Postage rates and paper costs are continuing to increase and direct mail marketers can't afford to mail to undeliverable addresses or miss out on automation discounts. Don't let data gremlins shrink your bottom line! This primer developed by MCH Response Lab Director Michael Tull, will help you learn more about new postal regulations and how they can impact your business.

What is CASS?
CASS is an acronym for the Coding Accuracy Support System. It is a set of specifications and a test that enables the Postal Service to evaluate the accuracy of address-matching software programs.

What is CASS-certified software?
CASS-certified software is address matching software that has been through the mandatory USPS testing and certified by the USPS as meeting the required level of compliance with the CASS specifications.

What does CASS-compliant software do?

• It attempts to match a file of addresses to the USPS address directories. 
• If it finds a good enough match, it will add/correct the ZIP + 4, carrier route code, delivery point, etc. 
• If the match isn't perfect, the software in some cases will make corrections to the address so that it can match. 
• If it is unable to completely match and/or correct the address, it will provide various codes that tell the user what the likely problems are with the address or directories. 
• It produces a CASS Summary Report (PS Form 3553).

Why is the CASS Summary Report important?
Getting an automation discount for your mailing requires that you be able to verify that the codes on your addresses like ZIP + 4, carrier route, and delivery point, are correct. The most common way of doing this is to have on file a CASS Summary Report (PS Form 3553) for the addresses in the mailing. The CASS report verifies that your addresses have been processed with CASS-certified address matching software.

What is a CASS cycle?
It is a set of CASS specifications that is good for one year, typically August 1 through July 31. The current cycle, Cycle L, took effect on August 1 of this year.

What changed with Cycle L?
Under the Cycle L rules, for a CASS-certified program to produce a CASS Summary Report, the addresses must be passed through LACSLink and DPV during CASS processing. Otherwise, the report cannot be created.

What does LACSLink do?
LACSLink automatically provides the revised address when an address has been changed by a local government. The most common conversions are from rural route addresses to street addresses in areas where 911 systems have been installed. Other conversions occur when streets are renamed or renumbered.

What is DPV?
DPV (Delivery Point Validation) is a USPS service that allows CASS-certified software to confirm if an address is valid delivery point. That is, if it is a good address in the USPS database, to which the USPS could deliver mail.

What's the big deal about DPV?
Under the Cycle L rules, only those addresses that have confirmable primary number information (street number, Post Office Box number, or, in some cases, rural route box number) will be assigned the proper ZIP + 4. If DPV cannot confirm the PO box or primary number/street combination along with the ZIP code as an actual address, the CASS software will not output a ZIP + 4 for that address

What if the ZIP + 4 code isn't on the address?
No ZIP + 4 means that the address cannot qualify for automation discounts. Also, if DPV can't confirm the address, it's possible that the USPS might not be able to deliver mail to the address.

What is that missing ZIP + 4 costing me?
We have heard that our customers are paying 5 cents to 15 cents additional postage for each mailpiece sent to an address that doesn't have a ZIP + 4. Given that many of our customers' address files are losing 5 to 10% of their ZIP + 4s under the new rules, the additional postage costs can be substantial.

What should I do with my address files?

• If you're planning to mail during the next few months, we recommend processing them as soon as possible with CASS-certified software. 
• Apply the LACSLink changes to your address file. Our experience is that they are reliable. 
• For those addresses that aren't confirmed by DPV (don't get a ZIP + 4), decide which ones are worth a clean up effort. 
• Do additional research by reviewing the codes from the CASS-certified software, using Google, calling the organizations which have those addresses, visiting their websites, etc. 
• Decide which addresses that didn't get a ZIP + 4 should be removed from the file or marked as "do not mail." 
• Consider using the USPS Address Element Correction II service to get correct addresses. This service uses actual mail carriers to check out and revise addresses that DPV can't confirm. We've seen good results with it, but 30 to 90 days are needed for the USPS to complete the process. 
• Make plans to add prospecting lists if the number of records dropped from your customer file reduces the overall quantity below what you plan to mail.

To which addresses should customers still mail?
That depends upon if your priority is controlling costs, or reaching as many customers and prospects as possible.

• If you're focused on controlling costs, then we recommend that you mail to only those addresses from which you've received a response during the previous year, or which were coded with a ZIP + 4 during CASS processing. 
• If you're focused on reaching as many customers and prospects as possible, then we recommend that you mail to all addresses that appear to be complete. Mail won't get delivered to some of the addresses that DPV didn't confirm, but your piece will get delivered to a lot of them. Note that if you're sending via Standard mail, the USPS is not obligated to deliver a piece with a problematic address. However, we know from experience, that if the mailpiece at least makes it to the local post office, there is a decent chance it will be delivered.

Postal savings typically exceed your investment in data processing services. Call your MCH representative today to schedule a free consultation or click here to request a quote.