The direct marketing industry lives off the NCOA database, as it's
critical to controlling mailing costs. About 5% of the population
moves each year in the United States and there are 285,000 moves per
week, according to MBSinsight.com, a market research company.
In an article titled "NCOA Processing Acknowledgment Information"
from MBSinsight.com (undated), the research company says that the NCOA
database consists of:
114M names
82.6% forwardable names
13.9% moved & left no address
2.6% PO box closings
0.2% move to foreign address
45% family moves
49% individual moves
6% business moves
The MBSinsight article is here:
http://www.mbsinsight.com/ncoa/pdfform/paf_package.pdf
But despite the heavy use of the NCOA database to clean up direct mail
lists, there's surprisingly little research apparent on who doesn't
fill out NCOA forms -- or who does. Most direct marketing efforts
have focused on cross-checking lists for likely changes.
One of the reasons may be the firestorm over a joint program between
Lotus Development Corporation and Equifax from the late 1980s called
Marketplace: Households that attempted to cross credit and mailing
information on all 120 million U.S. households. It resulted in legal
restrictions on how NCOA and other information could be used. A
Georgetown University business school paper titled "Lotus Marketplace:
Households
Managing Information Privacy Concerns" (Oct. 6, 1992)
describes the privacy concerns:
http://www.cis.gsu.edu/~emclean/Lotus%20MarketPlace%20Households.doc
Arriving at specific demographics of the composition of the NCOA
database would be by inference: for example knowing that young people
move more often. Also note that a recent survey done by the Direct
Marketing Association (DMA) notes that "first-class mail is rapidly
losing favor with young Americans under the age of 34." It notes
that, bill payment, accounts for almost half (49.1 percent) of all
first-class mail. Yet more than half of the survey respondents under
age 25 and 42 percent of those aged 25-34 said recent rate increases
will lead them to look for bill payment alternatives such as
electronic bill payment.
This helps buttress the postmaster's beliefs regarding young people
being less likely to care about filing a COA form.
Summary information on the study, "The Postal Generation Gap:
First-Class Mail and the Crisis of the USPS Business Model," (June,
2002) is on the DMA website at:
http://www.the-dma.org/library/whitepapers/
Searching for further information in this area inevitably leads to
DMA, which has been a strong force in researching issues for the
industry. In fact, I've sent a note off to DMA's Research Division to
see if there's more specific demographic information available on the
NCOA database.
Note too, that the changes are referred to as "nixies" by the mailing
industry, so that's another helpful search term.
Search strategies:
"U.S. Postal Service" + NCOA
DMA + USPS
DMA + USPS + NCOA
Nixies + demographics + USPS
Best regards,
Omnivorous-GA |