Showing posts with label Data Services Address Validation List Processing. Show all posts
Showing posts with label Data Services Address Validation List Processing. Show all posts

Saturday, August 9, 2008

Address Validation

In today’s world with hundreds of millions of consumers and businesses it is a good idea financially to periodically have your lists run through an Address Validation service; If for no other reason than to adhere to USPS standards.
Over $600 billion is reportedly wasted (by The Data Warehousing Institute) on postage, printing and employee wages from bad addresses. The US post office reports 33% of all addresses contain errors. Address errors are caused by a multitude of reasons like Divorce, Marriage, Restructuring, Mergers and user error.

Over time your data’s integrity is lost. What Address Validation will do is increase deliverability with Delivery Point Validation (a part of the Coding Accuracy Support System or CASS process) by tagging good records and allowing the remaining records to be culled from the data into a separate file. Data does not have to be lost. In this way non deliverables can be kept separate from the good data and money can be saved on mailing campaigns. Money will be saved by eliminating wasted materials, postage, and wages . CASS processed addresses (USPS® Form 3553) could also qualify for postal discounts. This could save up to 45% of the mailing cost in some cases.

In a nutshell you will spend money for this service and then save even more money during the mailing campaign. It is wise to ensure mailing companies, if used, will give discounts for pre CASS Certified Addresses. Some mail companies do not give credit and take the lower costs as part of their profit.



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The Costs of bad data

Bad data in today’s world is prolific. List companies around the world collect data on individuals, companies and institutions on a regular basis. Not all the data remains static. This data is dynamic in nature. People move, names change and companies relocate for multiple reasons. By its very nature, Data involving addresses is volatile.


Billions of dollars is wasted yearly on this bad data. This figure represents wages from the worker stuffing the envelope to the postage and costs creating the material. For example considering time to design, publish and mail costs could be well over $5 per unit. Say you mail 5000 pieces for a total cost of $25,000. Let’s say 3-5% does not get delivered because of the bad data. That is a cool $1250 on mailings that was a complete waste.


Much of your data is old when coming straight from the list company. When was the last time it was validated? It is doubtful that these companies have recently validated your data prior to shipping it. Even if they did a lot of movement happens in a 3 month time frame and could easily make 3-5% of your data invalid and undeliverable. Out of 5000 records it is not unheard of for 150 to 250 of these to be bad records.


If your mailings are undeliverable not only do you lose the money spent to send these mailings you lose possible re-occurring income from conversions. Would it not be wise then to validate your data with an Address Validation Service?




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