The 1-10-100 rule was formulated by George Labovitz and Yu Sang Chan in 1992 and it is used to assess the impact of dirty data on businesses. The $1 is equivalent to the initial cost incurred to verify data; which consequently rises to $10 and $100 in the second and final phases- showing the monetary impact of dirty data on businesses. Bad data results in poor decision making, increased costs, poor communication with customers and lesser efficiency. Wrong addresses are examples of poor data that can be bad for businesses.
The consequences of no address verification on a business:
- Businesses incur useless costs of shipment on orders made using wrong addresses. The process of delivering the service or package becomes a tedious and prolonged process; threatening consumer satisfaction. It is also leading to waste of time. In this cut throat market, it is important that time is used properly and thereby help us to reduce losses.
- Wrong/fake addresses reduces the legitimacy of data obtained and can lead to erroneous estimates and decisions.
- Wrong addresses lead to bad customer experiences and customers refrain from availing services from the same business again.
- Non-existent addresses if not verified lead to losses in terms of transportation costs, shipping and even revenue if the order or service is not paid for in advance.
Thus, we can infer that there is a need of a post validator in any business to avoid the above consequences. Having an active address verification process helps a business to have a seamless database of its customers and helps the business focus on its active customers and ruling out the dormant customers. The business can then use its time and resources on concentrating on these active customers who could potentially bring in further revenue or be on the lookout for potential new customers.
The major benefits associated with an active address verification process:
- It reduces the chance of failed deliveries and hence the business is able to increase its reliability. The reduction in failed deliveries also reduces the volume of complaints and improves brand reputation.
- Machine learning processes will improve with the availability of correct data. With correct addresses and other information in datasets in place, the computers learn on their own to correct and collect the right data for business data analytics to improve business outcomes.
- Businesses can easily recognize frauds when there is an active address verification process in place. Fake addresses are often used to carry out fraudulent activities. The business is thus able to reduce risk associated with carrying out its operations and is assured about the legitimacy of its customers.
- With correct data regarding customers, the business can reach new marketing highs with personalized marketing strategies. The business can focus on data-based marketing practices to reach its full potential in terms of sales.
- With environmental problems on the rise, the businesses are focused on reducing their carbon footprint. With correct addresses and reduction in failed deliveries, there is bound to be a reduction in carbon footprint.
The Bottom Line
It is important for a business to opt for a post validator service to ensure that all their postal address data is on spot and does not mislead anyone.