Leveraging location data to maximize efficiency & cut costs

Modern businesses need two things to survive. The first is a flawless customer experience. It is not enough to have great products or services, customers want instant gratification. According to a report by Salesforce, 45% of consumers have said they will switch brands if a business doesn’t anticipate their needs.

The second need for successful businesses is a solid data strategy. The big data industry is worth over $160 billion, and is rapidly growing because businesses rely on information to make decisions on everything from strategy and customer profiles to quality and delivery.

In many industries, data and experience come together with straight-through processing. Using location data and customized algorithms, companies can provide a simple, instant digital process to keep customers from navigating away before they commit to a purchase. Straight-through processing is increasingly being applied in new ways because, done right, it dramatically streamlines and simplifies the customer experience.

What is straight-through processing?

In its simplest form, straight-through processing is a way of conducting transactions without manual intervention.

In the insurance industry, this might look like generating real quotes for customers through a web site within minutes. For an e-commerce merchant, straight-through processing can be used to authenticate the billing and delivery process. In health care, payment claims can be done using straight-through processing, and other areas, such as prescription drug verifications, are beginning to explore the possibilities.

Once it is set up, straight-through processing is fully automated, so it saves businesses the cost of hiring, training and maintaining employees for verification purposes. It also speeds up the entire process, so more transactions can be served daily, bringing in more revenue. Finally, when used correctly and with good data, straight-through processing reduces errors, so the resources spent on correcting issues and interfacing with unhappy customers can be expended elsewhere.

Why is accuracy in straight-through processing important?

For all of the benefits of straight-through processing, it does have an Achilles’ heel. Automated transactions rely on user input. When consumers type in their personal information, there are almost unlimited opportunities for errors. A slip of the finger, an exhausted brain, accidental duplication, adding data to the wrong field or even intentional falsehoods are all possible. Every one of these mistakes can have catastrophic consequences on the back end.

For example, if someone submits an address for the purpose of obtaining a homeowners insurance policy, and they use an old street name that has since been changed, the automated system may misunderstand where the property is located. The home could be at severe risk of flooding or landslides, but if the address is incorrect, the generated quote would not account for these problems. The insurer is now faced with either eating the costs that weren’t covered or facing upset customers.

Accurate location data makes a huge difference in so many facets of business. When straight-through processing is in use, it is vital to have a reliable autocomplete system enabled, along with address verification software. These automated checks protect the location data and the process, ensuring that everything runs smoothly.

Can improved location data intelligence save money?

We have already discussed how a simple error in an address can jam up straight-through processing. Accurate location data, on the other hand, can reduce costs and help businesses make better decisions.

In addition to address verification and autocomplete, rooftop geocoding contributes another layer of data accuracy. Rooftop geocoding is the process used to convert address data to an actual point on a map. Geocoding goes beyond address data to provide precise locations when it matters most.

Going back to our insurance example, when a customer puts in a location, after the address is verified, if the building is on a large parcel of land or part of a larger family of addresses (ei: a condo complex or mini mall), there may still be hidden risk factors that straight-through processing algorithms are not taking into account. Integrated rooftop geocoding, however, would pinpoint the exact location of the structure. The more information the program has, the better the estimates come out on the front end.

Just this year, VentureBeat reported the results of a survey where most data engineers estimated that bad data impacts 25% or more of company revenue. Paying more attention to location data and adding tools that improve accuracy can help mitigate the costs of bad data. Additionally, upgraded location data tools like address verification and rooftop geocoding can save hundreds of hours. There is little doubt that better location data is better for the bottom line.

Companies across a variety of industries are looking to straight-through processing as a way to save money and increase efficiency. However, without solid location data behind the process, it may prove counterproductive. Location data is one category of information that is often overlooked and underutilized. Accurate address information is vital to both the customer experience and the way businesses operate.

Wes Arnold, product marketing team lead for Smarty, oversees all non-search marketing efforts at Smarty.  From emails to videos to swag, he helps build the Smarty brand. Prior to Smarty, Wes worked at TestOut as a Product Marketing Manager and Demand Generation Manager where he helped TestOut grow exponentially. He also worked at Certiport as a Product Marketing Manager, creating strategic marketing plans and driving demand for technical certification programs. Wes has an incredible ability and years of experience in finding fun ways to convey value and solutions to customers.

Opinions expressed here are the author’s own.

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