Addresses as a cost factor – improving address quality

Two businessmen discussion analysis sharing calculations

The highest quality of addresses is the be-all and end-all in marketing, which is why many marketers want to improve their address quality. A well-maintained address database is a lot of work. But this work also pays off. At the latest when you carry out a postal mailing and the friendly postman returns incorrectly addressed letters to your letterbox. But what are the costs? A small sample calculation should make this clear.

Half of the companies use postal mailings

Despite all the digitalization, around half of the companies in Germany still use postal mailings to acquire new customers. In addition, almost the same number of companies use postal direct mailings for targeted prospect management of existing contacts. Data quality in prospect and new customer targeting is becoming a serious cost factor. But many companies underestimate the relevance of data quality in the 1-to-1 approach. Because regardless of the instrument used, error rates correlate with the amount of data.

Studies have shown that on average 17% of all generated address data are corrected. On average, 13% of address data records are so incorrect that delivery is not possible. If you now add the mailing frequency, the dimension becomes clear.

Poor address quality costs thousands of euros a year

An example calculation: 10,000 address data records * 2 monthly mailing frequency = 60,000 letters per year * 0.80 cents for postage (german fees) and printing makes 48,000 euros per year. That’s over 6,000 euros in avoidable costs per year due to poor address quality.

Try to estimate your own numbers. 10,000 addresses is a rather small address database. Many companies even send out more than ten mailings per year. Only a few companies carry out regular address cleansing. An economical approach to prospecting and acquiring new customers looks different.

But what is the reason that address management is treated too stepmotherly in many companies? Why do so many companies regularly burn large sums of money? First of all, too few companies still have a centralized address database. Wild growth often reigns supreme. But without a central address database, address quality management is impossible. It starts with the input of addresses and ends with the regular comparison with postal databases. If an address database already exists, it is often very complicated to update the addresses. Maintaining 10,000 addresses manually is absolutely unreasonable.

Improve address quality easily with Snazzy Contacts

With the Snazzy Contacts address management software, it is very easy to keep data quality high: Either use the software as a central solution and use the smart features for quality assurance or use it as an address hub for central consolidation and redistribution to other systems. The Snazzy Contacts database is updated at the touch of a button.