Return mail occurs when a postal item cannot be successfully delivered to the intended recipient at the address provided. For organizations that rely on physical mail for marketing, billing, or regulatory compliance, this failure represents a significant financial and operational challenge. Return mail processing is the systematic methodology organizations use to handle the physical pieces returned and, more importantly, to update the underlying customer data.
Defining Return Mail and Processing
Return mail processing requires distinguishing between Undeliverable Mail (UM) and Return Mail (RM). Undeliverable Mail refers to any mailpiece the United States Postal Service (USPS) cannot deliver as addressed. Return Mail is the physical subset of UM that is sent back to the original sender after the USPS determines it cannot be forwarded or delivered.
The “processing” component involves more than simply receiving the physical envelope. Organizations must capture the specific reason for non-delivery, which is often printed on the mailpiece by the USPS. This captured data then feeds into a list cleansing process, updating the customer database to prevent subsequent mailings to the known-bad address.
Common Reasons Mail Is Returned
Failure codes attached to returned mail allow organizations to diagnose underlying data quality issues. These codes represent standardized reasons why delivery could not be completed.
A. Addressee moved
This indicates the recipient filed a permanent Change of Address (COA) order with the USPS. The mailpiece is eligible for forwarding, but the sender requested a new address notification.
B. Insufficient address
Mail is returned when the address lacks necessary components for delivery, such as a missing apartment number or suite designation.
C. No such number or street
This occurs when the address structure is nonexistent or incorrect. The address does not correspond to a valid delivery location within the postal system.
D. Temporarily away
This code is used when the recipient has requested a temporary hold on their mail, and the mail is returned instead of being held or forwarded.
E. Refused
The recipient, or an authorized agent at the delivery location, actively declined to accept the mailpiece upon delivery attempt.
F. Vacant
The delivery location is currently unoccupied, and the mail carrier has officially designated the address as vacant.
How the USPS Handles Undeliverable Mail
When a postal carrier determines a mailpiece cannot be delivered, the item becomes Undeliverable Mail. The carrier or sorting facility follows a standardized procedure, outlined in the USPS Domestic Mail Manual (DMM) 507, checking for specific instructions provided by the sender.
If a forwarding order is on file, the mail may be sent to the new address for a specified period, depending on the mail class. Mail that cannot be forwarded, or for which forwarding has expired, is then either returned to the sender or disposed of. The mailpiece’s ultimate fate is controlled by the sender’s instructions printed on the envelope, known as ancillary service endorsements.
Utilizing Ancillary Service Endorsements
Ancillary Service Endorsements (ASEs) are text instructions printed on a mailpiece that dictate how the USPS should handle the item if it is undeliverable. The strategic choice of endorsement balances the priority of successful delivery against the need for accurate address updates, determining the resulting fee and the type of information returned to the sender.
One common option is “Address Service Requested,” which instructs the USPS to forward the mail for a period and provide the sender with the new address, typically for a fee. If forwarding is not possible, the mailpiece is returned with the reason for non-delivery. “Return Service Requested” prioritizes the immediate return of the mailpiece to the sender, providing the new address if a Change of Address (COA) is on file, but the mail is not forwarded.
The “Change Service Requested” endorsement provides the new address electronically or physically without forwarding or returning the mailpiece, allowing for efficient data updates. “Forwarding Service Requested” ensures the mail is forwarded for the longest period possible, returning the piece only when forwarding expires. Organizations must select the appropriate endorsement based on whether their goal is immediate delivery, obtaining address information, or minimizing physical returns.
Technology and Data Management in Return Mail Processing
Moving beyond the physical handling of returned envelopes, effective return mail processing relies heavily on electronic data management systems. The Address Change Service (ACS) is a reactive technology that streamlines the process by providing electronic notifications of address changes or reasons for non-delivery. This replaces the need for organizations to manually process physical return mail and allows for faster, more accurate database updates when mail fails.
While ACS is a reactive measure, proactive list hygiene is managed through services like the National Change of Address (NCOA) Link system. NCOA Link allows mailers to compare their address lists against the official database of permanent COA records filed with the USPS, providing updates before the mail is sent. This prevents mail from being sent to a known-bad address in the first place, significantly reducing the volume of returns.
The Coding Accuracy Support System (CASS) is another proactive tool that standardizes addresses and verifies their deliverability according to USPS standards. CASS certification ensures the address structure is correct and matches the postal database, maximizing the mailpiece’s chances of successful delivery. Integrating these electronic systems—ACS for reactive data capture and NCOA/CASS for proactive data correction—reduces manual labor and improves the integrity of customer data.
Strategies for Minimizing Return Mail and Costs
Minimizing return mail requires implementing proactive data cleansing protocols rather than relying solely on reactive processing. Organizations should use the NCOA Link system to process mailing lists at least 95 days prior to a mailing event, capturing known address changes before production. Regular database cleansing should be scheduled quarterly to maintain high data quality between large mailing campaigns.
Consistently utilizing the appropriate Ancillary Service Endorsement for each mail class ensures that when mail is undeliverable, the necessary address correction information is returned efficiently. Organizations should analyze the specific return mail codes they receive to identify and address systemic issues, such as a high volume of “Insufficient address” returns pointing to poor initial data capture. By integrating proactive address correction with USPS services, organizations can significantly reduce the costs associated with wasted print, postage, and manual return handling.