LinkedinGoogle+
303-761-0681 | 888-843-9937
CMSCMS
CMS
Optimizing Communication Platform for Mailing, Shipping & Print Finishing
  • Home
  • Equipment
    • Mailing Equipment
      • Mail Machines
      • Postage Meters
      • Addressers
      • Folders & Inserters
      • Letter Openers
      • Printers
      • Tabbers
    • Document Finishing
      • Bookletmakers
      • Collators
      • Cutters
      • Perfect Binders
      • Saddle Stitchers
      • Slitters/Creasers
      • UV Coaters/Laminators
    • Pressure Sealers
    • Dimensional Weighing Systems
    • Shipping Parcel Lockers
    • Rent Or Lease
    • Equipment User Manuals
    • How-To Videos
  • Software Solutions
    • Shipping
      • ProShip Shipping Software
      • NeoShip Online Shipping Solution
      • S.M.A.R.T.
    • Receiving
      • WTS Inbound Package Tracking
    • Data Quality
    • Postage Accounting
      • S.M.A.R.T.
    • Document Output Management
      • AIMS
      • ConnectSuite
      • IMPRESS
      • OMS-500
    • Business Continuity
  • Professional Services
    • Printing
    • Equipment/Maintenance Services
    • Request Service
  • Company
    • About CMS
    • Meet Our CMS Team
    • Request Service
    • Blog
    • Partners
    • Quadient
    • FAQ
    • Careers
    • Subscribe to our Newsletter
    • Company Info – W9
  • Supplies
    • Order Supplies
    • My Account
  • Contact Us
    • Request Service
  • Useful Links
    • Request Service
    • Rate Changes
    • FAQ
    • Articles
    • Blog
    • Log into MyQuadient Account
    • Manuals
    • How-To Videos
Menu back  
 

The Cost of Undeliverable Mail

By Paul Johnson, President CMS – Complete Mailing Solutions

FacebookTwitter

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

#mail #savemoney

Share this:

  • LinkedIn
Share this post
FacebookTwitterLinkedIn
Don’t Miss These:
  • Delinquent-stamp-small
    Debt Collection Requirements
    April 28, 2021
  • Election 2020
    Is 2020 Election Successful On the Back of the USPS?
    September 3, 2020
  • Reduce Costs Solution
    5 Cases Focus on Improved Productivity and Cost Savings
    June 30, 2020
  • Shipping Tools
    4 Considerations To Ensure You Have The Right Tools For Your Shipping & Communications
    June 23, 2020
  • Image of a Dollar sign
    How Much Money Are You Wasting?
    May 12, 2020
  • Profitability image shown by magnifying glass and chart
    Why USPS Isn’t Profitable
    April 16, 2020
Software Solutions
  • Shipping
    • ProShip Shipping Software
    • NeoShip Online Shipping Solution
    • S.M.A.R.T.
  • Receiving
    • WTS Receiving System Inbound Package Tracking
  • Data Quality
  • Postage Accounting
    • S.M.A.R.T.
  • Document Output Management
    • AIMS
    • ConnectSuite
    • IMPRESS
    • OMS-500
  • Business Continuity
Contact Info
Location:
3001 S. Tejon St. Suite A, Englewood, CO 80110

Phone Number:
303-761-0681
Fax Number:
303-761-7837

Office Hours:
Monday - Friday
8:00 am to 4:30 pm
 

Location:
217 12th St SW Loveland, CO 80537

Phone Number:
888-843-9937

Satellite Office (By Appointment Only)
Links
  • Equipment
  • Software Solutions
  • About CMS
  • Professional Services
  • Partners
  • Blog
  • Contact Us
  • Supplies
  • Archives
  • W-9 Info
  • Sitemap
  • Privacy Policy
Copyright 2014. Complete Mailing Solutions,
All Rights Reserved.
× product(s) added to cart → ×