MOVE UPDATE STANDARDS

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• MOVE UPDATE STANDARDS
• Keeping Track of Your Customers
• Assessment charges for Standard and
• First-Class Mail effective January 4, 2010

Theresa Peterlein Mid-Michigan PCC Lansing MI
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MOVE UPDATE REQUIREMENT

• 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

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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

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UNDELIVERABLE AS ADDRESSED

• 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• Main reason incorrect and outdated addressed on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.

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DID YOU KNOW?

• 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

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UAA COST VOLUME BY REASON
Cost
Volume
79.0 1.196 Billion
75.8 7.368 Billion
Address Quality- Related
12.2 184.5 MM
12.4 1.201 B
8.8 133.9 MM
Move-Related
Move-Related
Non-Address Quality- Related
11.9 1.155 B
Directly Attributable Cost Only
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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.

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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)

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WHY IS IMPLEMENTING A MOVE UPDATE SOLUTION
IMPORTANT?

• 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).

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Authorized Methods

• 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

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National Change of Address (NCOALINK)

• Expands mailers 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)

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FASTforward

• 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.

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FASTforward EXAMPLE OF AN MLOCR REDIRECTED
MAILPIECE
Ms N. Formation, Esq. Dewey Cheatem Howe
PC 123 Main St Memphis TN 38101-1234
II IIIIII III I IIIIII IIIII IIIIII I IIII I IIII
I I I I I III IIIII I IIII I I IIIII
JUDGE A. MENTALL
456 ELM ST
STE 201
MEMPHIS TN 38188-0001
COA-AA 1000 SE 17TH ST 38119

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

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ANCILLARY SERVICE ENDORSEMENTS
Endorsements keywords
Return Address Change
Endorsement

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

Followed by
Service Requested
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Address Service Requested

• 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

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Forwarding Service Requested

• 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!

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Return Service Requested

• Mail Is NOT Forwarded
• Mailpiece is returned to sender with new address
  or reason for non-delivery provided
• TEMP-RETURN SERVICE REQUESTED
• (First-Class Mail only)
• If Temporary COA Mailpiece is forwarded without
  temporary address provided
• If Permanent COA Mailpiece is returned with new
  address provided

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CHANGE SERVICE REQUESTED

• 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

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ANCILLARY SERVICE ENDORSEMENTS

• 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

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LEGAL RESTRAINT METHOD

• 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 Services 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

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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

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99 PERCENT ACCURACY 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

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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.

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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

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EXAMPLE OF AN ACS MAILPIECE
Tanya Hyde-Goode Inc Nanny Placement Service 123
Main St Memphis TN 38101-1234 Address Service
Requested
Participant Code gt
BXBJDCK 5-Digit 38188
Optional Keyline gt
WAIC 381 SEP 2009
CANDICE WAITE
DEW
PROCRASTINATORS ANNOYMOUS LLC
456 ELM ST
STE 201
MEMPHIS TN 38188-0001
5/8

• Participant Code and Keyline always preceded by
  
• For window envelopes Tap Test from top bottom

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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

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EXAMPLE OF AN ONECODE ACS MAILPIECE
Kay Shira Weather Forecasting Limited 123 Main
St Memphis TN 38101-1234 Electronic Service
Requested
1
LES ISMORE
DEPRECIATION CONSULTANTS
6060 PRIMACY PKWY STE 201
MEMPHIS TN 38188-0001

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

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Common Move Update Misconceptions

• 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
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Date of First Mailing on or after Nov 23, 2008
Address does not have to meet Move Update standard
Yes
No
Continue to use existing address for remainder of
95 days - address currently meets Move Update
standard
Yes
No
No
Address currently meets Move Update standard
Yes
Yes
Yes
No
No
Address does not meet Move Update standard
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JANUARY 4, 2010
MOVE UPDATE ASSESSMENT CHARGE .07
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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
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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

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Postage Statement Move Update Method Checkbox
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ACCEPTANCE UNIT TESTING

• A process to measure a sample of a mailing and
  determine the quality of the mailers 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

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ACCEPTANCE UNIT TESTING

• 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

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MOVE UPDATE VERIFICATION PROCESS
BME clerk selects sample mailpieces for MERLIN
verification
Mailpieces are run on MERLIN, data file sent
to NCSC
Electronic data file Contains name, address and
barcode (if available)
Sample extracted from the mailing is processed on
MERLIN
Mailpiece ID can be used to identify any piece
found as an Error.
The NCSC performs a DPV Move
Update validation
Move Update Verification results are displayed
in PostalOne!
Results forwarded to PostalOne!
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MOVE UPDATE WORKSHEET
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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

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VERIFICATION THRESHOLD AND ADDITIONAL POSTAGE
CALCULATIONS

• A mailing with a score below 70 will fail
  verification if there are also more than 5 pieces
  with COAs 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)

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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

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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

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MAILINGS THAT FAIL BOTH 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

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MAILINGS THAT FAIL BOTH 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).

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MAILINGS THAT FAIL BOTH FIRST-CLASS AND STANDARD
MAIL

• 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

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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
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FOR MORE INFORMATION
Customer Support
www.usps.com/ncsc
1-800-238-3150
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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.gov
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For a copy of this presentation www.mipccs.homes
tead.com QUESTIONS?