Why Mailing Smarter is More Crucial Than Ever

Smart list processing practices are some of the most effective ways to boost your bottom line, especially in today's challenging marketing environment.

When looking at their mailing practices, marketers need to recognize the complete scope of benefits that list processing has for their business and beyond. A reduction in duplicates not only saves on mailing costs, but reduces excess physical waste that can be detrimental to our environment. Suppressing minors from mailings won't just help boost response by making sure the right offer reaches the right individual, but may be your best defense in staying compliant with current and pending legislation.

Here are some tips:

1. Employ the U.S. Postal Service NCOA Linkchange of address database.

This database provides information on about 160 million address changes that are filed directly with the USPS for a full service licensee with four years of COAs, and less for a limited service licensee with 18 months of COAs. Some considerations include:

* Mailing to the old address decreases response to about 25% or less of pieces mailed to the correct/new address.

* According to the USPS, the average match rate of full service licensees was 4.5% and the average match rate of limited service licensees was 2.8% in 2008. Using a full service licensee will identify more matches

· * Mailers will experience up to a .75 to 1% match rate on their files for each month since the NCOALink service was last utilized.
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* Utilizing the NCOALink service is the best process to meet the USPS Move Update requirement and avoid any penalties from the USPS.

Duplicates can be huge burden on a mailer, adding unnecessary waste to your budget and the environment. More sophisticated service providers can lower your costs considerably by reducing, if not eliminating, duplicates in the mail.

The key point here is to make sure that their zeal to reduce duplicates doesn't cause them to over-combine a lot of records. Also note that there can be significant variance in the ability of software and service providers to identify duplicates. Some strategies include:

Using enhanced software or service providers that detect duplicates where the first digit of the last name is not the same.

2. Identifying special-situation duplicates, such as female married/maiden name duplicates.

Utilize Customer Data Integration (CDI) linkage to identify more duplicates — even those that are not in the same geographic area (Zip, state, etc.). And, use address-level deduping instead of household level on some segments that are being mailed.

Deceased suppress files, prison suppress files and old address suppress files are among the special files that can be used to identify undesirable mailings. In addition, Undeliverable-As-Addressed (UAA) suppress files are now available, helping to identify and remove records that might under-perform by 50% or more because of deliverability issues.

Recently proposed legislation on credit card marketing would, among other things, push to limit offers to minors. At least one service provider now offers a child suppression file to help you stay compliant. Finally, the DMA and Catalog Choice offer more robust options for their suppress files to drop mailings to consumers who do not want to receive an offer. In addition to the standard Do Not Mail, also available are options to receive only certain types of mailings (catalogs, financial, etc) or to 'opt-down' and receive a limited number of offers from a mailer (for example, receive two catalogs annually).

3. Code more records using multiple ZIP + 4 engines, service provider proprietary processes, and the USPS AEC and AEC II programs.

To meet USPS automated sorting standards, achieve maximum postage discounts and attain the best delivery, mailing addresses must be appended with ZIP + 4 and carrier route codes. Accurate ZIP + 4 coding enables you to reduce undeliverable mail, lower postage expenses, increase response (currently, it seems that non-ZIP + 4 coded records mailed perform at about 30 to 40% of the ZIP + 4 coded records), and improve your overall mail delivery, thereby benefiting your mailing programs. By using any or all of the above, you can dramatically reduce your quantity of non-ZIP + 4 coded records (30 to 60% reduction).

4. Utilize the USPS ACSservice to identify additional movers.

Over the course of a year, the ACS service will identify an additional 2 to 3% more movers from your database. Utilizing this once or twice a year provides significant benefits. With the implementation of the Intelligent Mail barcode
(IM BC), the cost of this service could be reduced dramatically. However, the timing and rules for using full-service IMBC (which is needed to ultimately receive 'free' ACS notifications) are somewhat complicated. For example, as currently projected, when this is available flats mailers can only receive 'free' ACS notifications on automated mail, which would mean that the carrier route qualified mail is not a candidate to receive 'free' ACS notifications.

5. Employ supplemental processes to correct records with missing or invalid secondary numbers.

Using proprietary processes from some service providers to append missing numbers or to correct invalid secondary information (i.e., apartment number and suite numbers via SuiteLink processing) before the mailing is well worth the investment. Tests have determined that, on average, 25 to 40% of the records destined for a high-rise building without an apartment number or with an invalid apartment number can be repaired, improving delivery and, ultimately, response (mailings to these uncorrected addresses generally perform at about 70% of normal). However, based on some results seen, be careful that the corrections made by these supplemental processes are valid and produce an address that is fully delivery point validated.

6. Consider proprietary change-of-address systems.

You can identify and verify more address changes by using proprietary change-of-address systems. A number of people (about 22% according to the USPS) who move each year do not file an official change of address with the USPS. While individuals may neglect to file an official change of address with the USPS, they may notify their favorite publication, utility, direct mail company or bank of the change. Proprietary databases can give you access to millions of address changes reported by sources other than the USPS.

7. Drop records with deliverability problems that perform below breakeven .

Some of the deliverability problems that exist for an address include vacant, seasonal, missing or invalid secondary numbers, non-ZIP + 4 coded, invalid delivery point and undeliverable Commercial Mail Receiving Agency (CMRA). Not mailing these types of records can provide significant payback to the mailer. The key here is that testing must be done to ensure that these records perform below breakeven before they are dropped from mailings. This testing should be done every couple of years to verify that what you are doing is correct, but more importantly to identify if there are additional segments that should not be mailed.

As you continue to invest significant time and money in planning and producing your marketing campaigns, consider and incorporate these list processing techniques whenever possible. They can result in clear benefits to your business including reduced environmental impact through less wasted mail, compliance with the latest regulations, better deliverability, increased response and, every mailers favorite, reduced postage costs.

Mike Yapuncich (mike.yapuncich@experian.com) is vice president of product development for Experian marketing services.