There is not a single chance of delay or suspension for the business process. The reason for this is the digitization and virtualization of all business procedures. Now a customer does not have to wait long for funds transfer, he can do that in a minute using e-banking. All the businesses are always in wake of adopting more fast and convenient customer services.
Likewise, customer identity verification methods have also evolved. Now all the verification from age to address is done remotely through online software. The customer just has to upload his identity documents and proof of address for complete identity and address verification. The software extracts the data and performs authenticity checks on the document. The online address check takes 30 to 60 seconds to verify the address.
Address verification is a crucial task for e-commerce, shipment companies, and financial institutions. To give the product to the doorstep of the buyer can’t be done without address validation. Furthermore, financial institutions need verification of address for better fraud prevention and anti-money laundering compliance. All financial institutions are obliged to have the verified addresses of all customers.
A verified address is in a proper format (international or local). There is a great difference among address formats of businesses. Usually, it depends upon the neighborhood of the business. The difference lies between the acceptance of acronyms and abbreviations. Some businesses do not accept the type of acronyms given by customers. Online address verification eliminates this hurdle. The business can arrange the address according to its desired format.
4 Reasons Why Address Verification is Inevitable for Businesses
In this fast-moving world, businesses onboard numerous customers, process hundreds of requests in a single day. It might face unexpected circumstances and obstacles that are then solved by employees or experts. But not all of them can be solved by humans, the use of automated solutions is essential for business. For instance, to calculate huge numbers businesses use calculators, not humans’ minds. The reason is the calculator gives faster results as compared to humans. Similarly, address verification software has streamlined the process of address validation. Below are the reasons why address verification is inevitable:
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Better Product Deliveries
The e-commerce industry has suffered great losses because of fake or false addresses. Statista reports in Jan 2019 that 18% of returned online purchases are due to delivery issues. There are two cases, one in which a customer unintentionally gives his false address. The second is where a fraudster deliberately gives his false or fake address to claim chargebacks. The verified address guarantees complete and safe product delivery to the right customer.
2. Reduce Cost, Time, and Errorless Services
It cuts extra costs and time spent on manual verification by verifying the addresses of customers in real-time. As it uses OCR for data extraction and data population there are very few chances of error. The returned deliveries cause repeated work for employees. They have to perform the same delivery process for that customer, taking additional time and resources of the business. Since there will be very minimum returned deliveries, the resources wasted on that can be saved also.
3. Better Customer Satisfaction Level
The customer is the first one to suffer because of poor address verification. Just imagine you didn’t receive your desired product in time, what will you do? You might shift to a competitor and leave bad feedback for that business. It is a serious dilemma for a business. Through this can lose its customers and market reputation. On schedule shipments of customers’ order results in happy and satisfied customers with an acclaimed market reputation.
4. Reliable Data Collection and Management
Every customer is identified with a name, mobile number, and address. This data is much useful in creating an accurate customer profile database. The data extracted in verification is stored in a well-mannered and standardized database. Having a reliable and normalized database of the customer assists in identifying customer trends and behaviors.
Key Takeaways
It is forecasted that in 2021 e-commerce sales will value 4.5 trillion US Dollars. To continue its growth with this spectacular speed it needs a remote and automated address verification solution. This will result in well-organized and smooth business processes while increasing revenue and customer gratification.
