HeadacheIn direct Mail marketing, that old adage, "the more things change the more they stay the same", does not always apply. As most of you know, starting November 23 the new move update regulations go into effect. Same old headache for the USPS, stacks and stacks of UAA(Undeliverable As Addressed) mail, but now they are counting on some sweeping changes to reduce that migraine to a mild aggravation.

Okay, here's the technical lowdown, after Nov 23 rd, all First-Class Mailings at automated and presort rates, and now all Standard Mailings will require some form of move update qualification within 95 days of the day of mailing. There are a number of approved methods but the NCOALink™, (National Change of Address) provides the most comprehensive solution. Your mailing list will run first through the CASS™/DPV™ with LACSLinkprocess to standardize the addresses, provide the bar code information and assign each address with a deliverability grade. The second step provides a change of address for any individual, family or business that has moved and filed a COA form with the USPS over the last 48 months http://www.listcleanup.com/content/NCOA_Link_move48.aspx . There’s also an 18 month option, that will also move update qualify the list.


Okay, returning to the headache. The USPS has hopefully relieved some of their pain, but now many in the mailing business are starting to feel more than a little discomfort, trying to wrap their brains around the regulations, the costs, the PAF forms that are required, explaining these new requirements to their Standard mailers, managing the time required, and a host of issues.. Well at the risk of extending this whole headache analogy too far, Listcleanup.com can be your aspirin or Tylenol, depending on how much pain you may be in at the moment.


We been helping people migrate through NCOALink™, and move update qualifications since the whole thing started back in 1997. For more than a decade, over 2,500 companies have trusted us for timely, efficient and cost-effective solutions. Along the way, we've added other services, tailored to provide our direct marketing clients an edge over their competition. Yet through it all, there are a few core values that have never wavered; a focus on customer service, sales and IT support, a seamless online order process that insures reliable, timely delivery of your orders and flexible pricing .


As my colleague, Bill Brennan, mentioned in a recent post, should you take on an in-house solution given all variables that will come into play, before speaking with us first? We have the answers, we can make this whole move update “challenge” simple, easy, and even better, we can show you how to earn revenue providing this service to your client.


Why bother with the headache, when you can call us.


Today the focus was on the move update changes, just around the corner. Down the road we’ll look into the range of data management services we can provide, all pointed in the same direction, what can we do to improve your direct mail bottom line ?

http://www.listcleanup.com/content/Default.aspx



The Value of a Customer

 

There is an old saying – “If it’s too good to be true, it probably is”  this saying along with “You get what you pay for” are truths many of us have had to learn the hard way.   With the new USPS mandated Move Update deadline rapidly approaching, many companies are looking at their options for purchasing NCOALink® and alternative Move Update services. 

Some NCOA vendors are offering (including Listcleanup.com) an all you can eat at one price option.   Now, shopping for the cheapest price seems like a logical solution, except when you consider the value of a customer.   Given the significant increases in NCOA volumes projected by the addition of Standard Mail in the new requirements, is it not logical that some vendors are going to have challenges in delivering on advertised turn times?    If the average mail house or lettershop’s monthly mail volume is traditionally 80% Standard Mail, then volumes for many of the NCOA providers could be quadrupling over the previous First Class volumes.  

So, when your customer calls and wants to know why their mailing went out later than promised, do you think they are going to be satisfied with the answer  - our company selected the lowest cost NCOA provider and they failed to return the file to us when promised?


It's a fact, smaller companies would be out of business if they utilized data quality management processes like their bigger brothers!  My mailbox is full of Fortune 500 companies' duplicate mailings of irrelevant offers.  Even basic work like Move Update (National Change of Address) do not seem to matter to companies like Allstate Insurance, Ford Motor Company and Countrywide Mortgage (no wonder a bailout was needed).  It is time for all of us to look at our marketing database, asses data quality from even the lowest common denominator; "does that person live at that address (NCOA)?" and "does that address even exist (CASS, DPV, etc)?"  Only after this basic assesment can marketers pretend to have a chance at driving a true marketing ROI. 

Forecasting the need for standalone online NCOA services is a function of five intersecting variables: USPS regulations, ACS Options, Software Integration, Internalization, and competitive offerings. 

The largest impact on NCOA services in the last 10 years is the USPS’s change to the Move Update regulations.   Beginning in November of this year, the new regulations will add Standard Mail and double the frequency requirement to 95 days.

With this projected increase in demand comes more options and changing economics.    For some larger mailers, the regulation may make it cost effective to bring the processing in house.  These larger mailers are also more likely to have already purchased industry specific software that includes integrated flat rate NCOA services.   Finally, the changing options with ACS services may be optimal for some clients who don’t need to clean a list before it is mailed.

However, for the vast majority of smaller to medium size mailers, nothing is easier or less costly than using an on demand, online NCOA service.    No software to buy, no hardware to buy, no agreements to sign, and no payments in advance.    Combine these benefits with sub 10 minute turn times (coming in December) and the benefits of advanced bundled services, and nothing is simpler or less costly for the small to medium size mailer.    Make sure you ask for a competitive rate, and see why even some of the industry's largest mailers still prefer the benefits of working with an independent online list hygiene company.


I, for one, am thrilled with the USPS change in regulations on NCOA requirements for Standard Mail and the frequency of Move Update requirements for First Class mail.  In my world of database marketing, I rely on quality data management as the core to delivering marketing ROI to my clients.  Their message sometimes finds itself in the trash beside a piece of true "junk mail" due to other database marketers refusal to adhere to data quality management best practices.  Recently my mail box included mail addressed to a former Tennessee Titan player who built my house 11 years ago and then was traded and moved the next year!  The Doctor who bought the house from the Titan also has mail from his former life, he has been gone for 7 years!  Not only will these new regulations save the USPS untold millions of dollars in UAA mail, the by product should include better results for my client's direct mail marketing programs and less trash in our landfills.  As Sarah Palin would say, that is just a great win for all of us!

The Ethics of NCOA Move Update®

Scenario – I own a mailing service and in preparation for the new Move Update regulations coming in November of 2008, I have just signed up for an ‘all you can eat’ NCOALink® 18 month service (NCOA-18), or maybe I have even invested to get my own USPS® NCOALink® license.

Now, as a business owner, I realize the more clients I can run through NCOA-18, with its fixed costs, the more profit I can make.   On the other hand, many of my clients have historically been using the 48 month version of NCOALink (NCOA-48), because it catches more moves and cost only fractionally more than the NCOA-18 service.

As a business owner, do I arbitrarily decide to run all new orders through NCOA-18, justifying it by saying I am sure all the client wants is to secure the postal discount…they are not really that interested in catching the maximum number of moves?   Do I ask the client in such a way that steers them to the answer I want, i.e. “Your primary interest is in saving money and securing the postal discounts, correct?” Or, do I sit down with the client and go over the pros and cons of both NCOA-48 and NCOA-18 and help the client make an informed decision, thereby setting up client specific guidelines for when a file would be processed through NCOA-18 and when it would go to NCOA-48?

Some providers suggest to a client that they run their list through NCOA-48 the first time and NCOA-18 after that.  On the surface, this sounds logical, but if you don’t ask the client what percent of their file is changing/updated every month and how old are the input sources being used to update the file, then this advice may be provided erroneously.

That fact is, a third more moves are caught by NCOA-48 than NCOA-18, and as we all know, the USPS created the Move Update regulations to reduce the amount of Undeliverable As Addressed mail.


Advanced data processing occurs once data is cleaned, standardized and consolidated to ensure that data is up to date.  Move updates should be applied periodically with services such as National Change of Address (NCOA).  Providers that perform NCOA updates often will also provide phone number updates and appends.  It is vital to have the accurate addresses and phone numbers to reach customers. 

Now that the customers can be reached, it is important to determine if they want to be reached.  If you are planning telemarketing efforts, you need to bounce your customer database against the National Do Not Call directory.  This will enable you to identify those who do not want to receive phone calls. 

For direct mail marketing it is important to determine if your customers want to be contacted via mail.  Data providers can flag customers on national do not mail lists.  Your company should also maintain its own do not mail indicator. 

Finally, it is essential to determine customers that are deceased.  Data providers can supply flags to indicate those customers that are deceased.  Communicating to deceased customers is upsetting to family members and will burn their goodwill with your company. 

Once data is up to date and solicitation preferences noted, the third step to continue turning data into information is data enhancement...


Gone are the good old days when marketing was straight-forward and simple.  A marketing director used to be able to plan out his or her budget for the year and then spend to that budget.  The job was highly visible and seen as a major contributor to company success. However, the more hyper-connected and hyper-speed society has become, the lower the tenure of the CMO. Is this related? Some report that the average tenure of the Chief Marketing Officer today is little more than 18 months. Why is that?

I postulate that one reason for this is that marketing directors have unwittingly become myopic…siloed into a functional role. Cata1 argues that “CMO's must move away from thinking like functional executives embedded in their own siloed departments and instead think instead like operational executives." 

Another possible reason is that marketers are still marketing in silos—in multiple, individual and siloed channels without a comprehensive view of the customer's needs and interaction with the company. "Integrated Marketing" requires more complex data analysis and marketers need to catch up.

A third explanation could be because CMO’s do not fully understand that they are now, as Thomas Davenport2 says, “Competing on Analytics”. Everything, including mass media, has become measureable. Marketing is now about Business Intelligence along the full marketing continuum. Those who don’t adopt a metrics mindset, cannot optimize their companies’ marketing spend. I recently heard Hanssens3 make this point clearly.

CMO’s should be the voice of the customer, driving the company toward customer-centricity. Christensen and Raynor4 assert that “What customers really want is for you to do their jobs for them”. I agree.  Marketers must focus on the customer and must focus the entire company on the customer if they want to last.5

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1Carlos Cata, "CMOs, Stop Obsessing over the Tenure Stat." Advertising Age 79, no. 20 (2008). 
2
Thomas H. Davenport, "Competing on Analytics," Harvard Business Review 84, no. 1 (2006).
3Dominique M. Hanssens, Daniel Thorpe, and Carl Finkbeiner, "Marketing When Customer Equity Matters," Harvard Business Review 86, no. 5 (2008).
4Clayton M. Christensen and Michael E. Raynor, "What Customers Really Want Is for You to Do Their Jobs ; to Make Innovative Products That Drive Growth, Companies Must Forget About Demographics, Product Attributes and Market Size Data, and Focus on the Specific Jobs Customers Need to Get Done," CIO 17, no. 4 (2003).
5Jennifer Rooney, "Marty Homlish Knows Why CMOs Don't Last," Advertising Age 79, no. 14 (2008).