Change My Address Value Calculator
Go to the 'Self calculation' tab to work out the potential benefits of Change My Address (CMA) for your business. Alternatively you can go the to the Small, Medium or Large business tabs, where we have pre-populated the information for you with example figures based on our market knowledge, change any of the white cells in the 'Self calculation tab' to better reflect your business activities. The calculator will give you example results of potential savings that may be made. For more information, contact your Account Manager or a New Zealand Post representative. Use the red arrrows for navigation
GO TO CALCULATOR (START)
SUMMARY OF Potential benefits of CMA
Your Business $ $ $ $ $ $ 1,312 16,253 3,873 10,800 1,125 25,875 $ $ $ $ $ $ $ $ $ $
Small 451 12,190 484 675 70 3,234 17,105 1,438 2.50 3,594 13,511 376%
Business size Medium $ $ $ $ $ $ $ $ $ $ 3,280 24,380 3,873 27,000 2,813 19,406 80,751 8,625 2.50 21,563 59,189 274% $ $ $ $ $ $ $ $ $ $ $
Large 7,872 134,887 29,045 135,000 22,500 77,625 406,928 34,500 2.50 86,250 320,678 372%
Reduce the cost of finding and correcting address-data errors
1. 2. 3. 4. 5. Reduce call handling time at your Customer Service Centre Reduce overhead costs of processing returned mail Reduce wasted media spend on marketing communications Avoid the cost of late billing (1) Avoid the cost of late billing (2)
Retain revenue from existing customers that move
6. Improve customer retention and revenue
Ball-Park Annual Benefit ($) * $ 59,238 Number of customers likely to use CMA (#) 11,500 Cost per customer address ($) $ 2.50 Total cost of CMA ($) $ 28,750 Net benefit of CMA ($) $ 30,488 Net return on investment (%) * This calculator illustrates the potential benefits that you could achieve by having quality data. The results are based on hypothetical business situations, and actual savings will depend on your business situation, the overall quality of your data and how you decide to best use/work your data in the following categories (Bulk Mail Discounts, Effective Prospecting, Growth from existing customers, Savings in error detection and correction costs and Improved cash flow from billing) 106%
Value calculator - for Change My Address
The following calculator works through six distinct areas where Change My Address can reduce your costs or increase your revenue
Reduce the cost of finding and correcting address-data errors
1. 2. 3. 4. 5. Reduce call handling time at your Customer Service Centre Reduce overhead costs of processing returned mail Reduce wasted media spend on marketing communications Avoid the cost of late billing (1) Avoid the cost of late billing (2)
Retain revenue from existing customers that move
6. Improve customer retention and revenue Fill in the white boxes below to calculate a ball-park annual benefit ($) for your business. To view pre-populated examples, go directly to the small, medium or large business tabs and use these as a guide.
The calculations are estimates only. If you would like further details please contact NZ Post (0800501501), (or email) for an account manager to take you through this exercise in more detail Key Enter numbers into white cells only Light grey cells indicate a cell with a formula (do not change) Place you cursor on the small red triangle to see additional comments
$
3000 150 0
Reduce the cost of finding and correcting address-data errors
1 Reduce call handling time at your Customer Service Centre
…by avoiding unnecessary customer calls to update their address information
What are the average number of calls to Call Centre per month? (#) Calls related to address changes? (%) Number of address change related calls per month (#)
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 20,000 19,850 1% 1% 200 150
Estimated uptake of CMA (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
25%
How often do you perform address data-base cleansing per year? (#)
(So that we don't double count the benefits from your regular address database cleansing we excluded the savings from the months that you perform this exercise)
4
What are the average length of calls to Call Centre (minutes) Cost of Operator time ($/minute) Monthly total cost of calls ($) Annual Call Centre cost reduction from CMA ($) $ $
5 0.656 656 $ $
5 0.656 492 $ 1,312
2
Reduce overhead costs of processing returned mail
…by decreasing your occurance of 'Gone No Address' (GNA)
What are your total annual mailings? (#) What percentage of your mail gets returned? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full data cleansing service. CMA could account for approximately a third of your savings. Try reducig your GNA by 1% for an indicative CMA saving)
Poor data With CMA Annual benefit 200,000 200,000 5% 3%
Annual returned mail
10,000
6,000
How long does it take to process a returned mail item? (# minutes) What is the hourly rate for staff who process mail? ($/hr including overheads) Cost to process returned mail items ($)
$ $
6 40 $ 40,000 $
6 40 24,000
What is the percentage of returned mail that is re-mailed? (%)
(Our experience shows that approximately 35% of returned mail is resent after the source of error is tracked down, however, with regular address data hygiene 50% of items are corrected and resent)
35%
50%
Remailing cost at full rate (due to smaller lodgement size) ($) Total cost of processing returned mail ($) Annual cost saving from processing returned items including re-mailing ($)
$ $
1,772 41,772
$ $
1,519 25,519 $ 16,253
3
...with up-to-date and accurate address data to improve your marketing Return on Investment
What is the average number of customers targeted for a prospecting campaign? How many campaigns will you run per year? Typical duplicated or invalid customer addresses (%)
(Typical poor data has 5%, better data has 1%)
Reduce wasted media spend on marketing communications
Poor data With CMA Annual benefit 20,000 20,000 4 4 5% 3.75% 25%
Expected improvement from CMA updates (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour from 50% to 75% of customers)
Duplicated or invalid mail Total cost per mailed item, calculated at lowest mail rate
(Typical campaign DM item costs about $3.50)
$ $ $
4,000 1,490 3.50 15,490
$ $ $
3,000 1,118 3.50 11,618 $ 3,873
Annual wasted mailing cost ($) Reduction in wasted annual mailing cost ($)
4
Avoid the cost of late billing
…by reducing the number of bills that do not reach your customers and receiving payment faster
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full adresss data cleansing service)
Poor data With CMA Annual benefit 20,000 20,000 12 12 $ 75 $ 75 3% 2.25%
Expected improvement from CMA updates (%) Single bill cycle revenue-at-risk from returned mail ($) Annual revenue-at-risk from returned mail ($) Unrecovered percentage from at risk revenue (%) Single bill cycle unrecovered revenue ($ Loss) Annual unrecovered revenue ($) Reduction in lost annual revenue from real-time address updates ($) $ 45,000 $ 540,000 8% $ 3,600 $ 43,200 $ $ $ $
25% 33,750 405,000 8% 2,700 32,400 $ 10,800
5
...by reducing the cost of interest payments on working capital
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%) Bill cycle revenue at risk from returned mail ($) Annual revenue at risk from returned mail ($) What is your annual interest on working capital? (%)
(Alternatively, what is the interest rate on your overdraft?)
Avoid the cost of late billing
Poor data 20,000 12 $ 75 3% $ 45,000 $ 540,000 10% $ $ 375 4,500
With CMA Annual benefit 20,000 12 $ 75 2% $ 33,750 $ 405,000 10% $ $ 281 3,375 $ 1,125
Bill cycle interest on late bills (assume that all bills are paid the following cycle ($) Annual interest on late payments ($) (assuming bills are outstanding for one month) Reduction in interest payments from real-time address updates ($)
Total annual cost saving from finding and correcting address data errors with CMA ($)
$
33,363
Retain revenue from existing customers that move
6 Improve customer retention and revenue
...by sending targeted communicatons (and offers) when customers move
What is your total customer base (#) ? The number of customers that move each year
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 200,000 200,000 23% 23%
The number of customers that might use CMA - and would not otherwise update their address
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
0%
25%
The targetable segment of your customers that move which you have not had immediate visibility to in the past (#) How many of these customers do you think you loose (%) ?
(this is a segment that is highly suseptable to churn, we suggest entering three times your churn rate)
0
11500 30%
What is your expected success from a retention campaign (%) ? What is your average annual revenue per customer ($) ? Additional annual revenue from retaining CMA customers as they move ($)
$
3% 250 $ 25,875
Total ball-park annual benefit - from CMA
Number of customers likely to use CMA (#) (as used above) Cost per customer address ($) Total cost of CMA ($) ^ Ball-park annual benefit * Net benefit of CMA Net return on investment (ROI) ^ This cost excludes any CMA promotional activity that you might want to undertake to incrase the uptake of the service * This calculator illustrates the potential benefits that you could achieve by using CMA. The results are based on hypothetical business situations, and actual savings will depend on your business situation, the overall quality of your data and how you decide to best use/work your data in the following categories (Savings in error detection and correction costs, improved cash flow from billing and retaining revenue from customers that move $ $ $ $ 11500 2.50 28,750 59,238 30,488 106%
Value calculator - for Change My Address
The following calculator works through six distinct areas where Change My Address can reduce your costs or increase your revenue
Reduce the cost of finding and correcting address-data errors
1. 2. 3. 4. 5. Reduce call handling time at your Customer Service Centre Reduce overhead costs of processing returned mail Reduce wasted media spend on marketing communications Avoid the cost of late billing (1) Avoid the cost of late billing (2)
Retain revenue from existing customers that move
6. Improve customer retention and revenue Fill in the white boxes below to calculate a ball-park annual benefit ($) for your business. To view pre-populated examples, go directly to the small, medium or large business tabs and use these as a guide.
The calculations are estimates only. If you would like further details please contact NZ Post (0800501501), (or email) for an account manager to take you through this exercise in more detail Key Enter numbers into white cells only Light grey cells indicate a cell with a formula (do not change) Place you cursor on the small red triangle to see additional comments
$
30000 150
Reduce the cost of finding and correcting address-data errors
1 Reduce call handling time at your Customer Service Centre
…by avoiding unnecessary customer calls to update their address information
What are the average number of calls to Call Centre per month? (#) Calls related to address changes? (%) Number of address change related calls per month (#)
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 5,000 4,963 1% 1% 50 37.5
Estimated uptake of CMA (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
25%
How often do you perform address data-base cleansing per year? (#)
(So that we don't double count the benefits from your regular address database cleansing we excluded the savings from the months that you perform this exercise)
1
What are the average length of calls to Call Centre (minutes) Cost of Operator time ($/minute) Monthly total cost of calls ($) Annual Call Centre cost reduction from CMA ($) $ $
5 0.656 164 $ $
5 0.656 123 $ 451
2
Reduce overhead costs of processing returned mail
…by decreasing your occurance of 'Gone No Address' (GNA)
What are your total annual mailings? (#) What percentage of your mail gets returned? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full data cleansing service. CMA could account for approximately a third of your savings. Try reducig your GNA by 1% for an indicat
Poor data With CMA Annual benefit 150,000 150,000 5% 3%
Annual returned mail
7,500
4,500
How long does it take to process a returned mail item? (# minutes) What is the hourly rate for staff who process mail? ($/hr including overheads) Cost to process returned mail items ($)
$ $
6 40 $ 30,000 $
6 40 18,000
What is the percentage of returned mail that is re-mailed? (%)
(Our experience shows that approximately 35% of returned mail is resent after the source of error is tracked down, however, with regular address data hygiene 50% of items are corrected and resent)
35%
50%
Remailing cost at full rate (due to smaller lodgement size) ($) Total cost of processing returned mail ($) Annual cost saving from processing returned items including re-mailing ($)
$ $
1,329 31,329
$ $
1,139 19,139 $ 12,190
3
...with up-to-date and accurate address data to improve your marketing ROI
What is the average number of customers targeted for a prospecting campaign? How many campaigns will you run per year? Typical duplicated or invalid customer addresses (%)
(Typical poor data has 5%, better data has 1%)
Reduce wasted media spend on marketing communications
Poor data With CMA Annual benefit 5,000 5,000 2 2 5% 3.75% 25%
Expected improvement from CMA updates (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour from 50% to 75% of customers)
Duplicated or invalid mail Total cost per mailed item, calculated at lowest mail rate
(Typical campaign DM item costs about $3.50)
$ $ $
500 186 3.50 1,936
$ $ $
375 140 3.50 1,452 $ 484
Annual wasted mailing cost ($) Reduction in wasted annual mailing cost ($)
4
Avoid the cost of late billing
…by reducing the number of bills that do not reach your customers and receiving payment faster
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full adresss data cleansing service)
Poor data With CMA Annual benefit 1,250 1,250 12 12 $ 75 $ 75 3% 2.25%
Expected improvement from CMA updates (%) Single bill cycle revenue-at-risk from returned mail ($) Annual revenue-at-risk from returned mail ($) Unrecovered percentage from at risk revenue (%) Single bill cycle unrecovered revenue ($ Loss) Annual unrecovered revenue ($) Reduction in lost annual revenue from real-time address updates ($) $ $ $ $ 2,813 33,750 8% 225 2,700 $ $ $ $
25% 2,109 25,313 8% 169 2,025 $ 675
5
...by reducing the cost of interest payments on working capital
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%) Bill cycle revenue at risk from returned mail ($) Annual revenue at risk from returned mail ($) What is your annual interest on working capital? (%)
(Alternatively, what is the interest rate on your overdraft?)
Avoid the cost of late billing
Poor data 1,250 12 $ 75 3% $ 2,813 $ 33,750 10% $ $ 23 281
With CMA Annual benefit 1,250 12 $ 75 2% $ 2,109 $ 25,313 10% $ $ 18 211 $ 70
Bill cycle interest on late bills (assume that all bills are paid the following cycle ($) Annual interest on late payments ($) (assuming bills are outstanding for one month) Reduction in interest payments from real-time address updates ($)
Total annual cost saving from finding and correcting address data errors with CMA ($)
$
13,870
Retain revenue from existing customers that move
6 Improve customer retention and revenue
...by sending targeted communicatons (and offers) when customers move
What is your total customer base (#) ? The number of customers that move each year
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 25,000 25,000 23% 23%
The number of customers that might use CMA - and would not otherwise update their address
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
0%
25%
The targetable segment of your customers that move which you have not had immediate visibility to in the past (#) How many of these customers do you think you loose (%) ?
(this is a segment that is highly suseptable to churn, we suggest entering three times your churn rate)
0
1437.5 30%
What is your expected success from a retention campaign (%) ? What is your average annual revenue per customer ($) ? Additional annual revenue from retaining CMA customers as they move ($)
$
3% 250 $ 3,234
Total ball-park annual benefit - from CMA
Number of customers likely to use CMA (#) (as used above) Cost per customer address ($) Total cost of CMA ($) ^ Ball-park annual benefit * Net benefit of CMA Net return on investment (ROI) ^ This cost excludes any CMA promotional activity that you might want to undertake to incrase the uptake of the service * This calculator illustrates the potential benefits that you could achieve by using CMA. The results are based on hypothetical business situations, and actual savings will depend on your business situation, the overall quality of your data and how you decide to best use/work your data in the following categories (Savings in error detection and correction costs, improved cash flow from billing and retaining revenue from customers that move $ $ $ $ 1437.5 2.50 3,594 17,105 13,511 376%
Value calculator - for Change My Address
The following calculator works through six distinct areas where Change My Address can reduce your costs or increase your revenue
Reduce the cost of finding and correcting address-data errors
1. 2. 3. 4. 5. Reduce call handling time at your Customer Service Centre Reduce overhead costs of processing returned mail Reduce wasted media spend on marketing communications Avoid the cost of late billing (1) Avoid the cost of late billing (2)
Retain revenue from existing customers that move
6. Improve customer retention and revenue Fill in the white boxes below to calculate a ball-park annual benefit ($) for your business. To view pre-populated examples, go directly to the small, medium or large business tabs and use these as a guide.
The calculations are estimates only. If you would like further details please contact NZ Post (0800501501), (or email) for an account manager to take you through this exercise in more detail Key Enter numbers into white cells only Light grey cells indicate a cell with a formula (do not change) Place you cursor on the small red triangle to see additional comments
$
30000 150
Reduce the cost of finding and correcting address-data errors
1 Reduce call handling time at your Customer Service Centre
…by avoiding unnecessary customer calls to update their address information
What are the average number of calls to Call Centre per month? (#) Calls related to address changes? (%) Number of address change related calls per month (#)
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 40,000 39,700 1% 1% 400 300
Estimated uptake of CMA (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
25%
How often do you perform address data-base cleansing per year? (#)
(So that we don't double count the benefits from your regular address database cleansing we excluded the savings from the months that you perform this exercise)
2
What are the average length of calls to Call Centre (minutes) Cost of Operator time ($/minute) Monthly total cost of calls ($) Annual Call Centre cost reduction from CMA ($) $ $
5 0.656 1,312 $ $
5 0.656 984 $ 3,280
2
Reduce overhead costs of processing returned mail
…by decreasing your occurance of 'Gone No Address' (GNA)
What are your total annual mailings? (#) What percentage of your mail gets returned? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full data cleansing service. CMA could account for approximately a third of your savings. Try reducig your GNA by 1% for an indicat
Poor data With CMA Annual benefit 300,000 300,000 5% 3%
Annual returned mail
15,000
9,000
How long does it take to process a returned mail item? (# minutes) What is the hourly rate for staff who process mail? ($/hr including overheads) Cost to process returned mail items ($)
$ $
6 40 $ 60,000 $
6 40 36,000
What is the percentage of returned mail that is re-mailed? (%)
(Our experience shows that approximately 35% of returned mail is resent after the source of error is tracked down, however, with regular address data hygiene 50% of items are corrected and resent)
35%
50%
Remailing cost at full rate (due to smaller lodgement size) ($) Total cost of processing returned mail ($) Annual cost saving from processing returned items including re-mailing ($)
$ $
2,658 62,658
$ $
2,278 38,278 $ 24,380
3
...with up-to-date and accurate address data to improve your marketing ROI
What is the average number of customers targeted for a prospecting campaign? How many campaigns will you run per year? Typical duplicated or invalid customer addresses (%)
(Typical poor data has 5%, better data has 1%)
Reduce wasted media spend on marketing communications
Poor data With CMA Annual benefit 20,000 20,000 4 4 5% 3.75% 25%
Expected improvement from CMA updates (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour from 50% to 75% of customers)
Duplicated or invalid mail Total cost per mailed item, calculated at lowest mail rate
(Typical campaign DM item costs about $3.50)
$ $ $
4,000 1,490 3.50 15,490
$ $ $
3,000 1,118 3.50 11,618 $ 3,873
Annual wasted mailing cost ($) Reduction in wasted annual mailing cost ($)
4
Avoid the cost of late billing
…by reducing the number of bills that do not reach your customers and receiving payment faster
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full adresss data cleansing service)
Poor data With CMA Annual benefit 50,000 50,000 12 12 $ 75 $ 75 3% 2.25%
Expected improvement from CMA updates (%) Single bill cycle revenue-at-risk from returned mail ($) Annual revenue-at-risk from returned mail ($) Unrecovered percentage from at risk revenue (%) Single bill cycle unrecovered revenue ($ Loss) Annual unrecovered revenue ($) Reduction in lost annual revenue from real-time address updates ($) $ 112,500 $ 1,350,000 8% $ 9,000 $ 108,000 $ $ $ $
25% 84,375 1,012,500 8% 6,750 81,000 $ 27,000
5
...by reducing the cost of interest payments on working capital
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%) Bill cycle revenue at risk from returned mail ($) Annual revenue at risk from returned mail ($) What is your annual interest on working capital? (%)
(Alternatively, what is the interest rate on your overdraft?)
Avoid the cost of late billing
Poor data 50,000 12 $ 75 3% $ 112,500 $ 1,350,000 10% $ $ 938 11,250
With CMA Annual benefit 50,000 12 $ 75 2% $ 84,375 $ 1,012,500 10% $ $ 703 8,438 $ 2,813
Bill cycle interest on late bills (assume that all bills are paid the following cycle ($) Annual interest on late payments ($) (assuming bills are outstanding for one month) Reduction in interest payments from real-time address updates ($)
Total annual cost saving from finding and correcting address data errors with CMA ($)
$
61,345
Retain revenue from existing customers that move
6 Improve customer retention and revenue
...by sending targeted communicatons (and offers) when customers move
What is your total customer base (#) ? The number of customers that move each year
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 150,000 150,000 23% 23%
The number of customers that might use CMA - and would not otherwise update their address
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
0%
25%
The targetable segment of your customers that move which you have not had immediate visibility to in the past (#) How many of these customers do you think you loose (%) ?
(this is a segment that is highly suseptable to churn, we suggest entering three times your churn rate)
0
8625 30%
What is your expected success from a retention campaign (%) ? What is your average annual revenue per customer ($) ? Additional annual revenue from retaining CMA customers as they move ($)
$
3% 250 $ 19,406
Total ball-park annual benefit - from CMA
Number of customers likely to use CMA (#) (as used above) Cost per customer address ($) Total cost of CMA ($) ^ Ball-park annual benefit * Net benefit of CMA Net return on investment (ROI) ^ This cost excludes any CMA promotional activity that you might want to undertake to incrase the uptake of the service * This calculator illustrates the potential benefits that you could achieve by using CMA. The results are based on hypothetical business situations, and actual savings will depend on your business situation, the overall quality of your data and how you decide to best use/work your data in the following categories (Savings in error detection and correction costs, improved cash flow from billing and retaining revenue from customers that move $ $ $ $ 8625 2.50 21,563 80,751 59,189 274%
Value calculator - for Change My Address
The following calculator works through six distinct areas where Change My Address can reduce your costs or increase your revenue
Reduce the cost of finding and correcting address-data errors
1. 2. 3. 4. 5. Reduce call handling time at your Customer Service Centre Reduce overhead costs of processing returned mail Reduce wasted spend on marketing communications Avoid the cost of late billing (1) Avoid the cost of late billing (2)
Retain revenue from existing customers that move
6. Improve customer retention and revenue Fill in the white boxes below to calculate a ball-park annual benefit ($) for your business. To view pre-populated examples, go directly to the small, medium or large business tabs and use these as a guide.
The calculations are estimates only. If you would like further details please contact New Zealand Post (0800 501 501), or email cmaadmin@nzpost.co.nz for an Account Manager to take you through this exercise in more detail Key Enter numbers into white cells only Light grey cells indicate a cell with a formula (do not change) Place your cursor on the small red triangle to see additional comments
$
30000 150
Reduce the cost of finding and correcting address-data errors
1 Reduce call handling time at your Customer Service Centre
…by avoiding unnecessary customer calls to update their address information
What are the average number of calls to Call Centre per month? (#) Calls related to address changes? (%) Number of address change related calls per month (#)
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 120,000 119,100 1% 1% 1200 900
Estimated uptake of CMA (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
25%
How often do you perform address data-base cleansing per year? (#)
(So that we don't double count the benefits from your regular address database cleansing we excluded the savings from the months that you perform this exercise)
4
What are the average length of calls to Call Centre (minutes) Cost of Operator time ($/minute) Monthly total cost of calls ($) Annual Call Centre cost reduction from CMA ($) $ $
5 0.656 3,936 $ $
5 0.656 2,952 $ 7,872
2
Reduce overhead costs of processing returned mail
…by decreasing your occurance of 'Gone No Address' (GNA)
What are your total annual mailings? (#) What percentage of your mail gets returned? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full data cleansing service. CMA could account for approximately a third of your savings. Try reducig your GNA by 1% for an indicat
Poor data With CMA Annual benefit 7,200,000 7,200,000 5% 4%
Annual returned mail
360,000
288,000
How long does it take to process a returned mail item? (# minutes) What is the hourly rate for staff who process mail? ($/hr including overheads) Cost to process returned mail items ($)
$ $
3 40 $ 720,000 $
3 40 576,000
What is the percentage of returned mail that is re-mailed? (%)
(Our experience shows that approximately 35% of returned mail is resent after the source of error is tracked down, however, with regular address data hygiene 50% of items are corrected and resent)
35%
50%
Remailing cost at full rate (due to smaller lodgement size) ($) Total cost of processing returned mail ($) Annual cost saving from processing returned items including re-mailing ($)
$ $
63,794 783,794
$ $
72,907 648,907 $ 134,887
3
...with up-to-date and accurate address data to improve your marketing Return on Investment
What is the average number of customers targeted for a prospecting campaign? How many campaigns will you run per year? Typical duplicated or invalid customer addresses (%)
(Typical poor data has 5%, better data has 1%)
Reduce wasted media spend on marketing communications
Poor data With CMA Annual benefit 150,000 150,000 4 4 5% 3.75% 25%
Expected improvement from CMA updates (%)
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour from 50% to 75% of customers)
Duplicated or invalid mail Total cost per mailed item, calculated at lowest mail rate
(Typical campaign DM item costs about $3.50)
$ $ $
30,000 11,178 3.50 116,178
$ $ $
22,500 8,384 3.50 87,134 $ 29,045
Annual wasted mailing cost ($) Reduction in wasted annual mailing cost ($)
4
Avoid the cost of late billing
…by reducing the number of bills that do not reach your customers and receiving payment faster
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%)
(Our experience shows that 3%-8% is a typical GNA amount. This can be at least halved and eventually lowered to 1% with the full adresss data cleansing service)
Poor data With CMA Annual benefit 400,000 400,000 12 12 $ 75 $ 75 3% 2.25%
Expected improvement from CMA updates (%) Single bill cycle revenue-at-risk from returned mail ($) Annual revenue-at-risk from returned mail ($) Unrecovered percentage from at risk revenue (%) Single bill cycle unrecovered revenue ($ Loss) Annual unrecovered revenue ($) Reduction in lost annual revenue from real-time address updates ($) $ 900,000 $ 10,800,000 5% $ 45,000 $ 540,000 $ $ $ $
25% 675,000 8,100,000 5% 33,750 405,000 $ 135,000
5
...by reducing the cost of interest payments on working capital
What are the number of customers billed per mailing? (#) How many bill cycles do you send per year? (#) What is the value of the average bill? ($) What is your returned mail percent? (%) Bill cycle revenue at risk from returned mail ($) Annual revenue at risk from returned mail ($) What is your annual interest on working capital? (%)
(Alternatively, what is the interest rate on your overdraft?)
Avoid the cost of late billing
Poor data 400,000 12 $ 75 3% $ 900,000 $ 10,800,000 10% $ $ 7,500 90,000
With CMA Annual benefit 400,000 12 $ 75 2% $ 675,000 $ 8,100,000 10% $ $ 5,625 67,500 $ 22,500
Bill cycle interest on late bills (assume that all bills are paid the following cycle ($) Annual interest on late payments ($) (assuming bills are outstanding for one month) Reduction in interest payments from real-time address updates ($)
Total annual cost saving from finding and correcting address data errors with CMA ($)
$
329,303
Retain revenue from existing customers that move
6 Improve customer retention and revenue
...by sending targeted communicatons (and offers) when customers move
What is your total customer base (#) ? The number of customers that move each year
(23% of customers change address every year, therefore 2% change each month, and 50% are thought to update their addresses themselves by phone, internet, email…)
Poor data With CMA Annual benefit 600,000 600,000 23% 23%
The number of customers that might use CMA - and would not otherwise update their address
(CMA is predicted to increase the total number of customers that update ther address as well as migrate some customers from redirections. NZ Post's estimates a CMA uptake of 25% to grow the seif-update behaviour to 75% of customers)
0%
25%
The targetable segment of your customers that move which you have not had immediate visibility to in the past (#) How many of these customers do you think you loose (%) ?
(this is a segment that is highly suseptable to churn, we suggest entering three times your churn rate)
0
34500 30%
What is your expected success from a retention campaign (%) ? What is your average annual revenue per customer ($) ? Additional annual revenue from retaining CMA customers as they move ($)
$
3% 250 $ 77,625
Total ball-park annual benefit - from CMA
Number of customers likely to use CMA (#) (as used above) Cost per customer address ($) Total cost of CMA ($) ^ Ball-park annual benefit * Net benefit of CMA Net return on investment (ROI) ^ This cost excludes any CMA promotional activity that you might want to undertake to incrase the uptake of the service * This calculator illustrates the potential benefits that you could achieve by using CMA. The results are based on hypothetical business situations, and actual savings will depend on your business situation, the overall quality of your data and how you decide to best use/work your data in the following categories (Savings in error detection and correction costs, improved cash flow from billing and retaining revenue from customers that move $ $ $ $ 34500 2.50 86,250 406,928 320,678 372%