Tag Archive for 'Move Update'

Difficulties in Meeting Move Update Requirements for First-Class Mailers… Is It Real? Or is it Hype?

This week I read an interesting article on the concerns regarding postal inspection services initiative for move update that Dan O’Rourke, the editor for Mailing Systems Technology had flagged up. In case you missed it – here’s the link.

Mary Ann Bennett provides a very interesting perspective on this subject and it is worth reading. Not being a mailer myself, in reading the article I compared it to a time when I ran my own business, and felt like with all the government requirements such as workman’s comp, property tax, sale tax on goods sold, inventory tax on goods not sold, payroll tax, etc – the likelihood of ever turning my business into an empire seemed bleak as the reality of owning a small business came to life. Just keeping up with all of the requirements while running my business was challenging within itself, it seemed endless – and it obviously is no comparison to what large volumes mailers are dealing with these days.

In the article I mentioned, Mary Ann highlights the many complexities associated in complying with the move update process. While many large volume First Class mailers felt they had all their ducks in a row to ensure maximum postal discounts were achieved, from what we are hearing, this is unfortunately not the case.

Mary Ann writes; It is understandable that these large companies would have no idea there is anything wrong with their mail. And then they get a phone call from a Postal Inspector who is requesting a meeting and that Postal Inspector shows up and says “show me on your mailing statement which move update methods you are currently utilizing.” The mailer is using a service provider and is unsure of what is being marked by their mailing agent on the statements. But surely, there cannot be a problem. They have been using the same in-house method for many years and they had no idea they had problems with the mail. Upon further investigation, the mailer determines that no USPS approved move update method is being used. The Postal Inspector goes back and says well there are these four methods and a 99% accuracy test. And the customer says, “we will submit the files for 99% accuracy”. And the Inspector will say “well no, you would have had to do that before the fact.” As far as the Postal Inspector is concerned the mailer has broken a rule. “Technically you have not been in compliance and listen Mr. Mailer, if I go back a period of years, since this regulation has been in place since 1997, technically I could go back and take away every postage discount you have claimed over the last twelve years. I could recover around $80 million but we will settle for just $2.5 million. We are going to settle for this reduced amount and unless you pay this amount, we are going to rescind your mailing privileges.”

It’s a scary but very real scenario that I hope any of you reading this will not find yourself or your organization a part of. Mary Ann states that many mailers are now seeking other alternatives for mailing, but for many of you that just is not an option in the short term I will look forward to hearing how you are coping, if this is a key concern…or mostly media hype. We do hear of these things happening, but how often and to what extent I just cannot provide any insight into.

Who cares about seven cents?

News that the USPS will begin assessing fees in January 2010 on mailers who fail the new address quality audits has left mail operation heads scrambling to make sure they are in compliance with all Move Update requirements.

After all, the cost of non-compliance – up to seven cents per piece on a portion of your mailing – can easily bust your budget, especially at a time when everyone is looking for ways to reduce expenses.

Details on the latest USPS effort to curtail Undeliverable-as-Addressed Mail can be found in our earlier post and white paper, The Truth About Move Update. This white paper outlines how samples will be audited and the calculations by which fees will be assessed when mailers exceed the 30% error-rate threshold. Today, however, we want to discuss why it’s important not only that you comply – but also how you comply.

After all, if the goal were simply to save seven cents… you could save that and more simply by not sending the mail altogether. But you can’t – because the communications you send have a purpose. They help you connect with customers and prospects, collect revenues, meet government regulations and sell products.

While that may sound like motherhood and apply pie, we were surprised to hear about a mailer who decided to outsource move update compliance to a third-party because he felt it was the simplest, easiest way to save seven cents. The USPS was happy because addresses were updated and the piece was delivered. But at the end of the day – the information about those customer moves never makes its way back to the company. 

Month after month, bad records are corrected, but the company fails to recognize new opportunities associated with these moves. They fail to target offers correctly because their data is wrong. Eventually, when the customer’s “change of address” notice expires, they simply lose touch altogether.

This can occur when you don’t receive the new address information, but the same poor result can occur when you have the data and don’t update your records. You see – getting and using the data about a customer’s move is worth far more than seven cents.

But we understand that it needs to be simple and easy, too.  That’s why so many mailers are excited about our new VeriMoveTM Access solution.  It’s an “on demand” offering which means there are no software agreements.  No changes to your underlying systems.  And no need to acquire and pay for the USPS® NCOALink® license normally associated with on-site updates.  Your addresses get updated and you get to keep the new data.

If you’re interested about closing the loop, you’ll also want to learn more about ways you can automate the cumbersome, manual process of correcting customer addresses—turning the codes generated from NCOA and ACS into actionable information.

It’s a cost-effective way to keep track of customer moves.  And yeah, it can help you save that seven cents, too.  If you need to see a demo, let us know.

Waiting for Godot?

I had the opportunity to attend an industry conference last week (Mailing Systems Technology) and wanted to take the opportunity to share some thoughts with you.

Albeit this was a small conference relative to others (National Postal Forum/Mailcom), two topics became central points of discussion: address quality/move update and the Intelligent Mail barcode. 

What struck me as odd is the continued delay(s) by our industry to address a strategy, much less adopt one; it certainly left me pondering, are we “Waiting for Godot”?

Fortunately, the speakers at the sessions I attended took the time to address both issues,  as we (Pitney Bowes Business Insight) continue to do ourselves, but we can only “collectively” do so much.

 Change is coming, and while change is never fun, it is not an option.

I urge you act now if you haven’t already done so, inquire about our options such as MAIL360™ as a Intelligent Mail barcode solution, Verimove™/Verimove Access™ for move update and Spectrum™ for data quality; the option to be the “early bird that get’s the worm” is running out.

All the best for a great week!

Mailers prepare for January 4, 2010 – with much at stake today.

As the new Global Portfolio Director for Communications Intelligence, I am continuously impressed by the way you, our customers, juggle corporate demands with the communication needs of customers and prospects. Having joined Pitney Bowes Business Insight from the industry, I can certainly relate!

On top of that, together we must also support a broad range of USPS initiatives designed to improve the overall flow of mail. Recently, postal officials announced their long-awaited plan on how they will be dealing with move update compliance.

Undeliverable mail costs the US Postal Service over $1.6 Billion a year, and mailers who contribute to this problem will soon be expected to pick up more of the tab.

Postal officials have implemented a new Performance Based Verification system to monitor compliance with the Move Update standards that took effect back in November 2008.  The verification processes utilizes the PostalOne! and MERLIN systems to evaluate whether mailers have updated and changed addresses according to postal rules.

I wanted to take the opportunity to call your attention to January 4, 2010, the date on which this approach will be used at the point of mail acceptance to determine whether additional postage is required. Mailers who wish to avoid these unexpected costs must be able to certify that their mail was prepared using an approved Move Update method-but the time to act is now.  (To learn more about solutions, tips, webinars and resources, visit our move verification page.)

You should also read the new PBBI white paper-The Truth About Move Update- which recaps the new standards, details the penalties you may expect, and provides insights into the impact that effective address change management can have on your organization.  When you download this paper today, you can learn about best-in-class solutions and the next steps necessary to ensure there are no surprises down the road. 

At Pitney Bowes Business Insight, my team and I will be here to provide the up-to-date news, practical tips and strategies, and cost-effective technologies you need to meet the demands of your company, customers and postal compliance.  I am glad to be the newest addition to the team and look forward to meeting and serving you in the months ahead.

Are you in compliance?

Earlier this summer, our own David Robinson talked about an increase in activity among USPS Postal Inspectors – especially as it related to Move Update non-compliance.

Apparently, the heat is still on.  This month’s issue of Mailing System Technology features an article on the same topic.  If you are contacted by a postal inspector, you should treat this inquiry seriously. As postal inspectors are federal law enforcement agents, you should contact you corporate counsel immediately. The potential financial exposure for a national mailer could easily be in the millions.  If you have anything to add on this, we would love to hear from you.

Postal inspectors targeting business mailers

At our user’s conference in June, a number of mailers mentioned that they had recently been contacted by USPS postal inspectors. The topic of these conversations quickly turned to compliance, and agents wanted to review how these companies met USPS move update and address quality requirements.

This initiative was also described in a new white paper from Venable, one of the top business law firms in the U.S.  Venable reports that the Postal Service is looking to collect more postage on mail that has already been delivered by identifying violations of Move Update requirements. In certain cases, investigators “seek evidence that the mailer entered improper mailings knowingly or intentionally,” actions that could trigger a costly claim under the False Claims Act. 

Some mailers welcome this action. After all, if you are going through the effort to comply with USPS requirements while others are taking the discounts without doing all of the work, what’s fair is fair.

Other mailers are concerned.  Even if there is no malicious intent, some companies simply do not do a great job with move update compliance-and a postal audit could result in penalties.

All mailers should be prepared.  Your company could be targeted for an inspection simply because you receive returned mail (which narrows it down to everyone).  First of all, you need to make sure your mail processing teams understand the USPS requirements.  Secondly, that you adhere to these requirements on every mailing-and document your processes.  And, just as important, that you take steps to close the loop and update records once you’ve been advised of an address change.  (To learn more, feel free to contact your Pitney Bowes representative.)

If you are contacted by a postal inspector, you should treat this inquiry seriously.  As postal inspectors are federal law enforcement agents, you should contact you corporate counsel immediately.  The potential financial exposure for a national mailer could easily be in the millions.