Unlock the potential of your CRM system by focusing on CRM data quality, ensuring smoother adoption processes and improved business outcomes.

In the world of data management, accurate addresses are not just a legal requirement but also a crucial factor for business success.

While it may be tempting to overlook the importance of address accuracy, considering the daily challenges we face with dirty or inaccurate address data, it becomes evident that it leads to various problems. These problems range from returned mail and difficulties in debt collection to potential lawsuits.

And, with more businesses turning to location intelligence to derive insights into their customers and markets, addresses have an increasing value for analytics. Thus, addressing the issue of poor address data quality is essential for businesses.

Business Drivers for Quality Addresses

However, it’s important to note that the true business drivers behind addressing address quality are not solely focused on the accuracy for the sake of it. They encompass four main aspects: operational efficiency, revenue enhancement, compliance, and analytics. Let’s take a closer look at each of these drivers:

1. Operational Efficiency – Cost of Returned Mail: Poor address data quality results in a significant number of returned mail, which not only wastes valuable resources but also hampers operational efficiency. By improving address accuracy, businesses can streamline their operations, minimize the costs associated with returned mail, and ensure smooth mail delivery.
2. Revenue Enhancement – Value of Increased Debt Collection: Inaccurate address data directly impacts debt collection efforts. By enhancing address accuracy, businesses can improve their chances of successfully collecting on bad debts, thereby maximizing their revenue potential. A comprehensive solution that addresses address data quality as part of the debt collection process can yield substantial financial benefits.
3. Compliance – Avoiding Legal Issues: One of the most critical aspects of address data quality is its role in compliance – particularly for financial services companies that have a KYC requirement. Businesses need to ensure they meet legal requirements and avoid blacklisting or other penalties stemming from inaccurate address information. By maintaining adequate address data quality, businesses can mitigate the risk of legal action, saving both time and money.
4. Analytics: Location data, in the form of addresses, is increasingly important for planning and analytics purposes. Opportunities for location intelligence range from route planning, for deliveries and the like, to optimising the locations of new stores or other infrastructure, to managing insurance risks. and more.

The role of Active Data Governance

To achieve these goals, active data governance plays a crucial role. A holistic approach should be adopted, focusing not only on addressing a single requirement but also considering all relevant aspects. A well-designed solution should be reusable and capable of resolving multiple needs beyond just address data quality.

In conclusion, poor address data quality inhibits businesses from achieving their analytics, operational efficiency, revenue enhancement, and compliance objectives.

While addressing address accuracy is indeed a critical component, it is essential to recognize the broader business reasons driving the need for data quality.

By implementing comprehensive solutions and robust data governance practices, businesses can unlock the full potential of their enterprise information asset.

Discover the intricacies of creating a single customer view and why it’s more challenging than you may anticipate.

Uncover the importance of data quality for effective lead generation strategies and how it impacts your business growth