New Move Update Standards Keeping Track of Your

New Move Update Standards Keeping Track of Your Customers Greater Area PCC <Month Day>, 2008 Anytown, TN Speaker US Postal Service Anytown, TN 1

Agenda Ø What are the Changes to Move Update? Ø Making the Case for Move Update Ø How to Qualify for Move Update Ø Which Method is Right for You? Ø Questions 2

What is Move Update? Move Update Requirement Ø “Address” means specific address associated with specific occupant name Ø Reduces the number of your mailpieces that require forwarding, returning, or disposal Ø Requires periodic matching of your address records with USPS® Change-of-Address (COA) orders Ø Use of an Authorized Move Update Method Ø Meet standard by “updating” not by doing method 3

What is Move Update? Move Update Requirement (continued) Ø Updated addresses on mailpieces at one class of mail are qualified to be used for other classes during current Move Update cycle Ø Each address in mailing subject to Move Update Ø Exception: Mailpieces using Alternative Address Format are not subject to Move Update Ø“Jane Doe or Current Resident” Ø“Postal Customer”, “Occupant”, etc. 4

What is Move Update? Changes to Move Update Ø Increase the minimum frequency of processing from 185 days to 95 days prior to the date of mailing Ø Expand Move Update from First-Class Mail® automation and presorted mailings to include all Standard Mail® mailings Ø Effective November 23, 2008 Ø Must begin processing no earlier than August 20 5

Move Update What Prices Must Qualify Prices Requiring Move Update First-Class Mail® Letters Automation Prices Flats Move Update ZIP Code Accuracy Each Address Updated 95 Days Prior to Mailing Each Address ZIP + 4® Coded and DPV Confirmed via CASS 180 Days Prior to Mailing Parcels Presorted (Non-Auto) Prices Letters Flats Parcels Not Available Each Address Updated 95 Days Prior to Mailing Each Address’ 5 -Digit ZIP Code® Verified 12 Months Prior to Mailing 6

Move Update What Prices Must Qualify Prices Requiring Move Update Standard Mail® Letters Automation Flats/NFM Prices Move Update ZIP Code Accuracy Each Address Updated 95 Days Prior to Mailing Each Address ZIP + 4® Coded and DPV Confirmed via CASS 180 Days Prior to Mailing Parcels Presorted (Non-Auto) Prices Letters Flats/NFM Parcels Not Available Each Address Updated 95 Days Prior to Mailing Each Address’ 5 -Digit ZIP Code® Verified 12 Months Prior to Mailing 7

Move Update What Prices Must Qualify Prices Requiring Move Update Standard Mail® (continued) Enhanced Carrier Route Prices Letters Flats/NFM Parcels Move Update ZIP Code Accuracy Each Address Updated 95 Days Prior to Mailing Each Address ZIP + 4® Coded and DPV Confirmed via CASS 90 Days Prior to Mailing No Priority Mail No Periodicals Prices No Package Services Prices (Bound Printed Matter, Parcel Select, Media Mail, or Library Mail) 8

Move Update Making the Case Did You Know? ØAlmost 5 out of every 100 mailpieces are Undeliverable-as-Addressed (UAA) Mail ØFirst-Class Mail® UAA Rate: 3. 4% ØStandard Mail® UAA Mail Rate: 6. 4% ØStandard Mail accounts for almost 63% of all UAA Mail Ø 75% of UAA Mail is move-related by reason ØFirst-Class Mail Move UAA Rate: 2. 6% ØStandard Mail Move UAA Mail Rate: 4. 8% 9

Move Update Making the Case America is on the Move and Growing! 45 million Americans move 1. 8 million new addresses New York New Jersey Pennsylvania 149 million total addresses 10

Move Update Making the Case UAA Cost Study Old address Return 51. 3¢ / pc. 1. 60 Billion pieces $822. 5 Million 9. 724 Billion pieces $1. 856 Billion x Forward 21. 3¢ / pc. 1. 985 Billion pieces $421. 9 Million Waste 4. 4¢ / pc. 6. 136 Billion pieces $269. 8 Million PRC LR-L-61 for R-2006 -1 Rate Case (Christiansen UAA Study –Table 3. 1) New Address 11

Move Update Making the Case UAA Cost & Volume by Reason* Volume Cost 79. 0% $1. 196 Billion Move. Related 12. 2% $184. 5 MM Address Quality. Related 8. 8% $133. 9 MM * Directly Attributable Cost Only Non. Address Quality. Related 75. 8% 12. 4% 1. 201 B 11. 9% 1. 155 B 7. 368 Billion Move. Related 12

Move Update How to Qualify Authorized Methods Ø NCOALink® Processing Ø ACS™ Ø One. Code ACS® – Intelligent Mail® Barcode Ø FASTforward® MLOCR Processing Ø Appropriate Ancillary Service Endorsement Ø Alternative Method (First-Class Mail® Only) ØLegal Restriction Ø 99 Percent 13

Move Update Authorized Method: NCOALINK® National Change of Address (NCOALINK®) ØExpands mailer’s accessibility to USPS® national Change-Of-Address ØProvides electronic Change-of-Address information prior to mailing ØVariable vendor costs – volume, set-up, etc. ØTypical match rate – 75% 14

Move Update Authorized Method: NCOALINK® ØMatching Logic Strictly Controlled by USPS ØIndividual vs. Family vs. Business Matching Ø 596 Billion Address Records Processed by NCOA Licensees in FY 2007 Ø 22. 9 Billion Address Records Updated for Change-of-Address 15

Move Update Authorized Method: NCOALINK® Three Types of Licenses Ø Full Service Provider License Ø 48 -Month COA database – weekly updates Ø $175, 000 annual license fee Ø No more than 49% in-house file processing Ø Limited Service Provider License Ø 18 -Month COA database – weekly updates Ø $15, 000 annual license fee Ø No ratio: In-house vs. customer file processing Ø End User Mailer License Ø 18 -Month COA database – monthly updates Ø $7, 500 annual license fee Ø In-house file processing only 16

Move Update Authorized Methods: ACS™ Address Change Service (ACS™ - Traditional) 1. Post-Mailing Service – Provides electronic COA Notices for undeliverable mailpieces 2. Mailers apply a Participant Code and an Optional Keyline to each mailpiece 3. Participant Code assigned for each class of mail 4. Using ACS customers can reduce cost associated with manual keying of data 17

Move Update Authorized Methods: ACS™ Example of An ACS™ Mailpiece Tanya Hyde-Goode Inc Nanny Placement Service 123 Main St Memphis TN 38101 -1234 Address Service Requested Participant Code > Optional Keyline > #BXBJDCK ******* 5 -Digit 38188 #WAIC 381 SEP 2009# CANDICE WAITE PROCRASTINATORS ANNOYMOUS LLC 456 ELM ST STE 201 MEMPHIS TN 38188 -0001 DEW 5/8” ØParticipant Code and Keyline always preceded by # 18 ØFor window envelopes – Tap Test from top & bottom

Move Update Authorized Methods: One. Code ACS® One. Code ® ACS 1. One. Code ACS using the standardized Intelligent Mail™ barcode (IMB) 2. Great pricing for First-Class® & Standard Mail® mailers automation compatible letter size mail 3. Eliminates need for participant code and keyline 4. Provides electronic address correction notifications 19

Move Update Authorized Methods: One. Code ACS® One. Code ® ACS Ø Flexibility of standardized IMB barcodes enables future enhancements without altering mailpiece design Ø IMB contains data to sort mail and data to support ACS™ Ø Numeric Mailer Identifier in place of ACS information - one code for all classes of mail 20

Move Update Authorized Methods: One. Code ACS® Example of An One. Code ACS® Mailpiece Kay Shira Weather Forecasting Limited 123 Main St Memphis TN 38101 -1234 Electronic Service Requested 1 LES ISMORE DEPRECIATION CONSULTANTS 6060 PRIMACY PKWY STE 201 MEMPHIS TN 38188 -0001 ØMust print ancillary service endorsement for Standard Mail® – recommended for First-Class Mail 21®

Move Update Authorized Method: FASTforward® MLOCR What Is It? 1. Enables mailers to update COA information directly on mailpieces prior to mailing 2. USPS-licensed technology for MLOCR & RVE (Remote Video Encoding) users 1. FASTforward System Consists of: Ø Tamper-Proof Microcomputer System With Defined Interface Protocol Ø USPS supplied matching software and encrypted 13 -month COA 22

Move Update Authorized Method: FASTforward®: Example of An MLOCR Redirected Mailpiece Ms N. Formation, Esq. Dewey Cheatem & Howe PC 123 Main St Memphis TN 38101 -1234 II IIIIII IIIIII I I III IIIII I I IIIII JUDGE A. MENTALL 456 ELM ST STE 201 MEMPHIS TN 38188 -0001 COA-AA 1000 SE 17 TH ST 38119 II IIIIII IIIIII I I III IIIII I I IIIII ØWindow must be a minimum of 5/8 th inch from bottom to enable printing COA information 23

Move Update Authorized Methods Ancillary Service Endorsements ØOn-piece mailing instructions ØSame handling across all classes of mail ØEndorsements consist of variable keyword plus “Service Requested” Address Forwarding Return Temp - Return Change Electronic Service Requested ØSee DMM® 507. 1. 5 for more information 24

Move Update Ancillary Service Endorsements Address Service Requested Forwarding, Return, & New Address Notification Provided ØIf Forwarded, A Separate COA Notification Is Provided ØIf Returned, New Address Or Reason For Nondelivery Is Provided ØFees may apply (Class of Mail, ACS or no ACS) 25

Move Update Ancillary Service Endorsements Standard Mail UAA Fee Example Setup ØOutgoing mail piece: 5 -digit BC rate of $0. 225 ØEndorsed with “Address Service Requested ØPiece returned with “Reason of Non-delivery” Resulting Cost without ACS Ø 2. 8 ounces Ø First-Class Mail full rate: Ø $0. 76 Ø Weighted factor: 2. 472 Ø Actual return postage: Ø $0. 76 x 2. 472 = $1. 88 Resulting Cost with ACS Ø 2. 8 ounces Ø First-Class Mail full rate: Ø $0. 76 Ø No Weighted factor Ø Return postage + ACS: Ø $0. 76 + $0. 25 = $1. 01 26

Move Update Ancillary Service Endorsements Forwarding Service Requested Forwarding Or Return Service Provided Ø If Forwarded, Separate COA Notification Is NOT Provided Ø If Returned, Reason For Nondelivery Is Provided This Endorsement DOES NOT Meet the Move Update Requirement! 27

Move Update Ancillary Service Endorsements Return Service Requested Mail Is NOT Forwarded ØMailpiece is returned to sender with new address or reason for non-delivery provided ØTemp-Return Service Requested (First-Class Mail® only) Ø If Temporary COA – Mailpiece is forwarded without temporary address provided Ø If Permanent COA – Mailpiece is returned with new address provided 28

Move Update Ancillary Service Endorsements Change Service Requested Mail Is NOT Forwarded Or Returned, Separate Notification Provided ØSeparate COA Notification With New Address Or Reason For Non-Delivery Provided. Mailpiece is Disposed Of As Waste On First-Class Mail®, Only Available When Used in Conjunction With ACS™ 29

Move Update Ancillary Service Endorsements Electronic Service Requested ØOnly Available When Used in Conjunction With ACS™ or One. Code ACS® ØIn all cases mail sent to CFS or PARS for processing Ø"Address Service Requested" and "Change Service Requested" handling instructions are predefined within the ACS mailer profile data. ØCOA Notification With New Address Or Reason For Non. Delivery Provided. ØMailpiece is Forwarded / Returned if “Address Service Requested” is used ØMailpiece is Disposed Of As Waste if “Change Service Requested” is used 30

Move Update Authorized Methods Alternate Methods (First-Class Mail ® Only) In Limited Circumstances, An Alternate Method to Meet Move Update Requirement May Be Approved: ØMailer Demonstrates That Their Internal List Management Maintains Address Quality at 99% or Greater Accuracy For Change-of-Address ØMailer Demonstrates A Valid Legal Restriction Which Prevents Changing Customer Address Without Approval 31

Move Update Common Misconceptions Common Move Update Misconceptions ØCASS™ / DPV® Meets The Move Update Requirement - NOT TRUE ØMail Will Get Delivered To The Old Address Instead Of Becoming UAA - NOT TRUE ØImplementing Move Update Will Eliminate My Return Mail - NOT TRUE ØIf I use an Ancillary Endorsement or ACS™; I am in compliance - NOT NECESSARILY 32

Move Update Starting the Clock Date of First Mailing on or after Nov 23, 2008 Does mailpiece bear an alternative address format ? Address does not have to meet Move Update standard Yes No Was address directly acquired from your customer within 95 days ? Yes No Was each address used Yes in mailing exposed to a Move Update method within 95 days ? No Continue to use existing address for remainder of 95 days - address currently meets Move Update standard No Was address matched to a New (COA) record ? Yes Was updated address applied to mailpiece? Yes Address currently meets Move Update standard No Address does not meet Move Update standard 33

Move Update Keeping in Touch Move Update will help you keep in touch with your customers 35

Move Update FOR MORE INFORMATION www. usps. com/ncsc ribbs. usps. gov Customer Support 1 -800 -238 -3150 36