Organizations lose from 10 to 14 million USD annually because of data inaccuracies. Around 80% of companies believe data issues might have affected their revenue. Yet, the impact of poor data quality goes beyond finances. The reputation and business operations of companies also suffer. Due to unreliable records, businesses cannot perform to their best capabilities. They face misdeliveries, data leakages, unsatisfied customers, and other problems.
Such data quality issues frequently happen with postal addresses. Postal address data quality is more difficult to maintain than emails or personal details. As a result, inaccurate postal addresses significantly affect businesses.
If you depend on postal address data quality, this article should help you find ways to enhance it. Learn the real impact of poor data quality in terms of postal addresses.
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What is Poor Postal Address Data Quality?
Poor postal address data quality means inaccurate, incomplete, misleading, or outdated addresses. These are unverified records that cause misdeliveries. Besides, companies cannot use them for identity verification during KYC or AVS checks.
Low postal address data quality is usually the result of missing address verification procedures. When businesses collect customers’ contact details but don’t check them, inaccurate entries pile up. Inconsistent verification is another common reason behind poor postal address data quality. Since people and organizations change their addresses, regular checks are essential to prevent bad data.
Poor Data Quality Case Study
Here are several cases to show you what causes low-quality postal address records and how to deal with them.
Poor Data Quality Case Study #1. E-commerce store
An e-commerce store collects addresses at the checkout to verify payments and manage delivery. Since there is no address autocomplete on the website, buyers enter all information manually. Hence, they are more likely to make mistakes and typos. Because of this, the store ends up with bad postal address data and suffers from misdeliveries.
Solution. The e-commerce store should use address verification and autocomplete API. They can integrate it with their platform to embed automated postal address suggestions and checks. It will facilitate data sharing for buyers and increase the accuracy of postal addresses.
Poor Data Quality Case Study #2. Financial organization
A financial organization manages a postal address database to verify customers’ identities and deliver documents. They have created it long ago and don’t have the tools to update the entries. As a result, the reliability of postal addresses declines after some time. Critical documents often don’t reach the destination, which leads to data leakage. When the public learns about it, the organization’s reputation severely suffers, and it starts losing customers.
Solution. To reduce the negative impact of poor data quality, the financial organization should introduce regular checks of existing postal addresses. At least every 90 days is a standard. It will allow them to eliminate outdated records and deliver financial documents securely.
Why is Poor Postal Address Data Quality Bad?
We all know we must care about postal address data quality. But why does it matter? Apart from direct financial losses, bad postal addresses lead to other problems.
Around 30% of analysts spend over 40% of their time validating data before it’s ready for use. These numbers illustrate how unreliable information can affect your productivity. When you are sure that records are accurate, you don’t have to double-check everything. It allows focusing on more critical tasks and strategic decisions. Since postal addresses are usually shared with multiple teams across a company, their quality is crucial for many everyday processes.