What makes mail UAA?

Last week we suggested that reducing Undeliverable As Addressed mailpieces could provide savings to your mailing budget. What are your costs when you consider designing, printing, folding, inserting, and applying postage to mail that never gets where it is intended? It costs the USPS, on average, $0.513 per piece to handle this undeliverable mail.

What factors go into determining whether mail is Undeliverable As Addressed?

• No postage
• Incomplete, illegible, or incorrect address
• Addressee not at address (unknown, moved or deceased)
• Mail  unclaimed
• Mail refused by addressee at time of delivery
• Mail refused by addressee after delivery when permitted
• Minimum criteria for mailability not met

Mail that is undeliverable as addressed is forwarded, returned to the sender, or treated as dead mail as authorized for the specific class of mail.

UAA mail returned to sender is marked by the USPS with the reason for nondelivery. You most often see this as the “yellow stickies” applied to your mailpiece when it is returned to you.

What do the notations on the “yellow stickies” mean?

The following are a few, but not all of the reasons you may see given on your returned mail:

• Attempted – Not Known: Delivery was attempted, addressee not known at place of address
• Box Closed – No Order: Post Office box closed for nonpayment of rent
• Deceased: Used only when known that addressee is deceased and mail is not properly deliverable to another person. Important: This endorsement must be made personally by USPS delivery employee and under no circumstance may it be rubber-stamped. Mail addressed in care of another is marked to show which person is deceased.
• Illegible: Address not readable
• Insufficient Address: Mail without number, street, box number, route number or city and state omitted and correct address not known
• Moved, Left No Address: Addressee moved and did not file a Change of Address order with USPS
• Not Deliverable as Addressed – Unable to Forward: (Any of the following) Mail undeliverable at address given; no Change of Address order on file; forwarding order expired
• Temporarily Away: Addressee temporarily away and period for holding mail expired
• Vacant: House, apartment, office or building not occupied

I urge you to take the opportunity to review these notices and take action.

Update your mailing list! Remove any addresses that can not be corrected or improved and certainly any notices of deceased addressees. Take the time to research addresses in order to update them, or provide a list of these addresses to your appropriate vendor and ask them to process them through National Change of Address (NCOA) database. When you receive updated addresses back from the NCOA process, update your mailing list accordingly.

It can be time consuming, but remember – you won’t make a sale, receive payment for a bill or get valuable feedback from your addressees if they never receive your mailpiece.

If so, take a hard look at your Undeliverable As Addressed (UAA) mail.

The USPS recently shared data from a 2010 report studying UAA mail. Prior to release of this report, the most recent data was from a 2004 study.

According to the study, the total volume of Undeliverable As Addressed mail dropped from 9.3 billion pieces (4.71 percent of total mail volume) in FY 1998 to 6.9 billion pieces (4.11 percent of total mail volume) in FY 2010.

Still falling short of former Postmaster General Jack Potter’s goal of a 50% reduction by 2010, this is still a notable decrease.

How are you impacted?  Think of all the time and money spent designing, printing, preparing and applying postage to your mail. The mail returned to you as UAA is money down the drain. You won’t see a return on investment, or a bill paid, on mail that never made it to the designated recipient.

Historically, UAA mail runs in the range of 4 percent to 5 percent of total mail volume, and the percentages vary by class of mail. The volumes of UAA mail that the USPS forwards or treats as waste both saw declines, but the amount of UAA mail that the USPS returned to sender increased.

The USPS handles UAA mail in three ways:  it is forwarded to the new address, it is disposed of as waste, or it is returned to the sender.

Although the Move Update requirements implemented in 2008 have had a direct impact on the reduction of UAA mail, the increase in the volume of mailpieces returned to sender is of note. These are the most costly UAA mail for the USPS to process at an average cost of 51.3 cents per piece.

All of this undeliverable mail costs both the USPS the mailers. Charles Hunt, the USPS program manager for licensing and move update support, told the Mailer’s Technical Advisory Committee (MTAC) that all postage rates could drop by one cent each if the UAA problem were taken out of the equation.

What can you do to decrease the amount of Undeliverable As Addressed mail you receive?

• Become vigilant about your list hygiene.
• Maintain suppression lists of those customers who have requested not to receive mailings from your organizations.
• Frequently update your list to remove any UAA addresses returned to you.
• Work with your mail service provider to design mailpieces for postal automation compatibility.

There are so many resources out there for address cleansing and updating. The benefit is to you in doing your part; it not only reduces waste, but helps to ensure that your message is indeed reaching the target.

On May 3^rd, the final rule on the discontinuation of the POSTNET barcode was posted on the Federal Register website. Beginning January 28^th, 2013 mail prepared using the POSTNET barcode will no longer be eligible to receive automation discount postage rates. These pieces will mail at the non-automation rate.

For the past several years, both the USPS and the mailing industry have used the IMb to gain information about letters and flats as they moved through processing to delivery. Strahm Automation transitioned to provide Full Service Intelligent Mail barcode to our customers in January 2010.

Advancing technologies, feedback from the mailing industry and the Postal Services’ continued efforts to increase efficiencies have driven this mandate. Converting to IMb is the first step to realizing full service automation. This allows for free address correction for mailers as well as better mailpiece visibility. Better mailpiece visibility benefits mailers directly and allows the Postal Service to improve their processes.

What does this mean for you?

• If you do not transition to using the IMb, you will lose your automated postage rates beginning January 28, 2013.

• Includes all letters and flats as well as Business Reply Mail using a permit account

• IMb provides capability for end-to-end mailpiece tracking

• Provides mailers with timely feedback about their mail

• Helps the USPS increase operational efficiencies

 What can you do to prepare?

• Choose a local presort vendor offering Full Service Intelligent Mail barcoding (such as Strahm Automation!)

• Review your Business Reply devices carefully – order new envelopes with IMb in place of the old POSTNET barcode

• You can create new Business Reply Mail artwork online through the USPS Business Customer Gateway at https://gateway.usps.com/bcg/detail.htm. You will need a Mailer ID to login and then go to Design and Prepare, Automated Business Reply Mail

If you have questions or need additional information, please feel free to contact us directly. One of our Customer Service Representatives will be glad to assist you.

Don’t go grabbing for the scissors.  The ingenious, two-way ecoEnvelope is the answer.

Ann DeLaVergne, founder of ecoEnvelopes, and always environmentally conscious, was looking for a way to re-use envelopes she received in the mail.  Finding the practice difficult to say the least, she developed her own two-way envelope (she used a sewing machine, folks!).

More than 80 billion reply envelopes are used annually in the United States alone.  The ecoEnvelope is essentially an outer envelope with a reply envelope built right in.  Not only are you reducing environmental impact, but you should also see cost savings by eliminating the need to print BRE or CRE.

According to the Center for Environmental Innovation, each million ecoEnvelopes mailed results in the following environmental benefits:

• Wood saved: 43 tons
• Wastewater Avoided: 123,989 gallons
• Solid Waste Eliminated:  14,809 pounds
• Hazardous Air Pollutants Avoided: 14 pounds
• Total Energy Conserved:  249 million BTUs

These envelopes are USPS approved, produced with FSC (Forest Stewardship Council) or SFI (Sustainable Forestry Initiative) material and are 30% post-consumer waste for the stock items.  They play well with inserting, remittance and USPS postal processing equipment.

Two-way envelopes speak volumes in your commitment to “greening your mail” while sending a clear message to your customers that you care about the environment.  Why not give them a try on your next mailing?

The USPS asked in a sustainability campaign, “How Green is Your Mail?”

Mailers have opportunities to decrease their environmental impact and any organization can implement these strategies.  Oce Business Services shares these tips:

1. Manage Ink:  When designing your mailpiece, choose fewer colors and less ink coverage/usage.  This reduces chemicals used during the printing process.
2. Think TransPromo: Create a document that combines transactional printing (think statement or invoice) with a marketing piece – all in one document and one envelope.
3. Paper Usage:  Use a smaller font and/or decrease the margins in order to keep to a single page document.  Can’t do it?  Default to printing both sides (duplex).  Going duplex can save you up to 50% on paper costs while serving the environment as well.
4. Sourcing Paper:  Choose paper stocks that come from managed forests.  The Sustainable Forest Initiative (SFI) certification supports responsible forestry; forests are audited for best practices and must meet strict guidelines.  As well, this sends a clear message to your customers that you care about forests.
5. Utilize Print on Demand:  This concept has been around for years and centers on printing only what you need/when you need it.  This eliminates waste caused by document obsolescence.  As well, you could select a printer at or near your point of consumption, reducing or eliminating transportation costs.
6. Mailing Lists:  Updating your mailing list may be a challenge, but the cost savings and environmental impact is significant.  It is estimated that 15% – 20% of individuals and businesses move each year.  Reduce waste and eliminate the printing and postage costs of mail that is non-deliverable.

Has your organization implemented green initiatives in their mailing practices?  What outcomes did you experience?  We’d love to hear your stories!

Lately we’ve focused quite a bit on direct mail and specifically on Every Door Direct Mail.  Let’s not forget that there are many marketing channels available to you and, often, a mix of these channels is the best plan for getting your message across.

Email marketing does not have to be intimidating.  It is a simple, effective means of communication when you keep these tips in mind.

Grab the Readers Attention

• Create a compelling subject line
• Make sure you don’t look like spam
  • Identify yourself
  • State the intent of the email clearly
  • Provide an opt out
• Personalize whenever possible; include the persons name, a reference to a previous purchase, etc
• Make the message relevant.  Tie the subject line neatly to the body of the email.
• Keep the tone of your message conversational
• Be brief!  No one wants to read a long, drawn out email. Studies show that on average, people spend about 15 – 20 seconds with each email message.

Before You Hit “Send”

• Test the email through several different email clients, both in text and HTML.  You’d be surprised how different one email may appear through different devices.
• Make sure your email list is appropriate. Whenever possible get permission to email a person or place of business.
• Check again that your current marketing message is relevant to those on your list
• Keep your list clean. Remove any hard bounces from previous campaigns and always remove anyone who has opted out

Test, Track and Measure

• Track your click through rate, conversion rate and delivery rate.  You want to make sure people are receiving your email, opening your email and clicking through
• Try variations of your message – change the subject line, offer or call to action – and see if your results vary
• Subscribe to feedback loops and pay attention to the data they provide
• Try launching your email campaign on different days or at differing times of the day and measure your responses

Properly executed, email marketing provides you yet another avenue for reaching and speaking to your customers and prospects. Why not make an email campaign part of your marketing strategy?

“Bulk mail” is considered large quantities of mail that qualify for reduced postage rates. Oftentimes, “bulk mail” is referred to as “presorted mail”.

Bulk mail can be used for First Class Mail, Standard Mail and other classes of mail as well.

When you put a stamp on a piece of mail and drop it into your local mailbox, that is “single piece” mail and you are paying full price postage.  If you meet minimum qualifications (or choose to utilize a presort mail vendor), you can take advantage of bulk mail rates and save money.

The deciding factor for choosing bulk mail is postage savings.

The USPS offers discounted postage rates for presorting the mail before it comes to them.  You are doing a portion of the work for them (such as sorting by ZIP Code), so savings from the Postal Service are passed along to you, the mailer.

Bulk mail may not be the best choice for every mailer.

If you prepare only one or two mailings annually, then it may be best to outsource to a presort vendor.  If you mail on a regular basis, but do not meet minimums or elect not to make the time investment in learning to sort and prepare your mail, and a capital investment in permits, mailing fees and possibly software or other equipment, outsourcing to a presort vendor is an ideal solution

Presort vendors are in the business of preparing mail according to USPS rules and regulations.  Some vendors will take your mailing from start to finish – design, printing, presorting and USPS presentation.

Should you choose to prepare your own bulk mailing, here are the minimum number of mail pieces that must be met to qualify.

500 pieces for First Class Mail

200 pieces (or 50 pounds of mail) for Standard Mail

50 pieces for Parcel Select

300 pieces for Presorted or Carrier Route Bound Printed Matter

300 pieces for Library Mail

300 pieces for Media Mail

You can learn more about what it takes to prepare your mail and whether or not a presort vendor would be a good alternative for you here:  http://pe.usps.com/businessmail101/getstarted/welcome.htm

A few weeks ago we posted an article regarding the USPS Every Door Direct Mail program.  The response to the article was amazing.  One question came up over and over again.

What kind of response rate can I expect?

There is an old adage of Direct Mail Marketing called the 40/40/20 rule.  40% of your success will come from your audience, 40% from your call to action and offer, and 20% from your mail piece design (color, creative, etc).

How do you make sure your mail gets noticed?  Studies show that people multi-task more and more, which means the potential for not really “seeing” your marketing message increases as we are inundated with information daily.

Here are some tips for getting your mail noticed:

• Mail repetitively

You want to cut through all the noise of today – just think of all the ringing, beeping, buzzing electronic devices you use every day, add in TV, radio, the kids…..You hear the same commercials more than once a day, right?  Repeat your message until they “hear” you.  Schedule your marketing program as a regular event.

• Manage a great mail list

Remember, 40% of your success relies on the list you use.  Define your target market carefully.  If you’re speaking to the wrong audience, it won’t matter how great your mail piece looks or even the offer, you won’t succeed.

• Say their name

Personalization can make all the difference.  People love to talk about themselves and likewise, they respond better to mail that refers to them by name, mentions their last purchase, or even their hobbies.  The more personal you make the mail piece, the better.

• Make it amusing

Who doesn’t like a good laugh or clever line?

• Keep it timely

You most likely don’t want to try to sell snow blowers in June, or lawn services in November.  If your business is seasonal, start your marketing campaign a few months before your busy time.

• Keep it simple

Don’t try to cram too much information into your mail piece.  Again, people are bombarded with information, to-do items and obligations.  Keep your message short and to the point.

• Mail it again!

Repetition goes a long way.  Determine a marketing schedule and keep to it.

You’ve designed a truly masterful mail piece, made a compelling offer and call to action, and you’re mailing to a targeted audience interested in your product or service.

Now get it in the mail!

If you’ve ever done any sort of bulk business mailing, you’ve probably been asked for or asked if you wanted an indicia. If you’re new to direct mail you’re probably wondering what the heck is an indicia? An indicia (also known as a permit imprint) is a small marking similar in size and shape of a stamp and includes such information as a permit number, post office drop location, and service type. The placement of an indicia on a mail piece must be similar to that of a stamp as well – located in the upper right corner and to the right of the address. The indicia is usually created during the graphic design phase of the outer envelope layout – and because it’s added before the envelope is created it saves time and money by not having an additional fee for metering or applying stamps.

There are many different variations of an indicia – with different verbiage and varying placement of required information. The most common types of indicia formats include first class mail, standard mail, and nonprofit standard mail. Examples of these can be seen below:

Other formats include Parcel Post, Bound Printed Matter, Media Mail, and Library Mail.

Using an indicia does require a permit number, which acts as an account number where postage funds are withdrawn from when the mailing goes to the post office. Funds to pay the total postage must be deposited prior to submitting a mailing. If you’re using a mail service provider, they should have a permit number that you can use. You can obtain your own permit by submitting Form 3615 and the application fee to the post office where your mailings will be submitted. It is important to note that once you obtain a permit number that you are only authorized to use your permit at the post office for which you applied through.

1.  Other higher minimum quantities may apply, depending on the price claimed.
2.  An occasional First-Class Mail mailing may contain fewer than 200 pieces if from a mailer whose total daily mailings are not much more than 200 pieces but who, to cooperate with the Post Office, presents a part of that mail early in the day.
3. A mailing may contain fewer than 200 pieces if it is the completion of a large mailing extending over 2 or more consecutive days and the mailer includes an explanation on the accompanying postage statement.
4. Single-piece price mailings submitted under the terms of an approved manifest mailing system agreement with a minimum volume reduction provision.
5. Bound Printed Matter non-presorted, non-discounted mailings.

Each piece included in the mailing must bear the same indicia, stating that postage has been paid. An indicia most commonly will be printed directly on the mail piece but can also be printed on labels permanently affixed to the mail piece, on a mail piece wrapper, or envelope.

The USPS has begun testing a new concept for indicias – the Picture Permit Imprint Indicia. This indicia will allow mailers to include a picture within the indicia. This new concept provides immediate recognition of a logo, product, or promotion on the outside of the mail piece. The idea behind this innovation is that the image will double the piece’s visual impact to the recipient. While the new picture permit imprint indicia is not yet available to all mailers – a sample of a beta test from Chrysler Automotive Group can be seen here.

There are many different options for applying postage to your mail piece – an indicia being the most frequently used for large business mailings. Next time you’re designing an envelope for a mail campaign consider the benefits of using an indicia!

I think everyone is familiar with those little cards that fall out of your magazines and newspapers.  Notice that they all say something along the lines of “No Postage Necessary”.  This is Business Reply Mail and it can be a useful tool in your marketing program.

Business Reply Mail (BRM) allows a mailer to distribute preprinted First-Class Mail reply pieces to customers. The mailer, not the customer, pays the return postage. This allows mailers to save postage costs on large volumes of distributed reply pieces when a response is not assured.

BRM is appropriate when your customer needs a little extra inducement to reply – in other words, the response or its timing is not certain. This type of reply mail is frequently used by direct marketers seeking to encourage orders, researchers needing survey responses, or magazine publishers soliciting subscriptions.

You must have a Business Reply Mail permit account with your local Post Office.  You will pay an annual fee for the permit account, a small handling fee and First Class postage on each piece of mail returned by the USPS.  Note that you are paying postage only for mail returned to you through your BRM permit.

Business Reply Mail can be used for business reply cards, envelopes, self mailers and cartons.  Because a Business Reply Mailpiece must conform to a specific format to qualify as BRM, mailers must consult with their local Post Office or Mailpiece Design Consultant to create the artwork needed for printing your response device.  There is now also available an online tool available through www.USPS.com, you will use the Business Customer Gateway, which requires a Mailer ID.  You can sign up to get your Mailer ID here:  https://gateway.usps.com/bcg/login.htm

Once you have your Mailer ID in hand, login, go to Design and Prepare and then Automated Business Reply Mail.  The steps to create your own BRM artwork are straightforward.

There are four types of BRM permit account available.  Each requires an annual permit fee and advance deposit.

Basic BRM – Annual permit fee of $190.00.  Per piece charge of $0.76 in addition to First Class or Priority Mail postage.  Paid through advance deposit account.  This option is best suited for return volume of less than 890 pieces per year.

High-Volume BRM -  Annual permit fee of $190.00 plus annual account maintenance fee of $605.00 per year.  Per piece charge of $0.087 plus First Class or Priority Mail postage.  This option is best suited for return volume of 891 pieces or more per year.

Basic Qualified Business Reply Mail (QBRM) – Annual permit fee of $190.00 plus annual account maintenance fee of $605.00.  Per piece charge of $0.056 plus First Class or Priority Mail postage.  Because QBRM requires automation compatible mailpieces, you are eligible for reduced First Class postage rates.  This is suitable for automation compatible pieces of more than 850 pieces per year.

High Volume Qualified Business Reply Mail (QBRM) – Annual permit fee of $190.00 plus annual accounting fee of $605.00 and a quarterly processing fee of $2,025.00.  This might seem a little pricey, but when you factor in the lower postage rate for automated mailpieces and lower per piece rate of $0.008, if you expect more than 43,000 pieces of mail returned to you, this is a viable option.

Make it easy for your customers to respond to your offer and start a Business Reply Mail program for your next mailing.  Studies show eliminating the customer’s need to find an envelope, address it and attach a stamp greatly impact your response rate!