POINT OF CALL ADDRESS DATA & ADDRESS ACCURACY PROGRAM
________________________________________________________________________________ Address Accuracy 1. What is the Address Accuracy program? The Address Accuracy program improves mail processing and delivery service by increasing the percentage of mail that is properly addressed. Using special Address Accuracy software, mailing lists are compared against Canada Post’s address database before the mail is inducted. This process helps mailers determine how accurate their mailing list is, and allows them to generate a Statement of Accuracy. 2. How is the Address Accuracy program changing? The Address Accuracy program itself is not changing. All facets of the program — including the frequency of producing a Statement of Accuracy, the 95 per cent Address Accuracy threshold, the adjustment to the cost of the mailing that is applied for failing to meet this threshold, and the way the adjustment is calculated — will remain the same. What will change with the introduction of Point of Call Address Data is that mailing lists will be validated and corrected against more accurate data, which may impact mailers’ Address Accuracy scores. 3. What is changing? In January 2011, Canada Post, in conjunction with recognized vendors, will introduce new Address Accuracy software to be used for cleaning mailing lists. The new software will use Point of Call (range based) Address Data, which has more detail than the Postal Code Address data used by existing software. 4. Why is Canada Post introducing the Point of Call (range based) Address Data product? It all comes down to serving Canadians better. Point of Call Address Data ties in with Postal Transformation — an equipment-renewal program that will help us deliver the Modern Post to Canadians. The new Point of Call (range based) Address Data product will allow us to optimize our new machinery and technology, and enable faster, more efficient processing and sorting of the mail. This will reduce costs, improve operations, and provide a more accurate address database. 5. How will these changes benefit mailers? Reducing undeliverable and returned mail will help mailers reduce printing and mailing costs because they will no longer pay to print, prepare and send mail that can’t be delivered. And since more of their advertising mail will reach its intended audience, companies can calculate their campaign response rates more accurately and can improve their campaign ROI. For more information about the benefits of reducing undeliverable mail, refer to the white paper, The easiest 5% ROI lift you might ever achieve, which can be found at http://www.canadapost.ca/cpo/mr/assets/pdf/business/easiest_5_roi_en.pdf Point of Call (range based) Address Data vs. Postal Code Address Data
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POINT OF CALL ADDRESS DATA & ADDRESS ACCURACY PROGRAM
________________________________________________________________________________ 6. What is the Point of Call (range based) Address Data product? How is it different from the existing Postal Code Address Data product? Whereas the Postal Code Address Data product is a range-based Postal Code database, the Point of Call (range based) Address Data product is a database of contiguous ranges defined by specific and unique points of call (i.e., addresses). See example below: Postal Code Address Data is a series of ranges defined by Postal Codes. • K1A 1A1 = 1-99 Main Street, Ottawa, ON • All addresses within the range are considered valid Point of Call Address Data is a series of ranges defined by specific addresses within a Postal Code. • e.g. K1A 1A1 = 1-43 & 47-99 Main Street, Ottawa, ON • Recognizes that 45 Main Street does not exist, and is thus invalid This additional level of granularity makes the Point of Call (range based) Address Data product a more accurate database against which to cleanse mailing lists. 7. How can an address be valid in existing Address Accuracy software but not in new Address Accuracy software using Point of Call (range based) Address Data? Existing Address Accuracy software is developed using range-based Postal Code Address Data, whereas the new software is developed using ranges of specific and unique points of call (i.e., addresses). A particular address might fall into an acceptable range when using existing software, but if the point of call does not exist, it will be considered invalid by the new software. Similarly, if a piece of mail is sent to an apartment or an office building with multiple suites, but the apartment or suite number is not provided, the new software will flag the piece as having an invalid address because it is not complete, and it will be at risk of not being deliverable. 8. I’ve been mailing to the same address for years, and I’ve never had an issue. Why is it invalid now? It could be because the address falls into an acceptable range within the Postal Code Address Data product, but does not include the extra level of granularity required for delivery to specific points of call. An example of this could be an office building that has multiple suites; if a suite number isn’t included in the mailing address, the piece is at risk of not being deliverable. Addresses in mailers’ files may become invalid with the introduction of Point of Call data, primarily due to missing suite and apartment numbers. Mailers with a high percentage of apartment or suite address records could be impacted to a greater degree since these address records account for a large portion of total undeliverable mail volumes. 9. Why do I have to determine Address Accuracy with software that uses Point of Call (range based) Address Data? Why can’t I continue to use current Address Accuracy software that uses Postal Code Address Data? The new Address Accuracy software has more detail and a finer granularity than the existing Address Accuracy software, and it identifies incorrect or incomplete addresses that existing software cannot. Validating and correcting mailing lists August 2010
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POINT OF CALL ADDRESS DATA & ADDRESS ACCURACY PROGRAM
________________________________________________________________________________ against more accurate data will help reduce the volume and cost of undeliverable mail, and will allow both mailers and Canada Post to operate more efficiently and cost effectively. For these reasons, Canada Post will require that all Address Accuracy software use Point of Call (range based) Address Data beginning January 17, 2011. 10. Why can’t Point of Call (range based) Address Data be used for anything but Address Accuracy? At present, Canada Post is not equipped to securely license Point of Call (range based) Address Data for anything but Address Accuracy software applications. Given the value of the data, we must first implement the necessary level of protection in the Address Accuracy software before making Point of Call (range based) Address Data available for use in other applications, such as interactive address validation tools. Without this protection, the Point of Call (range based) Address Data could be used fraudulently or resold unlawfully. This would not be fair to Canada Post, or to the companies who pay to license the data from us. Canada Post intends to work with the industry to assess how Point of Call (range based) Address Data can be securely leveraged for other applications in the future. 11. Will Postal Code Address Data still be available? Canada Post will continue to license Postal Code Address Data, but not for the purposes of developing SERP-recognized Address Accuracy software designed to validate and correct addresses and to produce a Statement of Accuracy. This data can be used for other purposes – such as interactive applications for call centres, GPS systems, analytics and many other non-mailing address validation applications. 12. How are rural records affected by the Point of Call (range based) Address Data product? The Point of Call (range based) Address Data product does not contain all rural delivery points. However, as long as the Postal Code is valid, rural addresses will not be considered incomplete or invalid. Where Canada Post has civic addresses for rural delivery areas, the address record will be flagged as “questionable.” 13. What constitutes a “questionable” address? First introduced in April 2010, a “questionable” address is one which is not complete or fully accurate, but in some instances may still be deliverable. An apartment building address is questionable if the mailing address does not have a unit number and there are no unit numbers available in the Canada Post database. A rural address is questionable if it cannot be validated based on all of the civic address components present and is therefore validated based on the Postal Code only. By flagging these records as “questionable,” mailers will recognize that they may need to verify or update them. Address Accuracy Scores and Statements of Accuracy 14. As a mailer, how will these changes affect my Address Accuracy score? August 2010
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________________________________________________________________________________ Although the 95 per cent Address Accuracy threshold will not change, addresses will now be compared against more accurate data, which may impact your Address Accuracy scores. Statements of Accuracy must still be generated at least once a year, although mailers are encouraged to validate and correct their mailing lists more frequently. 15. I hear that there is a six-month transition period. How will it be managed? Beginning January 17, 2011, there will be a six-month transition period to give mailers time to update their mailing lists. For the duration of this transition period, Address Accuracy software will flag “invalid” suite and apartment records, but these records will not count against a mailer’s score. All other invalid records will count against the score. The adjustment to the cost of the mailing for failing to meet the 95 per cent Address Accuracy threshold will continue to apply during and after this six-month transition period. 16. Why should I generate a Statement of Accuracy? Mailers must enter the score and expiry date that appears on their Statement of Accuracy and the expiry date when creating their Order (Statement of Mailing) to avoid adjustments to the cost of their mailings for Publication Mail, Addressed Admail and Incentive Lettermail services. 17. What is my penalty if I don't meet the 95 per cent Address Accuracy requirement when I complete my Order (Statement of Mailing)? If a company doesn’t meet the minimum requirement for Address Accuracy when inducting their mail, they will incur an adjustment to the cost of their mailing up to — but not exceeding — the full postage rate for the mail piece. Details on the adjustment calculation are available in the applicable Customer Guide. 18. What will happen if I decide not to cleanse my mail anymore? Choosing not to cleanse your data could cost you in a few ways. First, you could incur the full adjustment for volumes that fall below the 95 per cent threshold for Address Accuracy. Second, you’ll incur production and postage costs for mail that may not be deliverable. There are many other indirect costs too, including all the missed opportunities to make sales, build brand awareness and strengthen customer relationships. What’s more, undeliverable mail can also cause delays in the bill-payment process, which can affect cash flow. 19. Can I use the information from my Address Accuracy report to cleanse and update data in my customer or billing database? If the output of your Address Validation and Correction Software allows for it, you can use the information in your Address Accuracy report to cleanse your master data. In other words, you can feed your mailing list into an Address Accuracy software application, then take the output and update your CRM or billing database, in addition to your mailing list. Address Validation and Correction Software 20. As a mailer, what sort of financial impact will I see as a result of these changes? August 2010
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________________________________________________________________________________ Your company may or may not be impacted from a cost perspective. Canada Post cannot predict or dictate the financial impact on mailers that results from these changes as software vendors are at liberty to set their own pricing. Mailers are encouraged to contact their software vendor or data service provider to determine what financial impact, if any, these changes will have on them. Canada Post has taken steps to minimize development impact (cost and time) on vendors who develop Address Accuracy software by providing a file that is similar in format to the one in use today. 21. As a mailer, can I license the Point of Call (range based) Address Data product directly from Canada Post? At present, mailers cannot license the Point of Call (range based) Address Data product from Canada Post. Only recognized Address Validation and Correction Software participants will be permitted to license the Point of Call (range based) Address Data product, for the purposes of developing SERP-recognized Address Accuracy tools which mailers can use. For a complete listing of recognized Address Validation and Correction Software participants, please visit http://www.canadapost.ca/cpo/mr/assets/pdf/business/serp_en.pdf 22. Why does my Address Validation and Correction Software vendor update my files monthly when a Statement of Accuracy is only required once a year? All developers have to update their software to meet all of their customers’ needs. The most current data has to be available to those customers who run Address Accuracy on every mailing. 23. Where can I find a list of Address Validation and Correction Software vendors? You’ll find a complete listing of certified Address Validation and Correction Software vendors at http://www.canadapost.ca/cpo/mr/assets/pdf/business/serp_en.pdf
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