Hello itisme,
Thank you for your question.
You will find these figures to vary greatly with both the quality and
the freshness of the mailing list you use. But here are some
observations to help you judge the experiences of others:
Expo Magazine
http://www.expoweb.com/expomag/backissues/1989/1289_mail1.htm
"...Bad names
"Bad" names or addresses are the bane of every direct mailer. It has
been estimated that more than 30 percent of all U.S. mail is not
properly addressed, leading to delayed delivery, or no delivery at
all. To illustrate the problem, Larry Newton, Expositions Manager for
Pace Weil and Associates, displays a paperweight made from 2,000 "bad"
labels taken off one 8,000-name list. He estimates "we would have
wasted $10,000 on postage, printing and handling, had those 2,000
labels been used."...
...An untested list invariably has some bad names. In the case of a
new list, most experts agree it's a good idea to test. One testing
method is to select every "nth" name -- that is, every fifth or 10th
name, depending upon the list size -- and do a mailing to those
individuals. As with any type of sampling, this test will give you an
approximate percentage of the number of undeliverable addresses on the
list. The "nth" selection is a pseudo-random means of selecting a
sample of the list, and is said to work as well as any other type of
selection.
Some list brokers will provide you the labels for a sample test of the
list you are considering renting; however, it's a good idea to ensure
that you are getting a truly representative sampling in order to run a
valid test..."
They also offer a great tip for direct mailers:
"Street address correction and ZIP + 4 service -- The Postal Service
will take mailing lists of 300 records or more, check the ZIP Code,
add the four-digit "ZIP Plus 4" extension, insert the correct
two-letter state designation, and correct the street or city spellings
-- free. Contact your USPS account representative for specific
information and technical requirements for this service."
Wilde.com notes:
www.wilde.com/whatsnew/tip_pdfs/EZinenov2002.pdf
"...New software from the USPS, called Delivery PointVerification
(DPV), now allows marketers to verify a house or business address
actually exists, right down to apartment or suite numbers.DPV
significantly reduces the costs associated with UAA mail. As a test,
one financial services company ran its list through the DPV software.
They were surprised to learn 10% of their list was deemed
undeliverable - a considerable amount..."
And a FAQ at Greatlists.com notes:
http://www.greatlists.com/faqs.htm#19
"...Q: What is undeliverable mail and how should it be interpreted?
A: Undeliverable mail, also called nixies or gone-aways, is mail which
can not be delivered by the postal service due to incorrect, illegible
or insufficient address. Such mail may be forwarded (if possible),
discarded or returned to the sender.
There is only a tenuous relationship between the amount of
undeliverable mail produced by a rented list and its response
performance.
For example, while an entirely undeliverable list will produce zero
response, a deliverable, but poorly targeted, list may also produce
zero (or very little) response. Conversely, a list that returns many
nixies (20%+) may also produce acceptable response if it is properly
targeted.
The savvy direct marketer will normally measure a list's performance
by its response and not by the quantity of nixies. Most mailing lists,
even the cleanest, produce undeliverable mail at the rate of 2% to
10%. Any quantity over 10% to 15% may be a cause for concern, but only
if the list appears properly targeted and the response rate falls well
below expectations..."
MailersClub makes this interesting statement:
http://www.mailersclub.com/marketing/mktg_news_circle.html
"...Through the use of the MailersClub self-correcting address book,
client mailing lists are continuously checked for errors. This
significantly reduces the amount of undeliverable pieces of mail added
to landfills each year, last year numbering over 10 billion. It saves
money, too..."
They describe their service as:
"ABOUT MAILERSCLUB
MailersClub has harnessed state-of-the-art digital printing technology
to provide effortless and affordable mailings to small business and
organizations. In creating the first self-correcting address book, it
has empowered members to maintain and update their mailing lists
online. This free tool saves customers the cost and hassle of zip code
updates and undeliverable mail, providing a benefit unavailable from
any other company. MailersClub membership is free and members are
assured ultimate privacy protection, access to a database of 12
million business and 250 million consumer addresses, free design
templates and proofs. Products include postcards, letters,
self-mailers, brochures, booklets, invitations and database services
at costs that are less than "do-it-yourself." MailersClub guarantees
printing and delivery to the post office in three days or less. No
mailing is too small a job for MailersClub.
MailersClub is located at
3322 Garfield Avenue,
Los Angeles, CA 90040.
Website: www.MailersClub.com
E-mail: SteveS@MailersClub.com
Phone: 866-327-8624 (866-FastMail) "
So, as you can see, there is a huge amount of undeliverable mail each
year and the percentage of a single mailing will vary with the quality
and freshness of the list used as well as the implementation of any
tools such as those mentioned above that will freshen and correct bad
addresses. In my personal experience, 10-15% is common for returned
direct mail pieces and you will often receive credit for these bad
addresses form the list house if you buy or rent a list. You will
still be out printing, postage and labor, however.
As to time to receive returned undeliverable mail, DirectMail Quotes
says:
http://www.directmailquotes.com/postalregs/advantagesdisadvantages.cfm
"First Class Mail
Advantages:
Speedy Delivery: First Class mail, in-state, is generally delivered in
1 to 2 days, and rarely takes longer than a week to anywhere in the
continental U.S.
Returned Mail: Bad addresses and moves that are 12 to 18 months old
come back to the sender at no charge. Moves within 12 months
automatically get forwarded (or could be directed by the use of postal
endorsements) to come back to the sender. In either case, there is no
charge...
Standard Mail (Bulk Rate)
Disadvantages:
Slow Delivery: Standard mail generally takes 4 to 8 business days,
in-state. Across the U.S., 10 days to 3 weeks is normal delivery time.
Worse yet, there is no guarantee that a portion of the mail will not
take longer.
Not required to return mail: The Post Office is not required to return
undeliverable mail, and in fact throws most undeliverable standard
mail away. While a mailer can use an endorsement to be notified of
moves or bad addresses, it is not a free service..."
For the time to have these returned, roughly double the above
estimates and add a day or two. Again, in my experience in direct
mailings, some returns will arrive in just two to three days after
mailing and some stragglers have surprised me by being returned more
than two months later. The average time would most likely be 10 days.
Finally, the USPS notes on undeliverable and returned mail an address
change services:
Address Change Services:
http://www.usps.com/cpim/ftp/pubs/pub8.htm
"...ACS is ideal if you maintain address records on computers. ACS
requires no formal contract or service charge, but it does require
that you develop your own matching software and configure your mailing
address labels or address blocks to
comply with the ACS format. You pay fees only for the actual address
notifications that you receive.
ACS is designed to reduce substantially the number of address
correction notifications provided manually to mailers and replace them
with electronic notifications. However, ACS does not currently - and
will not for the foreseeable future - eliminate manual address
correction notifications completely. Therefore, ACS is not a
guaranteed service; the USPS makes no
assurance that any minimum percentage of a mailer's address correction
notifications will be provided electronically rather than manually.
Major Benefits of ACS
* Time and money are saved when electronic address corrections are
compared with manual address corrections.
* Undeliverable-as-addressed (UAA) mail volume is reduced.
* Manual address corrections are reduced.
* Labor-intensive address change functions are reduced.
* Electronic address change information is available for specific
mailings.
* Timely information is provided on a schedule you determine.
* Changes can be made electronically rather than manually.
* Address change information can be retrieved electronically by
large-volume mailers via a telecommunications network....
...The mail forwarding process begins when (1) a postal customer moves
and files a Postal Service Form 3575, Change of Address (COA) Order,
or (2) a customer's postal carrier discovers that the customer no
longer receives mail at a
particular address and no Form 3575 has been filed. In the latter
instance, the carrier may file a Form 3575 on behalf of the customer,
indicating that the customer moved and left no forwarding address. If
this is a customer whose post
office box is closed, a postal clerk may file a Form 3575 on behalf of
the customer. The delivery unit sends the Form 3575 to the
Computerized Forwarding System (CFS) unit, where it is entered into a
database. The CFS unit then returns the Form 3575 to the delivery unit
to be filed.
When a carrier receives a mailpiece and it is
undeliverable-as-addressed at the old address due to customer
relocation, the mailpiece (depending on its mail class and
endorsements) is sent by the postal employee to the CFS unit
responsible for forwarding mail destined to that old address. An
attempt is then made to match the name and address to a COA on file at
the CFS unit. If a match is attained from the CFS database and the
mailpiece bears an active ACS participant code, the opportunity exists
for an electronic notification to be
generated. Otherwise, the COA notification is provided manually.
Depending on its mail class and endorsements, the mailpiece is
forwarded, discarded, or returned to sender.
Situations that will normally correctly result in the provision of
hardcopy address corrections:
* Portion of nation not covered by the Computerized Forwarding System
(CFS) network.
* Forwarding order not on file.
* Forwarding order expired. (This occurs after the 12-month forwarding
period has ended.)
* Addressee is deceased.
* Single delivery points (e.g., colleges, universities, nursing homes,
prisons, third-party mail receivers, etc.).
* After the 12-month forwarding period, Standard A and Standard B
mailpieces that bear the endorsement Address Service Requested are
returned manually with the reason for nondelivery.
More than 200 CFS units nationwide serve the majority of the United
States and generate ACS fulfillment notifications. It should be noted,
however, that some areas of the country and smaller post offices lie
outside the geographic reach
of the CFS network, and only manual address correction notifications
are generated by the delivery units serving these areas.
Electronic ACS fulfillment notifications generated by the CFS units
are transmitted daily to the National Customer Support Center (NCSC)
in Memphis, Tennessee, where they are consolidated and provided to
ACS-participating mailers..."
There is a great deal of information in this document.
Other interesting direct mail links:
http://www.frugalmarketing.com/directmail.shtml
"...Unfortunately, the only sure test is to mail out and wait for
undeliverable pieces. Put your return address on the outside of your
envelope; for bulk mail, include the phrase "forwarding and return
postage guaranteed." You will pay to send mail on to the new address
or back to you, but you'll know which names are still good.
Still, the more cleaning you can do before you mail, the better off
you'll be. Before mailing, remove any obsolete names. Enter all any
address changes.
For high volume mailing, consider using the National Change of Address
service. This clearing house will match the Postal Service's list of
forwarding orders against your computerized list, for a fee. Ask your
postmaster for Notice 47, National Change of Address.
If you rented a list, you deserve 95% deliverability or better. If
undeliverables exceed this figure, ask for reimbursement for those
names. If you get more than 10% back, get your money back on the
entire purchase and switch to another mailing list house next time.
Not all brokers will guarantee this level of performance, so choose
accordingly..."
http://www.kcgi.net/postalregs.html
"...What happens to returned mail
ENDORSEMENT LANGUAGE FOR UNDELIVERABLE MAIL
There are endorsements for handling undeliverable-as-addresses (UA)
mail. These endorsements are the same across all classes. Class
treatment and applicable changes remain unchanged. There are four
levels of ancillary services available. Endorsements consist of one
key word: “ADDRESS” – “FORWARDING” – “RETURN” or “CHANGE” followed by
two words, “SERVICE REQUESTED.” The endorsements are:
1. ADDRESS SERVICE REQUESTED:
Mailpiece Forwarded – Separate Notice Of New Address is Provided. If
undeliverable, mailpiece is returned with reason for non-delivery
attached. Any postage charges would still be applied based on current
class treatment.
2. FORWARDING SERVICE REQUESTED:
Mailpiece Forwarded – Separate Notice of New Address Is Not Provided.
If undeliverable, mailpiece is returned with reason for non-delivery
attached. Any postage charges would still be applied based on current
class treatment.
3. RETURN SERVICE REQUESTED:
Mailpiece returned - Notice of new address Is Attached. Mailpiece is
returned to the sender with new address information or reason for
non-delivery attached. Any postage charges would still be applied
based on current class treatment.
4. CHANGE SERVICE REQUESTED:
Mail Not Forwarded or Returned – Notice of New address Is Provided.
Mailpiece is discarded by USPS. the mailer will receive notice of an
address change or the reason for non-delivery and pay an address
correction fee. This option is available for the First-Class Mail
letter rate and card rate subclasses. As an added security,
participation in the electronic Address Change Service (ACS) is
required before a mailer may use the endorsement. CHANGE SERVICE IS
NOT AVAILABLE FOR: Priority Mail – Express mail or mail with Special
Services (for example, Certified, COD, Insured and Registered
Mail)..."
http://www.score.org/cgi-common/framer.cgi?rightframe=http://www.score.org/workshops/direct_mail.html
How to Maximize Your Direct Mail Results
By Wes Martz, Martz Marketing Group LLC
http://www.ddat.com/hcp/faqs_dm.htm
Direct Mail Creative Factors
Search Strategy:
"direct mail" +quantity OR amount OR number OR percentage
+undeliverable OR returned
time to return undeliverable mail
USPS +undeliverable
time to return undeliverable +postal OR direct +mail
I trust my research has provided you with a great deal of information
on direct mail. If a link above should fail to work or anything
require further explanation or research, please do post a Request for
Clarification prior to rating the answer and closing the question and
I will be pleased to assist further.
Regards,
-=clouseau=- |
,
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