How Much Is Bad Address Data Costing You?
Imagine this: A utility company sends out 10,000 billing statements. Weeks later, hundreds of them are returned—marked as undeliverable. Customers call in frustration, payments are delayed, and the company scrambles to resend statements, adding postage costs and staff hours.
This scenario plays out daily for all organizations handling high-volume mailings. The culprit? Poor address hygiene. An outdated or incorrect address database can lead to wasted resources, compliance risks, and frustrated customers. However, the good news is that businesses can significantly reduce return mail and increase deliverability with the right strategies in place.
The High Cost of Undeliverable Mail
Every piece of returned mail represents:
- Wasted Postage and Printing Costs—Each undeliverable mail piece costs double the cost when it has to be resent.
- Delayed Payments and Revenue Loss – Statements that don’t reach customers lead to delayed payments and cash flow interruptions.
- Compliance Risks – Many entities must comply with strict mailing regulations, and failed deliveries can result in legal consequences.
- Customer Frustration – No one wants to miss an important notice because of a simple address issue.
What Is Address Hygiene?
Address hygiene refers to the process of maintaining accurate, standardized, and deliverable addresses in your database. This involves removing incorrect addresses, updating outdated information, and ensuring compliance with postal regulations.
Best Practices for Improving Address Hygiene
Leverage USPS Address Verification Services
One of the most effective ways to ensure address accuracy is by using USPS-approved tools:
- National Change of Address (NCOA) Processing: This process Checks addresses against the USPS database to update records for customers who have moved.
- Address Change Service (ACS) – Automatically provides updated addresses for undeliverable mail.
- CASS (Coding Accuracy Support System) Certification: This ensures address standardization and ZIP+4 accuracy for better sorting and delivery.
At VariVerge, we integrate these USPS services directly into the mailing process, reducing return mail while improving data accuracy.
Standardize Address Formats
Non-standardized addresses can cause delivery failures. Always ensure:
- Street names are fully spelled out (e.g., “Avenue” instead of “Ave.”)
- Apartment or suite numbers are included
- ZIP codes include the full 9-digit ZIP+4 for precision
Address standardization tools, like those integrated into VariVerge’s mailing solutions, can automatically correct and format addresses to comply with USPS standards.
Use Intelligent Mail Barcode (IMB) for Mail Tracking
IMB technology allows businesses to track every mail piece from production to delivery. This provides:
- Real-time status updates on deliveries
- Predictive insights for when customers will receive mail
- Alerts on undeliverable mail so that records can be corrected immediately
VariVerge’s TrackLink™ system enables full mail piece tracking, improving visibility and reducing wasted postage.
Implement Regular Data Cleansing & Audits
Address data naturally degrades over time. Routine data hygiene practices help maintain accuracy:
- Conduct quarterly address updates using NCOA processing
- Remove duplicate records
- Cross-check addresses with customer-provided updates from online portals or call centers
Encourage Customers to Update Their Information
Give customers an easy way to update their mailing address:
- Online account portals
- Printed update requests on invoices or statements
- Call center reminders during interactions
Analyze Return Mail for Patterns
If return mail is increasing, there may be underlying issues:
- Are there high return rates from specific geographic areas?
- Are customers frequently moving or are addresses incorrect at the point of entry?
Tracking trends in return mail can help businesses take proactive corrective actions.
Integrate Address Hygiene into Your Print & Mail Workflow
Organizations processing high-volume mail should integrate address hygiene at the data processing stage—before a single piece is printed.
VariVerge’s file-based inserting and 2D barcode tracking ensure every mail piece matches the intended recipient correctly, minimizing the risk of misdirected or undeliverable mail.
The Bottom Line
Return mail isn’t just an inconvenience—it’s a costly, preventable problem. By implementing proper address hygiene practices, businesses can improve mail deliverability, reduce waste, and enhance customer satisfaction.
Are your mailings reaching their destination? If not, it’s time to take action. Explore VariVerge’s advanced address hygiene solutions and eliminate undeliverable mail.