Do you know how much returned mail is costing your organization? Due to the strict legal requirements and compliance standards in the banking industry, the impact that returned mail can have on an organization is frequently overlooked. But did you know that every piece of undeliverable mail—whether it be an important financial notice or monthly statement—causes financial strains on your company, can impact your relationship with customers, and ultimately affect your bottom line?
The Challenges
Two and a half percent of first-class mail is returned
When we consider that 6 billion pieces of first-class mail are processed as undeliverable as addressed by the USPS1, the effects can be a financial burden on your organization in many ways. Many banks resend information to a single undeliverable address multiple times until it catches the attention of someone in the mailing department. Repeating this costly cycle ultimately leads to an increase of cost.
Internal labor
Consider the internal labor costs associated with opening, processing, and disposing of each piece of returned mail. If your staff is spending valuable time handling returned mail, causing other important tasks to be neglected, returned mailed is ultimately draining your most needed resources. There are also material and mailing costs to consider—including paper, envelopes, and perhaps the costliest expense: postage.
Lost business relationships
Customer satisfaction and a professional reputation are core principals of success within the banking industry. If statements and important financial notices are being returned as undeliverable, it means these documents are never reaching the intended recipient. Customers who incur late fees due to incorrect addresses may abandon their relationship with the bank.
40 million people move in the United States each year2 and only 60 percent of them3 update their new address with the USPS in a timely manner, creating the opportunity for repeated mailings to outdated addresses.
Potential for fraud
The unpredictability of undeliverable mail increases your vulnerability to fraud. The amount of time it takes to process and deliver returned mail varies greatly4. This makes your mail susceptible to theft while leaving your business in the dark on where the returned mail is and whose hands it could be in.
The Solution
The best strategy is to track the number of undeliverable items, discover which customers are receiving multiple undeliverable pieces, and take action. Maintaining a high-quality customer database by removing bad addresses is essential to ensuring future mail is sent to the correct address.
EverView Return Mail Offerings
Several financial institutions have taken advantage of EverView’s Return Mail offerings. These organizations realized the potential financial ramifications and decreased customer satisfaction that returned mail can cause. They wanted a solution they could implement quickly and effectively.
Every sensitive mail piece sent through EverView carries a secure, trackable bar code. When mail is returned to the EverView facility, it is scanned using state-of-the-art technology that captures variable data including name, address, and an image of the returned mail piece. A comprehensive report is generated and provided to the customer in a downloadable electronic format.
EverView was able to move return mail processing from a labor-intensive task to a highly automated, manageable process able to be applied to any financial institution.
The consequences of returned mail can negatively impact your financial institution. It’s important to seek a knowledgeable, customer-oriented partner that has the capability to offer secure and automated services that ultimately support your business goals and strategies. EverView can transform the way you handle returned mail.
Advantages for the Clients
• Reduced returned mail by 15% – 20%
• Saved 8% – 10% in costs associated
with returned mail, including postage
• Benefitted from updated, current
customer databases
• Processed return mail at lightning speed
with EverView automated systems
• Set new parameters as to when a report
flags mail as bad (Ex. single piece or more)
• Reduced time spent on returned mail
on average, from 40-80 hours per month
to 20-30 minutes per month
Sources:
1. Pitney Bowes, Return Mail Negatively Impacts Your Bottom Line, 2018
2. Pitney Bowes
3. Pitney Bowes
4. USPS, FAQ Return to Sender Mail, 2018
