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What are ZIP+4 codes? Why your business should care

Ashly Arndt

Whether you need to enter your address online to make a purchase or provide your zip code when verifying your identity on the phone, you’re more than likely to sound off a combination of five different digits.

But, if you pay attention to the address labels affixed to the miscellaneous items you receive in your mailbox on any given day, you’ll notice that your address has now transformed into a nine-digit number with an added 4-digit extension. This is referred to as your ZIP+4 code.

What impact do ZIP+4 codes have on your business? In this article, we’ll cover why these additional zip code digits exist, why they matter, and how an address validation service can help you get started.

What are ZIP+4 Codes and why do we have them?

Let’s breakdown a 9 digit zip code and what these different numeric values mean for an address:

The first 5 digits: The beginning of a zip code, or the 5 digits we are traditionally accustomed to using, refer to the specific delivery area of the country of a given address.

The final 4 digits: ZIP+4 codes include an addition 4 digits that identify and tell the postal carrier the geographical segment present within a zip code delivery area.

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It’s important to note that the ZIP+4 codes are only appended to the original 5-digit USPS® Zip Code after the address has been validated and standardized.

Why do these added 4 digits matter? These additional appended numbers help to ensure the quickest and most accurate mailing process possible. While only the first 5 digits of a zip code are required to send mail, you’ll find that your customers can enjoy expedited delivery time stemming from the specific geographical information translated by a ZIP+4 code.

ZIP+4 Codes | How Experian improves address verification

ZIP + 4® verification software verifies US addresses down to their USPS® 9 digit ZIP code™. When performing address verification with a ZIP + 4®, the user can pinpoint an address down to a few block radius.

Although many people do not know their ZIP + 4®, Experian Address Verification adds the ZIP + 4® to every recognized address. This helps to ensure delivery, hence saving time and money. Zip + 4® verification software works both on the front-end and the back-end.

On the front-end, the ZIP + 4® will be added upon entering the address. Meanwhile, with back-end address correction software, the ZIP + 4® will either be added or corrected for all existing addresses.

What ZIP+4 means for your business

If you’re accustomed to using solely a 5-digit zip code, you’ll miss out on the numerous benefits enjoyed by businesses who leverage a ZIP+4 system, including:

1. Quicker deliveries.

As noted above, the additional specified information offered by a ZIP+4 code means faster delivery for your customers. The extra information supplied traditionally reduced processing time at mailing centers, which means that a package arrives to the consumer quicker.

2. Delivery accuracy

Whenever postal carriers have access to more information, the likelihood of a package or piece of mail landing in the proper mailbox significantly increases. The correct ZIP+4 decreases the number of times a piece of mail is handled, too. This means that misdelivery or error is significantly reduced as a result.

3. Access to updated information

Since ZIP+4 codes are based on delivery routes, this information can change as frequently as once every two months. Fortunately, this is where an automated address validation software will come in handy and allow you to stay on top of updated and accurate user data.

4. Reduced costs

Anytime mail gets sent to the wrong address, your business may take on the costs associated with:

  • Initial shipment costs
  • Product replacement
  • Reshipment

Implementing a ZIP+4 code system into your business’s system of labeling and processing packages will serve as a preventative measure that safeguards your business against lost revenue associated with incorrectly delivered mail.

5. Increased customer satisfaction rates

In today’s digital-forward society, online purchases have become a part of most individuals’ everyday routine. This means that now, more than ever, your clients expect a seamless shopping experience. The expectation for fast and accurate delivery is at an all-time high. With ZIP+4 codes, your customers will enjoy faster delivery with a reduced chance of undelivered mail. For your business, this means satisfied customers who are happy to do repeat business with your company.

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