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July 6, 2009
10 Reasons Why Address Quality Matters
Cynthia Williams
Pitney Bowes Business Insight
It seems like every year, companies must do more to ensure addresses are accurate and current. Standardize, correct, validate, update, append, barcode… and then remember every change for the next mailing. While address accuracy helps the postal service streamline operations, you must also take into consideration the many ways address quality adds value to your business. Here’s my top ten:
1. Increase Sales. Even a 2% lift on your direct mail and cross-sell efforts can have a significant impact on your bottom-line results—but mail has to reach the right person first.
2. Lower Postage Costs. While the USPS sets mandates, they also provide incentives. A small increase in coding rates could help you save up to 0.5% or more on postage.
3. Maintain Reputation. Even if your mail is delivered, customers notice when you consistently get their address wrong, sending a signal that you don’t care that much about the relationship.
4. Optimize Call Centers. Late or misdirected mail may account for up to 30% of your calls. Better mail delivery means fewer calls and more satisfied customers.
5. Make Better Decisions. Having specific address information can help ensure you apply the correct taxes, assign the right territory and properly assess risk.
6. Reduce Fraud. When sending high-value mail, including checks, goods and cards, address quality can help mitigate loss or fraud.
7. Eliminate Duplicates. Consistent and accurate addresses provides for better merge/purge results, so you’ll send one (and only one) communication to each person.
8. Speed Results. Faster mail delivery can expedite new orders, streamline remittance and improve your cash flow.
9. Eliminate Returned Mail. With the cost of returned mail estimated at $3 - $10 per piece, it pays to get it right the first time.
10. Avoid Postal Penalties. In January, you can expect the USPS to get stronger on move update non-compliance. The original plan (still in discussion) was based on a formula that measured how well you incorporate change of address information; and if you fail to meet pre-set thresholds, the USPS could charge you the equivalent of the single-piece rate (now $0.44 for one ounce) for the entire mailing. While the details are subject to change, the message is clear.
So while running move updates or adding that secondary address element may seem like a hassle at the time—remember there’s something in it for you, too.
Cross-posted at www.commintel.net
Posted by Pitney Bowes Business Insight at July 6, 2009 7:15 AM
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