UAA Mail Costs USPS $1.5 Billion

Share this content:
CHICAGO - Handling Undeliverable-As-Addressed mail in fiscal 1998 cost the U.S. Postal Service $1.5 billion, according to results of a cost, volume and characteristic study on UAA mail, which was released at the Fall Postal Forum here this week.


Michael L. Murphy, USPS address management manager, said the cost to the USPS has decreased $100 million since 1995. The study, which was compiled by PriceWaterhouseCoopers, Washington, DC, attributed the largest costs to forwarding mail ($438 million) and returning to sender ($768 million), with the remaining cost going to mail waste, address corrections, change of address processing and other miscellaneous costs.


Murphy cited a percentage decrease in UAA volume since 1995, from 2.84 percent in 1995 to 2.72 percent in 1998, which represents more than 237 million pieces of mail at a rate of 11 percent. This decrease in UAA, as compared to an increase in total mail volume, means that the USPS' address quality programs are working, he said.


He said Move Update helped to reduce total UAA mail. This program, instituted by the USPS in 1997, encouraged mailers to use the USPS' address correction and quality programs - such as FastForward, Address Change Service and The National Change of Address Service - by offering mailers presort and automation discounts when they use the services.


"Without the program, the UAA volume would have probably doubled and the cost would have doubled what we saw in this study," he said.


Murphy said that out of 118 billion addresses in fiscal 1998, NCOA licensees are getting a 4.1 percent match rate.


However, even though Move Update is working, addresses are being corrected and postal costs are decreasing, Murphy warned that costs are still there and will ultimately trickle down to the customer.
close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above