The mobility of the American public and the resulting returned mail volume creates formidable obstacles for companies and their customers. 17% of all consumers move and 19.6% of businesses, with 30-50% notifying the USPS of the move. The challenge for companies is that approximately 4% of all First-Class Mail does not get delivered. These critical communications are not getting delivered, and companies are now responsible for finding these lost customers to resolve and restore their accounts.
- For every 100,000 customers you have, 4,000 are lost every month. This is a Mission Critical problem.
According to our estimates, each piece of returned mail costs a company an average of $3.00 per piece in operational costs alone. Unfortunately, this is just the tip of the issue.
The true total cost of the issue is actually much higher. The total financial impact of returned mail can exceed $200 per mail piece, representing hundreds of billions of dollars which are absorbed by all companies that utilize mail as a communication vehicle for their customers.
These costs have a major impact on cash flow, labor and operational effectiveness. The USPS and companies in general, have continued to develop and market solutions to mitigate and reduce the issue. The USPS has implemented the Intelligent Mail Barcode (IMb) and Secure Destruction as a way for companies to reduce volume and costs associated with the returned mail, but does not resolve the issue.
Unfortunately, with the advent of the IMb and Secure Destruction comes the virtual elimination of technology advances with platform as a service, software as a service, and robust automation for paper and digital communications. The issue is not about the mail, but about lost customers and how companies can efficiently, effectively and automatically find, resolve and restore.
Reasons for undeliverable as addressed mail:
- 75.8 % Move Related
- 5.2 % Missing/Incorrect Apt/Ste Numbers
- 0.8 % Rural/Highway Contract Box Numbers
- 4.4 % Missing/Incorrect Street Name/Numbers
- 0.13 % Missing/Incorrect City/St/ZIP
- 13.6 % Other