'Return to sender' mail has long been a nemesis of direct campaigns and mailing lists causing lost sales opportunities, wasted mailings, unnecessary costs and lost customers.

In the past, solutions to the problem have often been costly and time consuming.

However, with the application of some clever database technology Australia Post is now able to fix the problem in a fast and effective manner.

As anyone who has moved house would know, filling in a mail redirection notice is a vital step in the transition process.

More than 100,000 Australians lodge mail redirections each month and, where consent is given, your database can be updated with this information to help you relocate your lost customers.

The Australia Post Change of Address (COA) service helps you to:

• improve mailing reach
  
• increase sales opportunities
  
• reduce costs
  
• better identify 'life event' marketing opportunities.

How it works

COA works by simply comparing a businesses customer database against mail redirection data compiled by Australia Post.

On the mail redirection form customers are asked if they are happy for their change of address information to be released to mailers (in line with Privacy Legislation).

Most customers consent to their information being released, so their names and new address are made available to businesses wanting to keep their database clean and up to date.

Businesses can lodge their customer databases for processing using a variety of convenient and secure methods. Results are normally available within 24 hours.

Case study

A superannuation fund recently conducted a trial to prove the business case for implementing the COA service.

A random sample of 50,000 customers was processed and 1151 new customer addresses were located at a unit cost of $1.62 each, a total cost of $1864.

The super fund projected the following cost savings:
$5927 per year ($5.15 per customer) in postage and production that wouldn't have hit its target, and

$2877 in more efficiently processing return to sender items.

So for an investment of $1864 ($1.62 per customer), the fund projected a return of $8804! ($7.64 per customer).

After factoring in estimated improvements in campaign responses, the return on investment was extraordinary.

Cost

Organisations can implement a trial to prove their business case at no cost.

For the trial, a random sample of your addresses will be processed and the statistics (projecting 'find' rates) will be returned for your analysis.

When organisations agree to implement the COA service, they will be charged on a pricing formula that is the lower of Option A or B below:

Option A: never greater than $54 per 1000 records processed,
Option B: never greater than $1.62 per 'found' address.

As an example:

If 10,000 records are processed and 1,000 new addresses are found, expect to pay a maximum of $540 (Option A = 54 cents per found record).

If 10,000 records are processed and 200 new addresses are found, expect to pay a maximum of $324 (Option B = $1.62 cents per found record).

Want a test drive?

One of the great things about COA is the chance to try before you buy.

Super Analytic, an approved agent for Australia Post, will organise a free trial of this service for you.

This includes information on:

• Understanding the COA service
  
• Building the business case
  
• Dealing with compliance issues

Contact Details

For more information contact us at:
Mail@superanalytic.com.au
Or call us on (03) 9600 4082