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What is NCOA Processing? Everything You Need to Know

The United States Post Office provides a product called National Change of Address Processing (NCOAlink) or NCOA processing. This product helps direct mailers update their mailing list for customers and clients that have moved. Part of the moving process is informing the United States Post Office of a new address.  This can simply be done online or in person with the USPS. The benefit to filling out a change of address form is so that you will not lose mail or have it end up in the wrong hands.

Understanding NCOA Processing

NCOA processing involves regularly updating address databases with the most recent address changes reported to the United States Postal Service (USPS). This ensures that mail is directed to the correct addresses, minimizing the likelihood of undeliverable or misdirected mail.

Why It’s Important to Prioritize Data Accuracy

Maintaining accurate customer data is fundamental for successful business operations. Sending mail to outdated or incorrect addresses not only leads to increased operational costs but also damages your brand’s reputation. Customers may perceive your business as disorganized or uncaring if they frequently receive mail at the wrong address.

A 48-month NCOA service goes beyond the standard 18-month service by providing address updates for a longer period. This extended time frame ensures that you have the latest address changes, minimizing the chances of undeliverable mail.

Some Important Things to Know About NCOA

If you have a child moving out of the house for the first time they should fill out this form and select “individual”.  If they select “household” then all of the mail sent to the regular address will begin to be forwarded to the child’s new address.  It is a simple fix if that happens but it can be very frustrating to not receive your mail. In addition, this process allows businesses to stay in contact with their client throughout their moves or changes of address.

There is no reason to lose a client in this day and age just because their address changed. Below is a sample report of what a commonplace customer list looks like on an average day.  As you can see in the report there were 4,223 moves out of 53,241 records. That is about 8% of the total file that has moved; that may seem like a small number but when you think about losing 8% of your client base, that could be huge.

NCOA Processing, Data Hygiene Report

Not only does NCOA processing allow you to stay in touch with your customer base but it also is a money and time saver.  Imagine if you were still mailing your marketing to those 4,223 people you have become out of touch with. That is a great deal of time, money, and resources wasted that could have been put to a better use.  NCOAlink looks at information received from post offices all around the United States and provides information about national changes of address. In one lifetime, the average American is expected to move 11.7 times. This service allows you to follow your clients throughout those moves ensuring you never lose contact.

Why NCOA Processing?

The goal of NCOA Processing is to prevent undeliverable mail from getting returned by a postman. This is good for everyone:

  • Marketer: Save money on printing and postage cost
  • Post Office: Save resources and money on returning undeliverable mail
  • Environment: Save the environment by not wasting paper and ink on something that benefits no one. Post office uses less gas and energy sorting undeliverable mail
  • Everyday people: Won’t be bothered with mail that is not theirs or that they do not want
  • Cost Efficiency: NCOA processing reduces costs associated with undeliverable mail, such as postage, printing, and manpower expenses.
  • Marketing Effectiveness: Accurate mailing lists improve the efficiency of targeted marketing campaigns, leading to higher response rates and improved ROI.
  • Regulatory Compliance: Certain industries, like finance and healthcare, must adhere to strict regulations for maintaining accurate customer records. NCOA processing helps meet these requirements.

NCOA processing is truly a win-win for everyone in the situation.

How NCOA Processing Works

Data Submission

Organizations submit their mailing lists to authorized NCOA processing providers.

Matching and Updating

The provider compares the submitted addresses against the USPS database of recent address changes. Matches result in updated addresses, which are then appended to the organization’s list.

CASS Certification

The addresses are standardized and verified using the CASS (Coding Accuracy Support System) certification, further improving accuracy.

Return Codes

NCOA processing provides return codes indicating the type of change (e.g., individual, family, or business move) for each updated address.

Benefits of NCOA Processing

Reduced Undeliverable Mail

Organizations can avoid the costs and negative impacts of returned or lost mail.

Time Savings

NCOA processing automates the address updating process, saving time compared to manual updates.

Enhanced Reputation

Reliable mail delivery enhances an organization’s reputation by showcasing professionalism and attention to detail.

Data Enrichment

Updated addresses can lead to improved data quality and enriched customer profiles.

Best Practices for NCOA Processing

Regular Updates

Perform NCOA processing regularly to ensure address databases remain current.

Integration

Integrate NCOA processing into existing systems for seamless updates

Data Cleansing

Combine NCOA processing with data cleansing procedures to further enhance accuracy.

Communication

Notify customers about address updates to maintain transparency and trust.

How to Implement NCOA Processing

    1. Select a Reliable Provider: Investigate and choose a reliable NCOA processing provider to work with. NCOA services are provided by a number of organizations.
      Data Processing: Prepare the data from your mailing list for processing. This entails structuring your data to the standards of the service provider and ensuring that it is as precise and complete as possible.

    1. Enter data for processing: Transfer your data to the NCOA processing operator of your choice. To find suitable matches, they will pair up your addresses with their databases of address changes.

    1. Take Updated Files: The NCOA processing service will send you up-to-date addresses for those or their companies who have moved. These new addresses can then be added to your record set.

    1. Modify Your Database: Add the new addresses to your CRM or mailing list information. This guarantees that future notifications will be delivered to the correct recipients.

    1. Regular Upkeep: NCOA processing is not a one-time task. Individuals move frequently; therefore, it’s critical that you carry out the process on a regular basis to keep your address information up-to-date.

    1. Data Privacy: When storing consumer information, make sure to respect the confidentiality and security of the data. Your client’s data should be managed securely and exclusively for the purpose intended.

NCOA Processing Positive Aspects for Business Management:

    • Maintaining an up-to-date client database demonstrates a dedication to correct communication. Customers like receiving mail at the correct address, which can improve the way they connect with your company.

    • NCOA processing can assist your company in adhering to postal standards and guidelines, minimizing possible penalties for shipping to inaccurate addresses.

NCOA processing is a beacon of accuracy and effectiveness in an international community where every link counts. It’s the instrument that will revolutionize your company’s approach to communication, moving you toward smooth collaboration and performance excellence. Advance with NCOA Processing, where accuracy meets development.

Mistakes to Avoid When Implementing NCOA Processing

Failing to update your mailing list regularly

The success of your NCOA processing depends on the accuracy of your mailing list. If you fail to update your list regularly, your NCOA processing may miss recent address changes, resulting in undeliverable mail. Make sure to update your list at least once every 90 days to ensure that you are getting the most accurate information.

Neglecting to remove duplicate addresses

Duplicate addresses can skew your NCOA processing results, leading to wasted resources and marketing dollars. Before you run your NCOA process, remove any duplicates from your mailing list to ensure accurate results.

Not following USPS guidelines

The United States Postal Service (USPS) has specific guidelines for implementing NCOA processing. Failing to follow these guidelines can lead to incorrect or incomplete address updates. Make sure to follow USPS guidelines to ensure that your NCOA processing is as accurate as possible.

Failing to update your customer database

NCOA processing updates address changes that have been officially submitted with the USPS. If you fail to update your customer database with the updated addresses provided by NCOA processing, you may still be sending mail to the wrong address. Make sure to update your customer database regularly to ensure that you are sending mail to the correct address and not wasting printing and postage on returned and non-deliverable mail.

Failing to Incorporate PCOA “proprietary change of address” as part of updating your customer database

20% of US households move every year and 20% of those movers do not update their address with the US postal service. Our PCOA (which contains more than 30 years of move data) combined with traditional NCOA can update both of these groups, ensuring you are mailing to the right person at the right address.  IMDataCenter’s PCOA also flags deceased records.  This not only helps you save on wasted print and postage, but actually increases response rates as well. As part of your ongoing strategy; PCOA combined with NCOA will ensure that you are maximizing your data for a higher ROI.

Not considering the cost

NCOA processing can be costly, and if you are not careful, it can quickly eat into your marketing budget. Before implementing NCOA processing, make sure to consider the cost and weigh it against the benefits. You may find that it is more cost-effective to outsource your NCOA processing to a third-party provider. Our easy to access software at www.IMDataCenter.com makes it easy to get your updated mail file returned quickly and with the detail and accuracy you need to get the mail out the door.

Getting Started with NCOA Processing

Do you wonder how much NCOA can save you? Check out FreeNCOA.com for a free ROI report.

The FreeNCOA Processing Team

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