Let’s be honest—promoting and managing events can feel like a lot, especially when traditional methods like email and social media don’t deliver the desired results. 

For example, a recent Mailchimp research indicates that the average email open rate is only about 34%, which means email communication from your brand frequently risks going unread. On the other hand, the sheer volume of information shared on social media platforms makes it challenging for your branded content to stand out.

In this scenario, with an impressive 98% open rate, SMS stands out as a reliable way to reach your audience. Whether mounting a marketing campaign, sending event reminders or handling last-minute changes, this good-old, time-tested communication channel allows you to connect with customers directly. 

In this article, we’ll explore some top actionable strategies and best practices for using SMS effectively for event promotion and management.

Why use SMS marketing for event promotion and management?

According to the Mailchimp study, while event emails see a decent 21% open rate, this falls short of the 30% average across all industries. This is why SMS has emerged as the go-to option for event organizers to reach a broad audience instantly and keep everyone informed at every step. 

Here are some compelling reasons why event SMS should be part of their marketing strategy:

High open rates and engagement

As mentioned above, SMS have a high open-rate due to their nature of immediacy. Typically, most messages are read within minutes of receipt. This makes it an ideal channel to ensure your event-related communications are noticed and acted upon.

Budget-friendly

Compared to other marketing channels like email or paid ads, SMS is highly cost-effective. It’s significantly cheaper than CPC (cost-per-click) marketing, which can cost upwards of $6 per click on average. 

This makes SMS a budget-friendly option for event organizers looking to drive high engagement and attendance.

Fast and efficient

SMS is delivered almost instantly. 90% of people read a text message within the first 3 minutes, making it invaluable for real-time updates and last-minute announcements during events.

Timely and direct communication

Unlike emails that might sit unread or social media posts that can get lost in the feed, SMS delivers your message directly to the recipient’s phone.

Companies like Amazon use it to automate essential tasks like order confirmations and delivery updates, ensuring timely and efficient communication.

Broad audience reach

With 98% of Americans owning a cellphone and 91% using smartphones, SMS stands out as one of the most accessible ways to reach audiences across all demographics. 

Personalized messaging

31% of consumers sign up for SMS to receive more personalized messages. Marketers can personalize SMS by addressing recipients by name, tailoring content to their interests, and sending messages based on their behavior or preferences. 

Now that you know the benefits of SMS marketing for event promotion and management, let’s take a look at how you can use SMS at every stage of your event.

Key strategies for using SMS in event management and promotion

Effective event management has three key phases: pre-event planning, real-time management, and post-event engagement. Here’s how SMS can play a pivotal role at each stage:

Pre-event management

Promotion phase: Start by sending event announcements via SMS to ensure your audience is aware of the upcoming event. 

For example, an online fashion brand could send:
"🛍️ The wait is over! Our Fall Collection Launch Event is happening this Friday at 7 PM EST. Be the first to shop—RSVP now: [link]."

You can also include early-bird offers with direct RSVP links to encourage early sign-ups and create a sense of urgency. This makes it easy for attendees to confirm their participation with just a click.

For example:
"Exciting news! [Event Name] is coming on [date]. RSVP now and save 20% with early-bird pricing: [link]."

Reminder phase: As the event date approaches, schedule reminder texts to keep attendees informed. A quick, friendly nudge like:

"Just a heads-up! [Event Name] is tomorrow at 2 PM. We can’t wait to see you there!"

This keeps your event top of mind and reduces no-shows.

Furthermore, sending timely reminders ensures they don’t forget to attend. Highlight key event details like the event’s time, location, and agenda, so that attendees are fully prepared.

These reminders and updates minimize no-shows.

Real-time event management

Updates and alerts: Send real-time updates about schedule changes, important announcements, or helpful info like parking details.

For example:
"Reminder: Session 3 is starting in 15 minutes in Room 102. Don’t forget to check out the parking lot near the venue!"

Engagement during the event: Share links to session materials or highlight key moments throughout the event to keep attendees captivated.

For example: "Check out the session slides here: [link]. Don’t miss our live Q&A at 4 PM!"

Post-event SMS engagement

Gathering feedback: After the event, sending a short survey link via SMS is a quick and easy way to gather valuable attendee feedback.

For example:
"We’d love your thoughts! Please take 2 minutes to complete our survey: [link]. Your feedback helps us improve!"

This helps you understand what worked well and what can be improved for future events.

Sharing highlights: Show appreciation by sending thank-you messages and sharing event highlights like recordings, photos, or key reports.

For example:
"Thank you for attending [Event Name]! Check out the event highlights and photos here: [link]. Hope to see you at our next one!"

Promoting future events: Encourage attendees to stay engaged by promoting upcoming events through follow-up SMS.

For example:
"Don’t miss our next event on [date]! Register now and be the first to know about exciting updates: [link]."

This helps build anticipation for future events.

SMS helps you draw in attendees before, during, and after the event. Now, let’s explore some of the most used event SMS templates for event promotion and communication.

Top 10 ready-to-use SMS templates for event promotion

Here’s a selection of customizable templates for your event SMS campaigns:

1. Limited seat reminder

Only a few spots left for [Event Name] on [date]! Don’t wait—secure your place now: [link]

Example: Only a few spots left for the Business Growth Conference on June 10th! Don’t wait—secure your place now: [link]

2. RSVP confirmation

Thanks for RSVPing to [Event Name]! We're excited to see you on [date]. Your ticket: [link]
Example: Thanks for RSVPing to the Annual Networking Gala! We're excited to see you on July 5th. Your ticket: [link]

3. Countdown reminder

[Event Name] is just 3 days away! We’ve got an exciting lineup of speakers, workshops, and networking opportunities, so don’t forget to mark your calendar. Check out the full agenda and get ready for an unforgettable experience! [link]

Example:
The E-Commerce Expo is just 3 days away! We’ve got an exciting lineup of speakers, workshops, and networking opportunities, so don’t forget to mark your calendar. Check out the full agenda and get ready for an unforgettable experience! [link]

4. Last-minute registration

Time is running out! Registration for [Event Name] closes in 24 hours, and we don’t want you to miss out. Reserve your spot before it’s too late. Hurry, register now, and join us for an amazing event!  [link]

Example:
Time is running out! Registration for the Business Strategy Workshop closes in 24 hours, and we don’t want you to miss out. Reserve your spot before it’s too late. Hurry, register now, and join us for an amazing event!  [link]

5. VIP early access

Get exclusive early access to [Event Name]! Be the first to enjoy all the perks—secure your VIP spot here: [link]

Example: Get exclusive early access to the Luxury Fashion Show! Be the first to enjoy all the perks—secure your VIP spot here: [link]

6. Ticket reminder

Your ticket for [Event Name] is waiting! Don’t forget to grab yours before it’s gone: [link]
Example: Your ticket for the Annual Startup Expo is waiting! Don’t forget to grab yours before it’s gone: [link]

7. Session highlights

We have some exciting sessions lined up for [Event Name]! Get a sneak peek at the key topics and speakers. Plan your day with these session highlights: [link]

Example:
We have some exciting sessions lined up for the E-Commerce Innovation Conference! Get a sneak peek at the key topics and speakers. Plan your day with these session highlights: [link]

8. Thank you message

Thank you for attending [Event Name]! Check out the event highlights and photos here: [link]
Example:  Thank you for attending the Annual Networking Gala! Check out the event highlights and photos here: [link]

9. Upcoming event teaser

Exciting news! [Upcoming Event Name] is coming soon. Stay tuned for more details.
Example: Exciting news! The Annual Innovation Forum is coming soon. Stay tuned for more details.

10. Exclusive offer

As a thank you for attending, enjoy exclusive content from [Event Name]: [link].

Example: As a thank you for attending, enjoy exclusive content from the Marketing Innovators Summit: [link].

Now that you’ve got your event SMS templates, let’s look at some best practices to make your event communication even more effective.

Best practices for using SMS for events

To get the best results from your event text messaging, follow a few key practices. Let’s go over some tips for success:

Keep it concise

SMS messages have a character limit, so it’s essential to keep your messages short, clear, and to the point. Users are more likely to interact with short messages, as they can quickly understand the key details.

Timing matters

When it comes to event SMS, timing is everything. With 71% of people checking their phones first thing in the morning, it’s important to send messages at peak times—avoid early mornings or late nights. 

By reaching your audience when they’re most likely to respond, your message stands a better chance of being noticed.

Add a call-to-action

Whether it's promoting limited-time offers, exclusive discounts, or flash sales, a clear CTA like “Shop Now” or “Grab Your Deal” encourages recipients to act quickly, increasing engagement and sales.

Here’s a great example from Amazon Prime Day deals. Their SMS campaign focuses on urgency and simplicity, offering a strong call to action:

Make it personal

90% of customers are more likely to make a purchase when they receive a personalized SMS. Use your recipient's name, reference their past interactions, and tailor your message to make them feel valued. This relevance increases interaction and drives action.

Offer value

Whether it’s a special discount, exclusive product access, or early access to event registration, always offer value to your SMS recipients. When customers see a direct benefit, they’re more likely to act.

Test messages before sending

Testing ensures your SMS messages are clear, error-free, and contain the right information. It’s always best to test with a small group before sending it to a larger audience. 

Target your audience

91% of consumers are more likely to engage with brands that offer personalized offers. By segmenting your audience and sending targeted messages based on their interests or needs—whether VIPs or first-time attendees—you make them feel valued and more connected to the event.

Mobile-friendly pages

With 19% of marketing budgets in the U.S. now dedicated to mobile advertising, it’s important to ensure your event registration page links are mobile-friendly. They should load quickly and display perfectly across all devices for a good experience.

Measure performance

Track the effectiveness of your SMS campaigns by monitoring open rates, click-through rates, and registration conversions. Based on the results, you can optimize your messaging strategy and adjust your tactics for future events to achieve even better results.

By following these best practices, you’ll see an increase in engagement and attendance for your event. To elevate your SMS strategy, you need a robust platform that simplifies managing event communication and maximizes your impact.

Plivo CX, an omnichannel customer service platform, simplifies your event SMS strategy, making it easy to send personalized messages, track performance, and keep your audience connected every step of the way. 

Simplify event SMS strategy with Plivo CX

Managing event communication can be a challenge—whether it’s promoting the event, sending reminders, or providing real-time updates, getting the right message to the right people at the right time is crucial.

Plivo CX facilitates campaign management for event organizers looking to send timely event promotions, reminders, and updates. The tool helps you automatically connect with your audience more personally. 

Here’s how Plivo CX can charge up your event SMS strategy:

• Send bulk SMS: Launch, manage, and monitor your campaigns with ease. With just a few simple steps, you can select your audience, create targeted messages, and send them at the optimal time to maximize engagement and ROI. 

• Segment and build contact lists: Segment customers using the Audiences feature based on rules like purchase history or engagement. Send targeted campaigns to specific groups for higher relevance and engagement.
  
  
• Generate personalized messaging at scale: The Copywriter AI is designed to streamline message creation. You can specify event objectives, parameters, timing, urgency, and desired voice for the message.
  
  
• Analyze SMS campaigns: Use Plivo CX's detailed analytics to track performance metrics, measure ROI, and improve your SMS strategy. Adjust message content, timing, and targeting based on insights for better results.

• Timely updates: Instantly notify attendees about important event changes, updates, or reminders, ensuring they stay informed and engaged throughout the event journey.

• Cost-effective: Plivo CX offers affordable SMS solutions with high ROI, making it a budget-friendly choice compared to other SMS marketing platforms. Get discounts on SMS volume and spending as your usage scales.

With Plivo CX, you can manage your event communication more efficiently, reduce costs, and increase engagement. Also, Plivo CX taps into its premium carrier network, spanning 220+ countries, which ensures your event sms messages reach anywhere in the world with minimal delays.

Plus, with the affordable pricing, you can cut your SMS marketing costs by up to 70%.

See the difference Plivo CX can make for your event promotion and management. Book a demo today!

Long gone are the days when customers used to wait 20-30 minutes to get on call with a care executive. Now, they will abandon their call in 2 minutes 36 seconds.

Thanks to AI, businesses can now deliver real-time responses and personalize engagement across multiple touch points. 

If you are a business looking to explore AI in customer experience, this guide will help you understand AI's utility in depth. You’ll also learn how to choose and implement the right AI tool.

What is artificial intelligence in customer experience? 

Artificial intelligence in customer experience involves implementing AI technologies to enhance interaction between businesses and their customers. The goal is to deliver fast, efficient, and personalized experiences that allow businesses to work more productively and save costs.

Integrating AI into customer experience helps businesses understand what their customers want even without asking. It utilizes advanced algorithms to analyze customer data, predict preferences and improve response times, enhancing the overall customer experience. 

Benefits of artificial intelligence in customer experience

With the rise of AI, there is a question that people are desperately trying to figure out: Will AI replace human agents? The simple answer is no. 

Although Goldman Sachs says AI could replace the equivalent of 300 million full-time jobs, most experts believe that human efforts in customer service will be augmented with AI-driven automation and not replaced.

Let’s find out how:

Delivering faster responses with immediate chatbot assistance

In 2023, 44% of customers appreciated chatbots for helping them find relevant product information before making a purchase, and another 35% were keen on using chatbots available on brands’ websites.

One of the primary reasons customers love chatbots is that they can provide instant responses. Additionally, chatbots can also support agents with pre-written responses to customers based on the conversation’s context.

Forecasting customer needs using predictive analytics

58% of customers are willing to pay more for better customer service. AI for CX can analyze past interactions and behaviors to engage customers proactively and address potential concerns before they arise.

This allows businesses to identify signs of dissatisfaction, provide quality assurance, and discover up-selling and cross-selling opportunities, improving the overall customer experience. 

Maintaining employee stability through proactive retention analytics

AI can identify at-risk employees and address their concerns before they decide to leave. This is done by analyzing patterns in employee behavior, performance metrics, and engagement levels. 

For example, a company might notice that employees with prolonged project deadlines and fewer growth opportunities are more likely to leave. HR teams can then intervene by offering professional development programs, mentorship or improved incentives to retain top talent.

Delivering tailored experiences to build lasting relationships

According to a report by Deloitte, brands that are focused on delivering personalized experiences are :

• 48% more likely to exceed their revenue targets 
• 71% more likely to improve customer loyalty

AI can tap into customer behavior data to reveal preferences, helping businesses craft customized interactions and recommend products and services that align with individual tastes and needs.

Efficient resource allocation with intelligent lead scoring

Companies can leverage AI to implement smart lead-scoring systems that prioritize customers based on various factors, including engagement levels and industry relevance. 

This allows sales teams to focus their efforts on leads most likely to convert, resulting in optimized resource allocation. 

Amplifying business outcomes through sales prediction

AI-powered sales prediction tools can efficiently analyze historical data, customer interactions and external market factors to generate accurate forecasts. These insights help the sales team to make data-driven decisions and refine strategies. 

By leveraging AI, businesses can achieve new levels of growth, optimize resource allocation and ultimately amplify their success.

Examples: Uses of artificial intelligence in customer experience

Meeting customers' demands is one of the biggest challenges businesses have faced. But with AI, things are changing for the better. Gartner predicts that by 2025, 80% of customer service organizations will utilize AI technology in some form to improve customer experience and agent productivity. 

Let’s understand how some brands are excelling in meeting customers’ demands with the following AI customer experience examples :

Plivo CX’s self-service chatbot

The cloud-based omnichannel customer service platform Plivo CX comes with an advanced AI-powered self-service chatbot driven by OpenAI’s latest model. Once trained by a custom dataset of the company, the chatbot is designed to answer common queries swiftly and accurately. 

Plus, the chatbot is available 24/7. Even if the customers put the conversation on hold, chatbots can pick up where they left off. Plus, for complicated issues requiring human touch, the chatbots can hand them over to relevant agents, along with detailed notes and summaries.

Some of the other notable features of Plivo CX include:

• A unified agent desktop for omnichannel support helps agents quickly switch between channels with complete visibility of customers’ issues
• Integrations with top marketing platforms such as HubSpot, Help Scout, Zendesk, and other home-grown systems
• Visual workflow builder for creating automatic workflows
• Live coaching so that agents always remain knowledgeable about the process
• Metrics and Reporting to analyze customer interactions and gather feedback in real-time

Shopify’s advanced AI implementation

Shopify utilizes AI to analyze customer data such as browsing history, purchase patterns and demographic information to tailor product recommendations for each shopper.

Unlike traditional recommendations, AI product recommendations on Shopify shift based on real-time insights and user interactions.

Shopify’s advanced AI also helps in :

• Predictive inventory management to minimize overstocking and stockouts
• Fraud detection and prevention to provide a secure and trustworthy shopping environment
• Enhanced supply chain management by improving logistics and delivery processes

Amazon’s product recommendation system

Amazon takes product recommendations one step further by personalizing product descriptions that are more relevant to customers.

For example, instead of using generic phrases like “users also search for” or “more like this,” they provide more specific product descriptions such as “Cookie boxes for Christmas” or “Curling rod for straight hair.”

It also uses super-specific product descriptions to make it easy for customers to quickly locate a product based on the attributes they are looking for, such as “medium-sized bed for small dogs.”

eBay’s Gen AI seller function

Earlier in 2024, eBay launched a tool allowing marketplace sellers to remove the background around the product on a photo and replace it with a more professional-looking background created by Gen AI.

This helps small-range sellers who cannot invest in studio equipment create a professional shoot that appeals to more customers.

How to evaluate an AI customer experience solution

With many AI customer experience solutions in the market, it is extremely difficult to determine the best option. Moreover, most vendors glorify and present their AI capabilities in different ways to stand out from the crowd. Evaluating the right solution requires a strategic approach to ensure it aligns with your business needs and goals.

Consider these key factors when assessing an AI customer experience solution:

Feature sets

Look for platforms that offer an extensive range of features to support diverse needs. Consider features such as omnichannel routing, advanced personalization and real-time data analytics to empower your team to test and refine customer experiences.

Moreover, choose a platform that can handle basic and advanced scenarios to help you scale your efforts as needed.

User-friendly interface

An intuitive and user-friendly tool enables your team to set up, execute and analyze experiments without extensive training. A well-designed interface can minimize the learning curve and empower your team to focus on driving results rather than learning how to use a tool.

Advanced AI and machine learning capabilities

Opt for platforms with sophisticated algorithms that can analyze user behavior, predict trends, and adapt to customer preferences in real time. This allows for more precise targeting, personalized experiences and continuous optimization.

Robust security and compliance measures

Protecting customer privacy is non-negotiable for building trust and loyalty. Ensure the platform adheres to stringent security standards and complies with relevant data protection regulations, such as GDPR, to avoid legal complications and maintain customer trust.

Cost-effectiveness

Examine the platform’s pricing model to ensure it complements your budget and functionality. Beyond the initial costs, consider long-term expenses, such as feature upgrades, additional integrations, and ongoing support.

Proven track record

Look for platforms with a history of success with similar businesses. Evaluate case studies, customer testimonials and independent reviews to gauge the platform’s reliability and performance. A strong track record means the platform can deliver the required results and ensures confidence in your investment.

Steps to implement an artificial intelligence customer experience solution

Implementing AI requires a clear understanding of customer needs, seamless integration with existing systems, and proper team training. Here are the steps to help you get started:

1. Set your objectives

Identify the specific customer experience goals you want to achieve. Whether you are creating a more personalized customer journey, accelerating response times or automating repetitive tasks, defining your objectives will help you pick the right AI tool that fits your needs perfectly.

2. Select the right tool

Pick a tool that caters to your identified needs and objectives. Ensure the tool is scalable and adaptable to changing business needs. Consider other factors such as pricing, long-term viability, and support for these tools. 

3. Train and fine-tune the AI model

Engineers typically perform this step, which involves adjusting the model’s parameters to ensure accuracy. The process involves:

• Gathering relevant data from chat logs, email exchanges, and call transcripts
• Cleaning and categorizing the data before feeding it into the AI model
• Continuous fine-tuning by incorporating new data and feedback from customer interactions
• Testing AI responses before deployment to test for accuracy, relevance, and tone

4. Integrate with CX channels

Integrate the AI solution into your current systems, including your CRM, live chat or email platforms. The IT team typically does this, which involves API integrations, data syncing, and testing to ensure there are no errors. 

5. Ensure compliance with data protection laws

Maintain strict compliance with relevant data privacy laws and regulations, such as :

• General Data Protection Regulation (GDPR)
• Health Insurance Portability and Accountability Act (HIPAA)
• Payment Card Industry Data Security Standard (PCI DSS)

Also, regularly review and update your privacy policies to evolve with changing regulations.

6. Collect feedback on the new processes

Once done, collect feedback from agents and customers to identify areas for improvement and optimize where needed. Address any concerns promptly to maintain trust and satisfaction.

7. Train your team

To fully utilize the power of AI, train your customer service team on how to use the tools effectively. The training should cover more technical aspects, understand limitations, and effectively handle an escalated customer.

8. Measure return on investment (ROI)

Evaluate the ROI by assessing metrics such as customer satisfaction scores and response times. Makes adjustments where necessary based on performance data and evolving customer needs.

Accelerate response times with Plivo CX’s AI customer experience solution

Plivo CX is built as an all-in-one, AI-driven customer service solution for the modern era— agile and adaptive.  It features an AI-powered self-service chatbot, developed and powered by OpenAI, to provide exceptional omnichannel customer service for businesses of all sizes. 

Here is what it has to offer:

• Super-fast responses: AI chatbots efficiently handle customer inquiries, including exchanges, information updates, and order tracking in real-time
• Train as you need: Integrate with custom knowledge base and train AI chatbots to make informed decisions based on your company’s policies and brand guidelines
• Easy to update: Whether promoting offers, launching new products, or communicating policy changes, update the chatbots as needed. It is a simple and cost-effective process 
• Seamless escalation: For more complex issues that require human intervention, the chatbot can hand over the problem to the most suitable agent with complete context
• Keep it on track: Set boundaries to align your chatbot with your company’s guidelines, policies, and processes

As noted before, Plivo CX also features the unified agent desktop, which facilitates seamless communication across channels—email, SMS, chat, WhatsApp, and voice—to empower support teams to operate more efficiently and effectively than ever before.

To try Plivo CX today, book a demo.

The market size of the Interactive Voice Response (IVR) industry is expected to grow to USD 11.5 billion by the end of 2037. And, the need for efficient customer service has propelled this success.

Research suggests that 89% of customers will likely make repeat purchases with companies that offer excellent customer service.  And one of the key components of this efficiency is the integration of multi-level IVR systems into customer service processes.

Plivo’s suite of products offers businesses the tools they need to optimize and elevate their IVR systems. With Plivo’s real-time audio streaming, companies can move beyond traditional IVR setups and create dynamic, conversational, and personalized customer experiences.

This article will explore multi-level IVR systems, how they work, their implementation, benefits, and how you can go a step ahead of the traditional multi-level IVR systems with Plivo’s effective customer support solutions. 

What is Multi-Level IVR?

Multi-level Interactive Voice Response (IVR), also known as Auto Attendant, is an automated phone solution that guides callers through a structured self-service menu to connect them with the appropriate destination—be it an agent, queue, information, or action.

Unlike single-level IVR, which offers a straightforward menu with limited choices, a multi-level IVR allows for layered navigation. Each selection leads to submenus, offering more specific options to help callers find what they need.

Let’s say you have an e-commerce business. Here’s an example of how a Multi-level IVR would look like for your customers:

• Level 1: Welcome message with language preference selection (e.g., English, Spanish, etc.).
• Level 2: Primary menu options like browsing product categories, tracking an order, or connecting to customer support.
• Level 3: Specific options within each category, such as viewing discounts in a category, updating shipping information, or querying about product returns.

Structure and functionality of Multi-Level IVR

Imagine a telecom company using a Multi-Level IVR to streamline customer support. Here’s how it would work: the first menu asks users to choose between billing, technical support, or new plans, while a second level under "technical support" could identify whether the issue involves internet, mobile, or TV services. 

This layered approach lets you resolve most customer queries without call transfers. 

Key functionalities of Multi-Level IVR systems:

1. Manages incoming calls with multi-layered menus:

The multi-layered menu system organizes incoming calls by offering a series of hierarchical options. This ensures that callers can navigate through tailored choices, such as selecting their issue type or department, making the call-handling process smooth and efficient.

2. Routes calls to relevant agents or departments:

The system intelligently directs the call to the most appropriate agent or department based on the caller's menu selection. This eliminates confusion and ensures that customers reach the right point of contact quickly.

3. Reduces agents' workload by addressing routine queries:

The system can independently handle frequently asked questions, such as providing business hours, order tracking, or refund policies. Automating responses to these common inquiries allows agents to focus on more complex and critical customer issues, boosting overall productivity.

Benefits of Multi-Level IVR

Integrating a multi-level IVR system automates customer interactions, reduces operational costs, and significantly enhances customer service quality. Here’s how:

1. Empowers customer self-service:

Multi-level IVR lets customers resolve basic queries, such as checking order status or getting information about a product, without needing to wait for a live agent. This creates a more seamless experience and reduces frustration for customers who want quick answers.

2. Reduces customer service costs:

By automating repetitive tasks like FAQs or payment inquiries, businesses can save on staffing costs. The system handles a significant volume of inquiries, allowing human agents to focus on more complex customer issues.

3. Optimizes call routing:

Based on the customer's input, the IVR system efficiently directs calls to the most suitable department or agent. This ensures that customers are connected to someone capable of addressing their specific needs, saving time, and enhancing resolution efficiency.

4. Offers 24/7 availability:

Multi-level IVR operates round-the-clock, enabling businesses to assist customers even outside regular working hours. This feature is particularly valuable for global businesses catering to customers across multiple time zones.

5. Improves customer satisfaction:

Studies show that 70% of customers avoid brands with long wait times. Multi-level IVR minimizes wait times and offers faster resolutions, leading to higher customer satisfaction and loyalty. Customers value the convenience of resolving issues on their terms, anytime.

Also read: Use IVR to improve customer service.

Operational mechanics of Multi-Level IVR

A Multi-level IVR system works by intelligently guiding callers through a predefined call flow. Here’s how it operates:

1. Initial interaction:

• The IVR system welcomes the caller with an automated greeting.
• It then asks the caller to make a selection based on the presented options.

2. User input options:

Callers can interact with the system by either:

• Speaking their choices aloud (voice commands).
• Pressing specific keys on their keypad (keyed inputs).

3. Scripted call flow:

• Based on the caller's input, the system proceeds through a predefined sequence of prompts.
• Each step guides the caller closer to their intended destination, such as accessing information or connecting with a department.

4. Dynamic adjustments:

The IVR system can modify the call flow in real-time depending on:

• Time of Day: Adjusting options for business hours versus after-hours service.
• Call Volume: Prioritizing responses or providing alternatives during peak times.
• Caller History: Personalizing interactions using data from previous calls.

How to implement and customize multi-level IVRs?

A poorly designed Multi-level IVR system can frustrate customers rather than help them. Common pitfalls include irrelevant menu options, lengthy navigation paths, and difficulty in connecting with live agents. 

Avoid these challenges by following a structured implementation process:

1. Analyze the current IVR flow: Review if the existing system is efficient and meets customer needs. Gather feedback from stakeholders and customers to identify issues like slow routing or missing steps.
2. Design the IVR flow: Start by mapping out the most common customer journeys and defining clear objectives for each interaction. Ensure that options are concise and self-explanatory, and limit menu levels to avoid overwhelming users. Incorporate error handling for invalid inputs and provide quick access to a live agent when necessary. 
3. Create IVR transcripts: Write IVR scripts for various scenarios like greetings, options, and busy signals. Customize the tone and content based on your brand voice and target audience demographics.
4. Test the IVR flow: Run tests with external users to identify bottlenecks or areas of confusion and ensure the flow is intuitive and works smoothly.
5. Monitor and optimize: Use analytics to track performance and make necessary adjustments based on metrics like call abandonment or handling time to optimize your IVR system

Going beyond traditional customer service with Smart IVR 

Traditional multi-level IVRs have been a reliable solution for years, but customer expectations are evolving. Your customers don’t want to navigate through multiple menus to find the right option. They want a fast and simple option.

That’s why many forward-thinking businesses are upgrading to smart IVRs powered by AI voice agents that offer faster, more conversational customer experiences.

Why Are Smart IVRs the Game-Changer?

Smart IVRs let your customers skip the frustrating menu maze. Instead of “Press 1 for billing,” they can simply say, “I want to check my last payment.” Using AI, smart IVRs understand what customers need, respond naturally, and get them to the right place quickly—no guesswork or dead ends.

You can easily switch to smart IVRs with Plivo powered AI voice agents. By leveraging natural language processing (NLP), these voice bots understand customer intent and respond intelligently, eliminating the need for rigid menu navigation. 

They also integrate seamlessly with existing workflows and ensure smarter call routing, faster resolutions, and a modern customer experience that scales with your business. 

Here’s how smart IVRs with AI voice agents improve your customer interactions:

• Talk, don’t press: Plivo powered AI voice agents use Natural Language Processing (NLP) to understand and respond to what your customers are actually saying, not just what button they pressed.
• Smarter routing: Unlike multi-level IVRs, smart IVRs analyze caller data and preferences and dynamically adjust the call routing and response pathways, creating a tailored experience for every customer.
• Contextual awareness: AI-powered IVR tracks the history of previous interactions, to pick up any conversation where the customer left it to avoid unnecessary repetition.
• Data-driven operations: Smart IVR integrates with customer relationship management (CRM) systems and databases, to provide relevant, real-time information during the interaction.

Make the switch today with Plivo powered AI voice agents .

Traditional IVRs served their purpose, but it’s time to evolve. Plivo makes it easy to launch AI voice agents and create a smarter, more intuitive IVR experience that enhances your customer experience. 

Why Plivo?

• Superior voice infrastructure: To deliver get crisp call quality across 220+ countries 
• Low latency: Our PoPs are located in seven locations (California, Virginia, Frankfurt, Mumbai, Singapore, Sydney, São Paulo) across five continents. 
• High availability and uptime: With a redundant infrastructure across multiple geographies and at least three local carrier connections across countries, Zentrunk promises 99.99% uptime
• Full redundancy: Redundant links reroute traffic over backup networks in less than two seconds in case of backbone failover

With Plivo-powered AI voice agents, you can create smart IVRs that don’t only talk but empathize and engage with your customers. 

‍ Request a trial to Plivo today to get started.

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!