977,769ACS Nixie 108,702,046 153,349,759 180,220,101 235,154,971 298,825,284

2008 2009 2010 2011 2012

0

100,000,000,000

200,000,000,000

300,000,000,000

400,000,000,000

500,000,000,000

600,000,000,000

700,000,000,000

800,000,000,000

900,000,000,000

1,000,000,000,000

Processed 636,238,206,593 674,586,820,283 766,447,478,454 902,945,299,061 987,800,758,304

Matched 21,149,424,646 25,847,303,892 23,103,730,603 26,322,037,954 30,258,995,209

2008 2009 2010 2011 2012

3.32% 3.89% 3.01% 2.92% 3.06%

NCOALink® Total Records Processedand Corresponding Matches

Why did I receive an ACS record when I did not match NCOALink®?Perhaps:

The mail did not intercept, but carrier input allowed it to process

The old and/or new address did not DPV® confirm, but PARS/CFS clerks found the matching COA

There were multiple names on the mailpiece, PARS and CFS search all names

NCOALink can only make an exact name match, PARS/CFS ignores extraneous information in name field

21

Considerations in Determining theRight COA Process What type of mailing is it? What is the objective of the mailing?

• Distribution method for my core product offering• Communicating with my customer• Marketing to expand revenue• Regulatory obligation

What is the cost of sending something to the incorrect address?

Does the process meet the USPS® Move Update requirements for postal discount eligibility?

22

Address Management – Ongoing Process Each mailer is different – there is not a one-size fits all

solution

Managing address changes is not a point in time event

The initial address capture is critical to all addressing processes including getting a COA hit

The Move Update compliance requirements have to be met but just meeting the requirements might not be the right solution to maximize your address quality

As with any business process, establish metrics to determine where addressing issues exist

23

Things To Remember About COA Name matching criteria is different

• NCOALink® has the strictest

The NCOALink output provides a lot of data that can be used for metrics

Important to match against date the address was last changed when updating COAs

The process should validate that the new address DPV® confirms

Full Service provides free ACS™ for automation mailpieces

24

Questions to Think About What is the right frequency for the COA process?

What is the right solution for my COA objectives – Pre, Post or a combination of the two?

When should COA results trigger additional actions to locate my customer or lead to suppressing a mailpiece?

Should the different types of moves (Individual, Family and Business) be handled differently?

How should different results from the COA methods be handled, i.e. a move from NCOALink® but a NIXIE from ACS™?

SundaySundayWhat You Need to Know about Unique Address Types / Non-Physical Address

Jim Wilson/Adam Collinson/Michael Tate – Period 1, 12 – 1 pm

GSA and Addressing (Rules & Recommendations)Angela Lawson/Adam Collinson/Derrick Miliner – Period 4, 3:45 – 4:45 pm

MondayMondayKeeping it Simple: ACS Services – It’s All in the Service Type ID

Lisa West – Period 5, 10:30 – 11:45 am

Secure Destruction – Peace of MindLisa West/Tom Day – Period 8, 4:30 – 5:30 pm

TuesdayTuesdayThe ROI of Great Address Quality

Ed Wanta/Dr. John M. Leininger – Period 10, 9:30 – 10:45 am

Understanding the Differences in the Change of Address ProgramsJim Wilson/Michael Tate – Period 13, 3:15 – 4:15 pm

Peer-To-Peer RoundtablesLisa West/Angela Lawson – Period 14, 4:30 – 6:00 pm

Speaker Schedule

26

Thank You!