Move Update Compliance Fundamentals M W

Move Update & Compliance Fundamentals M & W Printers and United States Postal Service

FACTORS IMPACTING ADDRESS QUALITY Mobility § Annual move rate for Americans – 17% § NCOALink™ 160 million records; 48 months of data Ø Three types of moves: ü Businesses – 6% ü Families – 40% ü Individuals – 54% 2

FACTORS IMPACTING ADDRESS QUALITY Growth § 1. 8 million new delivery points per year § 66% of mail to multi-family dwelling units without apartment numbers get delivered § Address conversions (not a move): 911/LACSLink ™ Ø Five million records 3

THE IMPACT OF ADDRESS QUALITY No Deficiencies* 76. 5% Moved (2. 8%) Apartment Number (4. 9%) Pieces w/ Deficiencies** 23. 5% Directional Suffix (7. 0%) Rural Route / Box Number (0. 4%) Street Name / Number (6. 9%) City/State/ZIP (3. 1%) Incorrect ZIP + 4 (2. 6%) * Pieces with "no deficiencies" include those with correct but non-standardized addresses. More than 9% of pieces sampled had non-standardized address elements. ** Because a single piece may have multiple address deficiencies, the percentages of pieces having each deficiency type do not sum to the overall percentage of pieces with deficiencies. 17% of errors require extra handling or carrier / local knowledge to deliver 4

UNDELIVERABLE-AS-ADDRESSED MAIL § UAA mail cost USPS $1. 9 billion in 2002 Ø Probably twice that much to the mailing industry § Total UAA volume in 2000 was 5. 7 billion pieces Ø In 1998, 5. 4 billion pieces & $1. 5 billion Ø UAA is getting worse, not better § FCM volume for UAA continues decline (initially by 29%) Ø Other classes increased § Without Move Update Ø Estimated UAA cost to USPS would be over $3 billion Ø This will only result in higher postage 5

AN ADDRESS QUALITY PROCESS Update Validate Standardize 6

CASS-CERTIFIED™ SOFTWARE § Forms the foundation of your address quality solution Ø All “Link” related products require the complete ZIP + 4® encoded address that only using CASS-Certified software provides § Essential for claiming automation rates & postage discounts § Parses, standardizes, & matches addresses against USPS® Address Management System II data using range-based validation Ø It can only imply that an address is deliverable § Includes the Early Warning System (EWS) Ø Weekly updates of new address areas that help prevent misassignment Standardize 7

CASS-CERTIFIED™ SOFTWARE Does: § Parses the address into discrete elements Ø House number, street name, directionals § Standardizes each element using USPS approved abbreviations § Updates and corrects address elements Ø Based on matching data to the AMSII database § Appends crucial data for improved deliverability & potential automation discounts Ø ZIP+4® Code Ø Delivery Point Barcode Ø Carrier Route Information § Generates PS Form 3553, CASS™ Summary Report Ø Includes important statistical data for further address cleansing processing Standardize 8

CASS-CERTIFIED™ SOFTWARE DOES NOT: NOT § Compare individual name to address Ø Except for some company names (firms) § Add street numbers, apartments or suite numbers § Process international data § Presort a list or guarantee presort discounts § Provide Move Update information § Guarantee that the actual address exists & is deliverable Standardize 9

DPV™ PROCESS § Confirms the existence of a deliverable address Ø Provides flags & statistics that evaluate the data quality ü A ‘Y’ or ‘N’ flag is associated with the address Ø Identifies a Commercial Mail Receiving Agency ü Such as The UPS Store § Improves address assignments (tiebreak) Ø For example, 123 Main may be North or South Main St ü By querying both, we can eliminate the one that DPV returns as Validate 10

LACS UPDATE § Provides municipality introduced address changes Ø Database contains roughly 5 million addresses § Data is provided by USPS through LACS product Ø Conversions come into their database from postal carriers & municipalities § Old style & new style address acceptable for only 18 m Ø After 18 months, carrier no longer required to deliver mail to pre-converted address § Updating addresses using LACS ensures deliverability & prevents further UAA mail Validate 11

MOVE UPDATE PROCESSING § The Move Update standard is a means of reducing the number of mailpieces in a mailing that require forwarding or return by the periodic matching of a mailer’s address records with change-of address orders received and maintained by the USPS Ø MOVE UPDATE IS A USPS REQUIREMENT § The Postal Service offers four preapproved methods Ø Ø National Change of Address (NCOA) Address Change Service (ACS) FASTforward Ancillary Service Endorsements Update 12

MOVE UPDATE PROCESSING § First-Class automation mail requires an approved Move Update method (such as NCOA every 95 days) Ø NCOA only changes records with “change-of-address orders” on file with the Post Office Ø NCOA records drop-off database at 18 or 48 months Ø NCOA can NOT change a record that’s not in the database Ø NCOA does help get your mailpiece delivered on 1 st attempt 13

M&W SERVICES n M&W processes all data file using USPS approved software Ø CASS Certification Ø Delivery Point Validation (DPV) Ø National Change of Address (NCOA) n M&W can provide reports will results 14

M&W SERVICES n Printing of Personal Property and Real Estate Tickets n Tangible Personal Property and Business Licenses n Assessment Forms and Notices n Utility Bills n Dog Tags n Complete Direct Mail/Printing Services n Political Products 15

Questions? 16