Brand consciousness is often included in the purchase decision of one model versus another even though all three vehicles use some of the same elements. Similarly, mailers choose one database update method over other options based on personal preference, right? Well, reality is that’s not always the case. One option may be used for policy reasons, or simplicity, or ignorance of other options, or a combination of reasons. However, before the analogy is stretched further, let’s give more clarity to these address change options.

The process begins when movers go to their local post office and submit the USPS Change of Address Form PS 3575. (This can be done remotely as well, i.e. mail in or online.) “All data housed in National Change of Address (NCOA), FASTforward, Address Change Service, and Return Mail Endorsements (yellow stickers) originates from the Computer Forwarding System (CFS) database”, states Jim Wilson, an Address Specialist at the Postal Service’s Address Management and National Customer Support Center. Old and new address information, along with the name of filer are compiled daily and incorporated into a master Change of Address file on a weekly basis. This same data from CSF is then shared by all three postal venues that handle address changes, ACS, Endorsements and NCOA/FASTforward. Wilson goes on to say, “Although the source is identical, NCOA provides a more complete record of movement than FASTforward, Endorsements or ACS. Because the NCOA database holds a history of moves for the past 3 ½ years, multiple moves by the same customer are ‘chained’ in NCOA where they are not in the other address change options. For example, if I move from San Francisco to Memphis, and then move from Memphis to Chicago, NCOA will change my San Francisco address to Chicago but updates coming through the other services will only capture the San Francisco to Memphis move.” He concludes by saying, “The bottom line is that NCOA, FASTforward, ACS and yellow sticker Endorsements should, for the most part, be equal and accurate sources for change-of-address updates.”

However, it is important to understand that the different programs use this same data differently. It is the differences that mailers need to understand to best select a program that meets their needs. For example, NCOA and FASTforward employ very conservative matching algorithms while ACS and Ancillary Endorsements are generated by Postal Carrier knowledge. This is why the Postal Service recommends that a pre-mail cleansing service be used in conjunction with a post-mail service, i.e. NCOA and ACS.

This is not new news.

Why then do many legal departments only allow use of endorsements, which is the most costly and cumbersome option, when there is no appreciable difference between the services?

In who’s best interest is it to mail with endorsements when pre-mail options are readily available? Not the Postal Service, which bears the high cost burden of handling the undeliverable piece, and certainly not the mailer, who is incurring an expense often times far greater than the cost of pre-mail cleansing services. How many companies can afford to ignore savings alternatives in this economic climate? Belay the thought that this just applies to “big mailers”! Here’s a quick comparison of a 10,000 piece mailing comparing the economics of endorsements and NCOA. Although the comparison doesn’t include adjustments for change capture differences, it offers a general value perspective oftentimes not understood or recognized.

For purposes of example, we will use a fairly reasonable in-the-mail cost of $0.45, which includes basic discounted first class postage and materials, with the assumption that 6% of the mail is returned by endorsement. The 600 pieces returned are valued at $270.00. Industry’s minimum fee for NCOA service, which applies to a small file such as this, is approximately $95, about one-third of the return mail cost. Add the cost of re-mailing (another $270.00) and the cost differential, $445.00, is almost 5 times the minimum cost of NCOA. Furthermore, the cost disparity between pre- and post-mail address change services increases as mail volumes increase.

Please route this article to the holder of the company purse strings.

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