January 11, 2010

USPS Station Closings And Impact On ZIP Code

United States Postal Service’s (USPS) consolidation is coming in several forms. Besides the operational changes at the processing plants, retail stations and branches are being examined. So, ZIP code streamlining means extra planning for nonprofits.

In general, the station and ZIP code plans should have only a minor effect on direct mail, according to Jerry Cerasale, senior vice president, government affairs of the Direct Marketing Association (DMA). “The biggest item would be the ZIP code of the nonprofit having a change,” he said. “They would have to change the letterhead and contact information, although the service usually allows a double ZIP code during times of a change over.”

A recent survey conducted by the Association of Direct Response Fundraising Counsel (ADRIFCO) aimed to view how ZIP codes were delivered and what percentage of a client’s mail might run into glitches.
“I think the results mean that less than 2 percent of all the mail went to P.O. boxes because of changes with these ZIP codes,” said Jack Doyle, president of Amergent, a fundraising and database consultancy firm in Peabody, Mass. “Over 98 percent of the mail was unaffected.”

Nonprofits should review by checking, according to Doyle. “They might have a specialty flyer mailed out,” he said, to see the deliverability at a cost less than a major mailing.

Proposed changes of the local stations are more of a consumer concern than a direct mail issue, according to Anthony W. Conway, executive director of the Alliance of Nonprofit Mailers in Washington, D.C. “I have an office in downtown D.C. and a station lies a half a block from my office,” he said. “Another station is on the street if I go in the other direction.”

ZIP code changes have gone on for a long time, he explained. “This is typical of one of the off-shoots of consolidation,” he said. “The key is to obtain advance notice so nonprofits can change list addresses.”

The USPS doesn’t believe the changes will have an impact on direct mail, according to Greg Frey, media contact responsible for the branch optimization at the USPS. “The list is a small number of offices compared to the total of the national picture,” he said. The figure is less than 240 and might decline further.

He added that any impact on larger branches would not be known until final decisions are made and there isn’t a clear timetable for that decision.
U.S. Monitor, a New City, N.Y. firm that tracks mail delivery, has been working for a number years compiling information on studies to see the impact of USPS changes on mail delivery. Statistics for the fourth quarter of 2009 raised interest because of the proposed closures of some post offices, according to Paul Ercolino, president of U.S. Monitor.

“Generally, direct mail is taking longer (to arrive) than in the past,” he said. “Many things have been proposed and we won’t know how they will play out, although the mailer who uses these facilities might face an impact.” 

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This article is from NPT Weekly, a publication of The NonProfit Times.

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