What Are Bad Addresses Xactly What are

What Are Bad Addresses – Xactly? What are “Bad” Addresses & What Do You Do With Them – Xactly? National Postal Forum Anaheim, CA May 18 th – 21 th, 2007 Kevin Conti, Group 1 Software Charles B. Hunt, United States Postal Service 1

What Are Bad Addresses – Xactly? Agenda Ø What are Some Examples of “Bad” Addresses Ø What is a Standardized Address? Ø What are the Root Causes of “Bad” Addresses Ø How Do You Fix Them? Ø Ø DPV® Ø Ø AEC / AEC II® LACSLINK® Summary 2

What Are Bad Addresses – Xactly? Can You Recognize A Bad Address? 3

What Are Bad Addresses – Xactly? Can You Recognize A Bad Address? Barbara L. Wilson 612 King Ridge Cv. Collierville TN 38017 -1714 NIXIE 4910 1 02 04/20/04 RETURN TO SENDER NO SUCH NUMBER UNABLE TO FORWARD 4

What Are Bad Addresses – Xactly? USPS® INTERNET ADDRESS MATCHING SYSTEM 5

What Are Bad Addresses – Xactly? An Address Quality Foundation Update ACS™ ANKLink® NCOALink® Validate AEC / AEC II® DPV® LACSLink® Standardize CASS Certified™ Software 6

What Are Bad Addresses – Xactly? Defining A Quality Address A quality address is defined by USPS® as: “A quality address contains complete and correct elements that comply with USPS® Address Management System standards and allows automated sortation to the intended delivery point for delivery to the specified recipient (current) without requiring the use of Delivery Force Knowledge™ to complete. ” 7

What Are Bad Addresses – Xactly? What Is A Standardized Address? A Standardized Address Is Defined As: All necessary elements correct and complete… üPre-directional üPrimary address number üStreet name üStreet suffix üPost-directional üSecondary identifier üSecondary number üCity üState üZIP + 4® Code 8

What Are Bad Addresses – Xactly? What Is A Standardized Address? A standardized address can have elements that are: Ø Fully spelled out OR Ø Abbreviated using USPS® standard abbreviations Ø As shown in USPS ZIP + 4® file 9

What Are Bad Addresses – Xactly? Defining The Term What Does the Term “Validate My Standardized Address” Mean? Address” Mean ØIs the Address Standardized to USPS® Data? ØIs the Address a Valid USPS Delivery Point? ØHas the Address Information Recently Changed? ØAre All Elements Complete and Correct? 10

What Are Bad Addresses – Xactly? America is on the Move and Growing! 1. 8 million new addresses New York 45 million Americans move New Jersey Pennsylvania 147 million total addresses 11

What Are Bad Addresses – Xactly? 2004 Christensen UAA Report Old Address Return 51. 3¢ / pc. 1. 60 Billion pieces $822. 5 Million 9. 724 Billion pieces $1. 856 Billion x Forward 21. 3¢ / pc. 1. 985 Billion pieces $421. 9 Million Waste 4. 4¢ / pc. 6. 136 Billion pieces $269. 8 Million New Address 12 12

What Are Bad Addresses – Xactly? 2004 Christensen UAA Report Root Causes of Undeliverable As Addressed (UAA) Mail Cost* Move-Related UAA Physical-Related UAA Other-Related UAA Total Volume Percent of Total UAA Volume $1, 195, 828, 705 7, 367, 885, 402 75. 77% $184, 542, 947 1, 201, 315, 945 12. 35% $133, 853, 699 $1, 514, 225, 351 1, 155, 127, 311 11. 88% 9, 724, 328, 658 100. 00% * Directly Attributable Cost Only

What Are Bad Addresses – Xactly? Average Mailing List Address Quality Data Derived From Analysis of Mailer Files in FY 2006 Total Addresses Processed: 384 Billion Total Addresses ZIP + 4® Coded: 367 Billion 95. 59% Total Addresses ZIP + 4 Coded That DPV Confirmed: 350 Billion 95. 32% Percentage of Total Addresses Processed That DPV Confirmed: Total Addresses ZIP + 4 Coded To Building Addresses Needing Apt/Ste: Total Building Addresses With A Bad or Missing Apt/Ste Number: 91. 11% 53 Billion 12 Billion 23. 76% 14

What Are Bad Addresses – Xactly? Address Quality Study of a National Mailing Overall Address Quality and UAA Results When The Address Was: Delivered Returned Forwarded ZIP + 4® Coded 91. 71% 5. 94% 2. 35% ZIP + 4 Coded And Delivery Point Validated 92. 11% 5. 48% 2. 41% Improvement (Reduction) 0. 44% ( 7. 74% ) 2. 55% 15

What Are Bad Addresses – Xactly? Address Quality Study of a National Mailing Apartment-Specific Address Quality and UAA Results When The Address Was: Delivered Returned Forwarded 60. 34% 31. 43% 8. 23% ZIP + 4 Coded Containing Valid Apt/Ste Number 83. 00% 11. 98% 5. 02% Improvement (Reduction) 37. 55% ( 61. 88% ) ( 39. 00% ) ZIP + 4® Coded But Missing Apartment/Suite Number 16

What Are Bad Addresses – Xactly? Address Quality Study of a National Mailing When The Address Was: Delivered Returned Forwarded Not ZIP + 4® Coded Due To Multiple Possible Matches (Main St or Main Ave? ): 66. 11% 29. 71% 4. 18% Not ZIP + 4 Coded Because Address Information Could Not Be Determined: 67. 79% 27. 93% 4. 28% ( 27. 91% ) 400. 17% 77. 87% Increase (Reduction) Vs. ZIP + 4 Coded Only: 17

What Are Bad Addresses – Xactly? Address Quality – Cost Impact to USPS® Missing or Incorrect Street Number Volume Cost Missing or Incorrect Apt/Ste Number Volume Cost Carrier Personal Knowledge 1. 37 Billion $ 99 Million 396 Million * $ 22 Million * Undeliverable as Addressed 348 Million $ 60 Million 424 Million $ 62 Million Total 1. 718 Billion $ 159 Million 820 Million $ 84 Million * Volume / Cost Estimate Potentially Understated By As Much As 50% Based On Mail Volume Analysis 18