No business owner is up for big losses and that is so because the customer provided the wrong information. Also, they would not want to face hefty penalties because unwittingly they assisted criminals. One of the major consequences-governing causes are fake, invalid, or mistype addresses. Some customers willingly enter their addresses wrong to escape authentication and identity verification.
This has become the prime reason why businesses seek out authentic address verification solutions. Just in the previous year, 36 million residents changed their addresses. Due to this, businesses are left with outdated information regarding their customers’ whereabouts. To combat this scenario, platforms can carry out in-time address verification and make sure the order reaches the right customer.
Address Verification System – Addressing Businesses’ Concerns
To ensure that the customers are really present where they claim to be, businesses can opt for two methods. One to update their database every 90 days or secondly to ask for address details during registration and while placing an order. However, both serve the same purposes for industries like e-commerce, finance, healthcare, and the rest of the industries. Some of the crucial ones are listed below.
Businesses can Ensure that Customers Fall in Service Availability Area
Some of the service businesses are area-oriented as they serve in a particular jurisdiction. These include cleaners, plumbers, and repairers. These workers won’t agree to traveling miles to fix some minor issues unless the customer is ready to pay the price. However, if companies have an address verification system installed, they can identify the geographical region in an instance. Furthermore, they can ensure that the right person is making a booking.
Businesses can Serve Localized Material
Through authentic addresses, companies can provide customers with relevant local services. Verification of address is a sure-fire way for businesses to rightly deliver customized assistance. These can be materials, services, and products. Companies were previously using IP addresses to locate customers but criminals can fake these. Hence, businesses need encrypted solutions that cross-check the information in the database. This way they can authentically filter the customers’ whereabouts and pick out the best suitable assistance type.
Businesses can Detect and Prevent Frauds
Address-related scams are the most common type faced by businesses from around the globe. An example from booking.com – a platform where customers book travel tickets, reserve hotels or other residential rooms. Here, they had to authenticate every registered address physically which was not a fun task to identify 1.3 million listings. Criminals often use fake addresses to carry out data breaches and a credit card or other payment scams.
Therefore, to validate address is not solely for KYC compliance but also it helps businesses to mitigate related frauds. Likewise, in the case of e-commerce, address validation reduces the chances of chargebacks and failed deliveries. If any customer is illegally trying to buy something, the platform can readily identify this malicious act. Furthermore, banks and the financial sector can send the bills to the right address and combat credit card fraud.
Businesses Enhance Customer’s Experience
Previously businesses were using manual means for verifying an address. This process however was complex, time-taking, and not so cost-effective. This is why businesses have to face return-to-sender packages that cause financial as well as worth loss. Customers often make mistakes like entering old or mistyped addresses. This leads to returned deliveries and businesses pay up to $25 per return.
However, solutions providing verification of address can help platforms prevent this situation and enhance customers’ experience. Companies need to ask for genuine addresses with Proof of Address (PoA) – documents that serve as evidence like rental or ownership agreements, utility bills, or credit card details.
Business can Update their Databases
Through online address verification, companies can update their databases periodically. This way they can wipe out any fake or old addresses while maintaining authenticity in the records. This might not be an easy task if carried out through manual methods. However, encrypted digital services can make this concept come true as they are capable of handling the bulk of data. Customers are less likely to stay at the same place for many years. Therefore, businesses can update and clean their databases right after the customer adds in their address details.
Businesses can Reduce the Rate of Cart Abandon
Customers nowadays want a swift and seamless experience. If the verification process is lengthy or complex, they are most likely to abandon the cart along with their desired products. Therefore, businesses need robust solutions that assist customers with solutions like autocomplete and instant verification. Online services slash the information customers need to fill in. Hence, this increases the chances of completing the purchase while reducing the risk of abandoned carts.