Data verification is simple enough to understand. It is a system where data is taken from one source and validated against an official or verified source to check if it meets the requirements of that data. For example – taking a street address and verifying it against one of the various official Postal Address Files that exist around the world to ensure it exists and isn’t a made up or dummy address.
For online businesses, data verification is important. All customers are online and unlike a store where a customer steps up to the till and holds out an item they want to buy, you cannot see who the customer is, which can create a security and/or a financial issue. Therefore verifying their details becomes quite important.
An upside to an online business is that it allows you to more easily keep track of your customers & their details, buying habits etc. Connecting that customer information into your database can be invaluable – as long as the data is valid.
Why do you need data verification?
Most online businesses are not based on a paperwork system. The majority of their data is based in the cloud or in computer databases. And when we have any new or updated data, we need to update these systems immediately to get the full benefit of the new information and to look professional.
Take a security issue for example. Say you have a client who you black-listed due to a fake email, but failed to keep track of. The client could once again order from the business and end up not paying, or try to trick the business for another product. Many businesses have been victims of fraud and theft, which can cause problems for the business’s reputation as customers will question their methods of a secure database.
Data verification is quite simple if you utilise online verification web services. Not only will you know who the customer is in the blink of an eye, but with their history in your database, you will also know that they can be trusted. Companies use online address validation systems to confirm the location where the product will be delivered as well.
Impact on an online business
Employing data verification solutions will have a clear and apparent impact on your business straight away. You can use the solution to validate your current database and then also employ it to check new information on entry which saves you having to verify it later down the track.
Another perk will be an enhanced customer experience & the lack of data inconsistency will save you significant amounts of time, which can be used to serve your clients better. However, the most noticeable effect of such solutions will be the impact they have on operational costs, which you will be able to cut down on in a significant way.