The Cost of Undeliverable Mail

By Paul Johnson, President CMS – Complete Mailing Solutions

How Much Is It?

Have you stopped to consider the real financial impact of undeliverable mail?
We’ve blogged about how mail piece design can impact deliverability of your mail and provided guidelines that will help ensure your mail gets delivered. If you are like a lot of companies, once a mail piece is returned, you simply change the address and resend it – right? Just more paper and postage costs, that’s all – but is it?

Undelivered envelope with yellow sticker

Undeliverable as addressed (UAA) mail is a costly problem for both mailers and the Postal Service alike. In 2016 alone, nearly 6.6 billion mail pieces were undeliverable*. Mailers spend over $20 billion on UAA mail, while direct costs to the USPS is over $1.5 billion/year**.

If you think the only cost for undeliverable mail is reprinting and remailing costs, you’re in for a big surprise. There’s much more to the story than that. For mailers, there are both tangible and intangible costs related to undeliverable mail:

Tangible

  • Statements and late notices, if applicable
  • Labor to prepare mailings, research the correct address and regenerate and re-mail the communication
  • Delayed payment of invoices and its impact on cash flow


Intangible

  • Lost sales because the communication was never received or received too late to act upon.
  • Customer Relationship Management (CRM) impact -damaged customer relationship and reduced goodwill from customers who are irate from not receiving correspondence in a timely manner and/or receiving late fees.


The bottom line: Companies can easily spend $25 or more per piece of returned mail. How can you determine your cost? The USPS Inspector General sited a simple way of determining this. Take the annual value of a customer and divide it by the customer’s expected response rate. For example, if a Customer is worth $600 annually and typically responds at a 10% rate, the cost of the UAA mail piece is $60 – a far cry from the cost to reprint and re-mail the original communication!

Improving Deliverability


One of the most significant factors impacting mail deliverability is address quality. With 18% of the population moving each year and 20% of businesses moving or failing, it is critical to keep addresses up-to-date to keep deliverability high. Address quality software can identify and update your customer file before your mail piece goes out the door

Need a solution to improve your mail deliverability? Click here for data quality options or call us at 303-761-0681

Who Moved Your Cheese?

By Paul Johnson, President Complete Mailing Solutions


Do you receive a significant number of parcels and important documents? Are you finding it hard to handle and keep track of them? Do you know where important files or documents are at all times? Would it be helpful to receive an email notification when a time-sensitive document arrives? Are you wasting valuable time manually inputting incoming mail and parcels?
tracking parcel with cordless barcode scanner
If you answered “yes” to one or more of these questions, then read on to see if a parcel and document tracking solution might benefit your organization.
Neopost WTS is a scanner-enabled chain of custody tracking system for inbound mail, parcels, files and objects (such as electronics, furniture, tools, supplies, etc.). These items can be scanned into the system upon receipt. Scanning is then used to track any handoffs or checkouts from that time forward. With WTS you’ll know exactly where every received parcel, document or item is at any time. Available as either a premise or web based solution, WTS is scalable from small single-location businesses to large enterprises with multiple locations.
You’ll not only know where all tracked items are, you’ll have detailed information at your fingertips including:

  • Item description
  • Location
  • When the item was received
  • Identification of employee who moved it
  • The signature of the person who received it and currently has it

Real-world examples

Clients have used WTS for tracking company assets such as laptops, golf clubs, tools and equipment. Assets can be checked out for use and then checked back in. No more missing assets or wasted time tracking them down… you know where they are at all times. This applies to assets to be used both on and off-site.
Evidence tracking is another example. Police stations can use WTS for keeping track of evidence. The evidence is either in the evidence locker or it’s checked out to a specific person who is held accountable for it. In addition, this provides chain of custody tracking.
Benefits of a WTS tracking solution from CMS:

  • Eliminate liability of losing confidential documents or having them fall into the wrong hands.
  • Eliminate loss of expensive equipment and parcels.
  • Provide accountability through chain of custody tracking.
  • Reduce the cost of manually tracking and classifying incoming parcels and documents.
  • Reduce delivery time and errors by building a route for delivery.
  • Eliminate loss of expensive equipment and parcels.
  • Increase service quality.
  • Eliminate wasted time tracking down or finding documents and assets.
  • Automatically notify recipients of arrival of packages and parcels.


If you have any questions or want to learn more about how a tracking solution could benefit your organization, contact Paul Johnson at 303-761-0681 x211 or pjohnson@cms-colorado.com.

How to improve customer communications and reduce costs

By Paul Johnson, President Complete Mailing Solutions


Are the number and type of documents you need to send to your customers growing? Are you pressured to do more with the same or fewer resources without compromising quality? Would you like to improve the customer experience while reducing costs and increasing efficiency?
If you answered “yes” to any or all of these questions, then a communications management solution is worth considering. The key components of an effective communications management system are: 1) communications management software, 2) folder inserter(s) and 3) address validation software. In this article, we’ll provide an overview of the role and functionality of communications management software and provide a case study with hard data on the results one organization achieved by implementing a communications management solution.

Communications Management Software

This software is at the core of the solution, the brains, if you will. Communications management software electronically gathers documents such as invoices, statements and reports from a variety of sources (billing, ERP, CRM system, etc.), processes them (more on this in a moment) and routes them to the appropriate communications channel including email, mail, web portal or fax.
linked communications
An example of this type of software – Neopost’s OMS-500 – provides centralized administration and distribution of documents from different departments (in different locations if desired) to be custom-processed and routed through the appropriate communications channels for each document. OMS-500 opens up a whole new world of possibilities in the way that you communicate with customers (or others you send documents to).

What are the results of communications processes optimized with OMS-500?

  • Time & Cost savings
    • Multiple documents can be consolidated into single, rather multiple emails, envelopes or faxes
    • Paper documents don’t require manual sorting, folding, etc.
    • Documents sent via USPS® mail receive the lowest rates
  • Improved Accuracy & Confidentiality
    • Recipients never receive documents not intended for them… thereby increasing security and reducing compliance and privacy risks
    • Bad addresses are corrected prior to mailing
  • Improved Customer Relations
    • Customers can choose how to receive communication: email, mail, web portal or fax
    • Documents are appealing and easy for customers to understand
    • Bills can contain personalized messages or offers/promotions

 


To read about a real-world scenario, check out this case study on how Seattle Children’s hospital uses a communications management solution to get the following results:

  • 88% reduction in labor costs.
  • Improved job satisfaction for employees doing the work.
  • Ability to re-assign existing staff to higher-value and more fulfilling tasks.
  • Improved data quality and deliverability of mail.
  • Improved mail handling including grouping documents by recipient instead of sending multiple documents per recipient.
  • Postage savings achieved from combining reports for the same recipient.

For more details on OMS-500 software you can download a brochure here or watch a video on OMS-500 here.

My Apple Is Not Your Apple – 5 Considerations When Comparing Mail Machines

By Paul Johnson, President Complete Mailing Solutions

We often come across companies who obtained new postage meter machines that they thought fit their needs only to find out they did not perform as expected or there were costs were higher than expected.

Decisions are often made based on the monthly rental or lease fee alone. However, you need to understand the total cost of operating a mail machine. There are 5 key areas to consider when comparing mailing machines:

Magnifying Glass with $ sign small
1. Equipment
2. Pricing / Fees
3. Postage – Funding / Managing
4. Customer Service – Training / Problem Solving
5. Supplies

Let’s take a look at each area.

    1. Equipment

The primary decision you’ll make is which mail machine best meets your needs. Consider:

      • Mail Volume

Consider daily/weekly/monthly/seasonal mail volumes. Your mail machine should easily handle your highest volume needs – don’t expect a low volume mail machine to handle heavy volumes.

        • Manual vs. automated feeding – The more automation during feeding, the faster mail can be sealed and imprinted with postage. Automation can reduce processing time up to 36%.
      • Types/Handling of Mail Piecesmail machine
        Consider the types of mail pieces you use – standard, oversized, flats, thick?

        • If you mail large pieces, be sure to get a wide deck so mail transports smoothly.
        • If you have a variety of mail pieces, look at differential weighing. Depending upon the type of differential weighing you can reduce the time to affix postage by 100%.
      • Accounting
      • Determine whether you will need to chargeback postage to internal departments or clients.
    1. Pricing / Fees

You’ll be living with your mail machine for many years so know what your costs will be.

      • Lease/Rental Fee
        Beware of low monthly rates. Vendors often increase the price up to 25% each subsequent year. CMS’s leases remain unchanged through the life of the lease.
      • Postage Feeshand held calculator
        Charges to reset (add) postage onto your machine (initially and over the life of the lease) can add up.
      • Maintenance
        Our most satisfied customers have a Preventive Maintenance program as part of their lease to ensure limited/no down-time.

If you opt out of a maintenance program, understand service charges (this can be a flat or hourly rate and include a trip charge and mileage fee).

    1. Postage – Funding, Managing
      • Funding
        Funding your postage account is generally available via:

        • Check – can take up to 10 days for postage funds to be available
        • ACH Debit Transfer – allow up to 48 hours for postage funds to be available
        • Line of Credit – postage funds are available immediately

        Costs vary for each of these options. Call CMS for more information.

      • Managing
        Online tools provide account visibility, invoice payment options and reporting. This is an invaluable time-saver.
    2. Customer Service – Training, Problem Solving

Support after the installation of your postage meter machine is critical.

      • Training
        Who (if anyone) will install and provide training on your new postage meter machine?
      • Questions and Problems
        • Is there a local resource providing help with problems or must you call a national (or international) Help Desk?
        • Will service be handled locally or remotely?

Complete Mailing Solutions (CMS) is a local resource providing training and personal help every time you call. We answer all your questions and resolve problems to save you time and frustration.

    1. Supplies

Supplies costs are generally not considered. Vendors often offer low monthly equipment rental/lease fees but have high supply costs.

You should compare:supplies

      • OEM (Original Equipment Manufacturer) vs. recycled cartridges
      • Low vs. high capacity cartridges (number of impressions for each)
      • Average shipping costs

There can be up to a 29% difference in the price of ink alone, depending upon the manufacturer.

CMS offers OEM supplies exclusively to ensure highest performance on your mail machine. We ship locally, which keeps costs low.

These are just a few areas to consider. Comparing apples and apples when considering different mail machines/manufacturers can uncover hidden costs. Use our comparison list to help: Mail Machine Comparison Checklist.

Need help finding the best mail machine solution for your business? Avoid the frustration of committing to equipment that is not want you want or need. Call us today – 303-761-0681.