Bad data costs businesses more money, address verification doesn't
Making money is the prime objective of businesses. An integral function to that endeavor is reaching customers and recording their information for further communication. Storing data has become a necessary process for businesses, especially those that use direct mail to market to customers. However, companies that keep incorrect databases end up costing themselves a lot of money in the long term, something that using address verification software can help businesses avoid.
According to research by Software AG, bad data can cost businesses between 10 percent and 25 percent of the entire organization's revenue. That problem can further be exacerbated for businesses with insufficient data practices: The same research found corporate data grows about 40 percent with each passing year. The more bad data a business keeps, the more money it ends up losing.
But it's not just earned money businesses put at risk when they have bad data not reinforced by address verification software. Data consultant Thomas Redman recently researched the costs of bad data and found that labor is increasingly tasked by data, meaning more bad data equals less productivity, and less worker productivity means more labor costs for businesses. Redman found knowledge workers spend 30 percent of their time looking for data and half of that time, they are unsuccessful in finding the correct data.