Why Address Verification is So Important to Online Retail Businesses
Research has shown that approximately one in every three online shopping customers admit they have abandoned a purchase when they experienced complicated checkout related to address issues.
This is where a reliable address verification system (AVS) comes into play. If you don’t want your customers to be part of this statistic, then it’s time to make sure that you have an AVS installed, and that the one you choose is the right one for both your business and its customers.
Here are some pointers to help you make the right choice.
What is an Address Verification System (AVS)?
An AVS is designed to accurately check a customer’s address when entered to ensure that it matches with their registered address for major shipping couriers. With this system, many eCommerce stores have been able to limit checkout errors, significantly improving conversion rates.
In addition to improving conversion rates, making use of an AVS just helps make sure that packages go where they are supposed to.
A survey conducted by online shopping portal providers Magneto found that 65% of the retailers they surveyed in the US, UK and Germany said that failed or late deliveries were a significant cost to their business. An effective address verification system can help prevent your business joining this group.
Types of Address Verification System
There are several types of AVS that you can choose from:
Drop-down verification: Studies have shown that approximately 55% of top 100 US online retailers make use of this type of address verification. From the drop-down menu, your customers are given the option to choose their city, state, and country.
Partial verification: With this system, once a customer enters their zip code, the city and state fields are automatically populated, while the rest of the data is manually entered.
Post-entry verification: After manually entering their data, a pop-up shows up with possible address alternatives. The customer then chooses the alternative that matches his or her address.
Type-ahead verification: This system works by accurately suggesting addresses for customers the moment they start typing their address, saving them a lot of time and energy.
A Recap of the Benefits of AVS
So, to recap, making use of an AVS offers all the following benefits:
Increased conversion rates: Since many customers abandon their shopping carts when they are presented with rigorous address input options, conversion rates are significantly improved when customers have to enter their address with the help of any type of AVS.
Reduced loss of revenue: When a failed delivery occurs, retailers can lose money because they either have to refund the customer or pay additional costs for re-delivery. AVS significantly reduces the chances of failed deliveries due to incorrect addresses.
Improved customer experience: One thing that greatly impacts on every business is the ability for the business to retain its existing customers. With a reliable AVS, deliveries are successfully completed, building trust in the brand and encouraging repeat purchases.
Decreased Fraud: Ensuring that a billing address matches the one on file for a credit or debit card, or for a PayPal or similar payment gateway account can cut the risk of payment fraud significantly.
Popular Address Verification Systems
Not sure where to get started? Here are a few service providers you can consider using:
Loqate: This AVS provider helps online retailers maintain top-quality customer data and at the same time, improve conversion rates while further driving their business efficiency.
Experian: Yes, the credit folks. Their system offers internet retailers verification systems that ensure that every address is free of any duplicates, making them ready to use the moment a customer is done entering their data.
Smarty Streets: This provider offers significantly simplified verification system that makes shopping easier for customers, no matter what device they are shopping from.
Collecting accurate customer address details at checkout is crucial to ensuring that your products will successfully make it to your customer. In addition, having some type of shipping address validation that will make checkout frictionless, will allow you to enjoy better conversion rates and provide a great customer experience.