Should You Ever Use an Alternate Address when mailing?

In most institutions Marketing Customer Information File systems (MCIF) and their Core's are always in some type of conflict. Data integrity is vitally important for both systems; however your MCIF relies on the Core for accurate data. If it is not provided by core then your MCIF can only be as clean.

Most MCIF systems have the ability to move around the design of Core where multiple CIF keys are created for an individual. The system relies on many other factors to bring the data together. Understanding how both systems work and how you can leverage each strengths will only strengthen the data.

Remember that although data in MCIF is at the account level, mailings for the most part are created using household information that the Core system can not build. Specific methodologies as to how the primary account is built within your MCIF has proven to be the best means to identify the primary household address.

You must maintain the integrity of your MCIF's house holding methodology.  Most systems allow for user defined tweaking, however once you have it set refrain from ever touching it again. Every time you change it within the system all historical data can then be tossed out the door.

Check the number of address fields you bring in to your system, as well as, how many your system uses.  Most cores have multiple address lines that will include a current or alternate account addresses.  These could be address1 and address2 in your MCIF; however they are only used when there is an issue with the primary address, blank, not correct etc. With the help of your IT, determine the number of accounts with Alternates, then of those how many do you use.

Here's a big question to ask your operations group.  Does your company maintain data standards for input into your system?  With one organization I reviewed we had found that the system maintained six address fields in in the core; however operations didn't maintain or look to have ever had any standards as to what was contained in each of the six fields.

The front line had the ability to over ride the system and create new CIF keys for ever account.  It was determine that it was a faster method of entry even if the client was already a customer.Without strong data standards your Core and now your MCIF system can never get or stay clean.

With this group, those running the MCIF determined years ago, that because of the conflicts surrounding alternate addresses that when mailing, if an account in the household had and alternate, regardless of what it was, it would be excluded. This was achieved through a populated field in the Core designating an alternate address. 

If less than 10% of your accounts have an alternate address, that at any given time in a specific mailing, the numbers just would not have a significant impact to the promotion if they were not included. 

I've had marketing departments argue as to why they can't or shouldn't access these households with Alternate Addresses.  They see the Core sending out statements to multiple accounts with multiple addresses for each account, why can't an MCIF system do the same?

I'm going to first explain the issues with privacy, then we will talk about how a Core system can do it and an MCIF system can't.

Privacy:

Alternate addresses are placed on an accounts for a number of reasons.  It could be the individuals live in two different places at different times of the year.  It could be a grandparents account, however the statement goes to the son or daughter, or even to an attorney, or a trust officer.  It could even be an account for a close friend maintained by someone else.

It should never be a question as to why it occurs, however it just does.

MCIF systems, unless you only mail at the account level (which defeats the purpose of the system) can not make those types of logical/emotional evaluations of what to send to where and to whom if you are mailing at the household level.

How your Core system does it:

Because Core systems work from Account to Individual, the logic is built to send statements depending on the need and circumstance.

Examples of Core Alternate Address Types:  Check with your operations group to obtain a list of your alternate address codes.

Value that identifies the type of alternate address selected:

1) Account alternate (record code “b/” and application code NOT “90”)

2) Primary statement alternate (record code “30”)

3) Up to five additional statement alternates (record codes “1” through “5”)

4) Check alternate (record code “50”)

5) Government notice alternate (record code “70”)

6) Legal title alternate –name only (record code “90”)

NOTE: The record and application codes reside in the CIF Alternate Name/Address File . CIF alternates have a record code of “b/” and an application code of “90”

Loosely translated:

If a new account boarding data sheet shows a mailing address or PO Box

Add an Alternate Address

If the customer wants their statement sent to a difference address

Add an Alternate Address

If the customer wants additional statements sent to different addresses

Add an Alternate Address

If a customer will receive a check (interest check, club check) and wants it to go to a different address

Add an Alternate Address

If the customer wants a different address on government filings i.e. 1099's, 5498's etc.

Add an Alternate Address

If the address on the Loan Boarding Data sheet is different from the CIF key and the difference can not be confirmed.

Add an Alternate Address

If the Legal Title and address does not conform to field restrictions or system limitations

Add an Alternate Address

Because this is at the account level a person could have multiple alternate addresses on a single account and the process becomes perplexing as to which address should be used.  However a Core system can make those types of logical determinations.

Resolution:

1.)Although this is not recommend, one could bring in all alternate addresses into your MCIF, writing new interfaces to accommodate the data. Then build methodologies outside of your MCIF system in either Access or Excel to look at all address field and their core alternate code.

By having the alternate code you could NOT pro-grammatically define which address should be used, however we could identify which accounts could have issues that would then have to be resolved.

By building parameters around each product mailing you can better define, depending on the promotion, which of the addresses would be a better choice.

If an account has an active account alternate and one or more active functional alternates specified, the functional alternates override the account alternate (with the exception of legal title alternates).

Note: With the exception of additional statement alternates, you may create only one functional alternate of each type for an account; once you have created a functional alternate for an account (e.g. check alternate), the system will not allow you to create alternate of the same type for that account, unless you delete the previous alternate."

It becomes very time consuming and you will still have to determine on an individual bases when to use what.

2.) Just exclude any account with an alternate address and save yourself a ton of headaches! period!

Conclusion:

Although either way can not provide the perfect resolution you must continue to strive to keep clients from receive incorrect mailings. The last solution will provide the means, however will also reduced the number of potential clients. However it could be very insignificant.

If you move to a more sophisticated methodology outside of your MCIF to determine the correct address then the amount of time working the list will substantially increase costing more money and the loss of valuable time to market.

Each of these resolutions are not without fault, however the first can be refined over time as the technology is refined to meet the organizations needs.

One last additional thought: Depending on the number of Alternate Addresses you have within a mailing, use the clients as your control group to determine how well your household selection and promotion worked. 

If you have additional questions or would like to see other topics e-mail me or leave a comment below.