Why checkout accuracy is now a margin protection issue
In today’s uncertain and unpredictable world, it’s difficult to find any sector that isn’t under pressure. Costs are rising, geopolitical pressures are mounting, and many companies’ profitability levels are declining.
From discounting to growing fulfilment costs, it’s clear that turning a profit in the fast-moving realm of ecommerce is becoming increasingly harder to achieve.
Earlier this month, research unveiled by International Logistics Group highlighted how fulfilment costs and operational pressures are now overtaking marketing as the biggest barriers to growth. Put another way, ecommerce brands are no longer struggling to generate demand, but struggling to fulfil it.
As a company built around postcode lookup software, Fetchify gets to regularly look behind the curtain and see first-hand how ecommerce companies are struggling with inefficiencies; inefficiencies that are, effectively, eroding the bottom line.
Generally speaking, there’s often one thing that jumps out as a potential area for improvement. Thankfully, it’s also an area that Fetchify can easily resolve.
Clean data is good data
Customer data sits at the core of any ecommerce company’s operations.
The irony, however, is that despite it being an organisation’s lifeblood, it’s often littered with errors and duplications, all of which eat further into profit margins if these inaccuracies result in failed deliveries, reshipping costs and lost conversions at checkout.
Smart Routes, a route optimisation firm, for example, claims the average cost per failed delivery is £11.60. Not only that, but 70 per cent of shoppers are unlikely to return after a failure.
It doesn’t take that many of these before you’ve significantly eaten into the bottom line with costs that are avoidable, damaged your reputation and lost future business.
This is where data quality becomes a commercial priority, not just a nice to have.
Fetchify's Data Cleansing service, for example, validates records against Royal Mail PAF® data, standardises formats for phone and email contact data, improves data health by giving longer-term usability, and helps organisations keep their customer contact databases clean and compliant.
We’ve launched this service on the basis that maintaining high-quality data standards is no longer optional. It’s mission critical.
Avoiding ‘data decay’
Getting your data right at the point of capture is crucial. However, maintaining your database is just as important. It’s also a bit like tending to your garden – it needs constant attention if you want it to stay in shape.
According to The Smarketers, B2B contact data decays at a rate of 30 per cent each year. Or, to explain it in layman’s terms, if your database of customers is 100,000 strong, 30,000 of them become inaccurate every 12 months.
If you’re sending communications to the wrong person, then you’re damaging trust. If you’re not sending communications to 30 per cent of your prospective customer list, then you’re missing opportunities. Either way, you’re losing out.
As businesses face growing pressure to improve delivery performance without passing on costs, our view is that getting your data right – and ensuring it stays right – is a quick, easy and inexpensive way in which to address both requirements.
The Bottom Line
Customer expectations are rising in tandem with intensifying competition. There is no longer any room for inefficiencies.
From Fetchify’s standpoint, organisations that invest in data cleansing tools are gaining a competitive advantage and reducing wastage.
Not only that, but they’re also lowering operational costs by reducing the risk of failed deliveries, increasing the chances of conversion and creating a solid foundation for ongoing, personalised marketing.
The good news is that it doesn’t have to be expensive – it just needs to be precise.
Clean data improves operations and protects margins. In a market where every cost counts, getting your data right is one of the simplest ways to stay competitive and stay profitable.
Want to see how clean data could improve your margins?
Discover how Fetchify’s data cleansing solutions can help you reduce costs, improve delivery success and unlock better performance by calling a member of the team on +44 (0)333 014 1992.
About Fetchify
Fetchify’s address lookup and data validation platforms cover more than 250 countries, and increases customer conversion with the fastest, most accurate customer data capture. Fetchify’s flagship products – Address Auto Complete and Postcode Lookup – reduce friction at the checkout, and also significantly increase the number of successful deliveries. Founded in 2008, Fetchify processes millions of data transactions every day for clients ranging from startups to established high-street names, and offers a full suite of data validation tools, including phone, email and bank, too.




