|
The Dollars and Sense of DSF2
By Robert B. Swick,
Vice President Data Services, Anchor Computer, Inc.
Delivery Sequence File (DSF2) is a United States Postal Services database of all delivery points in its system, approximately 138 million locations throughout the Unites States and its territories. Mailers have their databases compared to this valuable USPS file through a network of non-exclusive licensees. The comparison service provides mailers a means to verify delivery accuracy of addresses in their databases and avoid the cost consequence of mailing to non-deliverable locations.
Unfortunately, its value has not been fully appreciated by mailers who, in general, fail to understand the merits of the service. To begin to illustrate the Delivery Sequence File worth, one can compare DSF2 to the Postal Services’ ZIP+4 file. This comparison is analogous to comparing the power of a jet engine to a basic six cylinder automobile engine. Both perform their missions admirably but when placed side to side one overwhelms the other. Specifically, DSF2 defines accuracy for each delivery point whereas the ZIP+4 engine only provides accuracy for address ranges.
Perhaps the nominal use of DSF2 by mailers is due to lack of postage discount incentives such as the USPS provides First Class mailers who regularly use its National Change of Address (NCOA) service. It’s evident that greater initiatives are needed to show mailers the increased deliverability and return on investment potential that results from regular comparison of one’s customer files to the 138+ million delivery locations in the USPS system.
DSF2 Benefits
The principal value DSF2 provides database owners is identification of non-deliverable addresses. Identifying scruffy addresses in one’s file can be a strikingly important cost savings procedure. Additional cost savings benefits of DSF2 include:
- Identification of vacancies
- Increase in ZIP+4 coded records attributed to the procedure’s address standardization capabilities
- Walk sequencing
Envision for a moment the methods by which new customer information is captured and incorporated into a company’s database:
- Customer submission (electronic or hardcopy)
- Sales or Customer Service representative (electronic or hardcopy)
- Telecommunications (internal or third party)
Regardless of capture method every process is prone to error. Erroneous data entry rates as high as 30% have been noted by sources within the telemarketing industry. Obviously more stressful environments have greater incidence of error.
Return On Investment
| Non-deliverables and vacancies | 2% | 20,000 records |
| ZIP+4 coded records above 90% already on input file [.10 x 1mm = 100,000 x .02 = 2,000] | 2% | 2,000 records |
| Postage Savings: First Class |
| @ discounted rate for 20,000 records not mailed | $0.27* | $5,400.00 |
| @ discounted ZIP+4 Code rate for 2,000 records | $0.06 | $120.00 |
| Gross Postage savings for First Class mail example | n/a | $5,520.00 |
| Less cost of service example | $1.50/M | $1,500.00 |
| Net Savings for First Class mail example | n/a | $4,020.00 |
| Example’s Return on Investment | n/a | 268% |
| Postage Savings: Standard Class |
| @ discounted rate for 20,000 records not mailed | $0.183* | $3,660.00 |
| @ discounted ZIP+4 Code rate for 2,000 records | $0.06 | $120.00 |
| Gross Postage savings for Standard Class mail example | | $3,780.00 |
| Less cost of service example | $1.50/M | $1,500.00 |
| Net Savings for Standard Class mail example | n/a | $2,280.00 |
| Example’s Return on Investment | n/a | 152% |
*First Class and Standard Mail Rate Schedule – automation basic rates
The DSF2 process brings greater benefit to dynamic files than those with minimal customer additions and changes. The following example applies percentage norms to a 1mm record file.
Back to
Feature Articles
|
E@anchorcomputer.com
.jpg)
