Staying connected with your customers is crucial—and messaging is one of the most powerful ways to do that. Two of the most popular tools for reaching out are SMS (Short Message Service) and MMS (Multimedia Messaging Service). 

Both are tried-and-true options; 90% of people read a text message within the first 3 minutes. They each have their own unique strengths and are best suited for different situations. Whether you're sending a quick reminder or a promotional campaign, understanding when to use SMS vs MMS can make all the difference.

In this blog, we’ll explore the definitions, features, pros, cons, and use cases for both SMS and MMS. Plus, we’ll show you how to incorporate these services into your business communications with Plivo’s SMS API.

Overview of SMS and MMS

What is SMS?

SMS, or Short Message Service, is a text messaging service that allows users to send short text messages of up to 160 characters. This service is widely supported on all mobile devices. It does not require an internet connection, making it an ideal communication tool for businesses that need to reach customers quickly and reliably. 

SMS features

• Text-Only: SMS is limited to text-based messages, making it simple and straightforward.
• Cost-Effective: SMS is generally cheaper than MMS, as it uses less data.
• No internet required: SMS works on any mobile network and doesn’t require an internet connection.
• Universal compatibility: It’s supported across nearly all mobile devices, making it a go-to for businesses that want to reach a wide audience without worrying about device or platform compatibility.

What is MMS?

On the other hand, MMS, or Multimedia Messaging Service, is an enhanced version of SMS. It allows for multimedia content such as images, videos, audio files, and even longer text (more than 160 characters). 

MMS enables businesses to send richer, more engaging content, but it comes with different requirements compared to SMS, including internet connectivity. 

MMS features

• Multimedia support: MMS messages can include rich content such as images, videos, and audio files, allowing businesses to engage customers in more creative ways.
• Longer messages: Unlike SMS, MMS can accommodate longer text and media content, giving businesses more flexibility in their messaging.
• Requires Internet: Since MMS uses data to send multimedia content, a stable internet connection (either through mobile data or Wi-Fi) is necessary.
  

SMS vs. MMS: Key Differences

What are the pros and cons of SMS? 

Pros:

• Low-Cost: Since it is a text-only format, SMS is generally more affordable, making it an excellent choice for high-volume messaging such as reminders, alerts, and notifications.

To get a better understanding of the costs associated with SMS, check out this pricing table by Plivo CX. 

• High reliability: SMS has a reputation for being reliable. Messages are typically delivered quickly and are less prone to technical issues than other methods of communication.
• Universal support: SMS can be received on any mobile device, regardless of the operating system, so it has a broader reach compared to MMS.

Cons:

• Text-Only limitation: The 160-character limit restricts the content you can send. This is fine for quick alerts or transactional messages but isn’t ideal for sending detailed information or marketing materials.
• Lack of visual appeal: Since SMS is plain text, it doesn’t allow for the use of visual elements, which can make it less engaging than MMS for certain campaigns.

What are the pros and cons of MMS?

Pros:

• Rich content: MMS allows businesses to send images, videos, and audio, making it a great option for engaging customers with rich media content. It’s an ideal choice for businesses running product promotions, event invitations, or advertising campaigns.
• Longer messages: MMS can accommodate longer text messages, so it’s a good option for sending detailed information such as product descriptions, user guides, or promotional offers.

Cons:

• Higher cost: Because MMS uses more data and supports multimedia, it’s generally more expensive than SMS. This can add up if you’re sending large volumes of messages.
• Requires Internet connectivity: MMS requires a stable Internet connection, which can be a limitation for some users, particularly in areas with poor network coverage.
• Device compatibility: Not all mobile devices support MMS, so there may be issues with delivering messages to some users, particularly those with older phones.

When can you use SMS and MMS?

When to use SMS?

SMS is ideal for scenarios where you need to send quick, actionable messages. Some typical use cases include:

• Transactional messages: Order confirmations, shipping updates, and payment receipts are perfect examples of transactional SMS messages that can be automated and sent quickly to keep customers informed.
• Alerts and reminders: Businesses in healthcare, education, and service industries often use SMS to send reminders, appointment confirmations, and urgent alerts to customers or employees.
• Customer support: SMS can be used for simple customer support queries or updates, offering a quick and reliable way to engage with clients.
• SMS marketing: SMS marketing allows businesses to send personalized offers, promotions, and reminders directly to customers’ mobile phones. With high open rates and instant delivery, it’s an effective way to boost engagement and sales.

When to use MMS?

MMS is a better choice when you need to make your message stand out visually. 

Consider MMS for:

• Marketing campaigns: Whether you’re running seasonal promotions, launching new products, or hosting an event, MMS allows you to include visuals that can make your message more attractive and persuasive.
• Product demonstrations: Sending videos or images of a product in use can help enhance customer understanding and boost sales.
• Engaging communication: MMS is perfect for engaging your customers with interactive content, such as customer surveys or contests that require visual input.

How do SMS and MMS pricing compare?

• SMS: Typically cheaper than MMS, SMS is the go-to option for businesses that need to send messages in bulk. Since it’s just text, it uses minimal data, making it cost-effective.
• MMS: Because MMS includes rich media and often requires internet data, it tends to be more expensive. However, the additional cost is often justified when sending visually rich content or longer messages.

How are SMS and MMS used across various industries? 

SMS is a popular choice across a variety of industries due to its cost-effectiveness and reliability. Some practical applications include:

• E-commerce: SMS is widely used for order confirmations, delivery updates, and time-sensitive promotions.
• Healthcare: Reminder messages for appointments, prescriptions, or vaccinations are helpful for healthcare providers, and SMS offers a quick, no-frills way to reach patients.
• Finance: Banks and other financial institutions use SMS for transaction alerts, balance updates, and 2FA (two-factor authentication) for enhanced security.

MMS is best for businesses that rely heavily on visual appeal and need to engage their audience through multimedia. Practical applications include:

• E-commerce: Sending product images, promotional videos, or interactive content like discount coupons can drive sales and improve customer engagement.
• Event promotions: Companies organizing events can use MMS to send invitations with multimedia content, such as event flyers or teaser videos.
• Tourism & hospitality: Hotels or travel companies can send beautiful imagery of destinations or services to entice potential customers.

How do you choose between SMS and MMS for your business? 

Deciding between SMS and MMS depends on the type of message, your budget, and the experience you want to create for your audience. Let’s break it down:

Content-type

If your goal is to deliver quick, actionable updates or reminders, SMS is the ideal choice. It’s concise, text-based, and doesn’t rely on multimedia. However, if your message requires visuals or longer, more engaging content—such as product promotions, event invites, or tutorials—MMS is a better fit. Think of SMS as a straightforward memo, while MMS is your creative flyer.

Cost considerations

Budget is a key factor. SMS is more cost-effective, especially for high-volume campaigns like reminders or notifications. On the other hand, MMS is pricier due to the inclusion of media but delivers stronger visual appeal. Use SMS for routine messages and MMS for campaigns where visuals can significantly enhance impact.

User experience

Consider how your audience will receive and interact with your message. SMS is universal and works on all devices, making it reliable for a broad audience. MMS, while more engaging, requires internet access and may not display properly on older devices. If visuals or detailed content will improve the customer experience, MMS is worth the investment.

By aligning your choice with your communication goals, budget, and customer expectations, you can effectively leverage SMS and MMS to meet your business needs.

How Plivo’s SMS API can help your business

Plivo’s SMS API is designed to simplify and enhance communication with your customers. Here’s how it can benefit your business:

How SMS Can Benefit Your Business

Plivo’s SMS service can help businesses improve communication with their customers in many practical ways. Here’s how:

• Automate customer interactions: Send automated notifications like order confirmations, payment updates, and appointment reminders to save time and ensure timely messaging.
• Global reach, local presence: Communicate with customers in over 220 countries and customize your sender ID to appear local, helping build trust with your audience.
• Engaging content with MMS: Add images, videos, or GIFs to your messages to make them more visually engaging—perfect for marketing promotions or special offers.
• Track performance: Monitor message delivery and engagement in real time so you can adjust your approach and improve customer interaction.
• Two-way communication: Enable direct conversations with your customers through SMS, whether for surveys, feedback, or customer support.
• Scalable messaging: Whether you need to send a few messages or thousands, the service scales to your needs with reliable delivery.
• Compliance & security: Ensure messages meet regulatory requirements while keeping your customers' information safe and secure.
• Cost-Effective: With flexible, pay-as-you-go pricing, you only pay for what you use—offering an affordable solution for businesses of all sizes.
• Easy integration: Quickly set up with clear documentation, making it simple to integrate SMS into your business processes.

Start using Plivo’s SMS API today to streamline your communication and engage your audience through SMS or MMS—whichever best fits your business needs. Click here to book a free trial.

For 8 out of 10 marketers, location-based marketing has emerged as an excellent marketing strategy to personalize promotions and send more timely messages to consumers to boost customer engagement. As a result, companies are continuously increasing their budgets on location-targeted mobile ads. 

As a case in point, the ad spend on location-based promotions went up from $21.4 billion (USD) to approximately $32 billion in 2023. 

One of the popular ways to do location-based marketing is SMS geofencing. In this post, we will discuss SMS geofencing in detail, how it works, and how eCommerce businesses can implement it. 

What is SMS geofencing?

SMS geofencing is a location-based marketing strategy where brands send geo-targeted text messages to customers whenever they are in specific areas.  

As part of SMS geofencing, companies create 'geofences' or virtual boundaries around which they want to do marketing.  Whenever a consumer enters this geofence, they get an automated message.  

For example, a retail store can send automated geo-targeted text messages to shoppers whenever they are near a store. Geofencing enables hyper-targeted marketing for better conversions.

According to the latest data, geofenced advertisements have achieved an average CTR of 7.5%, significantly higher than the average CTR for Facebook ads across all industries, which stands at 0.9%. 

Moreover, it drives significant results for brick-and-mortar businesses, increasing store traffic by 20% and doubling in-store visits while boosting mobile ad engagement by 50%.

How does SMS geofencing work, and can eCommerce brands set it up?

SMS geofencing technique typically uses GPS, cellular network data, or Wi-Fi positioning to track consumer location and accordingly send messages.

eCommerce brands can embed location tracking services in their app or use background location services with user permission to track the location of consumers and then trigger SMS whenever they enter any geofences. 

However, that's not always feasible. The opt-in rate means how many people choose to allow any kind of app tracking is approximately 25%. Consumers are not always comfortable allowing live location tracking. In that case, brands are supposed to look for alternatives to do location-based SMS marketing.

How to do location-based SMS marketing for eCommerce brands

While you can't always track the live location of consumers, you could still use the static location data of customers for marketing. You can ask for customers' current location information while they are signing up for the SMS list. 

Here is a step-by-step guide to how to plan location-targeted campaigns: 

1. Choose an SMS marketing platform

The first step is to choose an SMS marketing platform that will enable you to capture customer locations and run these campaigns.

Key features to look for in an SMS marketing platform are:

• Embedded opt-in form for the website to get customers' registration for SMS
• Segmenting users based on location
• AI-based copywriting assistant for quick campaign creation
• Scheduler for SMS campaigns
• Inbuilt reporting module to draw campaign insights

2. Collect data

You can collect consumer location information during the sign-up process. SMS marketing platforms allow the creation of embedded opt-in forms on the website. 

Then, add a location field (state, zip code, city, etc.) to the opt-in form to gather this data.

Alternatively, you can also use the profile addresses of consumers as the location for marketing. 

3. Segment data

Once you have gathered customer data, now it’s time to put that data to work. Segment subscribers based on location to run targeted campaigns for any location. 

4. Create campaigns

You have the most important information now, i.e., location segment. It's time to create campaign messages. SMS marketing platform provides ample templates for creating messages. 

Further, top SMS marketing platforms also have AI-based copywriter features that quickly create campaign messages based on some inputs (type of campaign, target audience, intent, etc). 

While marketing teams can take charge of campaign creation, these in-built templates and AI can fast-track the creation process.

5. Schedule campaigns

Location-based campaigns can be both ad-hoc or automated. You can plan ad-hoc campaigns based on seasons, festivals, events, or trends. 

For instance, promoting summer wear for the states facing heatwaves. Schedule these campaigns in the SMS marketing platform. 

Having location information also allows marketers to personalize automated campaigns like cart abandonment, new user sign-up, winback, and more based on area. 

6. Measure and optimize

Lastly, don't forget to track important KPIs of campaigns such as open rate, click rate, converted rate, and revenue. 

This information will help you identify what's working and what's not for running more effective location-based campaigns. 

Run effective location-targeted campaigns with Plivo CX

Plivo CX is an SMS marketing platform offering end-to-end features for all location-based campaigns.

With Plivo CX, you can:

✅Get customers to opt-in and share location details

✅Segment subscribers based on location for better targeting

✅Create personalized location-targeted content for campaigns with in-built templates and AI-powered copywriter

✅Launch campaigns with ease

✅Build reports to track key metrics

You get an end-to-end solution that complies with all government regulations for safeguarding customer data. 

What’s best is that we use a proprietary premium carrier network, assuring you higher deliverability and affordability. You can over 220 countries/territories with higher deliverability for as little as $0.0065. 

Schedule a demo today to start planning your location-based marketing campaigns.

Frequently Asked Questions (FAQs)

1. Is geofencing marketing legal?

Yes, geofencing marketing is legal if you comply with local laws and regulations: 

• Obtain customer consent: You get customer consent to track location.
• Provide opt-out options:  Customers can opt out of tracking anytime.
• Comply with privacy laws: You are following data privacy acts to safeguard customer data. 

2. What is the purpose of geofencing?

Geofencing allows brands to send hyper-personalized messages to consumers based on their current location. It increases the chances of engagement and conversion. 

3. How can businesses use geofencing?

SMS geofencing can be used in a variety of sectors:

1. Retail: Notify nearby customers about ongoing sales, special offers, product restocks, or new arrivals to encourage store visits.

2. eCommerce: Recommend nearby physical stores to customers based on their location.

3. Hospitality: Hotels and restaurants can greet customers with check-in information, special promotions, or menu recommendations when they arrive.

4. Events: Organizers can provide guests with event schedules, site maps, and updates as they arrive, ensuring a smooth experience.

5. Transportation: Passengers waiting at specific stops or terminals can receive real-time updates on routes, delays, and promotions. 

4. How can businesses use geofencing in conjunction with other marketing?

Geofencing can be effectively used to personalize the following marketing channels:  

1. SMS Marketing: Trigger SMS messages based on user location within a geofence.

2. Email Marketing: Send targeted emails to customers based on their location or recommend nearby stores.

3. Social Media Marketing: Run targeted social media ads to users within a specific geographic area.

4. Push Notifications: Send push notifications with location-based offers to users of your mobile app.

Despite her ambition as a Shopify store owner, Sophia was struggling to connect with her customers. Her email open rates were not adequate, and the social media posts weren’t reaching enough people. Despite best efforts, her promotional campaigns did not generate the buzz she’d hoped for.

However, things changed when she discovered SMS marketing. With consistent and timely campaigns, Sophia saw optimistic outcomes—most of her messages were opened, and customers responded within minutes. The personal touch of SMS helped her reach customers in ways email and social media simply couldn’t.

If you are in a similar situation where SMS marketing is already helping you reap the benefits of one-on-one engagement with customers, here are the top 7 free SMS marketing tools to get the maximum ROI from your next campaigns.

Top 7 free SMS marketing tools to drive higher ROI

Choosing the right SMS marketing tool can make all the difference in scaling your e-commerce business. Here’s a quick comparison of the top free SMS marketing platforms:

Each tool in this list offers unique benefits to fit varying business needs. We have compiled the strengths and weaknesses, along with key features, to help you determine which SMS marketing tol best fits your business.

1. Plivo CX

Plivo CX is a cloud-based omnichannel customer engagement platform with advanced SMS marketing capabilities. It offers automated content creation, high personalization for better deliverability and exceptional reliability through its low-latency, proprietary carrier network that spans 220+ countries.

Moreover, Plivo's SMS API enables businesses to send and receive text messages globally with features like delivery tracking, two-way messaging, and high throughput. You can quickly set up a messaging application by configuring an SMS-capable phone number and integrating Plivo's REST API with your application.

With Plivo CX, you can cut down SMS marketing costs by up to 70%! 

Key features

• Audiences: Organize and segment customers based on key attributes for personalized marketing
• Timing and frequency: Schedule messages at optimal times across time zones for maximum impact, ensuring compliance with regulations
• Campaigns: Integrate SMS with other channels for unified messaging. Strategically schedule your campaigns to maximize reach and effectiveness at the right time
• Copywriter AI: Use AI capabilities to improve messaging and create highly customized content based on your campaign objectives and message length
• Channels: Engage customers across various channels for better conversion

With Shopify integration, easily sync SMS campaigns with your store, segmenting customers and sending personalized messages at optimal times. Connect with customers across their preferred channels, ensuring a smooth experience.

Pros

• Easy setup: Setting up is easy, with user-friendly API integration, and is affordable (source)
• Dedicated support: The platform offers timely customer support and quickly adapts to custom use cases, delivering tailored solutions to meet specific needs (source)
• Cost-effective: Global coverage and proprietary network help cut down SMS campaign costs
• Unified platform: Run outbound WhatsApp marketing campaigns AND provide seamless customer support, all within a single platform. Streamline your customer interactions and elevate the experience
• Flexible integration: You can also integrate the tool with homegrown systems 
• AI-powered SMS content: The Copywriter AI reduces reliance on lengthy content creation and optimization processes, aligning speed with data-driven personalization required for an impactful campaign

Cons

• Pricing is a concern for some users, especially with advanced features. (source)
• Currently, the engage capability is exclusive to Shopify stores, though it's designed for all e-commerce brands

Ratings & reviews

• G2: 4.5/5 (728 reviews)
• Producthunt: 4.9/5 (45 reviews)

2. Klaviyo

Klaviyo is an email marketing, SMS, and marketing automation platform that helps businesses build stronger customer relationships. Klaviyo helps businesses optimize customer acquisition, retention, and growth through data-driven, personalized messaging.

Klaviyo key features

• Smarter sending: Personalize customer journeys by integrating SMS with other channels and data
• Multichannel flows: Create cohesive messaging strategies with cross-channel automation
• Multichannel segmentation: Target specific audiences to send relevant, timely messages

Pros

• Quick customer engagement via SMS and push notifications (source)
• The platform offers predictive analytics tools that help businesses forecast customer behavior (source)

Cons

• Expensive, and it lacks more customization options for pop-up blocks (source)
• Overwhelming for beginners, with a steep learning curve for advanced features (source)

Ratings & reviews

G2: 4.6/5 (1056 reviews)

Capterra: 4.6/5 (461 reviews)

3. Postscript

Postscript is an SMS marketing platform designed for e-commerce brands. It allows brands to create personalized SMS campaigns, drive sales, and improve customer retention.

Key features

• Audience growth: Build a compliant, engaged subscriber list with various opt-in tools
• Personalized messaging: Automate targeted conversations using segmentation and response branching
• Behavior-based offers: Drive revenue with tailored offers based on customer actions

Pros

• Deep integration with Shopify allows seamless synchronization of customer data (source)
• Many report significant improvements in engagement and sales metrics (source)

Cons

• The pop-up features are somewhat limited in customization options, which may affect the ability to tailor them to specific branding needs (source)
• No option to re-opt-in customers who had previously opted out (source)

Ratings & reviews

G2: 4.9/5 (159 reviews)

Capterra: 4.5/5 (6 reviews)

4. Omnisend

Omnisend’s email and SMS marketing platform is designed to help e-commerce businesses automate and personalize their communications. It offers a range of features to help businesses manage their customer relationships.

Key features

• Email & SMS automation: Efficiently reach customers through tailored messaging
• Advanced segmentation: Target customers with personalized campaigns based on their behavior and preferences
• Reporting & analytics: Track the performance of campaigns and make data-driven decisions

Pros

• Offers a variety of built-in templates and automation features, making campaign management easy and efficient (source)
• The platform allows users to build customized automated messages within its visual automation editor (source)

Cons

• Lacks advanced multi-channel marketing features, particularly for SMS and push notifications (source)
• The product picker feature can occasionally malfunction (source)

Ratings & reviews

• G2: 4.6/5 (907 reviews)
• Capterra: 4.7/5 (803 reviews)

5. Twilio

Twilio enables businesses to build personalized customer relationships using communication tools across multiple channels. The platform enables easy integration of messaging, voice, email, video, and more with a scalable infrastructure.

Key features

• Multi-channel communication: Supports SMS, MMS, and WhatsApp for diverse messaging needs.
• Global reach: Operates in over 180 countries, enabling international communication.
• Real-time delivery tracking: Provides analytics for monitoring message delivery and engagement.

Pros

• The platform is designed to scale with your business, accommodating growth from startups to large enterprises (source)
• Twilio can connect with numerous popular platforms and services, streamlining workflows (source)

Cons

• The pay-as-you-go pricing model offers flexibility but can become expensive with high usage volumes (source)
• Setting up certain functions can be confusing (source)
• The function execution time is limited to 10 seconds, and an account can execute up to 30 Functions concurrently (source)

Ratings & reviews

• G2: 4.2/5 (476 reviews)
• TrustRadius: 7.1/10 (216 reviews)

6. Brevo

Brevo offers a comprehensive suite of email marketing, SMS campaigns, and customer relationship management tools. It provides an all-in-one solution for businesses to manage communications, automate workflows, and track performance.

Key features

• Automated workflows: Set up automated SMS workflows for timely customer interactions.
• Bulk and transactional SMS: Send both bulk promotional messages and transactional SMS for flexible communication.
• Pre-paid SMS credits: Manage costs effectively with SMS credits that do not expire.

Pros

• The pricing model is considered affordable, especially for small to medium-sized businesses (source)
• It allows users to send different versions of a campaign to two different test groups (source)

Cons

• The CRM features are considered by some to be confusing and somewhat limited (source)
• Some users find the available email templates to be limited (source)

Ratings & reviews

• G2: 4.5/5 (2142 reviews)
• Capterra: 4.6/5 (2548 reviews)

7. EngageBay

EngageBay is an all-in-one marketing and sales platform for small to medium-sized businesses, including email marketing, lead scoring, and campaign automation. Its budget-friendly plans make it ideal for small teams looking to implement SMS marketing without hefty costs.

Key features

• Email marketing: Create email campaigns, automate workflows, and track results effortlessly
• CRM: Manage contacts and automate workflows efficiently with their user-friendly CRM
• Marketing automation: Automate marketing workflows, nurture leads, and improve your conversions

Pros

• Users find the marketing automation tools particularly beneficial (source)
• Well-suited for small to medium-sized businesses due to its features and competitive pricing (source)

Cons

• The lack of autosaving emails and the complex UI are less user-friendly. (source)

Ratings & reviews

G2: 4.7/5 (400 reviews)

Trustpilot: 4.9/5 (632 reviews)

Plivo CX: The free SMS marketing tool for the best ROI

The free options listed here provide a solid starting point, but if you're looking for a powerful, integrated solution, Plivo CX offers exceptional features for launching effective SMS marketing campaigns.

Plivo CX helps small and midsized e-commerce businesses and Shopify merchants increase customer engagement with advanced messaging tools. With features designed to drive conversions and re-engage customers, it stands out as an ideal tool for Shopify users.

Here’s why Plivo CX is the perfect choice for your SMS marketing campaigns:

• Welcome new customers: Engage first-time subscribers with personalized messaging and exclusive discounts to encourage their initial purchase.

• Send exciting campaign announcements: Alert customers to product launches, flash sales, or restocks to drive immediate action.

• Recover abandoned carts: Send timely reminders with incentives to help customers finish their purchases.

• Leverage browsing activity: Use session data from your e-commerce store to create targeted SMS messages. 
• Segment customers effortlessly: Segment customers based on past behavior to send more relevant, personalized messages.

• Re-engage current customers: Send product alerts, reminders, and feedback requests to reignite interest and loyalty.

Scaling SMS campaigns with Plivo CX is cost-effective. As your business grows, you’ll benefit from volume discounts that reduce messaging costs. This flexible pricing helps e-commerce stores manage budgets efficiently and scale their SMS marketing.

This all-in-one tool simplifies SMS marketing, making it instantly easier to connect with customers and optimize your e-commerce strategy.

To see its impact for yourself, start for free today.

Passwords have long been the standard for digital security, but they come with risks like phishing and data breaches. Weak or reused passwords make us vulnerable to attacks, often putting both personal and company data at risk.

The solution? Passkeys. These are passwordless credentials that offer stronger security by eliminating many of these vulnerabilities. As businesses shift to passkeys, they get a safer, more convenient way to authenticate users, reducing the risks tied to traditional passwords.

By combining passkeys with OTP verification, you can create a multi-layered defense that significantly enhances security against online threats. While passkeys provide a seamless and secure method of authentication, OTPs act as a backup, adding an extra layer of protection in case of device changes or account recovery scenarios.

What is a passkey?

Passkeys are an advanced form of passwordless authentication that provides a more secure and user-friendly alternative to traditional passwords. They combine a browser API with an authentication device, such as your phone or computer, to generate unique credentials for each website or service you use. 

This means that a passkey created for one site can only be used on that specific site, offering an added layer of protection against phishing attacks and unauthorized access.

One of the key features of passkeys is their built-in multi-factor authentication. In addition to possessing the authentication device, you must also complete an action, such as scanning your fingerprint or entering a PIN. This dual verification ensures that even if a device is lost or stolen, bad actors cannot easily access your accounts.

Passkeys can also be synchronized across multiple devices through passkey managers, like those offered by Apple or Google. This makes it easy to sign into your accounts on different devices or recover access if you lose your original authentication device.

Passkeys' security and reliability are based on widely recognized standards developed by the W3C and FIDO Alliance, including WebAuthn and the Client to Authenticator Protocol (CTAP). These protocols make passkeys one of the most robust forms of authentication available today, ensuring that your online accounts remain secure and easy to access.

What technology goes behind passkeys?

Passkeys utilize public key cryptography, ensuring that the private portion of the credential is never shared with the website and no sensitive data is exchanged between the user’s device and the server.

To enable passkeys, an authenticator, such as a mobile device or password manager that supports this feature, generates a pair of cryptographic keys for each account. One key, the public key, is stored on the site where the account is created, while the private key remains securely stored on the authenticator. 

When logging into an account with a passkey, the authenticator and the website exchange data to confirm the user’s identity without transmitting any secret information that hackers could intercept.

Passkeys are generated using the WebAuthn API, a widely supported technology across modern browsers and operating systems. The software largely handles the underlying complexity, and the user is only required to approve the creation or use of the passkey. This approval can be granted through biometric checks like fingerprint scanning or facial recognition or by entering a local device PIN or password.

You can bind passkeys to a specific device or sync them across multiple devices. Device-bound passkeys are typically created on physical security keys, such as a YubiKey or a Titan Security Key, while synced passkeys are usually managed by a password manager.

How do passkeys authenticate?

1. Account creation with passkeys: To create an account with passkeys, you must use compatible devices and systems that support passwordless authentication. This typically includes devices with biometric capabilities (like fingerprint scanners or facial recognition) and software that supports passkey standards like WebAuthn. The process securely stores the user’s cryptographic keys, linking them to the account.

2. Secure login through biometrics or PIN: Once the account is set up, you can log in securely using the device’s built-in biometrics (such as fingerprint or facial recognition) or a PIN. This ensures that access is restricted to the authorized user, enhancing security by tying authentication to something unique to the user—whether that’s a biometric trait or a personal code.

3. Cross-Device functionality with synchronization: Passkeys also support cross-device functionality, allowing users to access their accounts seamlessly from multiple devices. Passkeys can be synchronized through passkey managers (like those built into Apple or Google’s systems), so users can easily log in from different devices and even recover access if they lose or switch their authenticator.

What are the security advantages of passkeys?

Passkeys offer several advantages over traditional passwords. While passwords rely on a shared secret—meaning the password is transmitted over the network to the server and needs to be stored there—this opens up the risk of attackers potentially accessing this sensitive information.

To exploit a passkey, an attacker would need access to:

• The physical device.
• The biometric data (e.g., fingerprint, facial recognition, or PIN) used to unlock the device.
• Close proximity to the device to use Bluetooth for authentication.
• If the device is lost or stolen, the thief cannot access the data without the proper biometric authentication.

Each passkey is uniquely generated using robust encryption algorithms, which:

• Eliminates the risk of weak passwords that are easily guessed.
• Prevents the common practice of reusing passwords across multiple sites, reducing the likelihood of an attacker gaining access to multiple accounts if one password is compromised..

What are some challenges that come with passkeys? 

While passkeys offer enhanced security, there are still some challenges and considerations to keep in mind.

Recovery and Device Loss

Losing a device with stored passkeys can lock users out of their accounts, as passkeys are tied to specific devices.

Adoption and Compatibility

Passkeys aren’t widely adopted yet, so some platforms still rely on traditional passwords. However, as more services integrate passkey support, this gap will close.

To ensure passkeys work seamlessly across various platforms, major tech companies like Apple, Google, and Microsoft have teamed up with the FIDO Alliance and the World Wide Web Consortium (W3C).

The FIDO Alliance has developed standardized protocols for passkey authentication, ensuring compatibility across devices and operating systems. This collaboration aims to create a secure, unified approach to authentication, eliminating the risks of relying on traditional passwords. Its goal is to create a more secure and user-friendly sign-in experience, which is why passkeys have become a key solution in the fight against online security threats.

Enhance account security with passkeys and Plivo’s SMS capabilities

Passkeys provide a seamless and secure method of passwordless authentication, but even the most advanced systems need reliable backup options.

Plivo’s SMS capabilities add a strong layer of protection by enabling OTP-based verification for account recovery, device changes, or fallback authentication scenarios. This combination ensures a layered security model that reduces the risk of unauthorized access while improving user experience.

Why choose Plivo’s SMS for authentication:

• Seamless integration: Plivo’s developer-friendly APIs allow for quick and easy integration into your authentication workflows. With detailed documentation and sample code, you can get started in no time.
• Global reach with superior infrastructure: Plivo’s robust network spans over 220+ countries, ensuring OTPs are delivered quickly and reliably worldwide. 

📚 Something to note: Plivo promises 99.99% uptime so your users experience consistent performance wherever they are.

• Multi-channel flexibility: Provide users with options to receive OTPs via SMS, voice calls, or even WhatsApp, ensuring secure access regardless of their device or location.
• Cost-effective solutions: Transparent, pay-as-you-go pricing ensures businesses of all sizes can benefit from reliable OTP delivery without hidden costs.
• Advanced fraud prevention: Plivo’s Fraud Shield offers AI-driven protection against SMS pumping and other fraudulent activities, enhancing security while keeping costs in check.
• Zero compliance hurdles: Utilize pre-registered sender IDs and templates to simplify regulatory approvals and go live instantly in key markets like the US, UK, and India.
• Customizable workflows: Tailor OTP delivery with adjustable expiration times, retry logic, and other options to fit your specific security needs.

A layered approach to authentication

By combining passkey authentication with Plivo’s SMS-based OTP verification, you can offer a reliable fallback for users to recover accounts, authenticate new devices, or regain access when passkeys alone are insufficient.

This layered approach strengthens security, improves user trust, and ensures that authentication workflows remain seamless and secure.

Ready to enhance your authentication strategy? Contact us for a demo and discover how Plivo can help secure your users' accounts with reliable, global SMS authentication.

Consumers in the US want to hear from their favorite brands via SMS. A recent study by Validity shows US consumers are more loyal towards their go-to brands and are 343% more likely to sign up for brands’ texts compared to other regions.

 Designing SMS loyalty programs is crucial now to engage these consumers and convert this traction into revenue.

In this post, we will cover how to run SMS loyalty programs and the benefits of running one, as well as discuss common challenges in running these programs. 

What is an SMS loyalty program?

SMS loyalty programs are impactful marketing strategies using text messaging to stay in touch with your regular customers and reward them. It’s an excellent way to encourage repeat purchases, boost client lifetime value, strengthen brand equity, and build customer loyalty. 

Such loyalty programs usually offer points (which customers can redeem later) or other perks like early access to product drops, exclusive discounts, promotions, giveaways, etc.

Brands like Nike have successfully integrated SMS into their loyalty strategies by offering personalized shopping experiences through their NikePlus program. Members receive exclusive promotions and early access to new products via SMS alerts, enhancing their overall shopping experience.

Benefits of SMS loyalty programs

Here are the top advantages of running SMS loyalty programs:

1. Increases customer lifetime value

According to KPMG, 83% of customers say they continue buying from brands after joining a loyalty program. They also keep trying to make the most out of rewards. 

Additionally, Antavo’s Global Customer Loyalty Report 2024 notes that, on average, customers redeem 49.8% of all rewards in a loyalty program. In fact, 66% of customers even modify their spending habits to maximize loyalty benefits. 

Therefore, SMS loyalty programs not only help you build strong relationships with existing customers but also result in repurchases and an increase in customer lifetime value.

2. Boosts brand visibility

70% of customers say they would recommend a brand to others if their loyalty programs add value. Loyalty programs create satisfied customers who are more likely to create positive word of mouth (one of the most influential forms of marketing). 

Your brand gets additional visibility without spending extra. 

3. Provides high returns on investment

Acquiring every new customer takes more marketing investment rather than nudging existing satisfied customers to repurchase. 

Brands have already experienced high returns of marketing to existing customers. In Antavo’s customer loyalty report, nine out of ten companies have reported a positive return on investment (ROI) in their loyalty programs. The average ROI was 4.8X of their investment.

How to create SMS loyalty programs

Follow this step-by-step guide to creating an effective SMS loyalty program:

1. Understand your customers

Before launching any SMS loyalty programs, it's important to take a step back and understand your customers. What excites them more? 

To identify that, you can:

• Conduct surveys: Run surveys on small focus groups to find out their preferences
• Monitor social media: Scan social media conversations to find what’s trending
• Do competitor analysis: Check what your competitors are doing and getting results

2. Define your rewards scheme

After understanding customers, it's time to look inward and understand your business goals. What do you want to achieve out of running these rewards programs, and what benefits can you offer? The most common rewards in SMS loyalty programs are:

• Points-based: Customers get points after every purchase, which they can redeem later
• Tier-based: Customers are divided into tiers. For example, elite (level one), icon (level two), and superstar (level three). Each tier has different benefits, mainly free shipping, early access to sales, and exclusive discounts
• Time-based: Customers get further offers around birthdays, holidays, and festivals
• Gifts: Customers get exclusive gifts for reaching certain milestones. You can use your own products as gifts or collaborate with other brands who can sponsor gifts. It becomes a good promotion for other brands to showcase their products

3. Choose an SMS marketing platform

Now that you have the base program ready, you can choose an SMS marketing platform to run these programs. 

Use this checklist to choose a platform with the right features:

• Scheduled sending: Supports scheduling messages at specific times
• Automated workflows: Allows creating automated workflows to trigger messages after a specific user action
• eCommerce integrations: Integrates with eCommerce platforms and pulls user data required to run loyalty programs.
• Regulatory compliance: Meets all the key industry regulations like TCPA and GDPR
• Detailed Reporting: Track key metrics like open rates, click-through rates, and conversions
  

Apart from the above features, the platform must also offer high-deliverability rates for SMS. 

4. Setup automated workflows

Next, you can set up automated workflows to send messages based on different user actions:

• New member welcome series: Set a welcome message for all new members for loyalty programs
• Post-purchase: Set a thank-you message and point updates after every purchase
• Milestone celebration: Set a congratulatory message after customers cross any milestone and explain to them their latest perks
• Anniversary or Birthday rewards:  Send a congratulatory message and offer a special reward for the anniversary or birthday
• Inactive member reengagement: Set win-back messages for members who haven't purchased in a while

Apart from these above-automated messages, you can run ad-hoc promotions around holidays or festivals that you can simply schedule on an ad-hoc basis in the tool.

5. Get customers signed up for the program

You have your rewards plan ready. Now, add a sign-up form on your website explaining the perks and add a sign-up option. 

Take the H & M membership webpage for reference. It explains points associated with the rewards and also has a join now option.

Alternatively, you can collect phone numbers on the order checkout page.

6. Track and analyze results

Lastly, to track the effectiveness of your SMS campaigns, track the key metrics such as open rate, click rate, conversion rate, and revenue to understand what’s working and what’s not. 

You can beta-test a few automated workflow messages to finalize the messages. 

Common challenges in running loyalty programs (and how to avoid them)

A latest customer loyalty study found the top challenges businesses face while running loyalty programs:

1. Poor communication

39% of customers feel let down by inadequate information about the loyalty program from the brand. There is a significant communication gap between brands and customers about the perks of loyalty programs. It leads to reduced engagement and the programs getting an underwhelming response. 

Solution:

Set up a detailed automated workflow for new customer sign-ups. Every time a customer is added to a loyalty program, they should get a detailed message explaining program details, how points/rewards are earned, redemption processes, and special offers. 

Further, in all your follow-up messages, also add a note on how to redeem the points and other perks of the program.

2. Unattractive rewards

71% of consumers did not find the rewards relevant. This gap clearly indicates a significant disconnect between what brands are offering and what customers actually want. It happens when brands take a one-size-fits-all approach and offer similar rewards to all customers. 

Solution:

Use customer data to personalize rewards for customers. SMS marketing platforms such as Plivo CX can segment customers based on demographics, browsing activity, online behavior, etc. You can offer different rewards to different segments for easy personalization.

3. Complex redemption

71% of customers disliked the complex process of reward redemption. They were looking for a clear direction to make the best of the rewards offered as part of the loyalty program. 

Solution:

Regularly send a short SMS to customers on their points/rewards with a shortened URL, which the user can click directly to redeem. It simplifies the entire redemption process. 

Plan SMS loyalty programs with Plivo CX

As a cloud-based omnichannel customer service tool, Plivo CX serves as a robust SMS marketing platform designed to help Shopify brands build strong relationships with customers through SMS campaigns. 

We help you run effective SMS loyalty programs with all these key features required for easy setup:

✅Registering customers opt-in through a sign-up page or importing existing customer data

✅Setting up an automated journey for regular communication 

✅Creating personalized content for campaigns with in-built templates and AI copywriter

✅Segmenting subscribers for personalized rewards and communication

✅Scheduling ad-hoc rewards campaigns with AI assistance

✅Building reports of SMS loyalty programs

Plivo CX’s internal premium carrier network assures high deliverability and affordable costing. Send messages in as low as $0.0065/SMS and reduce SMS marketing costs by 70%.

Ready to launch your SMS loyalty programs? 

Sign up for a quick demo today to explore all features and plan end-to-end loyalty marketing activities.

“Press 1 for Billing,” “Press 2 for Account Information” — you’ve probably heard this before, right?

That’s an interactive voice response (IVR) system, and it does a lot more than just guide callers through a menu. It’s often one of the very first brand impressions your customers receive. 

But why does it matter so much? Because your customers crave autonomy. In fact, research shows that over 80% of consumers want more self-service options, and many are calling for these solutions to be smarter.

A well-designed IVR doesn’t just route callers to the right department — it understands their needs and can even boost your team’s efficiency.

In this guide, we’ll explain IVR’s meaning, how it works, and tips to optimize it for a seamless customer experience. Let’s begin!

What is an IVR?

IVR is a telecommunication technology that automates customer interactions over the phone. It allows callers to access information, make requests, or complete tasks using voice commands or menu inputs — no live agent required.

The technology uses pre-recorded messages, speech recognition, and dynamic menus to guide callers to the information or service they need with ease. It's similar to a 24/7 virtual assistant that transforms how businesses manage customer interactions.

Here’s what an IVR can do:

• Automatically answer and route calls to the right department.
• Offer self-service options, like checking account balances or appointment scheduling.
• Collect caller data for smoother follow-ups.
• Integrate with databases to deliver personalized responses.

Think of IVR as your business’s first line of defense. It handles repetitive tasks while seamlessly forwarding complex issues to human agents based on factors like agent skills, call volume, or even time of day.

Industries like banking, healthcare, and customer support rely on IVR systems to:

• Improve accessibility with 24/7 availability.
• Reduce wait times for callers.
• Manage high call volumes.

How does IVR work?

IVR systems are versatile and can operate on both public switched telephone networks (PSTN) and voice over Internet Protocol (VoIP) networks.

At their core, IVR systems rely on a combination of components to function effectively:

• A Transmission Control Protocol/Internet Protocol (TCP/IP) network: Ensure connectivity to both the internet and internal intranet systems.
• Databases: Provide necessary data for IVR applications to deliver accurate and relevant responses.
• Web/application server: Host IVR software applications, typically written in VoiceXML. These applications can handle various tasks, such as managing contact centers, conducting outbound sales calls, or performing speech-to-text transcription.

From these components, three primary types of IVR systems are made:

Touch-tone replacement

This system uses keypad inputs to guide callers. For instance, a prompt might say, "Press 1 to check your account balance," and the caller responds by pressing the corresponding number on their keypad.

Directed dialog

With this approach, callers are guided through verbal prompts based on their inquiries. For example, the system might ask, "Are you calling to check your account balance or update your contact details?" The caller then responds with "Check my account balance."

Natural language

The most advanced type, this system leverages speech recognition to understand more complex user inputs. A prompt like, "How can I assist you today?" allows callers to reply conversationally, such as "I want to check my account balance" or "I’d like to update my email address."

Let’s understand an IVR call flow with a simple example.

A customer calls a healthcare provider to book an appointment. The IVR system greets them with a friendly message and offers language options for accessibility.

Next, it presents a menu of choices, such as scheduling an appointment, checking the status of test results, or connecting with a live representative. The customer can either press the corresponding number on their keypad or say the desired option aloud.

The IVR system processes the input and takes the appropriate action. This might include providing pre-recorded information about:

• Available appointment slots.
• Transferring the caller to a scheduling agent.
• Collecting additional details like the patient’s name and preferred time.

Benefits of IVR for businesses

The IVR market is thriving, with North America expected to drive 40% of its growth in the coming years. Here are six main benefits of IVR for businesses:

1. Reduces operational costs

IVR systems for businesses save money by handling routine inquiries, reducing the strain on customer service agents. In fact, next-gen IVR solutions have shown to cut live-agent calls by over 10%.

Plus, they enable 24/7 service without additional staffing costs.

For enterprises, a single IVR system handles call flows for multiple applications, simplifying operations. Customizing IVR menus for each use case enables businesses to scale efficiently while maintaining cost control.

2. Improves first contact response rate (FCR)

Well-designed IVR systems for businesses can handle many inquiries on the first call. Research shows IVR self-service reaches a 74% FCR rate, and customers often prefer it over IVRs that just pass them along to live agents.

This success comes from handling simple tasks like confirming orders, checking balances, or viewing status updates — no human intervention needed.

3. Enables call routing and triage

Studies show that 44% of boomers, 30% of millennials, and 24% of Gen Z shoppers are likely to switch to a competitor after a single negative experience. Instead of risking that churn, use an IVR system to prioritize your most valuable callers and move them straight to the front of the line.

With smart triage and call routing technology, you can:

• Give VIPs top priority so they never wait without reason.
• Direct customers to the right team or agent based on location, priority, sentiment, intent, or language.
• Quickly review which callers are in the queue and what they need.
• Trigger dynamic changes to call priority or routing destinations as customers enter the queue.
• Seamlessly connect callers to the first available agent to speed up resolutions.

4. Provides personalized support

63% of customers want an IVR experience that speaks directly to their unique needs, not just a generic menu. They’re looking for personalization beyond superficial marketing approaches. IVR can help by offering:

• Language options that make callers feel understood from the start.
• Custom greetings that acknowledge their history with your brand.
• Tailored promotions and product suggestions that suit their past purchases or inquiries.

5. Enhances workflows

High call volumes can strain call centers, especially during busy periods. An IVR system eases the workload on agents and streamlines operations. Here’s how:

• Offer voicemail or scheduled callbacks instead of long wait times.
• Direct callers to the appropriate team or specialist.
• Guide callers to your website or present additional options via a recorded message.
• Deliver immediate answers to common questions through pre-recorded messages.

6. Helps understand customer behavior

IVR interactions generate valuable data on caller preferences, common inquiries, and recurring pain points. Analyzing these insights informs strategic decisions, enabling you to refine your services and better meet customer expectations.

IVR use cases

IVR systems play an important role across many industries, serving multiple functions. Here are some of the most common applications of this technology:

Auto attendant

When someone calls your number, they hear a simple menu. For example:

• Press 1 for Sales.
• Press 2 for Support.
• Press 3 for Billing.

It’s fast, smooth, and eliminates the need for a human operator to manage incoming calls.

IVR covers after hours too. It can automatically handle voicemails, ensuring no call is ever missed. This means your team can follow up promptly, leaving a great impression.

The result?

• Reduced workload for live receptionists.
• A polished, professional experience for your customers.
• Every call is handled with care, no matter the time of day.

Payments and banking

Banks use IVR systems to help customers perform tasks like checking account balances, making payments, or reporting lost cards without waiting for a representative.

For instance, when you call Wells Fargo, you’re prompted to enter your account or card number. The system then offers personalized options, such as reviewing transactions or checking payment statuses.

Support surveys

IVR systems for businesses aren’t just for managing inbound calls; they’re equally effective for outbound campaigns. Businesses and organizations can use them to automate surveys and gather customer feedback.

For example, a healthcare provider may use an IVR technology to remind patients of upcoming appointments and ask about their recent experience with services.

Similarly, a telecom company might conduct automated surveys to measure customer satisfaction after resolving a support issue.

Lead assignment and routing

An IVR system makes it easier to qualify leads and connect inbound sales calls to the right sales representative. It asks targeted questions to understand the customer’s needs, budget, or preferred products.

For example, an automotive dealership can use the IVR to route inquiries about new cars to a sales team specializing in that area, while calls about financing options are directed to a financing expert.

Key considerations for choosing an IVR solution

Choosing the right IVR solution for your business is a critical decision. Here are the key factors to focus on:

Customizable call flows

A customizable call flow lets you design personalized IVR experiences tailored to your customers’ needs. With this feature, you can create workflows that guide callers through specific communication channels based on their preferences.

Efficient call routing

The best IVR systems for businesses offer intelligent call routing capabilities. They can direct calls based on customer relationship management (CRM) data or predefined criteria to ensure each caller reaches the right agent.

Speech recognition and DTMF support

An effective IVR system should offer robust speech recognition and dual-tone multi-frequency (DTMF) capabilities. This allows customers to interact with the menu by speaking or pressing buttons, making the process intuitive and accessible for everyone.

Seamless integration

Look for an IVR system that integrates easily with your business tools — like payment processors, workforce management software, and CRM platforms. These integrations ensure the IVR has all the information needed to handle tasks without a hitch.

Comprehensive analytics

Strong call insights and reporting features let you track patterns and identify common customer queries. Use this data to make informed decisions, improve your service, and address recurring issues effectively.

Best practices to implement an IVR system

Here are five IVR best practices that help improve productivity and provide a great customer experience:

Keep the IVR menu simple

A successful IVR self-service system should be simple and user-friendly. Long and complicated menus can frustrate callers, leading to hang-ups.

Stick to a main menu with five options or fewer, while ensuring all essential needs are covered. Always provide a clear path to connect with a support representative if needed.

As an example, look at this IVR menu:

"Welcome to Zenith Tech Solutions:

• For technical support, press 1.
• For billing inquiries, press 2.
• To speak with a sales representative, press 3.
• To reach the HR department, press 4.
• To speak to an operator, press 0."

This menu is clear, relevant, and ensures that customers can reach a human representative when necessary.

Use audio streaming for customer insights

Audio streaming integrated with AI-based tools helps businesses:

• Deliver smarter voice-based services.
• Analyze conversations for deeper insights.
• Enhance user interaction.

Plivo’s Audio Streaming capabilities detect emotions like frustration or satisfaction during a call. If it senses an issue, the system can instantly adjust its response or transfer the customer to a live agent for a more personalized touch.

With Plivo, you can also build AI voice agents to handle common queries instantly, making customer service faster and more efficient.

Additionally, Plivo’s integrations enable real-time transcription to convert conversations into text seamlessly. Need multilingual support? Plivo connects with live translation tools, making it effortless to communicate during meetings or conferences in any language.

Optimize call queues

Waiting can be frustrating, but honesty and transparency can make the experience more bearable for customers. In fact, a survey found that 47.84% of customers feel estimates and updates significantly improve their waiting experience.

One way to handle this is by implementing an IVR solution with a callback feature. This prevents long hold times and helps customers continue their day while waiting for a response.

Another approach is to use IVR to handle low-priority calls and reduce average handling time (AHT). Directing callers to pre-recorded messages with helpful information can solve their problems efficiently.

For example, Plivo’s PreAnswer feature allows businesses to play custom caller tunes or automated messages after a call is transferred but before it's answered. It can be used in various ways.

For instance, if your team is frequently answering the same question, you could use this feature to play a pre-recorded message with an answer to this query.

If the caller gets the information they need, they can disconnect satisfied, letting your team handle more complex tasks.

Implement personalization

76% of consumers say personalized communication is a major factor when considering a brand. Plus, 78% are more likely to repurchase when they feel the content speaks directly to them.

This applies to your IVR system, too. Connecting your IVR to customer data facilitates customized experiences that make every interaction feel personal.

So, when a customer calls your helpline after recently booking a travel package. Instead of a generic greeting, they hear, “Hello, Sarah! We see you’ve recently booked a trip to Paris. Are you calling about your travel itinerary, or do you need assistance with something else?”

It’s about showing you understand what they care about. A personalized IVR system makes customers feel valued and turns routine calls into meaningful conversations.

Monitor and adjust regularly

Once your IVR system is up and running smoothly, it’s tempting to leave it as is. But businesses evolve, and so do their needs. Departments shift, processes change, and some may no longer exist.

To keep your IVR effective, regularly review and update your menus. Ensure they align with your current business structure and customer needs.

Don’t stop there — update greetings, hold messages, announcements, and any other pre-recorded messaging. These small changes ensure your IVR stays relevant and provides a seamless customer experience.

Improve your customer service with Plivo’s smart IVR

The world is rapidly shifting towards AI, and your customer support should too. Traditional IVR systems with rigid menus just aren't cutting it anymore. 

Smart IVR takes things to the next level by using artificial intelligence, contextual awareness, and data-driven insights to deliver more intuitive and personalized caller experiences.

Plivo is here to help you make that transition effortlessly. Our Smart IVR uses AI voice agents and advanced audio streaming to transform your traditional IVR into a smarter, more efficient system. 

This means faster interactions, reduced agent burnout, and happier customers — all while streamlining your operations.

On top of that, Plivo offers powerful features such as:

• AI-Powered functionality: Let customers speak naturally instead of pressing buttons. Our integration with Large Language Model (LLM), Speech-to-Text (STT), and Text-to-Speech (TTS) providers makes launching voice bots a breeze.
• Automated support: Handle routine inquiries automatically, freeing your team to tackle more complex issues.
• Crystal-clear audio: Deliver high-quality audio across 220+ countries and territories, ensuring smooth and professional conversations.
• Enhanced customer insights: Gain valuable data from interactions to refine your services and meet customer demands effectively.
• Fully customizable menus: Design multi-level menus tailored to your business needs, complete with personalized greetings using pre-recorded audio or text-to-speech technology.
• Easy setup: Simple APIs and XML integration allow you to quickly create and manage custom IVR workflows without hassle.
• Smart call routing: Direct calls based on input, agent skills, or even business hours, ensuring customers are always connected to the right person.
• Outbound IVR support: Custom menus for outbound campaigns like surveys or voting make engagement effortless. 

Plivo’s IVR system isn’t just a tool; it’s a way to enhance your customer service and streamline operations. Ready to elevate your communication? Contact us today to learn more!

There are over 8.58 billion mobile subscriptions worldwide, making text messaging a game changer for how businesses connect with customers. Short Message Service (SMS) has long been a reliable and universally compatible choice for communication. Rich Communication Services (RCS), on the other hand, introduces advanced capabilities like rich media, read receipts, and branded messages that transform interactions.

While SMS boasts a massive user base of 9.3 billion subscribers, RCS has grown to 1.2 billion users, sparking a heated debate: RCS vs. SMS.

Engaging Android phone users through RCS chats or relying on SMS for a broad reach both offer unique advantages.

When businesses compare RCS and SMS, the key differences often include interactivity, compatibility, and cost. In this blog, we’ll explore SMS and RCS's features, business use cases, strengths, and limitations to help you find the right balance to meet business goals.

SMS: The standard since day one

SMS is a communication protocol that allows users to send short, text-only messages between mobile devices. It relies on cellular networks and not on an internet connection.

Therefore, it has been the backbone of mobile text communication for decades, as it virtually works with all mobile devices, including basic phones.

Are SMS and iMessage the same?

No, SMS and iMessage are not the same.

iMessage offers interactive features and allows multimedia-rich content sharing between two iOS devices. SMS only sends short, text-based messages between all mobile devices.

RCS: The new feature-rich customer engagement stream

RCS is an upgraded messaging protocol that relies on Wi-Fi or cellular data. It delivers an interactive experience with support for high-resolution multimedia, group chats, and other advanced features.

Are RCS and iMessage the same?

No, while they share similar features, RCS and iMessage differ.

iMessage is exclusive to Apple devices, while RCS is a universal protocol supported by various messaging apps on compatible devices.

RCS vs. SMS comparison

Let's explore the key differences between RCS and SMS for businesses evaluating their messaging strategies and deciding which option is best for them.

SMS vs. RCS messaging for businesses

SMS remains a cornerstone of business communication due to its universal compatibility with mobile devices and reliance on a cellular network. 

Industries across the globe leverage SMS for fast, real-time connections—none more critical than emergency response services. 

For example: Flight Vector, a dispatch solution provider for emergency medical services, revolutionized operations by adopting SMS through Plivo’s SMS API.

• The Challenge: Outdated pagers and unreliable email systems slowed emergency communications. Blocked messages or delivery uncertainty posed life-or-death risks.
• The Solution: Plivo’s SMS API delivered real-time confirmations, ensuring every critical alert reached the intended recipient.
• The Results:some text
  • Over 460,000 SMS messages sent monthly without issues.
  • Streamlined communication between dispatch centers, crews, and pilots.
  • Real-time GPS updates for helicopter landing sites, improving response times and decision-making.

Flight Vector CEO Scot Cromer summed it up: “SMS is the future. If you don’t provide a texting solution, you’re going to be left behind.”

A 2022 survey showed a 75% increase in SMS usage due to its cost-effectiveness and ability to deliver messages even in low-network areas for critical alerts, notifications, and two-factor authentication​ (2FA).

RCS, on the other hand, provides businesses with interactive ways to connect with customers. Businesses are still realizing its potential — RCS adoption statistics suggest a 62% increase with 1.2 billion users. The growth comes with increasing RCS support from platforms like Google Messages and Apple.

Projections suggest an additional 900 million active users in the next two years​.

Here’s a possible outlook for the mobile market in the coming years.

RCS: Use cases and advantages

Now that you’ve read about SMS's advantages and use cases, let’s focus on the benefits and potential use cases of RCS for business communication.

Deliver unforgettable customer experience

A Harvard Business Review survey noted RCS features provide richness in over-the-top (OTT) messaging with the universality of SMS.

Studies show that 90% of rich media messages are opened within 15 minutes, which increases customer engagement by up to 45 seconds per interaction. With RCS messages, businesses can engage users through:

• High-quality images, video messages, and GIFs.
• Delivery receipts and read receipts for transparency.
• Video calling capabilities for real-time interactions.
• Suggested replies and actions for seamless engagement.
• Location sharing to simplify navigation.
• In-message payment options for quick transactions.
• QR codes and sender verification for enhanced trust.

Harvard’s survey respondents emphasized the importance of these capabilities, with 81% highlighting the value of verified sender information.

Get verified for more trust

70% of consumers express concerns about the data security risks of brand texts. This is where RCS messaging’s most impactful features come into play — sender information verification.

Verification builds trust and helps brands avoid being flagged as spam. A verification authority, such as a mobile network operator (MNO), chatbot platform provider, or other specialized entity, can authenticate brands using RCS text messages.

Once verified, your brand’s logo, name, and status badge (e.g., a checkmark) will appear at the top of the conversation within the messaging app. Verified senders can confidently deliver messages to foster credibility and secure interactions across RCS-supported devices.

Merge RCS and OTT to develop better content

RCS is a powerful protocol that can complement existing communication channels like OTT to build trust and boost engagement.

Industries like healthcare and hospitality can leverage OTT for RCS communications to manage appointments, send reminders, and provide live support. For example, a hospital can use an interactive button to prompt patients to “schedule now” and book appointments directly through text.

Plivo’s WhatsApp Business API makes it easy for users to deploy WhatsApp for customer engagement with a low-cost solution. You can share rich media, including images, videos, documents, customized call-to-action (CTA) buttons, etc.

Also read: Quick Onboarding Guide to Get Started with the WhatsApp API

Get more conversions by utilizing customer data

With RCS features, businesses can showcase multiple products in a single message using image carousels, media cards, and GIFs. These chat features enhance the shopping experience when paired with CTA buttons that direct customers to checkout.

When RCS messaging becomes a tool in your omnichannel strategy, you can leverage customer data from sales, marketing, and operations to deliver personalized experiences.

Integrate RCS messages with your existing systems and channels and send engaging, media-rich promos to captivate audiences and drive conversions.

SMS: Use cases and advantages

Here is a list of SMS use cases and advantages that drive the trend. 

Win trust with a personal connection

According to the Validity 2023 report, 19% of consumers prefer receiving updates via text messages, surpassing social media (16%), app notifications (6%), and direct mail (6%). This highlights the trust and reliability associated with SMS.

Additionally, SMS goes straight to the native messaging app. A direct connection to your customer’s mobile device makes communication much more personal than other channels. When recipients get a direct ping in the notification bar, they often read the text within seconds.

Businesses must implement effective SMS opt-in and opt-out mechanisms to ensure compliance and build customer trust.

Get an unbeatable return on your investment

SMS marketing is a standout performer for CFOs seeking measurable financial impact.  It offers a cost-effective strategy for businesses of all sizes with almost 100% open rates, 45% response rates, and an unmatched return on investment (ROI) of $21-$40 for every $1 spent.

SMS is an ideal channel for time-sensitive communications, from flash sales to urgent updates. SMS short codes for high-volume messaging enable faster, more efficient customer engagement for events like Black Friday, during which SMS marketing has been shown to deliver an impressive ROI of up to 7433%.

To secure and seamlessly implement SMS for critical notifications like authentication, businesses can integrate Plivo with Okta for SMS verification.

Pro Tip: Combine SMS's universal reach with RCS's interactive features to watch your engagement metrics go through the roof.

 Here’s a quick comparison table for engagement metrics for RCS vs SMS.

Do not worry about algorithms

Marketing on platforms like Google and social media often means playing with ever-changing algorithms that dictate content visibility.

Google's ranking criteria frequently change with core updates, while shifting social media algorithms can impact organic reach, forcing brands to rely more on paid promotions. These constant shifts create endless frustration and uncertainty for marketers.

On the other hand, SMS marketing offers a stable and reliable alternative.

Unlike search engines or social media, algorithms don’t control SMS content reach. Every SMS message lands directly in the recipient's inbox, giving you full control over communications without fighting for visibility or adapting to shifting guidelines.

Deliver messages with more impact

Human attention spans are shrinking, and SMS marketing can address this. Unlike long emails or intrusive calls, SMS delivers concise, high-impact messages that grab attention instantly.

SMS open rate is three times better than email marketing (37.3%), and the response rate is 9.3 times greater than cold calls (4.8%).

It drives this high engagement with a direct, to-the-point approach, ensuring readers focus on the message and the call to action without distractions.

Which media and devices support RCS and SMS?

SMS remains universally supported on all cellular devices connected to a network, ensuring reliability even without data connectivity.

RCS was initially available only on Android phones through Google Messages. However, RCS business messaging (RBM) was added to iOS 18.1. Now, iOS supports RCS for iPhone users for person-to-person (P2P) messaging in select markets.

While a global rollout is pending, this integration improves messaging between Android and Apple devices. Users can check and enable RCS messaging in their app’s chat features settings.

Find a solution no matter your messaging strategy

Choosing the right messaging protocol depends on your goals and audience. Consider the following when comparing RCS vs. SMS:

Choose RCS when:

• Visual appeal matters: It provides visually engaging messages with rich media like images, videos, and GIFs, perfect for campaigns prioritizing aesthetics.
• Interactivity is key: Features like buttons, suggested actions, and forms allow better audience interaction for engagement and conversion rates.
• Enhanced branding is a priority: Custom branding with logos and colors can deliver a consistent and professional brand presence.

Choose SMS when:

• Wider reach is necessary: Given that all mobile phones, even older or less advanced devices, support it.
• Immediate and direct communication is vital: SMS gets delivered instantly, making them ideal for time-sensitive updates like promotions or alerts.
• Budget constraints exist: Carrier plans often include SMS without additional costs.

A hybrid approach combining SMS and RCS offers the best results for most businesses. However, it’s important to note that RCS adoption is limited due to its data network reliance, device compatibility, and higher costs.

On the other hand, SMS still has an edge in business communication as it offers universal compatibility, cost efficiency, and dependability across all devices. SMS notification services are the best choice for small to medium-business solutions where budgets are often a restraint.

Get started with Plivo’s SMS API

No matter your goals, the right messaging solution can drive success in conversational commerce. 

SMS not only supports customer communication but also plays a vital role in secure and seamless authentication processes. Whether you're managing account verifications, login security, or two-factor authentication, SMS offers unmatched flexibility, enabling businesses to scale operations during peak demands without incurring significant costs or logistical challenges.

Plivo bridges this need with its Verify API, delivering reliable and cost-effective authentication. Designed for effortless integration and maximum reliability, Verify API ensures:

• Zero authentication costs
• Free Fraud Shield for enhanced security
• No regulatory complications
• Reduced technical support overhead

Coupled with Plivo’s easy-to-integrate SMS API, businesses can deliver impactful messages while managing authentication at scale — all without hesitation or hidden fees.

Plivo provides a complete messaging solution with support for both RCS and SMS, all tailored to your business needs. Contact us to get started today!

As of 2024, 82% of consumers would rather chat with a bot than wait for a customer service agent. This indicates that chatbots are transforming customer service, making them a must-have tool for businesses everywhere.

Conversational AI platforms are taking customer service further, offering smarter, more human-like interactions that improve marketing and customer engagement.

While “chatbots” and “conversational AI” may seem interchangeable, they differ significantly in scope, functionality, and use cases.

Chatbot vs. conversational AI: How do these two solutions compare, and which suits your business needs? Read on.

What is a chatbot?

A chatbot is a computer program designed to respond to customer queries. When a customer tries to initiate contact through your website or another communication channel, a chatbot will identify and resolve the customer's query.

It can also initiate a conversation with an opening sentence such as ‘How can I help you today?’. The user then has a set of pre-defined answers to choose from and carry the conversation forward.

Conventionally, a chatbot works on if-this-then-that logic. So it gives straightforward answers to queries.

There are three primary types of chatbots:

Rule-based

These chatbots operate based on predefined rules and scripts. This means they can only respond to specific inputs or keywords. Think of a basic FAQs support chatbot that answers commonly asked questions about the store’s business hours, product return/cancellation policies, etc.

AI-based

AI chatbots for business, on the other hand, use natural language processing (NLP) and machine learning (ML). They understand and respond to complex queries in a human-like, context-aware manner.

For example, Google Assistant is an AI-based chatbot that handles varying tasks from appointment reminders to answering general knowledge questions.

Hybrid

These chatbots combine the strengths of both rule-based and AI-based systems. They follow pre-defined rules to answer basic queries but can also use AI for more complex, contextual conversations.

Businesses can configure a hybrid chatbot across communication channels like live chat, messaging apps (WhatsApp, Messenger, etc.), and in-app messaging. Given the hybrid model, these chatbots are more versatile than the other two. Several industries can integrate them into their communication systems.

Businesses can also create AI chatbots for automation by integrating conversational AI, given it’s developed on a scalable platform.

What is conversational AI technology?

Conversational AI technology provides more advanced and dynamic solutions to customer queries.

While conventional chatbots follow scripted responses, conversational AI technology consists of NLP, ML, and automatic speech recognition (ASR) to carry out human-like conversations. Here’s their function explained:

• NLP: Helps the system understand and interpret human language and nuances such as tone, intent, and context.
• ML: Supports AI self-learning with past customer interactions and behavior.
• ASR: Converts spoken words into text so that you can integrate voice-based interactions in conversational AI systems.

Normal chatbots handle FAQs, while conversational AI adapts to user preferences and makes conversations based on their input.

For instance, Plivo-powered AI voice agents use conversational AI to provide real-time customer service. They can act as a personal shopping assistant for customers, automate routine financial transactions, break language barriers in customer support or learning, and even provide personalized health assessments to patients.

Chatbot vs. conversational AI chatbots at a glance

Here’s a table stating the differences between a chatbot and conversational AI.

Use cases for chatbot vs. conversation AI in customer service

Chatbots aren’t just a passing trend. In fact, Gartner states that chatbots will become the primary customer support channel by 2027. However, how can you include them in your existing communication systems? Let’s explore.

Use cases for chatbot

Here’s a quick rundown of the specific use cases for chatbots.

Appointment scheduling

Chatbots streamline appointment scheduling by automating the process. They let customers book, reschedule, or cancel appointments 24/7, eliminating the need for staff intervention.

They can also send reminders, reducing no-shows and ensuring a positive experience for businesses and customers.

Order status updates

Updating customers about order statutes from confirming orders to tracking shipments, can chip away a big chunk of your agents’ time. In contrast, chatbots instantly respond to customer inquiries like “Where is my order?” or “What’s the estimated delivery time for x product?”.

Customers don’t need to wait for an agent to answer these queries, which significantly improves satisfaction rates while saving time and resources.

Answer FAQs

An IBM report states that chatbots can resolve up to 80% of routine customer inquiries. Imagine the time this saves up on your resources. With chatbots, customers get the answers they need without waiting 48 hours for an email response because of a holiday or an agent's unavailability.

It can handle frequently asked questions like inquiries about product features, order-related updates, shipping updates, refund/return requests, etc.

Loan applications, payments, and billing assistance

While e-commerce and healthcare have picked up on integrating chatbots into their customer service, the banking sector is no exception.

Chatbots can help users with payment due dates, loan application updates, and billing breakdowns. Simply create a bank interactive voice response (IVR) menu, and integrate it into voice-enabled bots to make customer support easier. It’ll automate routine queries and reduce operational costs.

Customer feedback collection

Businesses go out of their way to solicit customer feedback. While you can use the rule-based bots to ask customer feedback questions, take it a notch up with conversational AI. The bot then sends a feedback form to the customer after an item is sold or a task is performed.

For example, you may use it to ask users about:

• Their experience with the product.
• The delivery process.
• If the product/item met their expectations, etc.
• How they would like the product/shopping experience to be better.

Use cases for chatbots with conversational AI

You can integrate conversational AI and build on previous use cases of basic chatbots to move beyond scripted responses. However, let’s explore specific conversational AI use cases that can benefit business operations.

Personalised product recommendations

Conversational AI platforms have access to customer data, including their browsing history, purchase behavior, etc. These bots use the data and recommendation algorithms to suggest specific or complementary products.

So a generic customer query about a mobile phone narrows down to a specific model that fits their budget.

From discovery to checkout, these bots can handle the entire funnel. Use it to help customers compare products, suggest similar products, and apply discounts or upselling based on previous purchases.

Text-based bots are sufficient for a target audience that prefers texting over speaking. However, voice-enabled bots provide more convenience and feel more personalized to customers. Plus, launching context-aware voice bots is simpler than you think. 

For instance, Plivo-powered voice agents integrate easily with any speech-to-text (STT), large language model (LLM) or text-to-speech provider of your choice to get started.

You can learn all about AI voice bots and their use cases in this guide.

Intelligent IVR systems

Say a customer chats with the bot and the bot transfers the call to the right agent for a nuanced response. What happens during the time between the transfer and when the agent picks it up? Typically, customers hear music or are provided with a waiting number.

However, you can maximize IVR menu efficiency with pre-answers. Create multilevel IVR menus with audio or text for prompts. Specify exactly what happens after a call is transferred before it's picked up to add value to the customer journey.

For example, if a call is transferred to a department frequently asked the same questions, you can record answers to those common queries and play them for the caller while they wait. This reduces call drops and provides information to customers upfront.

Multilingual support

Language barriers can significantly hurt your customer support strategy. The best chatbots for customer service are designed to be customer-friendly, meaning they understand and respond in the same language as the caller.

Conversational AI bots solve this by instantly switching between languages and providing personalized, native-like assistance, removing the need for multiple agents or long wait times.

Dynamic query resolution

Complex questions often lead to frustration with standard chatbots. AI-powered bots analyze the intent behind queries, offering precise solutions instead of generic responses, saving time and reducing escalation rates.

Since the bots understand the sentiment behind the words, they offer solutions after analyzing the tone of the conversation. While text-based input works well for sentiment analysis, voice-enabled bots can achieve similar insights by transcribing voice inputs into text for deeper customer analytics.

Advanced after-sales support

After-sales support issues including troubleshooting or warranty claims often take too long. AI bots streamline this process by guiding customers step-by-step, scheduling follow-ups, or handing unresolved cases to human agents without delays.

Fraud detection and prevention

Suspicious activity can compromise customer accounts.

AI bots monitor patterns, flag risks, and trigger security protocols like verification requests or account freezes, keeping customer data and transactions safe in real time.

Along with these, winning back abandoned carts, offering discounts and offers, streamlining the help desk or ticketing system, etc. are some of the top AI sales bot use cases.

Chatbot vs. conversational AI: What the future holds

Artificial intelligence in customer service is just the beginning.

Looking ahead, conversational AI is set to expand beyond traditional customer support. It will take on roles as virtual healthcare assistants for patients, personal tutors, and investment advisors, and even offer even more personalized recommendations in entertainment and retail.

As AI continues to leverage more user data, companies will face increased pressure to ensure compliance with data privacy regulations like the General Data Protection Regulation (EU) and California Consumer Privacy Act (CCPA).

The future of conversational AI will require businesses to prioritize safeguarding user data — such as clearly disclosing when a bot is interacting rather than a human agent. To keep up with these demands, conversational AI systems will be designed with built-in compliance features to meet evolving privacy standards.

Ultimately, natural language processing in AI promises more sophisticated, smart, and intuitive communication systems.

Chatbot vs. conversational AI chatbot: Which to choose when?

The decision between a chatbot and a conversational AI chatbot hinges on your business needs and the complexity of customer interactions.

For small and medium-sized enterprises (SMEs) that want to handle routine queries efficiently, chatbots are a great choice. They excel as triage systems, routing simple inquiries to the right channels and saving valuable time for your team.

Before implementing it, ask: How will your business benefit from automating basic customer concerns?

Whether it’s saving time, freeing up agents for more complex tasks, or helping with customer acquisition, understand the potential impact on your business goals.

Conversational AI chatbots, however, are ideal for more nuanced customer service needs. They’re particularly useful when you require multilingual support, the ability to handle multiple intents in a single conversation, or context-aware solutions.

Use chatbots for automation at the top of the funnel for initial contact, lead capture, or general inquiries. As customers move down the funnel, integrate conversational AI for detailed product inquiries, after-sales support, and nurturing client relationships.

Take the first step to automation with Plivo’s Voice API

For many SMEs, diving straight into conversational AI can feel like a big leap. Hence, if you’re looking for a solution that doesn’t require hefty investments, Plivo’s Voice API is the perfect starting point. 

Plivo's Voice API easily integrates with your choice of speech-to-text, text-to-speech, and language model providers to build smart IVR systems. With smart IVR capabilities, you can automate routine tasks, direct calls to the right agents, and save valuable time for you and your customers. 

In addition, Plivo’s Voice API supports straightforward integration with leading AI providers, including OpenAI’s speech models. Using our simple integration endpoints, you can test the language model’s ability to transcribe voice to text before deploying your IVR system. The setup is easy, requires minimal technical expertise, and adapts effortlessly to your evolving needs.

For example, you can build an IVR to automate common queries like checking account balances or updating personal information, allowing your agents to focus on more complex issues.  Plus, its voice API supports key features like call forwarding, global conference calling, and call recording for in-depth analytics, providing high-quality services that meet customers’ needs.

Plivo’s reliable coverage in over 220 countries and territories, 99.99% uptime guarantee, and less than 2-second call rerouting in case of failovers amplify all these benefits.

Start simple, and scale smart. Contact us to build an integrated and intuitive communication system.

Delivering great customer experiences requires quick responses, personalized interactions, and communication through the customer’s preferred channels.  Yet, managing high call volumes, addressing complex requests, and meeting ever-growing expectations can make this a significant challenge.

Modern contact center technologies can bridge this gap with tools that streamline operations, improve customer communication, and empower contact centers to meet customer expectations.

In this blog post, we’ll explore the top 12 contact center technologies transforming customer interactions and how they can benefit your business.

1.VoIP

A Voice over Internet Protocol (VoIP) system lets businesses make and receive phone calls over the Internet, removing the need for outdated landlines, desk phones, mobile devices, and computers. However, the benefits of switching from legacy landline systems to VoIP go beyond cost savings and improved call quality.

A reliable VoIP system:

• Eliminates the need for desk phones and outdated systems.
• Offers add-ons like two-factor authentication (2FA) to verify callers and reduce fraud calls, smart interactive voice response (IVR) scripts for streamlined self-service, and call routing to connect customers with the right agents.
• Minimizes dropped calls and ensures crystal-clear communication.

If your contact center manages a high volume of customer inquiries, use a reliable VoIP system to ensure consistent communication and reduce call drops. Apply best practices to improve implementation and achieve better communication outcomes.

2.CRM integration

A Customer Relationship Management (CRM) system houses detailed information about previous customer interactions, their preferences, purchase history, and more. When you integrate this rich data into your contact center, agents get a comprehensive view of each customer to provide highly personalized assistance.

With this data readily available, agents can quickly identify previous issues or anticipate future needs, leading to faster resolutions and a better overall customer experience.

3.Call recording

You can capture customer interactions with call recording tools and gain valuable insights from them. For example, if customers frequently complain about a specific product, the tool captures this feedback. You can then use this data to improve the product’s quality, determine whether the issue is with marketing or product design, and train your staff accordingly.

Moreover, you don’t need to worry about customer data privacy as these tools encrypt the recordings.

To further improve customer experience, opt for an automated call transcription feature tool. Transcribing calls improves customer insights with more accurate analysis, helping you identify trends and address issues more effectively.

Analyze call recordings alongside contact center performance metrics and agent productivity tools to pinpoint areas for improving agent training or call-handling strategies.

4.Call queuing

Customers dislike waiting, however, call queuing systems make the experience more manageable. They inform customers of their expected wait times, play custom messages, and offer callback options. It’s one of the most effective contact center technology trends, especially when managing a surge of customer calls.

Such transparency reduces caller frustration and improves agent productivity. Some cloud-based contact centers also have automated callbacks, allowing customers to hang up without losing their spot in the queue.

You can even customize queues with maximum wait times and personalized messages or music with providers like Plivo. It further optimizes your call queuing strategy with insights into average wait times, dropped calls, and peak hours.

5.Smart IVR systems

An IVR is one of the most important self-service options in contact centers, helping manage customer requests efficiently while enhancing service quality. It routes customers to the appropriate agent based on input or responds to queries given there's a script for that particular use case.

However, smart IVR systems don't require traditional training. They use machine learning to process customer interactions and provide context-based resolutions. 

The system captures the customer's audio input and an AI bot analyzes and processes the request, generates a context-aware response, and delivers it in real-time to the customer. 

They provide dynamic routing, proactive customer engagement, speech recognition, real-time transcription, and call analysis to create a more intuitive customer support experience. 

You can use IVR systems to:

• Accept payments securely.
• Localize services with multiple language options.
• Route calls effectively based on customer input or intent through voice prompts or keypad input.
• Conduct surveys and gather feedback.
• Assign and prioritize inbound leads for sales calls to the right agents.
• Confirm customer availability for service or delivery dispatch through automated calls.

Pro tip: You can build a smart IVR using Plivo-powered AI voice agents to enhance your customer experience. 

6.Automatic Call Distributor (ACD)

Automatic call distribution systems intelligently route users to the right agents, making it an important part of contact center automation. This ensures that customers are connected with the right agents at all times.

The system routes works based on:

• Skill-based routing: Routes callers to agents with particular skills or training based on their needs
• Time-of-day routing: Routes calls to agents depending on their time zone.
• Priority-based routine: Routes callers with urgent issues to the top of the queue.

ACD eliminates the need for manual call forwarding or transferring, reducing wait times and improving overall customer experience.

7.Chatbots

The adoption of artificial intelligence (AI) in contact centers is on the rise, and AI-powered customer service chatbots are leading the charge. These virtual assistants for contact centers handle routine customer queries without the need for live agents, significantly reducing agent workload. They serve as round-the-clock virtual agents who are ever-ready to field queries, convert leads, and reduce customer support costs by up to 30%.

Use it to perform straight-forward tasks such as:

• Scheduling appointments.
• Answering FAQs.
• Taking meal orders.
• Offering discounts and offers.
• Identifying promising leads.
• Streamlining helpdesk operations and ticketing systems.

If a chatbot fails to answer a query, it will transfer the call to an agent for a more contextual response.

8.Omnichannel customer service 

The best customer experience comes from consistent support across multiple channels like SMS, voice, video, and live chat. Omnichannel customer service empowers agents to engage with customers across these various channels, providing a cohesive experience. They can easily transition between channels or even manage multiple channels at once.

Without integrated contact center channels, agents may have to switch between different platforms to review past interactions. This leads to repetitive questions, frustrated customers, and a negative impact on the experience.

9.Call analytics

Real-time and historical call analytics provide insights into performance metrics like call quality, resolution times, and call drops. AI in contact centers can even interpret the tone and emotions behind customer interactions — whether frustration, satisfaction, or confusion — and personalize responses accordingly.

Plivo provides an in-depth analysis of potential issues, both reported by users and identified through system checks. This data helps improve agent training and streamline contact center operations.

10.Cloud-based solutions

Cloud-based contact center software solutions ensure high availability, automatic updates, and integration with CRM, agents' productivity tools, and other customer experience tools. They also facilitate remote working as long as there's a stable internet connection.

Many cloud solutions complement your existing system rather than replace it outright.

For example, you could improve your current infrastructure by integrating channels like live chat, SMS, or video calls into your traditional phone systems.

11.Conversational AI

Conversational AI is transforming how contact centers operate.

A survey in the 2024 State of the Contact Center Report found that 30.4% of users said 'Yes' and 69.6% said 'Maybe' when asked if they’re considering using AI tools to improve contact center operations.

Launching context-aware voice bots that mimic human interactions ensures natural conversation flow by detecting speech onset and end. These AI-powered chatbots preserve the emotional nuances and tone of the customer, giving agents more access to deeper customer insights.

12.Sentiment analysis

Sentiment analysis empowers contact centers to gauge customer intent and recommend actions in real-time to meet their needs.

Say you’re a retail contact center receiving a call from a customer frustrated about a delayed delivery. The system integrates audio streaming via WebSocket, AI-driven transcription, and sentiment analysis to capture audio and transcribe it in real-time

AI tools analyze the conversation and detect frustration in the customer’s tone, tagging it as negative sentiment. The system then alerts the agent in real-time, prompting them to prioritize empathy and offer an immediate solution, like expedited shipping or a discount.

This proactive approach not only boosts call quality assurance but also improves overall customer satisfaction.

Future of contact centers

Conversational AI will be the key driver of customer service in the next decade.

Chatbots are already moving from straightforward query resolution to contextual resolutions. It’s clear that as AI evolves, its focus will shift from reactive problem-solving to proactive engagement. It’ll predict customer behavior, anticipate issues, and provide solutions in real-time.

However, there’s a flip side to this.

With AI addressing routine queries, support agents will handle complex and emotionally charged situations. This requires specialized training in empathy and creative problem-solving, areas AI cannot replicate.

Data privacy is another key concern. AI systems must comply with strict regulations like the General Data Protection Regulation (EU) and the California Consumer Privacy Act (CCPA). Businesses must develop robust data governance policies and provide employee training to guarantee compliance and customer trust.

As AI brings efficiency and scalability, human empathy remains vital. The future of contact centers lies in a hybrid model where AI improves, not replaces, human agents, encouraging valuable and meaningful connections.

Integrate these call center technologies with Plivo

To deliver a standout customer experience, you need to understand your customers' needs and meet them where they are. Plivo's Voice API is the perfect start to this. It lays the foundation for advanced, intelligent communication systems — empowering contact centers to operate more efficiently.

It easily integrates into your CRM and Business Intelligence (BI) tools to create a unified system. This ensures every interaction is backed by customer history and insights. Moreover, smart IVR scripts are among the best customer self-service options in contact centers.

Rely on Plivo to take care of routine queries like bill payments, appointment scheduling, or order tracking. You can automate these queries and free agents to focus on complex, high-value issues.

Plivo also offers real-time call analytics. You get detailed insights into performance metrics such as average resolution time, call quality, and sentiment analysis. This way, you can identify peak call times, optimize staffing, and address service bottlenecks proactively.

These benefits stem from Plivo's commitment to ensuring reliable connectivity, low latency, and exceptional call quality across 220+ countries and territories. Plivo’s seven global points of presence guarantee 99.99% uptime, crystal-clear 16kHz voice quality, and rapid rerouting in under 2 seconds during failovers.

Ready to take your contact center to the next level? Start by integrating Plivo’s Voice API and progressively incorporate these contact center technologies to drive automation.

Contact us to create a smarter, more efficient, and customer-centric contact center.