Did you know that 62% of online shoppers have experienced a late or failed delivery in the last year and that 57% of shoppers would feel reluctant to use a retailer again if their delivery didn't arrive on time? Or that 77% of retailers that use address verification technology have seen the proportion of international orders increase over the past year? These are just a few examples of the crucial impact accurate data has on business profitability -- and it's a harsh reality for some.
Poor data management and lack of verification tech can affect everything from business growth to revenue generation. Customer satisfaction rates, operational inefficiencies, and even international expansion can be compromised when 'dirty data' is allowed to exist. Improving the quality of customer data enables businesses (especially online retailers) to maintain a competitive edge over less astute companies.
The Weight of [Address] Verification
Addressy, address verification software provider compiled data from over 2000 global customers and 300 retailers to better understand the impact failed deliveries have on e-commerce businesses. Addressy is a part of PCA Predict and are global leaders in data quality services and form optimization and with tools ranging from physical address verification and email verification to payment validation and data cleansing, they are experts in understanding the crucial role accurate data plays in business transaction optimization. The data they uncovered offers clear insights to businesses wanting to maximize the profitability of their customer transactions.
- When confronted with problems entering their address, a third (34%) of shoppers would look for the item from a different retailer
- 51% of retailers experienced an increase in repeat purchases with address verification
- 48% of retailers with address verification experienced a reduction of wastage and improvements to cost management
- 38% of retailers with address verification experienced reduced cart abandonment and increased conversions
- 54% of retailers refund the delivery charges to the customer after a failed delivery
- Two thirds (66%) of retailers say the accuracy of address details is critical to their business
- 53% of retailers experienced an improvement in the number of genuine registrations on their website with address verification
- 1 in 10 consumers globally has experienced a lack of support for international addresses
- 54% of shoppers worldwide believe that international orders are likely to be affected by delivery issues
- 65% of retailers say that failed or late deliveries are a significant cost to their business
- 5% of all online orders don't make it to the intended recipient first time
- 57% of customers would not shop again with a retailer that uses a bad courier
- 80% of retailers say that customers often don't realize that failed deliveries are due to the fact that they mistyped their address
- 68% of retailers say failed/ late deliveries are a significant cause of customer dissatisfaction
- 60% report that customers increasingly complain online publicly about failed deliveries
- 75% of consumers prefer to shop online with retailers they have ordered from before
- 28% of customers believe it is more effective to voice a complaint about an online order publicly (i.e. on social media, review websites) than to contact the retailer directly
The evidence is clear. Dirty data and lack of verification capabilities can impact everything from logistics costs and sales generation to brand reputation and marketing optimization. Customers won't tolerate late or failed deliveries (whether it's their fault or not) and will often turn to social media to vent their frustrations.
The downstream affects poor quality data has on businesses and consumers is significant but can be avoided with proper data verification. Brands would be well advised to take a long, hard look at their data verification efforts to see where they can improve customer interaction opportunities, increase their revenue generation opportunities, and decrease their e-commerce/logistics expenditures.