Did you know that 62% of online shoppers have experienced a late or failed delivery due to inaccurate address data and that it cost about $14/£14 per failed delivery?
I spoke with Chris Boaz, Head of Marketing at PCA Predict, an address verification tech company that powers checkout pages for thousands of merchants.
PCA Predict published a report about the implications of failed deliveries to online retailers. Here are some of their main findings:
PCA Predict’s survey revealed that about 5% of all orders result in wrong delivery. Failed deliveries are expensive when you factor in the cost of correcting errors. Although the number seems small, it results in higher operational costs for retailers which reduces their profit margins.
There will always be the issue of human error. Eliminating it will go a long way in fixing the failed delivery problem. All retailers can ensure that they use technology that enables them verify the data they receive. They can do that by introducing forms for address verification.
Our main competitors are Google and Experian Data Quality. The core difference is that our technology is created based on customer experience. Our technology enhances customer experience which is important for business. Our data is updated on a daily basis which ensures that the information contained is accurate.
You can use our technology on mobile apps as well. Retailers are not limited as the technology can be tailored to suit their needs.
Our data is our point of origin. We use the mail and postcode address system supplemented by other data points. We also update our records as they are updated in the different system. Our competitors do not do that which is a disadvantage for retailers.
Other than using PCA Predict, retailers can improve the delivery process in other ways. Retailers pass off part of the customer experience with couriers. There are many couriers who offer delivery services. However, retailers need to partner with couriers who are reputable. They need to do their own evaluations and choose a courier who will give excellent user experience.
They should have a system that provides real-time access to information concerning the location of the order being delivered. This is because the courier is acting as an extension of the retailer’s brand. If there is a problem with the delivery system, the retailer will end up losing not only the current customers but also potential customers.
They can also put checks in place at the last mile in the event the address is not found. They should have a means of communicating with the customer so they can contact them in case they cannot find the customer’s address.
They can use technology to collect and verify address information. Retailers should be able to access information updates when it comes to addresses. They should reduce the chance of human error occurring when address data is being inputted.
Focus on customers and use your customer insight to come up with solutions. Develop your mobile channels and improve customer experience by listening to the customers.
06.25 ABOUT CHRIS BOAZ AND PCA PREDICT
07.13 WHAT ADDRESS VERIFICATION IS AND HOW IT WORKS IN E-COMMERCE
10.22 WHO ARE YOUR CUSTOMERS?
11.45 FIELD DELIVERY COSTS
14.05 WHY RETAILERS SHOULD IMPROVE THEIR DATA QUALITY
15.39 WHAT MAKES YOU DIFFERENT FROM YOUR COMPETITORS?
19.10 WHERE DO YOU GET THE DATA?
21.08 HOW RETAILERS CAN IMPROVE THE DELIVERY PROCESS
25.22 HOW RETAILERS CAN REDUCE NUMBER OF FAILED DELIVERIES
27.00 FINAL ADVICE