The world is evolving more than ever as businesses welcome the new era of a complex digital economy. However, to ensure its success in the various industries, there is a need for accurate information.
One of the biggest problems threatening the survival of institutions is collecting and processing accurate data. While today’s consumers are more willing to provide information, there is no guarantee that the information provided is 100% true.
For example, the service provider asks the user to provide their names, birthdays, phone numbers, or emails.
Names, and date of birth, for instance, are some of the data that people are not likely to forget. However, we can't say the same for street addresses, postal codes, street names, and current locations. Once the user provides inaccurate data (intentionally or unintentionally), it ceases to be reliable. It's essential to check for duplicates and other errors that could lead to a wastage of resources on the service provider's end.
Currently, more than 55% of businesses use data to drive growth, and one of the best ways companies can achieve this is through householding data.
Householding data provides a quick solution to help companies obtain accurate and high-quality data that helps improve customer quality.
Let's dig a little deeper.
What is Householding Data? Householding Data Definition and Use
Householding data has several meanings depending on who you ask.
From a banker's point of view, it is a process through which banks group all related accounts into households to improve customer satisfaction.
From a financial perspective, it could mean grouping customer data into households, where each household stands for family members or random people living together under the same physical address or housing unit.
From a marketer's point of view, householding means grouping customers into family units. This helps the marketer create an organized database and build long-lasting customer relationships. Householding also involves looking for patterns in the data provided and creating a strategic plan tied to the organization's goals.
Take an example; two people, Beatrice and Janice, share a living unit as roommates may not have similar needs like Mary and John, who are engaged. Therefore, you would not necessarily take Jane and Beatrice as a single household. But since Mary and John are engaged, they may have similar needs and complete transactions as a single unit, it is logical to classify them as a household.
Householding Data Fact-Checking
Information plays a pivotal role in data-driven marketing campaigns, ROI maximization, customer services, and many more business aspects. It is estimated that 90% of corporate strategies will acknowledge information as an essential asset by 2022. According to Douglas Laney, a Former Distinguished VP Analyst, corporate strategic planning is incomplete without data and analytics.
Again, due to the number of emerging digital technologies and infrastructure, the volume of data is expected to rise to more than 180 zettabytes up to 2025. The number rises every year as enterprises rely on big data and analytics firms for market growth data forecasts.
Despite the efforts by information experts to categorize and structure historical and real-time information (into formats such as text, images, audio, and video), 60%-70% of enterprise data goes unused. The reason being, the process of converting raw data into useful, tangible information is rather complex. Most companies also have to invest in costly data analytics technologies.
With householding data, you're primarily concerned with how interconnected the data is. For instance, do the names of the account holders link directly to a valid address and account? If they do, then do they belong to the same household? Householding creates a better image of the customer and provides room for omnichannel support.
Four Steps to Improve Householding Data Quality
The better the quality of the household information, the better the customer feels about your product or service provision.
So, how should a company improve its data management and meet customer expectations?
To do this, you need to define what kind of data should be collected. Setting out the parameter ensures that you obtain the most relevant data first.
Then, you should do the following:-
#1. Keep track of household changes
Keeping track of even the most subtle changes to the user's information is essential to the quality of the household data. People go through marriages, divorces, separation, and work promotions, while birth and deaths also play an important role in the definition of a household. The firm must keep track of all changes throughout the customer journey and observe trends such as loan activity, deposits, and the customer’s financial well-being.
#2. Sort out the records
Data quality management begins with clean, error-free information. The company should ensure that all data collection methods provide valid and complete data. Next, organize the information by order of priority while identifying the key individuals, e.g., Mr, Mrs, Dr., etc. Some data might be too complex for the in-house team and must be outsourced to an external processing firm. Always ensure that the data has its names matched against the rightful postal codes, street names, zip codes, state, and country.
#3. Compile the input sources
Data obtained from external and internal sources needs to be compiled into a bigger, clearer picture that helps the firm observe changes within the household. For instance, a newly wedded couple with a joint account might soon decide to have children. With that comes the need for a new, bigger home and a mortgage to fund it.
By compiling the input sources, financial, marketing, and other institutions pay a keen eye to customer satisfaction and risk mitigation for the ever-changing customer needs.
#4. Use data management software
A data management software (or DMS) is a tool that collects and converts information into a database. It funnels data into a single storage resource, a database, or a collection of them. A data management software caters to several kinds of data, not just one. It also provides much-needed security during the data collection phase, storage, and disposal.
Although householding information works great for finance and banking institutions, wrong classifications of data may be detrimental to customer loyalty. For instance, a student may be denied a student loan for being associated with the wrong household.
Fortunately, some banking giants maintain loyal customers by providing access to loans to people who lack a good credit history. However, the householding data is also important for them as they frequently issue household bank credit cards for people with a low credit score.
How Inkit Verify Helps Businesses with Address Data Quality
Many companies waste resources when sending emails, products, and services to the wrong customer locations. Incorrect shipping addresses, emails, phone numbers, and errors in manual data collection make it difficult to deliver personalized services and meet customer expectations. Every business needs to reach its customers in their precise locations and at the right time. To do that, the firm needs the best technology.
Inkit Verify is a must-have tool for companies that value the importance of consumer engagement and customer relationship management. It’s designed to help businesses across all industries, including healthcare, retail, and finance.
Here's how Inkit Verify can help your business address data quality:
- Provision of technology that can be integrated with the company's existing stack.
- Automation of manual processes, including customer address validation.
- Known addresses are generated and presented to customers using confirmed data sources.
Inkit works with a wide category of professionals, including engineers, product & marketing managers, finance & banking, healthcare service providers, compliance, retail, and utility industries. With the complete set of Inkit’s products, Inkit Verify validates shipping addresses before you send, Inkit Render generates PDFs and other paperless file formats from HTML, and Inkit Send automates essential customer communications.
If you wish to improve your customer service and keep your customers happy, getting the right information at the right time is of paramount importance. Contact us today for a demo or sign up for one of our free plans to try the tools out for yourself.