It’s imperative to have high standards for the quality of your organization’s customer data. Unverified, incorrect, or outdated information can infect the deepest parts of your customer databases if not managed properly. Allowed to spread, this infectious data causes substantial downstream issues that can be financial (loss of revenue), or worse, reputational (loss of customers and brand trust). But your organization is not without options for trustworthy tools to prevent this unseen and very deadly threat.
Much like your favorite computer antivirus program, data verification technology can stop unverified data in its tracks. Technology such as phone, email and address verification can correct and enhance existing data in your system while allowing only validated and fresh data entry to your systems. With clean, up-to-date data your organization can deliver data-driven insights that are guaranteed to encompass the full picture of your customers' past behaviors, current needs and future expectations.
For business leaders wondering just how essential verified customer data can be, here's a list of ways it can benefit your organization:
Customer communication is heavily dependent on having accurate information on hand to reach the right person through a variety of channels. Data decay is an unavoidable reality in any database, and when you execute marketing communications based on outdated data, the chances of successfully reaching your customers drop considerably. And to make things worse–misaddressed mail can be costly in more ways than one. Ensure your promotional messages reach your intended audience by validating the phone numbers, physical addresses and email addresses of your customers.
With cleaner data comes more possibilities for faster decision-making, stronger go-to-market strategies, and a deeper understanding of your customer base. Your business can gather valuable insights into customer preferences, interests, and buying habits by capturing demographic and location data. You can then use this 360-degree view of your consumer base to fuel localized and personalized communications, strategies and loyalty programs.
We’re all human, and mistakes can happen, especially when your customers manually enter their contact information into forms without the help of type-ahead or auto-complete technology. Not to mention, the chance of error rises even more if your customers are typing on tiny mobile screens. Inaccuracies like substitutions, missing words, or added letters may seem like minor factors at first. But, once that information enters your database, it can corrupt everything from the payment process all the way to fulfillment. Verified data saves you time and money on expenses that can build up over time, like returned shipments and mail, failed delivery fees, and chargebacks.
Unverified data deeply contaminates your internal systems, often leaving you vulnerable to a different kind of unwelcome invasion –fraud. Utilizing address verification (AV) can wipe out any chances for fraudsters to take advantage of unverified and outdated data in your system. Conducting an AV check at onboarding can identify fraud at the first red flag. For instance, a customer address record may seem valid at the time of input, but upon further action, you may find that the address is associated with multiple email addresses or phone numbers. This will then alert you to the possibility of fraudulent activity before any deception occurs. Remember—if dirty data never gets into your system, fraudsters won’t be able to target you.
Organizations believe poor data quality to be responsible for an average of $15 million per year in losses.
Clean customer data has become one of the most valuable currencies in the digital age, and data-driven organizations are utilizing it in as many ways as possible. As you make your way along your digital transformation journey, don’t neglect to protect the very data that will ultimately get you to the finish line. Make collecting and maintaining your customer address, email, and phone data a priority with the help of our data validation solutions.
Interested in learning more about how Loqate can help your company collect the highest quality customer data to power your initiatives? Read our guide, “The Business Case for Verified Address Data,” or connect with a product expert today.