Why Address Verification is Important for Your Business
According to Baymard Institute, the average cart abandonment rate is 69.57%. Furthermore, over a quarter of those who abandon do so due to a long or complicated checkout process. Further research suggests that, despite mobile starting to overtake desktop shopping, mCommerce conversion rates still lag behind. Many of our customers tell us they have seen significan improvements to their checkout conversion rate s, particularly on mobile, since implementing address verification from Loqate. Read our customer stories from brands such as Gymshark, Reiss and Marc Fisher to learn more.
The perfect checkout would be no checkout. So the next best thing is to ensure that your online checkout is as quick, easy and convenient as possible. Loqate’s real-time address verification tool is proven to reduce address entry time by up to 78% and cut back data entry errors at point of capture by more than 20%, all improving UX.
The Fixing Failed Deliveries report found that 19% of failed deliveries are due to inaccurate delivery address details, and the average total failed delivery cost to businesses every year is $216,171. Collecting accurate address data at the point of entry, using a real-time address verification tool reduces failed deliveries, increases on-time delivery rates and the negates the need to clean the data post collection. All leading to happier customers, better brand reputation and repeat business.
Another benefit to improving data quality, not only leads to a reduction in failed deliveries, but also helps to reduce the volume of complaints received. Plus if address verification systems are integrated to internal CRM systems, call times can be reduced freeing your support teams up to focus on revenue building tasks.
In a past study, we discovered that two thirds (66%) of retailers believe that address accuracy is critical to their business. Bad data leads to failed deliveries, inefficient business operations, poor communication with customers, missed sales and marketing opportunities, and lack of compliance to name just a few examples. But it also leads to hefty, and often un-budgeted, correct charges with some larger well known retailers in the US reporting annual charges running into millions of dollars. For example, if your courier completes or corrects any address in order to finish delivering the package, then you may find that charge tacked on to your carrier invoice. By following the 1-10-100 rule you can start to really assess the quality of your data. Rather than paying a hefty sum trying to clean data further down the line with correction charges, tackle the issue from the very beginning by validating at the point of capture.
Machine learning provides systems the ability to automatically learn and improve from experience without being explicitly programmed. Machine learning focuses on the development of computer programs that can access data and using them to learn for themselves. The key word here is ‘data’. The system can only learn what it is given, so if the quality of the data you are providing the system with is of poor quality, the learning will be based on bad data, in other words garbage in equals garbage out. Using data verification and geospatial tools helps ensure the collection of quality data for your machine learning systems to learn from, which will in turn enhance the effectiveness of data or location analytics.
By capturing accurate customer data up front and ensuring its accuracy throughout the data lifecycle you can unlock the power of data to enhance customer experience and marketing efforts. Correct and quality data allows you to reach the right customer, via the right channels, at the right moment with the right message. This helps to drive a greater return on investment and build a trusted long term relationship with your customer.
An address is the single most important indicator of risk in any digital transaction. Empty houses are often used as drop points for fraudulent orders and over a billion packages and pieces of mail were marked “return to sender” last year at a total cost to merchants exceeding $20 billion. For retailers its essential you are collecting and using verified and accurate data.
Address verification is also an essential part of the process for KYC and AML processes for the financial and gaming sectors. It helps to identify and successfully serve legitimate customers, removes risk and ensures a more efficient and fraud free operation. Plus many customers report that when using address verification they have seen a 10% uplift in ID verification matches.
Your customers are transacting faster and more frequently than ever before. Rapid growth in digital transactions not only offers an opportunity to learn more about your customer, but it also comes with risk – at the end of 2018 reports showed an increase in consumer and retail fraud, up by 27% on the previous year. Technology which improves data quality and helps you to analyse customer behavioral patterns, such as Loqate’s address verification or GBG’s Predator and instinct products will give you the insight you need to provide a better customer experience and reduce fraud write offs.
Thanks to the popularity of online shopping and international eCommerce the number of vans on the road has increased dramatically. Transport is now the number one carbon dioxide offender with van miles in Great Britain alone at a staggering 52.2 billion miles. Whilst customer demand for speedy delivery grows, consumers today are also becoming more aware of their impact on the environment and are challenging brands to reduce their carbon footprint too. This means environmental responsibility and unparalleled customer service need to be a key part of your retail strategy.
By integrating address verification technology into your various business systems, particularly one’s that talk to your delivery fleets, not only does it save time and money on returned shipments, undeliverable packages and failed delivery fees you can also re-assure your customers that you are committed to cutting your delivery miles by guiding drivers to the correct address first time, every time.