MMI Direct, the entire PMG family of companies, our partnering printers and lettershops, and the USPS remain committed to delivering mail to the American public during the Covid-19 crisis.
The USPS recently shared their operational plans during the Covid-19 outbreak.
The USPS will begin using a new Move Update validation process which could impact your budget. It allows them to better identify and penalize mailers who do not practice solid data hygiene. Here’s the breakdown of the changes.
What does this mean for mailers?
As you know, in order to receive postal discounts, the records on your mailing list must have gone through a data hygiene process called NCOA (National Change of Address) no longer than 95 days prior to your mail date. This helps the post office better manage their resources by reducing non-deliverable mail and the time-consuming task of forwarding and/or returning or trashing mail that cannot be delivered to the intended recipient. Move updates must be done for both Marketing Mail (formerly Standard) and First Class mail.
Nothing new there, so what’s changing?
Well, the USPS is changing the validation method used to determine compliance with Move Update –Mailpieces are scanned using Mail Processing Equipment and each mailing’s scores are maintained on a Mailer Scorecard. These results are aggregated across the calendar month and are measured against the established thresholds. Any COA errors exceeding the threshold, which is an error rate of 0.5%, will be assessed a Move Update assessment fee.
What does this mean for you?
In order to keep your error score down, it’s important to keep up with your data hygiene protocols and process them through the NCOA hygiene in the prescribed time frame.
Managing how your data is in your record will also help. Small things like ensuring your recipient name reads FIRST NAME/LAST NAME vs. LAST NAME/FIRST NAME will greatly decrease your error rate.
If you need assistance with any data hygiene or ensuring your Mailer Scorecard is within USPS thresholds, please reach out to us – we’d be happy to help.
What should you do with records that are flagged as potentially undeliverable during the CASS Certification process or while being run through the National Change of Address (NCOA) database? It depends upon the type of error that CASS or NCOA identifies
CASS Rejects and NoPlus4 Records: If there’s a major problem with the records – there’s no street address or the zip code is in the wrong state – it should be removed from the mailing. However, if the zip code is in the right city but CASS couldn’t append the zip+4 code, don’t automatically drop the record; the USPS postmen and postwomen tend to be very knowledgeable about their areas and may well know where to deliver it. Look at the flags or footnotes CASS appended to your file and choose the records to drop based on the severity of the error CASS noted. You can also mail these records under a separate code in order to test the responsiveness to your particular appeal or offer.
Nixies: There are two types of nixies and they each should be dealt with separately.
What to do with your remaining potential nixie addresses? In order to make a good business decision regarding whether to mail these names or not, you will need to test them. Mail them and track their responsiveness. Most of our clients have determined there is value to mailing these names, but only your results will tell you the best way to deal with potential nixies.
Feeling a bit confused about the many decisions that managing your mailing list requires? You are not alone! If you’d like to put our decades of data hygiene experience to work improving your direct mail’s ROI, please call John Bell at (310) 372-9010.
Want more than a cookie cutter approach? MMI Direct dives deep into your data
to determine how best to optimize your list and maximize your direct mail ROI.
The U.S. is a very transient country. With over 11% of all Americans moving in a typical year, keeping your direct mail list up-to-date is an ongoing challenge.
If you’re regularly mailing solicitations, newsletters or other pieces to a large list, you are undoubtedly already running your list through the USPS’s National Change of Address (NCOA) database. Not only does this cut down drastically on the number of undeliverable pieces you’re sending, but having processed your list through NCOA within 95 days of a mailing qualifies it for reduced postage rates.
An unfortunate fact, however, is that as many as 40% of Americans who move don’t bother to file a change of address notice with the USPS. They may have forgotten or they might have consciously decided not to do so in order to avoid creditors or cut down on unsolicited mail. But even those who didn’t change their address with the post office probably did notify their cell phone company, cherished magazines, and other companies they didn’t want to lose touch with.
A consortium of these organizations banded together in 1995 to share this information with each other and make the data available to services like MMI Direct. It is definitely worth testing whether running your list through the Proprietary Change of Address (PCOA) database pays out in terms of higher returns on your mailings. Fortunately, while PCOA processing used to cost several times more than NCOA, PCOA’s cost has dropped substantially in recent years.
Assuming the benefits of PCOA do pay out for your list, you then need to determine how frequently you should use it. Relocation rate is heavily dependent upon age — Americans in their twenties move nine times more frequently than those in their seventies, for example. It is also heavily dependent upon income, with almost twice as many Americans earning less than $5,000 a year moving in 2012 (13%) compared to those with an annual income of over $100,000 (7%). So it may make sense for managers of lists consisting primarily of older, wealthier donors to run their full house list through PCOA far less frequently than a company whose target audience is young gamers.
You should also consider if there are specific segments of your list that should be updated more frequently than the list as a whole. For example, you may want to run lapsed contributors through PCOA every six months to help you reconnect with individuals who’ve previously shown their willingness to support you.
Finally, an important question to consider is whether to update address data for active donors in your database if PCOA indicates they’ve moved. No process is error-free and, if someone has donated to you recently, you may have more accurate data than that in a compiled database.
Figuring out how to optimize your list is challenging. If we can help you in any way, please don’t hesitate to call (410) 561-1500.
Want more than a cookie cutter approach? MMI Direct dives deep into your data
to determine how best to optimize your list and maximize your direct mail ROI.
