Deutsche Post Address Validation

Did you know that over 58% of organizations in Germany become victims of fraud? Yes, every Euro lost to fraud costs a German firm €4.18. Moreover, Germany is one of the countries that was hit the hardest by ecommerce fraud last year. One of the primary reasons for this growing number of frauds could be a lack of address verification. Without this, you risk sending a package to the wrong address or losing it forever. 

Additionally, fraudsters might provide fake addresses to claim non-receipt of goods and services. If the documents are legal documents with sensitive information, the problem can escalate to identity theft or misuse. Furthermore, incorporating direct mail marketing for our customers in Germany without address verification can cause misdelivery or non-delivery. 

Considering all this, the Deutsche Post established its address validation wing. In this blog, we will learn about it, the services it offers, its benefits and shortcomings, and an alternative to this solution.

Key Takeaways

• AddressFactory is the Deutsche Post Address Validation system that verifies and corrects addresses. It can also supplement information like geocodes, building names, house numbers, etc.
• It offers various sub-services, each checking and rectifying different address components. For example, with datafactory geocodes, you will get an address’s verified latitude and longitude. 
• While it offers address cleansing and enrichment and is compliant with DHL, its geographical restriction, fake positive addresses, high cost, and disparate service for checking each address element, make it challenging.
• PostGrid’s address verification system is a cost-effective tool. It is one tool for checking and correcting single and batch addresses for various international destinations. 
• PostGrid also provides details to the suite number to ensure correct communication and mail delivery to the right address.

AddressFactory Automatic

This is for organizations that want to clean their data regularly and need updated customer address information. It automates the address comparison and provides address-matching results in 24 hours. Businesses can also request additional data. In addition, it offers address cleansing and enrichment. 

The trial period costs €350 for 2000 requests. Once it is used up, you will be charged a one-time set-up fee of €175 and a provisioning fee of €5 per 100 requested datasets. To use all its functionality, you must check addresses at a minimum value of €100 per month.

AddressFactory Web

It is an online application that provides verified and corrected address data. It cross-checks the information with the postal reference database of Deutsche Post Direkt and returns it after 24 hours. The address is checked for deliverability at the person, household, and building levels. Upon request, you can also get other valuable information about the customer, such as the telephone number, microgeographic information, and geographical location.

Further processing requires automatic structuring and formatting of data; hence, the provision fee and one-time set-up charges are the same as AddressFactory Automatic. However, to avail of this service, you must cross-check at least €250 worth of addresses. Additionally, if you want more services like manual formatting, you must pay €150 per hour.

AddressFactory Tape

This is ideal for businesses that want to update and enrich their customers’ address information according to their requirements. Deutsche Post Direkt has certified this service, which can be accessed online. You can cross-check over 100,000 addresses against the postal reference database and get verified and correct information.

The minimum order value is €750, and you must pay a handling flat fee of €200. Like AddressFactory Web, it requires automatic structuring and formatting; hence, you must bear those charges. If you need additional services like conversion or manual formatting, you must pay €150 per hour.

AddressFactory Direct

This allows eCommerce companies, customer service centers, and payment providers to verify the address while communicating with customers. Through a web interface, the information is cross-checked with the Deutsche Post Direkt postal reference database. It uses modern service technology to integrate seamlessly into your system. The quick address verification prevents inaccurate data entries and fraud attempts.

You can take advantage of the trial period, during which you will receive deliverability status and corrected information for 2000 queries for €350. After the trial period, you must pay a provisioning fee of  €25 per 1000 datasets and a  €175 one-time set-up fee. The minimum order requirement is €100.00 per month.

AddressFactory Delivery

If you send parcels, this service will help you determine whether or not the address is correct. You will receive a verified and rectified address and a DHL routing number through a REST interface. Since the addresses are checked against the postal reference database, they will always be verified. Additionally, you can get any type of address, structured or non-structured, checked through this service. It will minimize the possibility of misdelivery, and you can improve customer satisfaction through quick and accurate deliveries.

You can avail of the free service, which includes 2000 queries for up to six weeks. However, for more address information, you must sign a minimum contract of 24 months. A delivery check for a person, along with corrected data, will cost you €0.0008, and that for a building will be €0.03. This might look reasonable, but there is a catch. You must at least order deliverability and corrected address information worth €1200 per year. You have to pay this amount in advance.

 Also Read: Best Address Verification API

DataFactory provides raw data like postal codes, geopost codes, building data, street directories, and other information that can be integrated into business applications. Businesses can use this optimized delivery route to ensure the package reaches the right place. The geographic data and postal codes can also send targeted and personalized marketing campaigns. They can also tailor their marketing strategies to the region’s buying patterns and preferences.

DataFactory Basic

You can use this to find, verify, and correct postal codes. It will provide you with all the verified and corrected information about Germany’s districts, towns, and cities. You will get accurate postal codes for each destination and postal codes for post office boxes. The data is updated periodically and can be used to correct and maintain your customer data. 

DataFactory Streetcode

If you want to verify the street name and details, this tool provides access to over 1.2 million pieces of street information. You can also get information about postal codes, towns, cities, and municipalities. You can incorporate this information within your customer database. This will ensure that the correct data is stored in the CRM or ERP, thus ensuring proper communication.

Additionally, it will reduce the wasted print and postage costs by ensuring that the marketing materials reach the intended recipient. Moreover, the verified street details help plan an efficient delivery route and minimize the possibility of lost shipments.

DataFactory Building

This provides verified and correct information about over 20 million building details. It includes a unique building ID, postal code information, town, city, street name, and house number. Other information, such as the municipality key, can be obtained upon request. 

DataFactory Geocode

It will provide coordinates about the postal code, street and building number, and districts in Germany. Businesses can use this data to optimize delivery routes, reducing fuel costs and transit times. Accurate geocode will ensure correct delivery and prevent the possibility of delay or returned shipment. Additionally, businesses can use postal code data to identify areas with a major customer population, allowing them to build warehouses, service centers, and new stores.

DataFactory Autocomplete

Deutsche Post Direkt provides 15 autocomplete suggestions in one go if you have incomplete addresses. The suggestions include information on streets, postal codes, towns, cities, districts, and pack stations. The data is sourced from Deutsche Post’s authoritative database. Businesses can use the web interface or integrate the solution into their IT infrastructure.

Address Cleaning and Enrichment

It checks German addresses against Deutsche Post’s official database for misspellings, incorrect format, and missing information. It then corrects them and structures the format according to real-time postal standards. If you want more information about an address, you can request it. This will help businesses make correct deliveries, and these insights will help create effective marketing strategies that yield desirable results.

Correction of Name and Relocation Data

It looks for and fixes any typos, misspellings, and formatting issues within the name in real-time. This helps businesses reduce return-to-sender costs by ensuring accurate deliveries. When customers receive mail with correct spelling, it will build trust and boost loyalty. Additionally, it updates the address data quarterly. Hence, if any customer has relocated, it will also update the new address. This will ensure that the businesses can reach out to the customers no matter where they move. When customers receive mail and packages at their changed address, they will feel valued, which will thus improve retention. 

Shipment Address Data Validation

Businesses can use this solution to check shipping addresses before sending packages to customers. It verifies the information to ensure it is not fake or incomplete, and it then returns the correct address to prevent misdelivery. 

Minimizes the Possibility of Returned Shipment

Returned shipments are costly; you must reship the package to the correct address. The delay in receiving the package will also frustrate the customer and adversely impact your brand’s reputation. With this solution, you will get verified and complete addresses to ensure your package gets delivered to the right person the first time. Identifying and fixing the typos and missing address components prevents the misrouting or possibility of undelivered packages, thus enhancing the customer experience.

Compatible With DHL Code

This solution can verify, correct, and format the addresses according to the DHL shipment standards. It will generate the accurate DHL code for automated sorting and cross-reference the DHL postal database to ensure serviceability. When every address is DHL compliant, it speeds up the processing and delivery and minimizes the possibility of the package being returned.  

Geographical Restrictions

The AddressFactory only verifies and corrects addresses in Germany. It does not offer international address validation, which can be restrictive for businesses with clients worldwide. They will have to purchase an additional address validation tool for other countries. 

Moreover, maintaining that tool will require additional investment. Additionally, with a separate system, the time it takes to return verified and corrected addresses will differ, leading to delays in order processing and delivery. 

Strict Formatting Requirements

Deutsche Post has stringent formatting rules. For instance, the house number must be placed after the street name. Even if an address is technically correct and deliverable but does not meet its standards, the validation system will reject it. This would demand manual intervention, slowing the order processing and delaying delivery.

Potential for Fake Positives

When an address is incorrectly validated as correct, it is called a false positive. AddressFactory may mark a wrong address as correct. When a business relies on this tool to send items, it might result in undelivered or lost packages. If the item is returned, they must find the correct address and reship it. Certain shipping carriers charge an additional fee for address correction. Solely trusting AddressFactory can be costly for businesses. This will also delay the delivery, adversely impacting the customer experience. Disgruntled customers might leave negative reviews on social media platforms, damaging your reputation. 

Additional Services Have to be Requested From Various Sub-Services

As mentioned above, AddressFactory offers many services through its validation process. However, you must request these services specifically to use them. The standard solution verifies and corrects basic address information, such as postal codes, relocation data, and the name of the person or business. 

However, subscribe to its sub-services if you want detailed insights like geocodes, street codes, building details, etc. For instance, if you wish to geocode, you will have to use DataFactory geocode, but if you are looking for building details, you will have to use DataFactory building. Similarly, if you want to improve your data entry efficiency with autocomplete, you must use a separate solution. Running and managing the multi-validation check system can increase the complexity and processing time, delaying the package delivery. 

Expensive

Every sub-service of AddressFactory has a pricing structure that is higher than that of other address validation systems. Moreover, there is a minimum order value wherein you must cross-check the address of a specific cost to avail of the complete service. Not to forget, there is a provision and set-up fee for each sub-service. By combining all this, you can deduce how costly this address validation system is. Moreover, since it only checks German addresses, if you are a business with clients across the globe, you will have to buy and maintain an additional validation system. 

If Deutsche Post Address Validation’s limitations have you wondering about a suitable alternative, look no further. PostGrid offers a comprehensive address verification solution that can be utilized through an API, software, or cloud solution. Let’s examine what makes our system better than Deutsche Post Address Validation.

International Address Verification

Unlike AddressFactory, we can verify, standardize, and offer autocomplete suggestions for addresses in over 250+ countries and territories. We will cross-check every address against the authoritative postal standards of that country and return a verified and well-formatted address. Take, for instance, that your customers or clients live in the USA, and you have to send them a courier from Germany. We will check the USPS database and provide the correct and standardized address to ensure accurate delivery.

Get All the Information From One Service

As mentioned, AddressFactory requires you to subscribe to multiple services to gather different address components. However, with our solution, you will get all the insights with just one search. Whether you are looking for geocodes, ZIP codes, city, state, apartment, floor, or suite numbers, our solution will provide all the details in one place. Moreover, if the information you entered in your address is missing, our delivery point validation service will notify you to add it. Additionally, we provide real-time address autocomplete suggestions while we verify the address. This will speed up the data entry and prevent errors when manually adding the address. 

Cost-Effective

We offer a wide range of pricing structures to suit different business requirements. Whether you need to verify addresses once a month or regularly, we have packages for all kinds of businesses. Moreover, we do not charge any setup, provisioning, or hidden fees. You will only pay for the features that you want. Additionally, you are not obligated to verify a certain number of addresses to avail of all our features. Our solution will validate single and bulk addresses with the same efficiency. 

Address Update According to Change of Address Database

You will get the latest address information with us, even if your clients or customers have moved. Let us assume that your client lives in the USA and has recently moved to a new city. When you enter their address into our system, we will cross-reference it with the NCOA database and provide you with an updated address. This information will be instrumental in preventing failed deliveries and marketing wastage due to non-deliverability.

Residential Delivery Indicator

Some shipping carriers charge different prices for residential and commercial zones. Determining the type of address gives you the freedom to charge an accurate amount from the customers. By ensuring transparency, you can enhance the customer experience. This information will also help you gather insight into traffic patterns, which you can use to optimize delivery vehicle routes. Moreover, the address type can help you understand the customer behavior by zone. You can use this information to devise targeted marketing strategies that yield desirable results. 

From the details above, it is clear that PostGrid’s address verification solution trumps Deutsche Post’s address validation. No matter the kind of address component you need, the country your customer lives in, or the number of addresses you have to verify, we are your one-stop solution. Talk to our sales team today to see us in action.