Mailing Systems Technology - February 2008 - (Page 20)

Management Impact negative ﬁnancial Maximize postal discounts by meeting new delivery-point validation rules By Kevin Conti If not, the current versions of address-coding products are not allowed to produce the 11digit delivery point — which is required to receive the deeper levels of presort discounts. DPV processing is a “yes” or “no” on USPS address validity. These new, non-qualifying mailpieces are not only mailed at a higher rate, but a percentage of them will be completely non-deliverable. This means DPV provides mailer visibility into problem addresses that have likely contributed to their return mail volumes. Here is a typical cost scenario to help mailers quantify the ﬁnancial impact of non-qualifying mail, regardless of cause: For every one percent of non-qualifying mail, assuming a 70%, threedigit rate, there is a $70,000 loss of postal discounts per 100 million First-Class, one-ounce mailpieces. Assuming 15% of this unqualiﬁed mail (which fails CASS/MASS) will be returned at an average enterprise cost of $5, there will be an additional cost of $750,000 in returned mail. This results in a total of $820,000 for every one percent. With such high ﬁnancial stakes, corporate mailers should carefully review the following areas, to help improve adherence to DPV requirements. Mailers should benchmark and invest appropriately in solutions that can resolve Zip+4 and DPV failures. Companies running CASS environments can send these 4%-10% exceptions to an in-step and/or outsourced solutions provider, depending on their operational needs. The leading software solutions providers have developed advanced uplift and correction technology that runs as part of the CASS process. These solutions have minimal impact on customer operations and maintain maximum data privacy. These processes have yielded a range of 0.8%-2% improvement in based coding rates. MLOCRs and Read Optimization — Corporate mailers reliant on MLOCR processing should conduct read-optimization benchmarking with DPV enabled in MASS. Optimization approaches include adjusting address-block parameters (fonts, orientation) and investing in multiple MLOCR technologies — which have different camera and embedded MASS engines that can run exceptions through to improve yield. Companies using a presort vendor should validate the technologies and capabilities available. They should assess their com- Avoiding L arge corporate mailers are intimately familiar with USPS workshare discount programs that require the preparation of mail in accordance with postal rules. Last year’s CASS Cycle L changes are the latest example of rules that help the USPS cut costs and improve mailpiece deliverability. One of the new rules under CASS Cycle L is a requirement for Delivery Point Validation (DPV) to conﬁrm address deliverability. Corporate mailers adhering to new DPV requirements will receive the highest levels of postal discounts. Mailers who do not measure, analyze and act to meet these new requirements risk negative ﬁnancial impact. Whether customers prepare mail in-house or use an outsourced presort vendor, a certain percentage of their mail will qualify for postal discounts and a certain percentage will not — based on the address validity. The validation may be done by CASS software products that run against customer ﬁles, or by MASS products embedded in MLOCR hardware — where address blocks are read by cameras, converted to data and validated. DPV veriﬁes that the speciﬁc street address is deliverable. 20 FEBRUARY 2008 | WWW.MAILINGSYSTEMSTECHNOLOGY.COM http://www.MailingSystemsTechnology.com

Table of Contents Feed for the Digital Edition of Mailing Systems Technology - February 2008

Mailing Systems Technology - February 2008 Contents Editor’s Note Peer to Peer How to Green Your Mail Center Adopting an Automated Document Factory Warning! Avoid Negative Financial Impact More Productivity, Less Expense BCC Software Formscan A Smooth Transition Kate’s Slate Products & Services Advertiser Index Sho Time

Mailing Systems Technology - February 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.