Why is Contact Validation Important for e-Commerce?

Ensuring the authenticity of your customer data has now become necessary for e-commerce brands to sustain. Otherwise, it can damage financial resources and lose growth potential.

Not only in e-commerce, but contact verification plays an important part across industries. Let's check how it can help your e-commerce brand boost growth opportunities in this blog.

Contact Point Validation (CPV) is a more sophisticated term for referring to customer data validation. It comes with a method to authenticate the contact information that customers submit to organizations. 

For e-commerce, CPV means verifying customers' email addresses, physical addresses, and phone numbers. Along with verification, it also involves updating the old customer records. Verifying customer information can help prevent fraud, enhance customers' trust, and help companies meet regulatory requirements. 

For customer data verification, companies usually have three options; 

1. Opting for automated verification: Nowadays, AI-enabled systems are helping companies verify customer data. These systems check customer data against trusted databases to validate the accuracy of the data. You can generate a quick verification using this system with minimal errors. 
2. Choosing manual verification: Human verifiers reach out to your customer using email, phone calls, and visit the location to confirm details. This is the most accurate form of customer data verification. The biggest advantage of this process is great accuracy, and the greatest downside of this process is its expense. 
3. Integrate both (semi-automated): Human representatives verify customer data using automated verification systems. They verify each of the records using human intelligence and AI help. 

E-commerce is one of the fastest-growing industries at the present time. Hence, understanding the customers, using and optimizing their data is the key here for growth. Among the many reasons, here we are going to discuss why you need to validate your customer data to run your e-commerce smoothly.

Cart abandonment is a common phenomenon in the e-commerce arena. Every 7 customers among 10 leave their cart as it is. Due to budget issues, getting offers at a cheaper price, etc, are the main reasons among plenty of others for leaving the cart abandoned. But the main issue e-commerce faces when it comes to reaching out the customers regarding abandoned carts.

Verifying the customer data proves here as a savior. It helps e-commerce brands reach out to exact customers who left their carts abandoned. In most cases, it positively affects e-commerce sales. It also means you're reaching out to 69.99% customers who tend to abandon carts, but now you can gain positive returns.

Besides forgetfulness, many other reasons favor cart abandonment. Sometimes, customers leave their cart as they couldn't find the buy now options. It happens due to technical glitches. Also, poor website functionalities make people confused about how to proceed with the checkout.

As e-commerce is flourishing right now across the world, it's natural for e-commerce companies to collect tons of customer data every day. It enters the database from multiple locations. When it comes to assessing this collection of information, e-commerce companies pay a hefty sum. Therefore, if the customer data involves corrupted records, unvalidated information, then the process can become a waste even after spending a good investment in it.

So, customer data verification helps minimize operational costs as it reduces errors in the datasets. Verified customer data means fewer errors in the processing and accurate results. It helps you not only reduce costs but also get you the right customers. You can reach out to your customer directly if you have a verified customer database.

Verifying the customer data accuracy in e-commerce works in many ways.

• Identifying names
• Email and phone numbers
• Addresses details
• Shipping accuracy

Among the various types of customer data, contact data (email, phone, and address) of your customers is the core. You need this information to connect with your customers, and then only you can offer your products. Plus, you can prevent many issues like lost packages, returns, exchanges, etc, through effective communication. But again, you need validated customer information to do that.

Customer data validation is your way here.

It's simple – when you have verified customer data, you can target your customers with better marketing plans. Marketing initiative needs accurate data to increase e-commerce product sales. Suppose you have a verified email list of your customers. Now you can initiate targeted email campaigns to make your customers aware of your products.

You can initiate dedicated email support to handle your customer and their claims. Validated emails can reduce the bounce rate because your customers expect your emails here, not like cold emails. You can track the entire buying journey (including each stage) through email and responses when you get accurate email data of your customers. Similarly, you can bring efficiency in other marketing campaigns with verified customer data, including text message campaigns, spec ads, etc.