Escaping the unnecessary cost of incorrect address data
Posted by Dom K on Friday, October 16, 2015 - 23:51
Two major priorities for all companies are to ‘improve customer experience’ and ‘avoid unnecessary expenses.’ From remodeling their websites to become more innovative and high tech, companies are striving to create more value and reason for customers to purchase from them. However, all of these efforts to add the most streamline technology to improve customer interactions can be destroyed if companies overlook simple components like making sure that orders are delivered to the correct destination.
Obtaining a correct address seems like a very simple thing to do and reasonable thing to ask. In fact, the Data warehousing institute reports that most organizations believe that their contact data is of good quality. Yet reports released by the United States postal service suggest that this is not the case. These reports show that 23.6% of all mail is addressed incorrectly, with an annual 17% decay in the quality of stored data. Additionally, for a recent webinar, we found that 40% of attendees had mistakes in their address whilst signing up. Admittedly, a number of errors were minor; nevertheless, all errors increase potential for problems.
How does this impact a business?
Your business could develop the most amazing marketing campaign, and have the best offers throughout the world, but if you cannot get the products to arrive at your customers’ doorstep then it ruins previous efforts. Whether the address entry mistake is theirs, yours, or no-bodies, the customer experience will be negative if the delivery is messed up. Every package that is not delivered properly puts the seller in jeopardy of not receiving any profit on that sale. In some cases you may have to refund the customer, resend the package, the goods may get lost/ destroyed and so you are not only ruining company image through poor customer experiences, but you are likely incurring unnecessary costs. The USPS also reported that undeliverable as Addressed (UAA) mail costs them nearly $2billion each year, but that the cost to the business mailers is at least double.
Beyond the loss on this initial sale, you may lose this customer for a lifetime as today they have many options. And don’t limit this to the loss of one customer. Remember, a company is no longer what you say it is, it is what your customers say it is. With the recent rise of yelp and other online review sites, the loss of one customer can turn into the loss of many.
Essentially, it has been recognized that many companies will spend a lot of effort trying to maximize customer experiences, and minimizing company expenditures, but they fail to first solidify the core aspect of their business, which is ensuring that purchases are delivered to the customers’ doorstep. If you do not do this, you are at risk, no matter what else you do.