Trends in Print and Mail

“Keep thy shop, and thy shop will keep thee.” Benjamin Franklin.

I was channel surfing the other day, and came across a repeat of one of my favorite television shows - American Hot Rod. The show followed the inner workings of the late Boyd Coddington’s garage as they built custom hot rods for exclusive clients. Broken equipment, unforeseen delays and personality clashes had to be overcome in order to complete the project correctly and on-time.

Sounds like the everyday life of anyone who works in mail.

Over the last decade some people in the print/mail industry have compared mail operations to factories. Software and hardware vendors have “Automated Document Factory” or “ADF” solutions. Companies rename their print/mail departments to “Bill Factories” or “Document Factories.” Some conferences have entire tracks of classes dedicated to the ADF.

I’ve never liked the term “ADF”. It sounds good. But what does it mean? Few people can tell you exactly what an ADF is. If you don’t believe me, ask anyone who says they have an ADF, or vendors who claim to have an ADF solution. Every person you speak to will have a different answer.

I’ve sought alternatives to the ADF, and even proposed a few. I’ve written about the “Digital Document Command Center” and given talks on how print/mail managers should take their lead from the U.S. Army. Some people criticized my ideas as having “too militaristic a tone”.

Maybe a better role model would be mechanics. And you don’t have to watch American Hot Rod to understand the similarities. If you’ve ever owned a car, you’ve probably had to deal with a mechanic at least once. Probably more than once. Besides, aren't many mail operations called “shops”?

Mechanics are excellent role models because like mail operations:

The most tangible evidence of addressing errors in any mailing that leaves your company is the volume of return mail. Instead of treating return mail as a nuisance, managers should consider it another tool to improve their address list.

If a company has done a good job with cleaning their addresses, then their return mail will be below 1%. However, if that company mails out 50,000 bills a day, that still means 500 envelopes will be returned each day. Over 10,000 pieces will be returned in a month. That’s a lot of mail.

So, what should a company do? We recommend a multi-step approach:

At Graph Expo in Chicago this week, I’ve had the opportunity to see some amazing technology – color inkjet printers producing output cheaper than black and white devices, software that integrates physical and digital messaging, and hundreds of finishing devices that will cut, perf, bind, insert and palletize your finished product.

The show demonstrates that print is still a vibrant market and method of communication. But if you’re focused only on production speeds and cost-per-piece, instead of adding value, then you’re headed in the wrong direction. You need to devote your attention to reviewing the entire process - not just the printed document.

Until recently, print was the preferred means of information distribution. Other methods – fax, diskettes, file transfer, and e-mail were considered alternatives to print, but paper was still the standard. Due to the proliferation of Internet usage and improvements in technology, print is now only one of many options – and there is no standard.

This doesn’t mean it’s time to panic, or to throw out those printers and inserters just yet. It does mean you have to widen your sphere of influence from one step in document production – like print/mail – to being involved with the entire document process.

For many operation managers, this requires moving out of the “comfort zone” of paper, hardware and scheduling, and into the worlds of marketing, databases and information technology. IT and marketing professionals need to learn about the new capabilities available in print/mail, and forge cross-departmental relationships. These new hybrid organizations will work together to develop comprehensive solutions to document processing challenges.

At The Berkshire Company, we call this approach Total Process Management. Not to be confused with TQM, Total Process Management isn’t a methodology to define your procedures. Rather, it’s a business philosophy that emphasizes an awareness of the entire process cycle – those elements that take place before activity begins, the activity itself, and the expected results of that activity.

For example, when mailing statements, you may focus on the pieces processed per hour. However, the entire cycle of the document should be considered. In a typical billing operation, the cycle includes:

Using software certified by the US Postal Service (USPS), like the Coding Accuracy Support System (CASS) and NCOALink, companies can format and update their customers’ addresses. To take the next step, mailers have access to additional USPS tools to improve address quality, including the Address Element Correction (AEC) and Address Change Service (ACS) programs.

Mailers may have pieces that were delivered by the USPS, however the addresses don’t generate a Delivery Point Validation (DPV) when run through CASS software. That means the mailer is foregoing postal discounts and is unable to take advantage of all the Full Service IMb benefits. The best USPS programs for this situation are AEC and AEC II.

AEC is best described as “CASS Plus”. With input from the mailing industry, the USPS developed specialized programs that break down the elements of the address, and perform a series of evaluations and comparisons. Through these logarithms, the AEC software is able to add missing elements and correct many errors that commercial software can’t resolve.

For the tougher addresses, mailers can request the AEC II service. Under this program, the addresses are sent to the local USPS delivery unit for resolution. The USPS is then able to tap into their proprietary "Delivery Force Knowledge" system. In other words, they ask the letter carriers responsible for that address for their help. That’s right, a human being with actual knowledge of the problem address – not software – corrects the list.

For unidentified moves, mailers should consider the Address Change Service (ACS) program. With ACS, if an address on a mailpiece is incorrect, the USPS sends the mailer an electronic file with the change of address or other reasons for non-delivery. To participate, the mailer needs to enroll and then modify their address block or mailing label. When the modified pieces are processed by the USPS on the Postal Automation Redirection System (PARS) or Computerized Forwarding System, an ACS notification is generated. The notifications are forwarded to the National Customer Support Center, and then consolidated into a file for the mailer.

There are 4 different methods for implementing ACS:

One aspect of effective address management that needs to be considered is establishing and following a production process with high integrity. In other words, there are controls in place that make sure the correct document goes into the correct envelope with the correct address. Accuracy during production impacts address management by reducing volumes of return mail and ensuring accuracy in postal documentation.

Most return mail received by companies is caused by address issues. The address may be incomplete, incorrect or the recipient may have moved. Many of those issues may be avoided using software to clean addresses when they’re entered into the system, on a regular schedule or directly before print.

Mail may also be returned because of errors in the production process. Smeared ink may make the address illegible. Improper folds can cause the address to not appear in the envelopes’ window. Double-stuffs can change the order of pages – or even worse – insert someone else’s information into the wrong envelope.

Accurate management of the print and mail stream determines the correctness of the documentation filed with the US Postal Service (USPS). Damaged pieces must be removed from the “Mail.dat” file. Postage due amounts, potentially including discount qualifications, need to be recalculated. Under the new Mailers Scorecard Program, all of this will now be tracked by the USPS.

There are different methods of implementing a high-integrity production system. Common characteristics of the best systems include:

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When using mail to communicate with your customers, the address is the keystone – the lynchpin that holds together the content, creativity, production and delivery of documents. Keep your system running smoothly by formatting, updating and maintaining addresses as soon as the organization acquires the information.

Companies may attain addresses individually or as part of a list. A prospect or customer may initiate contact through the mail, by telephone or on a website. Or the company may receive a group of addresses - by purchasing a list, or receiving a batch update from a customer (e.g., an insurance company receives a list of employees). In both cases, the addresses should be validated for completeness and accuracy as soon as possible.

The United States Postal Service (“USPS”) has established standards for the proper formatting of addresses (Publication 28 - Postal Addressing Standards). Following the proper standards improves the deliverability of the mail, reduces the amount of return mail and allows for participation in postage discount programs. Companies can use USPS-certified software that puts addresses into the proper format and validates the correct ZIP Code information. The certification is known as the Coding Accuracy Support System or “CASS”.

For individual addresses, a company may choose to validate addresses in real-time or in a batch mode. To check individual addresses automatically, the company’s software bounces the address against a CASS-certified engine using an application programming interface (“API”). Many people who order on the internet have encountered this type of update. They enter an address on an order form and on the next screen, the address is presented in the correct USPS format with the full ZIP+4 code displayed. The API software may interface with CASS software installed locally or via an internet subscription (SaaS).

Using “real-time” correction reduces the numbers of address errors in a database. Postal coding software often makes changes to an address, like the street directional or unit designation. If the information is being entered by a customer service representative, they can confirm the change with the person during the call. If the person is entering information on a website, they’ll be able to validate the coded address.

If the systems don’t allow for an API interface, or if the company is receiving lists of new customers, then batch jobs checking all new addresses should be scheduled nightly. Not only does this practice ensure conformity with postal regulations, it exposes any errors as soon as possible. It also allows the company to start correcting those errors before any mailpieces are sent out – and returned as undeliverable.

For any customer or prospect lists received, the batch job should also include running the list against the National Change of Address (“NCOALink”) database. Using NCOALink is one method of being compliant with Move Update - matching the mailer's address records with change-of-address (“COA”) orders received and maintained by the USPS. There are four approved and two alternative Move Update methods. Mailers can meet the Move Update requirement in the following five ways:

In the 1990s, my favorite speaker at the National Postal Forum (NPF) was Paul Green. In addition to being a fellow Irish-American from Greater Boston, Paul shared my passion for the mailing industry. Most of all, Paul loved to talk about addresses – and their critical role in the print-mail process. No matter how well-designed, beautifully printed or efficiently created, unless a mailpiece gets delivered to the right recipient, it’s a waste of money.

Paul’s experience with addressing started much earlier. He worked for an insurance company that was one of the first adopters in using software update addresses. The goal was to review the computer database and validate that addresses were compliant with United States Postal Service (USPS) standards. Paul was so essential to the success of the project, the software company hired him.

At the NPF, Paul spoke about how to implement a good address hygiene program and reduce returned mail. He supplemented the numbers, regulations and acronyms with a style that approached evangelicalism. In fact, he started each class with, “In the beginning (pause), was the address.”

Paul may be retired, but his message remains valid. Having the correct mailing address is the keystone to a successful print-mail operation. And this is true whether we’re discussing transactional mail, advertising mail or parcels. To effectively communicate with your customers, you must have a professional address management program.

An effective address management program isn’t an isolated occurrence. Instead, it involves deploying tools and getting feedback throughout the customer communication process. The goal is to keep the customer interaction loop intact and continuous.

“No one sends important documents through the mail anymore.”

“First Class Mail is disappearing.”

“'Snail Mail' is an anachronism is the ‘Age of the Internet’.”

We hear these phrases, or ones that are very similar, on almost every consulting engagement that involves inbound mail. Of course, these opinions are normally from people who don’t work with many physical documents (e.g., IT professionals) or people who are far removed from the daily workflow (e.g., executives). It then becomes part of our assignment to educate everyone on the importance and impact of physical mail on their business.

Of course, there are some truths in these statements. Many documents are sent via email or other electronic transfer methods. The volumes of First Class Mail arriving at businesses have declined. And any mail being delivered by a dawdling terrestrial mollusk probably isn’t that important.

However, the letters, flats and packages arriving at corporate mail centers each day are important. For many customers, the only communication they have with their vendors is through the mail. Companies must develop policies and strategies to service those customers. A sound strategy that includes: