Why is Address Verification Important?

Inaccurate, outdated customer address data can cost businesses significant amounts of money and time. This is true for all kinds of businesses, from online retailers to P2P marketplaces and even service companies like plumbers, landscapers, or on-site computer repair services. It's surprisingly easy for information to become inaccurate due to typos when entering an address, customers moving, or incorrect zip code mapping, and inaccuracies like these can lead to delayed deliveries, lost packages, and unhappy customers.

Aside from the obvious impact on delivery times and customer satisfaction, a business that maintains an inaccurate database will experience costly inefficiencies. Whether it’s wasted postage, time spent tracking down missing or incorrect addresses, or the cost of re-assigning employees to work on resolving address errors, an inaccurate database will take away resources that could be better spent exploring and implementing business strategies and operations.

Address verification can help businesses save on these costs by quickly and easily eliminating bad actors at the point of onboarding. This can allow for more time and energy to be spent verifying good customers and promoting brand trust and safety.

Address verification can also be used to standardize formatting and reduce shipping costs. This can be especially useful for businesses that ship products and services internationally, where the nuances of address formats can be difficult to navigate. It can also be a valuable tool for financial institutions, as it helps them adhere to KYC or "know your customer" protocols that prevent them from doing business with known criminals or money mules.