THE DOLLARS AND SENSE OF NCOALinkTM....

Mailers that use the United States Postal Service® NCOALinkTM program reduces costs of labor, postage and materials. You can realize ROI benefits by processing your mailing list through our NCOALinkTM program before you mail.

Return on Investment

The United States Postal Service® has stated that the average NCOALinkTM match rate is 4.1%. That translates to 41,000 move changes for a 1,000,000 record file. The match rate not only includes recognized address changes but also closed PO Boxes, foreign moves and moves with no forwarding address. When associated postage and material costs related to these factors are recognized as well as addresses without ZIP + 4® Codes, one begins to conceptualize the value of this service.

The following are average percentages of key NCOALinkTM elements:

Item

Percent

1MM Record File

Move changes

     4.1%

 41,000 records

ZIP + 4® improvement

     1.0%

 10,000 records

Total affected records

     5.1%

 51,000 records

The next process applies dollar values to these change dynamics. Two points regarding the figures used below.  First, we have used a typical discount for First-Class Mail® and Standard MailTM  in the example. (Reference Domestic Mail Manual R100 and R600.) Also, the $0.05 material amount may be conservative for both mail classes.

Cost Savings Benefit #1 - First-Class Mail®                    

8,200

Address changes over a year old*

x $0.36

$0.31 discounted postage rate + $0.05 materials

$2,952.00

Savings realized from this aspect of service

Cost Savings Benefit #1 - Standard MailTM

41,000

Address changes

x $0.26

$0.21 discounted postage rate + $0.05 materials

$10,660.00

Savings realized from this aspect of service

Cost Savings Benefit #2 - First & Standard MailTM

10,000

ZIP + 4® improved records

x $0.07

Postage discount

$700.00

Savings realized from this aspect of service

Summary of Examples:

First-Class Mail® Item Standard MailTM

$3,652.00

Gross savings

$11,360.00

$1,250.00

Less NCOALinkTM processing fee of $1.25/M

$1,250.00

$2,402.00

Net savings

$10,110.00

Cost Saving Benefits:

  • *Changes of 12+ month old moves that would have otherwise resulted in returned mail for First-Class Mail®.  This example assumes an average of  20% of total moves occur in the 13-36 month period
  • Avoidance of mailing to closed PO boxes, foreign moves and moves with no forwarding addresses
  • Address improvements resulting in ZIP + 4® Codes
  • Address standardization of all records
  • Identification of probable moves and addresses with errors as noted in the "Footnotes" portion of the process
  • Most databases are relatively complete with ZIP + 4® Codes, 90% - 95% on average. However, as the example illustrates, a database owner of 1mm records enjoys a further saving of $600 for every one-percent improvement the NCOALinkTM process provides.

Case Study

    This study is presented as an example of the savings potential to small file owners that use Standard MailTM, in this case an owner with 82,153 records.

Item % Records Unit Savings

Move address changes

  4.49%

  3,688

$0.26

ZIP + 4® improvement

  1.00%

     821

$0.07

Client Savings

Move address changes and closed boxes, etc. @ $0.26 ea.

$  958.88

Postal savings on ZIP + 4® records @ $0.07 ea.

$    57.47

Less cost of service

$  300.00

Net savings

$  716.35

A Final Thought

Over 100 billion records are processed through all FASTforward® and NCOALinkTM licensee systems each year. Hundreds of mailers appreciate the value of NCOALinkTM processing and realize positive benefits to their bottom line..  Let us show you how you too can reap the rewards of NCOALinkTM processing........


NCOALinkTM Processing is performed by a non-exclusive licensee of the United States Postal Service®.