Webinar: Best Practices for Closing the Loop on Undeliverable Mail

good afternoon everyone and welcome to

gray hairs webinar best practices to

close the loop on undeliverable mail

before we get started I wanted to just

briefly talk about the functionality of

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know feel free to share that within your

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wherever you can find value with that my

name is Dylan purse and I'm the vice

president of product management here at

gray hair software I've been in the

postal industry for almost twenty years

and have been focused on addressing

issues for most of that time I'd also

like to introduce my co-presenter here

adam Collinson he is the director of

research and development for gray hair

software he's also one of the leading

experts in postal addressing and has

spent the past two decades working with

the Postal Service to understand all of

the nuances and rules of the addressing

systems and has done quite a bit to work

with them through EMPAC and other groups

to enhance and improve their systems and

so that the industry can leverage that

and their best practices so thanks for

joining today Adam thanks for everything

very good so before one last thing

before we get started as a special bonus

everybody who attends at the end of the

session will be sharing a link to our

free ebook which is named closing the

loop on undeliverable mail and again

feel free to share that within your

organization as we think that this will

provide a lot of value for our customers

and for anyone who is interested in

addressing topics so with that I'm going

to turn it over to you Adam they're

gonna be closing the loop on

undeliverable now all right thanks Dylan

first I want to talk a little about bad

data in general and how it impacts

mailers because one thing that people

don't understand is different mailers

end up having a different definite

of what is bad data and what impacts

those particular man Hillary it's not

consistent across the entire mailing

industry so a lot of mailers have heard

if you've been doing a lot of industry

events you've heard about the three C's

is an address correct complete and

current well that's only part of the

story and it goes beyond that because

quite simply there's no way you're going

to have a hundred percent accurate

database things just change too often

they change too quickly

everything is being modified and like I

said different people have different

definitions of what's considered bad

so the first three C's everybody's heard

about is just correct complete and

current and this is generally related to

what the USPS wants in terms of a valid

address that you can get postage

discounts on and that will facilitate

the delivery of the mail pieces by the

USPS so the first part correct is that a

correct address is it an actual address

that the USPS delivers to complete well

does it have all the necessary elements

meaning does it have a house number does

it have the suffix if it's needed if

there's secondary information an

apartment number is that there so is all

the complete information there that the

US base would need and then is it

current is that the address where the

person is currently living or have they

moved so those are the three C's you

typically hear we want to add a couple


the first one is adding to another

variation on the correct because you can

have a correct address it just may not

be the correct address for the person

you're trying to reach

meaning I'm trying to reach John Smith

and I got an address of 12 Main Street

except that he lives at 21 Main Street

both are valid addresses it's a valid

name is just not a correct address for

that particular person the other

variation that this next C is on a

second variation of current and this is

one where addresses periodically go

through changes most of the time their

minor changes it's got a different +4

sometimes they get to rezone into a

different zip but there's other times

where the entire address could change or

get remembered these are typically

called Lacs link changes but so this is

where nobody's moved the physical

address is the exact same place but the

address that represents that location

has changed so are you making sure you

have the current rendition of that

particular address and then the last one

is the big one and it's been coming up

more and more the last couple years is

it compliant is this a compliant address

and I'm not just talking about with the

postal service does it qualify for

discounts is it compliant with in the

mailers industry there have been more

and more regulations coming out that

limit what type of addresses can be used

in certain industries and for certain

purposes so is this a compliant address

that you're able to mail to or to even

utilize within your operations it's one

of those things where you need to

understand that and goes beyond just

postal in other words are they even

allowed to be used for a particular case

and that's really interesting too

compliant add-on the fees there can you

give us maybe some examples within a

given industry of where that might apply

sure actually there's a common one in

both financial health care even with

telecommunications there's a big thing

that's in coming up around what's called

non-physical addresses now a

non-physical address really is still

address it does exist but it's not an

address where a person actually lives

it's where they receive mail so it is

from from both of world it is a correct

complete and current address it's just

not where they receive their mail and

where this comes into play in some of

these industries there's requirements

and say sorry for this particular use

you have

have a physical address for the person

you're trying to reach and if you don't

and you have an on-ear caught out of

compliance and some industries the the

penalty is on the order of tens of

thousands of dollars per occurrence so

that can add up quite quickly and that

kind of leads us into talking about you

know the general goals that mailers have

and that's you know the first thing is

well they're trying to reach their

intended audience so if you have a bad

address may not be delivered at all but

if it's a bad address that it's just bad

for that person you could end up sending

vital information or sensitive

information to the wrong person so

that's a big issue you want to be able

to get the information to them at the

right time bad addresses aren't

necessarily undeliverable but it could

mean that the USPS is going to need more

time Jeter to forward the piece or to

try and figure out the correct

destination to deliver it in either case

the pieces have been delayed as far as

how long it takes to get delivered

mailers also want to obviously do this

at the lowest cost

well I'm sure you won't qualify for

postage discounts certain types of bad

addresses and no longer qualify for

postage discounts additionally they may

not qualify for other discounted

additional services offered by the USPS

so by having good addresses you're

saving that money and of course the one

we just talked about you have a lot of

regulations out there that are meant to

protect the mailer and the mail

recipients to protect their information

to protect what's what's being sent who

might be you know so there's regulations

in federal state specific industries

HIPPA regulations and these penalties

and impacts can range from just you know

customer being being dissatisfied to

actually damaging a company's reputation

and of course actual fines and penalties

so when we're talking about the bad data

and the scope of it the what I'm showing

right now are some numbers and this is

published by the USPS it's available out

on their their websites

shows what's what I'm showing is

currently what's happening in from 2016

as far as the amount of undeliverable

mail now that's a key difference that I

want to bring up here undeliverable as

addressed mail means it can't be

delivered with the information that was

originally put on the mail piece so that

doesn't mean that the piece was

necessarily undeliverable because the

mail that was able to be forwarded still

managed to get delivered it was simply

delay so that was undeliverable as

addressed but it didn't end up being

completely under livable so it's really

the returned mail and the waste mail

that mailers really want to take

advantage of or to pay close attention

to and you can see the numbers for the

all classes but I think it's more

important to actually be evaluating what

you're seeing and what you have in your

own operations around your particular

classes of mail because they do act

differently for first-class mail you can

see there's a large number that gets

forwarded and returned very little is

treated as waste well that's a function

of the first-class mail whereas with

standard and marketing mail not much

mail gets forwarded or returned most of

it just goes straight to waste and you

can see the numbers 5.2 nine percent of

standard marketing mail is treated as

waste three point seven eight percent of

first-class mail sorry here's the total

UA a and what's kind of cut spending is

when you look at the chart over to the

right you can see that overall the

percentage of UAE a has been increasing

over time so it's becoming a bigger and

bigger issue

now some mailers and I've had something

but look at this a fat oh you know I do

marketing mail whole five percent

doesn't get delivered okay well that's

you know fifty out of every 1000 oh yeah

maybe I can live with that it's you know

it's just part of the businesses just

the way it is that's what everybody has

well we we've done some things with some

clients you have to understand best

practices operations will have returned

and wasted mail at less than half a

percent so if you don't know where

you're at

and you think you're at like 5% you're

probably not we actually did an

evaluation one time with a utility

company so you think we'll wait a minute

are installing utilities at the location

they don't know exactly where the

addresses are and they didn't really

have an idea of how much of their mail

volume was being undelivered so we ran a

test with it we changed it from a

marketing mailing to a first-class

mailing to where all the undeliverable

mail got returned they're under

deliverable mail rate was over 13% they

didn't know once they knew they're able

to take action so this is the latest


one thing you might want to you can see

is you know in the graph you saw a

little dip at the very beginning for

standard mail it got a little bit better

thing to remember back then there's like

in 2008 that's when the USB extended the

move up they were regulation for

qualifying for discounts to standard


so those percentage are pretty

interesting Adam can you talk about how

those translate into actual mail volumes

and dollar amounts oh sure

as far as again focusing on what's

engineer atern to treated his waste and

again these are numbers straight from

the postal service 5.9 billion pieces

were not delivered so they either got

returned or thrown away so obviously

that's an extra cost to the USPS as far

as handling all of the UA a mail the

USPS is reporting still that this is

about a 1.3 billion dollars a year cost

that they have to incur and therefore

the amazing industry occurs because of

course they have to pass that cost along

they have to recoup that amount in terms

of rates but as far as the actual

mailers in the mailing industry it's a

much bigger impact when you factor in a

number of the other costs it generally

comes out to say well the UA email is

really costing the mailing industry

about 20 billion dollars total and that

doesn't include the risks and any fines

or penalties that might come out of this

so in Adam I know earlier you talked a


about the non-physical address problem

and I know we've done some analysis work

on the know your customer regulations

for clients and the identification of

these non-physical addresses and

mailings can you talk a little bit about

that and and expand on that sure

actually that's a very interesting one

as one it gets back to understanding the

bad data and where you're at the amount

of non physical addresses that anyone

Mahler will have is going to vary based

on your list and the type of people or

type of companies that you mail to so

that is going to vary but we actually

did a test earlier this year where I

just kind of did a random check across

an entire months worth of data that was

processed both of database dayses

databases that were processed and actual

mailings that occurred and 11% of what

was processed fell into one of the

categories of non physical addresses so

that right off the bat is a compliance

issue that again mostl Eckerd's

were valid in terms of qualifying for

discounts but it's a bad address for

certain mailers in certain industries so

that's it's a challenge when you're

talking about a lot especially these non

USPS factors its which one's apply which

ones are concerned because even that 11%

not physical addresses some mailers will

care about all of them some will only

care about one or two because the

regulations are different across the

different industries and that kind of

gets to what we what I want to talk

about first before you can really start

closing the loop you actually have to

know what is your actual data what is

the values that you have on your data

and your information isn't very good is

it bad what type of issues so those that

don't you know you can have all kinds of

best practices that you can try putting

in place and I certainly talked for a

long time about just best practices in

general within your operations yeah a

long time you know I you know I might

even say it's days

this point yeah thanks you less true

those that nobody owes and I could go on

pretty much forever on best practices

but the point is you need to know what's

going on in your operations where what

your data is showing you where you are

having the issues the last thing you

want to do is you know if you have a

certain budget to go fix problems you

don't want to spend 10% on your of your


fixing 1% of your issues when you also

have this other issue that you could

spend 1% of your budget and fix 10% of

the problems you won't know that until

you know what's going on with your data

where is the value where are the issues

and the key there is you got to look at

it from a corporate level you got to

look at it across the entire

organization what is the impact in all

the different silos what does each silo

have and is in a similar process that is

affecting the addresses that is

affecting how you are doing things and

it needs to be monitored this can't be a

one and done thing you need to watch it

you need to monitor it had a customer we

were working with once where had their

process documented and they were you

know they were doing a best one of the

best practice of recommendations they

were doing both NCOA link and they are

doing ACS which has two methods for move

update ones pre mailing and one to post

mailing so the pre mailing was handled

by the IT department the post mailing

was handled by the mail center

operations who was receiving the pieces

back and processing the pieces well both

of them knew that the other department

were doing those processes and either

one by itself qualified the company for

meeting the move update regulations both

divisions also had guidelines from the

corporate level say you need to cut your

expenses so they both stopped doing

their process one turned off NC way the

other one turned off ACS without letting

the other ones know so now they're out

of compliance the return mail starts to

spike like crazy and nobody knew about

it until

basically we came in and caught and we

came in and caught it because they were

wondering why they're undeliverable mail

rate was spiking some whites they were

suddenly getting so much more return

mail now you also need to have annual

Roos like I said this is not a

one-and-done things are constantly

changing there's new technology there's

new options there's new data and just

find out there's new rates things that

may not may not have been cost

justifiable a year or two ago because of

the way postage rates have changed

because of other changes financially it

may make sense now we had tell another

story we had a client we went into and

they had actually done a complete

full-blown Sigma project to analyze

everything end to end and they had

monitoring in place they made all kinds

of improvements

it was fantastic it was great because oh

they will go in and go can you give me

this data and they went here it is

because they had the monitoring in place

it's like well the only thing they were

doing with the monitoring was making

sure that the process they setup was

still working and running correctly they

never went back to review it to go is

this still the best process well they

had done this two years prior so in

looking at it we're like wait a minute

you haven't taken advantage of this new

functionality that became available a

year ago or this new data element that

came available year-and-a-half ago and

so in literally just a few hours worth

of reviewing their processes and their

current data we actually identified a

little over two hundred thousand dollars

and new opportunities and about half of

that was think they could take advantage

of just like real quickly going into

some of their existing process and go

turn this on so it's it's okay so if you

have to keep reviewing what's going on

if you don't know what your system is

doing you don't know where you're at you

don't know the effects it's having on

different steps you have to have that

information you know like I said before

if you you know I was talking about the

one that it gave you that example they

didn't know what their you AAA rate was

once we did the test and they were able

to see it they saw that they were

over 13% how come more mailers don't do

this kind of analysis on a regular basis

my best reason is when we hear all the

time is mailing just considered a cost

of doing business

and I think one of the other big impacts

is the fact that with so many companies

different operations are siloed apart

from each other so while the

undeliverable mail or the bad data

actually has serious effects in many

different departments if you don't look

at it company-wide you don't really get

the full scope of what the full impact

is just to go and give some examples I

mean when you're talking about bills and

statements let's say for example your

average bill is $200 we saw earlier from

the USPS that you know three point seven

eight percent is either get a

first-class mail is either getting

delayed or not delivered at all so if

you have a million pieces going out

that's seven just about seven and a half

million dollars in revenue flow impact

meaning either payments that you got

late because the customer never got it

or you haven't gotten at all and you

need to follow up with other ways of

trying to get it found and so that

doesn't even clue those additional costs

for how to reconnect or recollect that

lost information so when you talk about

you know reconnecting and you're

collecting can you talk about some of

the additional costs I mean I know that

there's costs we talked a little bit

about the return mail costs you may have

some costs in relation to creating some

additional mail pieces to follow up with

those folks you know there may be some

additional customer service calls that I

imagine there's probably even some more

can you give us some examples sure and

it's it's going to range and it's

another one where each mailer has to

kind of decide what makes the best

financial sense for them it could be as

little as a few pennies you get the

piece back and hey maybe you've already

received a call from them you've already

sent out the new bill you parse it out

you know it's like all right I've got

nothing else to do I can just throw this

piece away that's going to be less than


but in doing the researching doing the

connection out additional mailings other

operations it can go up pretty

significantly best example I would have

was a company that was they managed

student loans so the average the average

balance on a student loan was $20,000 so

when they lost contact with someone they

had a really big incentive to reconnect

with them so they actually had a while

at the time they had a waterfall process

of eight steps that they would go

through to try and reconnect and

re-establish contact with a particular


now the first steps you know cost on the

order of pennies per correction or even

pennies per thousand depending on the

process but it worked its way all the

way up to full-blown skiptrace

collections and tracking which would

cost at the time it was over $100 per

correction so they actually monitored it

really closely and their average was $12

per correction now generally for an INT

mailing industry most things we say you

know it's not on the order of a customer

with the $20,000 balance it's more of a

financial impact of about $3 per

undeliverable mail piece is typically

what we will actually utilize now

obviously trying to reconnect on a

marketing mailing usually you don't

aren't going to spend as much money

trying to reconnect it you don't have

ana standing balance with them but

banding addresses definitely also affect

your marketing pieces in this case let's

use this example the average order you

get when you pick up a new client is

$100 and the mail piece you're able to

reproduce that real inexpensively forty

cents again using the USPS of data five

point two seven percent is either

returned or treated as waste so that's

the complete waste in production costs

so if this was a million piece Mealing

and I'm just going to use an example of

a two percent response rate well flatout

if I could identify that five point two

seven percent

and just not do production on those

pieces I'm going to save $21,000 but if

I can identify those pieces and I can

get them fixed or I can replace them

with other names and addresses that I

know are good and don't have any

deficiencies so they're not bad data now

the cost of that fix is going to be

unknown you don't have to figure that

out but if I can get those delivered and

I get my 2 percent response rate that's

another hundred and five thousand

dollars in orders that I just received

plus now I've just found was contact

with them and as far as lifetime

earnings and value I get out of that

particular client I start that counter

even early earlier let's talk about how

we're how to get it right right where we

start in the process I think the start

of the process is at the very start at

the data capture process so I'll turn it

back over to Adam that's absolutely


it's far easier to maintain a good

address than it is to fix a bad one the

best time that you have to ensure that

you have a good address remember buy

good I don't just mean that it's correct

complete its mailable but that is one

that you are legally allowed to be using

it's at the time of entry when you have

the person on the phone so you can ask

them hey wait a minute can you please

confirm this information or provide this

other information or it's when you have

the order in front of you that you're

entering in oh I read that street name

wrong or read that number wrong I can

get it corrected is this the right

information is it an address that you're

allowed to use for the purpose that it's

being is intended the effort to need it

to fix the deficient address or bad

address jumps up immediately

as soon as you go away from that point

of data entry additionally it gets

harder over time in fact there are

certain time frames depending on the

reason that the address is bad or

deficient where the difficulty jumps

exponentially so you want to do

for most you want to get it right right

at the time of data entry and let's

actually do a little let's actually do a

little example here so let's say that

I'm a client I'm a client of yours

I'm a I do I have a franchise of

operations in all the major cities that

do window cleaning on the high-rises and

I've been doing work with you for a

while and I call you up and go okay I

need some information from you on all my

personnel and you just send it to me we

have a new address so here's what I want

where I want you to send it I'm at one

to Oakland Avenue any town New Jersey 6l

101 so think about that if you have a

piece of paper write down what you think

I just said I said one - Oh clean Avenue

any town New Jersey six at 101 okay so

you take that down sounds like a good

address and you put all this information

together and send it off well what

address did you have did you have

something like this 120 clean app any

town New Jersey six at 100 100 out the

600 101 right I bet all of you got the

New Jersey right now for any town was

that really two words or should have

been in the warmer doesn't really matter

to run this through a cast engine you

got the state and zip right it'll fix

the city you got clean Avenue okay and

120 well but if you think back to what I

said I didn't say 120 I said 1 2 Oakland

Avenue as in well so cribben this one 12

I'll clean Avenue any town New Jersey

six at 101 I'm at a completely different

Street I'm at a completely different

numbered bat mail piece that the 120

clean Avenue most likely isn't

qualifying for discounts most likely

isn't even getting delivered worst-case

scenario is getting delivered to someone

completely different

I've actually seen examples

where this was there was actually an

insurance company where with a slight

variation a slight error in the address

it would actually end up coding over to

a completely different address that

turns out was a different insurance

agency so that company was getting the

mail for their competitor now let's go

back to this scenario so you mail to the

120 clean Avenue I never got you know I

asked for this information I never got

it if it had sensitive information about

you know my workers that potentially

went who knows where I don't know what's

going on so right off the bat you have

the issue of data entry it cause I

missed my discounts I think it wasn't

able to qualify now it's a little bit of

a red flag I'm also means I'm not able

to get the information it's a bit of a

bigger issue well also means if you've

just updated that as the address in your

system for me and you don't even didn't

maintain my old address you've now lost

contact with me as far as through the

address so hopefully you still have my

phone number or email address and

obviously that's going to affect your

customer satisfaction hey I never got

this you know I asked this company for

information they never bothered to send

it to me you know I'm gonna go talk to

somebody else I'm going to move my

business elsewhere but if that was

sensitive information and the USPS you

know there turns out there was a 120 120

clean Avenue I mean it got delivered of

somebody else and they went outside for

me and they just threw it away

who knows what's happening with that

sensitive information that could open

myself to a lot more bigger issues and

problems leading to referee you know

reparations against my company and

really damaging like lenny reputation so

it can really snowball the effect and it

can all start from the point of data

entry now

after data entry is also important once

you have a current address like i said

it's easy to maintain it but you have to

maintain it you have to update your

addresses they do not stay good forever

things are modifying that things are

changing so when you ever you have the

opportunity you want to be updating your


obviously at the time of data capture

that's not just when you're signing up a

new client that's when they're placing

an additional order or they're on the

website checking out get you set the

check out hey recheck your address

reject your information let's capture

the latest information people also do a

two-cycle outlets let's recheck things

when we're actually getting set to use

it I need to send out an annual notice

let me check let me get it up to date

let me apply those changes now the

problem with doing it only at the time

of use is some are certain situations

where you don't use it very often so you

can have a major problem because you

haven't done it in years the biggest

example of this would be beneficiaries

hey you don't need to reach out to the

beneficiary till it's time to do a

PayPal it could be 10 20 30 years from a

time that you get an address to when you

actually need to use it and of course

you got so you have routine maintenance

you need to just maintain it on an

ongoing basis and keep it that

information the same with day two repair

once you fix the record you want to

apply those fixes but a big thing is you

want to make sure that you apply it

across all the records you have if

you're a financial institution it's like

oh right I've got a ticketing account a

savings account a CD and they're all in

separate tables their own separate

databases so if you fix one did you

remember to go and fix the others and

get them applied yeah and that's great

point so the other piece of it too is

that a lot of organizations use the

address is really the backbone of their

contact information right so there's a

lot of especially in the marketing space

there's a lot of data append services

out there you know you get phone an

phone a pen phone verification email app

an e-mail verification services so just

by losing touch with the address it may

impact the totality of that contact

information and Adam talked about you

know making sure that you run those

processes across all of your silos in

maybe more of an operational environment

in a marketing environment you want to

run that those processes

at the same time across all of the

segments of your universe that you're

targeting the reason being is that when

you get into your merge purge or due

process where you're really trying to

condense that list to meet your strategy

needs in terms of one to a person one to

a household one to a family those types

of things having all of the data

synchronized in time is really going to

save you cost in wasted mail duplicate

mail as well as brand reputation where

you know somebody isn't getting five

catalogs delivered into their household

cleaning it is important not only in the

contacts base but also in the strategic

marketing and business base as well so

now we can actually cleaning and you

know that goes hand-in-hand with

maintenance but cleaning it is more than

just updating the information it's

really what's going on with that address

is it one that you still want to use is

it one that you're going to mail to or

not or is it one that hey I need to now

send this off to a special process and

some of those industry regulations we

talked about that actually comes into

play to where hey when you see this

suddenly happen with an address you now

have to follow certain steps and

processes so cleaning your list is also

important and the key thing to cleaning

it is especially when it comes to going

is you want to do it right before you

drop the closer you can do it to the

time that you're gonna drop the mail the

better because again the data is

changing all the time if everyday people

are moving every day the USPS is adding

new delivery points now every and every

month depending on the quality of your

mail piece you can be seeing up to 3% of

your addresses coding differently and

it's not because they move this is just

flat-out coding differently because the

USPS has changed carry routes

it is redone zip codes it has changed

other information back when I actually

used to do some tests in this area one

of my favorites has to do with was I had

a list of some of the worst addresses

around and it was seeing how the caste

engine handle fixing them and correcting

them and it was interesting to see

every month I would see about a 3%

different from the months before 1% was

suddenly not code but coded the month

before 1% didn't code the month before

did code this month about making any

changes and about 1% coded in both

months which is a slightly different so

it's one of those things where you sky

remember it's changing constantly so in

order for you to make the best decisions

you need to have the latest information

so that way you can make the best

decisions of what to do at the time of

mailing now once you actually mail now

you're able to get information back on

what happened on that mailing make sure

you're getting the information back so

you can use that information to apply to

future mailings so what are some things

you're going to learn about well you're

going to right off the bat you're going

to identify the pieces that were on

deliverable and hopefully you have a

setup to where you can understand why

was it Hunt allure did it get forwarded

like great goes I may not have to worry

about other than checking and updating

their addresses but was the problem with

the address no such Street no such

number was the issue with the person

attempt to not known this person is not

known at this address or is it an issue

with the the person to address

relationship meaning oh this person

moved or this address is now vacant or

they moved over 18 months ago I can't

give you the new address understanding

where your problems are which categories

they fall into identify which type of

processes you will then use the try and

fix those it also lets you know what

kind of risk you're at if you continue

to mail to the name and address that you

currently have on file and that leads to

being able to close the loop how can I

use that information the especially

apply it back to my future mailings and

my data so that I can take advantage of

it now one thing tip um get right off

the bat one of the ways to speed up and

optimize closing loop is to utilize the

ACS service from the

SPS this is still a case of you're

getting the undeliverable mail

information back which is great because

you're getting the information that the

USPS actually encountered when trying to

handle that mail and you're getting the

information from the carrier knowledge

who is able to figure out and identify

you know some change of addresses but

also identify why they say the reason

the piece is undeliverable but with ACS

you're able to get that information back

faster on the orders - of days - even a

week quicker so you can take action

sooner it also is already in electronic

format so you don't incur the delays and

the errors of someone trying to key the

information in you can go right into

your system and based on the codes go

right into the next set of corrective

actions and that's to identify which

twin so do i or do i mark them for

holding an investigation meaning okay

hey I need to send these off to the

agent to try and follow up or hey flying

this one so that the next time this

customer calls in or goes online we can

bring up and ask them about their

address information you know it allows

you to trigger off that information

automatically now with acs and with this

data there are also some things to watch

out for like I said it does include

information that is identified by the

carriers well when you have thousands

upon thousands of carriers you're not

always going to get the exact same

action and response out of each one of

all so what one might call an

insufficient address the other one may

say no such number so the information is

not always consistent it's also a case

of with ACS when you get change of

addresses the new address you get back

will be what the carrier file so it may

not be a valid address even it could

have issues so it's something you need

to watch out for and it's just is

something the factor and then pay

attention to but also with ACS by

turning it on not only do you get a

faster you're actually able to do some

other optimizations in your processes of

closing the loop in terms of saving

money and operations because you can

activate secure destruction which can

save you secure make you reduce security

risk and actually save you some money

you actually get additional information

that you can use to investigate census

failures that get reported and by

getting it back electronically you can

also be easier to apply this information

across your entire enterprise and that's

where you're like well wait a mile so I

want to apply this information which

means I need establish well how do I

want to apply this I need to establish

my business rules what should you do who

needs who can make the decision of what

to do how do i implement this this is a

lot of questions you need to walk

through well what are you going to do

with that information are you going to

apply it or not you're just going to

flag the record or going to stop mailing

if you're going to continue mailing can

I still claim discounts there's a lot to

discuss here and this is where you need

to have all of your operations involved

because if you decide you know legal

needs to be involved to understand what

do we have to do from a client

compliance perspective because if you

leave it up to just one other operations

and one other division like mail

operations they're going to well I want

to suppress these pieces because I know

they're undeliverable but compliance may

say no I have to sorry we have to send

these out we're required to so it needs

to be a group decision of what are the

business rules to get applied and so one

things I know we do this a lot with

clients of doing them what can you talk

to some of what we do with clients and

establishing business rules yeah yeah

thanks for handing it off Adam you know

we do we kind of when we built our

systems we had these these customer

problems in mind so what we do is we

make it very easy to categorize both on

type and purpose and and based on the

regulations that each of our customers

is working with to take each individual

update whether that's a cast update an

NCAA update or even some of the

information that comes back from ACS and

categorized it in terms of the actions

to take further down in the value stream

so we help them automate and make

decisions whether to mail as is to

suppress that record to to mail it in

its current state at a different

discount level or take additional action

so we're kind of we pride our stuff of

the helping business to deal with these

very things and so that kind of leads us

into the next topic which is around

compliance you know it seems like we

keep having more and more conversations

around the compliance piece with

addresses with many of our customers and

even the compliance departments within

our customer organizations and that's

very true

and there's times where it's actually

well it kind of goes both ways they're

signs for compliance sorry you have to

mail these pieces out that maybe cost

additional postage but there's other

times where we've had the conversations

where them you know the mail operations

folks take us into compliance and we

explain what the process is the USPS

already has and based on the

conversation compliance is going on I

didn't realize that's the way things

operated in the mail stream and with the

data based on that

yeah we're allowed to apply certain

updates the mail pieces or in that case

we're allowed to suppress mail pieces or

convert it to a cheaper price

all of which reduces cost and reduces

risk for the actual company so that can

be some very good things but that's the

key thing in that conversation is making

sure that you're meeting the standards

you know obviously you want to make sure

you're still meeting postal regulations

re qualifying for the mail or your

mailing pieces that you're supposed to

not mailing pieces to addresses you're

not supposed to but then it's in its

industry compliance like I said there's

specific regulations around ad versus

the use of addresses the recording of

them whether you can mail to them or not

both you know and Fanjul

insurance healthcare government and the

list goes on telco there there's someone

every one of them but it's becoming a

bigger issue because there's more and

more regulations that have been coming

about you know post office there's now

going to be census monitoring for move

update they're seamless acceptance in

the industry more regulations around

different types of addresses in part

because the the lawmakers are also

becoming a little bit smarter about the

ad verses themselves so for example

there's a lot of regulation regulations

that initially started out as far as

again not wanting to allow non physical

addresses would say sorry you cannot

utilize APO Box address for this purpose

well then the law makers started to

realize oh wait a minute appeal box is

just one type so then it became oh yeah

I can't use a peel box or a commercial

mail receiving agency both are cases

where mail is receives mail is

or but it's not where the person

actually resides it's just where they

come to pick up their mail and so now

some are still just a peel box

some say pure boxy Marais some are now

getting into just saying hey in this

step you need to make sure you get the

physical address for the person you need

to unknowns a Klee where they live

what's their location an interesting one

that's been happening that some people

don't even realize there's been kind of

growing becoming a bit slightly bigger

issue has to again do with the

geographic locations here's an example

we see Pine Creek Road as I went through

the USB as a system coded the address

you see there's a large number of

addresses on Pine Creek Road in

Farmington Washington in that zip code

nine nine one two eight they can okay

great so I applied the rule of

regulations for Farmington in Washington

that's the agent who gets the credit for

it is the tax rate I said except one

little problem when you actually look at

the address and you look at where Pine

Creek Road is you can see it marked by

the little marker spot but as you look

over to the left you see the state

boundary Pine Creek Road is actually in

Idaho so the mailing address is in

Farmington Washington the physical

address is the same Pine Creek Road in

Farmington Idaho so that can impact

Miller so again it's just another one of

those things that people are starting to

become aware of and that they need to

realize they need to figure out how do

they protect themselves against these

particular issues you know how do you

avoid damages you know both from the

USPS you know is this something to where

I might end up losing my discounts but

also from the industry is this something

where I might end up getting fines or

penalties and you know I want a guard

against that but I said you not

necessarily going to be able to guard

against everything some things are going

to happen and still flow through you so

you have to be able to prove that hey

I've got a process

place that tries to find all this and my

process is working and I can show that

it's working and I can show whether this

the right decision was made based on the

information that was available I know

don't have you mentioned talked about


there's also companies that based on

processes they've established it will

offer up some guarantees against some of

these regulations yeah and I think that

that is a special feature that we offer

to our clients and in the interest of

time if people are interested please

follow up with us after the session

because we'd love to talk to you about

it but we do offer move up they

guarantee based on level of services

that we provide and that kind of brings

us into the next area which is

customization right so as you think

about solutions and as you think about

you know within your organization how

you're going to work with your addresses

to meet some of these needs you think

about well maybe my needs are unique to

me or that some of the providers out

there they just don't quite meet our

needs so we just wanted a touch base and

with some of the things that you should

be considering you know whether you're

looking for a software solution or a

services solution some of the factors

that go into that decision making

process that you should consider or the

time to build it the cost to build it

and then the resources that you'll need

not only to build it but to maintain it

over time

the industry knowledge the technology

knowledge and then and then how that

solution is going to fit all of the

different use cases within your business

right and and so we just want to put

that out there as a decision point as

you consider how you're going to meet

these needs you know one of the other

big pieces that I wanted to highlight is

the data security so if you are looking

for a services solution to some of the

to meet some of these needs data

security is of utmost importance and in

the news almost every day these days so

we wanted to make sure that was on your

list of things to consider as you're

looking for solutions to help you with

some of these issues so in terms of

closing thoughts as we wrap this up and

we'll get to some of the questions that

we've been receiving here in a minute

but I just wanted to thank you Adam for

your expertise your kind of in-depth


in depth review of many of the issues

that relate to addressing both on the

risk side as well as on the revenue side

for our attendees today I found it very

helpful and useful and appreciate you

delivering this this session today and

so I'll kind of if you have any closing

thoughts as well I was going to thank

everyone for staying with the Azzurri

because I think most of you are used

when I talk it's like I tend to go long

but the first and foremost a thing I

need to mention is I tell everybody you

need to know what you don't know you

need to know what your process is you

need to know what it's doing you know it

new orders are supposed to do and what

it is actually doing and that's going to

tell you where you have your risks and

where you have your opportunities that's

that's them that's the closing thought

that I want to leave people with is

simply you need to know where your

you're at in order to know where you

need to go great thanks Adam

/ lied here has the link to download our

ebook for some further information with

many of the topics that we talked to

today again we'll be sending out the

materials and the recording of this

session so if you don't get a chance to

jot it down you will have access to that

once we finish up here we've got just a

couple of quick questions to get through

in the interest of time we'll make sure

we make these responses quick the first

one we have is Adam you mentioned secure

destruction so can you tell us a little

bit more about that how do you turn it

on how much you know what is the cost of

that and any of the other things we

should be considering around secure

destruction sure secure destruction is

service the USPS implemented somewhat

recently it's available only on

first-class mail and it's one where you

identify the pieces that you want the

USPS to send to secure destruction now

you have to have ACS or not so you have

to still have the method of getting

feedback to you as a mailer that that

piece is undeliverable so that you can

take actions on future mailings but

otherwise the USPS will dispose of the

piece as opposed to continuing to route

it back to you in the mailing system so

it actually save

the USB is quite a bit of money because

they don't have to handle that returning

so as a result it actually is free the

u.s. best does not charge anything

additional for secure destruction and as

far as you do have to turn onto ACS but

if you're a full-service mailer and you

turn on ACS your ACS notices are free as

well so it's a win-win you avoid the

costs of him the dispose of the piece

you're reducing your risk you're getting

more information and you're getting a

faster great Thank You Adam another

question that came in here is can you

talk a little bit more about the

different types of non physical

addresses and how prevalent they are we

got a few minutes left that's the

session almost in and of itself as far

addresses i think i rly 11% when we did

a test 11% of the records process we're

non physical addresses about half of

that where peel boxes but the trick is a

lot of the tests for checking for a peel

box only work at the address codes and

our addresses that are when you look at

them you realize is the peel box but it

won't actually code that way so you have

to do some extra checks after that you

got the commercial mail receiving

agencies you got the peel box free

adverse equivalence so it's a it looks

like a street address but in reality is

being delivered to a peel box and that

number has been increasing since the

USPS came out with that functionality

there's a lot of other types and like

said if you're interested contact us we

would be glad to have this conversation

a lot of those other types of non

physical addresses it's not just a case

of its you want to identify it for

regulations but you want to identify it

because you need to take different

actions in order to deal with your

client properly because there's some

where it's a non physical address you

can find a personal file change of

address into it but not out of it so

when you see someone move into a non

physical address you want to make sure

you have some other means of getting a

touch with them there's also other non

physical addresses that are only valid

for shipping packages so if somebody

orders something from you and you ship

it and then you try

sending the bill to the same location

the bill won't be delivered the bill is

UAA if you can identify that upfront at

order entry you know wait a minute I

need that other address and if they keep

trying to say no that's the address I

want you to send it that should raise a

big red fraud flag

very good thanks for that insight Adam

with that I think we're going to wrap up

I appreciate everybody dialing in today

and joining us for this informative

session Thank You Adam again for your

expertise and we will talk to you soon

in the future