Chris Baggott recently reported on an excellent study by Fresh Address, Inc.
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In this study it was found that in its “Email Address Validation Study of Fifty Top Retail Web Sites.” … none of the tested websites successfully blocked the most common email address registration errors, thus allowing typos and undeliverable email addresses into their databases. The average cost to each of these retailers is $6.7 million dollars annually in lost sales.
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After a holiday season where online sales were at a record high and major companies are announcing up to 30% increases in their 2006 online advertising budgets, inaccurate databases can create significant problems. By averaging the conversion and customer-value rates provided by Internet Retailer, it is estimated that over $500,000 per month, per retailer, is lost due to faulty email address validation.
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When you consider that this particular problem is not that hard to solve, it is pretty amazing that it exists at all. When you consider the deliverability of e-mail as an issue, and the resultant loss of revenue coupled with the ease of correction, its something that every company needs to take care of immediately.
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According to FreshAddress, Inc. President, Austin Bliss, “The solution is to provide a simple, user-friendly process that immediately identifies invalid email addresses and offers intelligent corrections. After years of perfecting and utilizing validation technology in-house, we now offer this Real-Time Email Address Validation service to our clients. The interest has been incredible.”
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As simple as that these online retailers could have added $500,000 a month to their bottom line.
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