New Addressing Requirements to Improve

Address Quality

February 2007

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Transformation Strategies

Reduce Costs

Increase Delivery Point Sequencing to 95%

Improve Service

Reduce UAA by 50%

By 2010 our goal is to:

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Annual cost of incorrect or missing primary number

Cost of Poor Addressing

REJECTED

1 Automation Handling

2 Manual Handlings} $60M Undeliverable

$99M Delivered through personal knowledge

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Current

To qualify for automation rate discounts:

Run Coding Accuracy Support System (CASS™) address-matching software

» Standardizes addresses

» Provides ZIP + 4 code

CASS Cycle L

New requirement effective August 1

» Validates accuracy of delivery point

Potential impact to mailers about 2%

» Many mailers reporting lower drops in match rate!

New Addressing Requirement

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CASS Cycle L will require that a ZIP + 4 can only be assigned if the primary number DPV validates.

If the primary address cannot be verified, no ZIP + 4 can be returned. The vendor must return only the 5-Digit ZIP Code.

CASS Delivery Point Validation

U. S. Postal Service6060 PRIMACY PKWY STE 201Memphis TN 38188-0007

John Smith123 Main StreetMemphis TN 38188

38188-8134

38188

Yes

No

DeliveryAddressExists?

CASS

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Products being delivered: Servers – PC

Approximately same time

– 80 companies offer solutions Mainframe

0% to 20% increase

– 6 companies offer solutions

23 certified CASS Cycle L solutions

New Software Performance

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Business Process Solutions

LACSLink™ address update accommodation Allows interim use of new ZIP + 4 without changing current

address

Call center use of DPV Available now

Allows front-end capture of quality address data

DirectDPV™ Available upon implementation of CASS Cycle L

Improves processing performance by reducing redundant CASS processing of addresses

Responding to your issues:

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Provided notice to vendors (Feb ’06)

Discussed at 2006 National Postal Forum Addressing Symposium

Mailers’ Technical Advisory CommitteePresented at May and Nov meetingsFormed workgroup to prepare for August 1

implementation

Presented at over 30 Postal Customer Councils

Numerous trade press articles

Distributed USPS letter through vendors (Feb ’07)

Communications/Activities To Date

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Improve DeliverabilityRequirements for mailers seeking postage automation discounts

Articles in PCC Insider & Mailers Companion

December 2006

CONTENTS:

FRONT PAGE   • It's As Easy As 1-2-3   • Show Them The SCAN!   • "Deliverable As Addressed" Is The Goal   • Improve Deliverability   • If The Shoe Fits — Ship It!

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Emailed 174 surveys

NPF Address Quality Specialist Certificate holders

38% responded

95.5% aware of CASS Cycle L requirements

55.7% have known for more than 10 months

77% more than 7 months

52.4% have performed quality analysis in preparation

88.9% started preparations to meet new requirements

Communications Effectiveness

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Presenting at several industry association meetings

Conducting webinar for Business Service Network (Feb ’07)

Sending email blasts via “DMM Advisory”

Conducting special Q&A session at Postal Forum

Partnering with Sales & Business Acceptance on communication / training

Publishing articles (internal / external publications)

Ongoing 1-on-1 consultation services provided to assist individual mailers

Planned Communications/Activities

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Run files against Delivery Point ImmediateImmediateValidation tool to determine impact

Review and implement Immediate to August 1Immediate to August 1new processes within company

Correct bad addresses Immediate to August 1Immediate to August 1Use Address Element Correction (AEC) »AEC I – corrects 30-35%»AEC II – resolves 90%

Evaluate vendor productsImprove internal processes

Test and integrate new software Feb 1 – Aug 1Feb 1 – Aug 1 Implement Aug 1, 2007Aug 1, 2007

How to Prepare for CASS/DPV

Mailers should:

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Address Quality Resources

More information about address quality programs and regularly updated Frequently Asked Questions are available on the web:http://ribbs.usps.gov/index.html

The National Customer Support Center can also answer questions at 1-800-642-2914 or CASSMAN.NCSC@USPS.GOV