Plivo is introducing PIN-based authentication to its robust Number Masking API. This feature is designed to expand the utility and coverage of our number masking capabilities, catering to a broader range of use cases, including scenarios where calls originate from numbers that are not part of the number-masking session.

What is PIN-based Number Masking?

PIN-based number masking builds on our existing number masking solution, which anonymizes the phone numbers of parties in a call by using an intermediate virtual number. The new feature introduces a PIN authentication layer, enabling seamless connection even when calls originate from numbers that are not part of the number-masking session. This is particularly useful for situations where users may have multiple phone numbers or when calls are made from a number not previously associated with the application.

For example, imagine a user who signed up on a ride-sharing app with their primary phone number (let's call it Number X). One day, they need to call their driver but find that their primary phone is out of battery. They decide to use a different phone (Number Y) and call from a number that is not part of the number-masking session. Thanks to PIN-based Number Masking, they can still make the call. In such scenarios Plivo will ask for a PIN, and once the caller enters it correctly, the call connects to the driver, all the while keeping both parties' actual numbers hidden.

Who Benefits from PIN-based Number Masking?

This solution is tailor-made for businesses that operate in dynamic environments where end users or service providers use multiple SIMs or phone numbers. Whether it's a delivery service connecting drivers and customers, or a healthcare provider ensuring patient confidentiality, PIN-based number masking ensures that every call is securely connected, regardless of the phone number used.

How Does It Work?

When a call is initiated from an unregistered number, the caller is prompted to enter a PIN. This PIN, either set by the user or automatically generated by Plivo, verifies the caller's identity and connects them to the intended party, all while maintaining the anonymity of both parties' phone numbers.

Getting Started with PIN-based Number Masking

The adoption of PIN-based Number Masking involves a straightforward process, ensuring businesses can easily integrate this feature into their existing systems. Here's how to get started:

• Account Setup: Ensure you have an active Plivo account. If not, sign up with your business email and acquire a voice-enabled Plivo phone number, essential for creating number masking sessions. You can rent numbers from the Numbers page of the Plivo console, or by using the Numbers API.
• Creating a PIN-Based Session: Use a simple cURL request to kickstart your number masking session with PIN authentication enabled. This request should include both parties' phone numbers, a flag to enable PIN authentication (is_pin_authentication_required), and the PINs for both parties. You can also specify audio prompts for PIN entry and incorrect PIN attempts. 

 Here’s a basic template:

Ensure that is_pin_authentication_required is set to true for sessions requiring PIN verification. This step is vital for authenticating calls from unknown numbers.

• Configuration and Customization: Tailor the session to your specific needs by configuring optional parameters. These include setting custom PIN prompts and actions for incorrect PIN entries, thus offering a personalized experience for your users. Further details about these attributes can be found in the session object description.
• Session and PIN Management: Upon session creation, both parties receive the same virtual number. The PIN generated by Plivo will be unique for each party. Customers also have the option to generate unique pins for the parties involved. Plivo's system seamlessly handles the authentication, connecting calls upon successful PIN verification.
• Monitoring and Feedback: Plivo's infrastructure provides callbacks for real-time updates on PIN authentication status and session interactions. This feature is invaluable for maintaining oversight and optimizing the call experience based on actual usage.

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Why Choose PIN-Based Number Masking?

PIN-based number masking enhances security and flexibility, ensuring calls are authenticated even from unregistered numbers. This level of authentication is crucial for businesses that prioritize customer confidentiality and security, such as healthcare providers, ride-sharing services, and delivery platforms. By integrating this feature, businesses can reassure their users that their privacy is protected, and their interactions are secure, no matter which phone number they use.

Conclusion

Incorporating PIN-based number masking into your communication strategy not only enhances security but also provides a seamless user experience across various scenarios. Whether your users need to switch between multiple devices or numbers, this feature ensures uninterrupted and confidential communication.

To implement PIN-based number masking and leverage its full potential, explore our comprehensive developer documentation. Here, you'll find detailed guides, examples, and best practices to help you integrate this feature effortlessly.

Discover how Plivo's API can transform your communication processes by visiting our developer documentation. Empower your business with advanced security features and ensure your users' privacy and satisfaction.

Enhance your call security today with Plivo!

SMS has long been the workhorse of business messaging—but there’s a new show pony in town. 

Rich Communication Services, or RCS messaging, offers a powerful upgrade that goes beyond plain text to transform business-to-customer communications.

In this guide, we’ll detail how RCS is different from OTT, SMS, and MMS, the advantages RCS can offer your business, and some tips to help you leverage its full potential for your business.

What is RCS messaging?

RCS, which stands for rich communication services, is a revolutionary protocol that upgrades traditional SMS and MMS text messages with a host of advanced features. These features include images, read receipts, suggested replies, group chats, and e-commerce integrations, making RCS messaging more engaging and informative. 

Many of these features are already familiar to consumers who use chat tools like OTT services like Facebook Messenger and WhatsApp. The big difference is that RCS messaging builds these features directly into Android and iOS; it will inevitably replace SMS altogether. 

Does RCS work on Android and Apple devices? 

Most major carriers in the US offer RCS messaging on Android devices. However, Apple only recently announced that it will adopt RCS with the release of iOS 18 in the fall of 2024.

"We believe RCS Universal Profile will offer a better interoperability experience when compared to SMS or MMS. This will work alongside iMessage, which will continue to be the best and most secure messaging experience for Apple users,” said an Apple spokesperson. 

Apple has started testing RCS messaging with iOS 18 developer beta 2, suggesting a wider release is imminent. 

Where is RCS messaging used?

The use of RCS messaging is contingent on two factors: carrier support and device compatibility. Currently, RCS messages are only compatible with newer Android phones, such as the latest devices from Samsung and Google. 

Carrier support is comparatively more common. Most major carriers in North America support RCS messaging, including AT&T, Verizon, T-Mobile, and Sprint. The map below shows where RCS messaging is available and in use in more detail. 

While RCS isn't universally available yet, it's being adopted by more and more carriers and becoming increasingly common on newer devices.

How does RCS messaging compare to MMS, SMS, and OTT?

RCS, MMS, SMS, OTT — these acronyms can quickly become confusing. SMS and MMS are legacy systems from which RCS has evolved. Let’s go through the key differences between different messaging protocols to understand why RCS messaging is so promising.

SMS (Short Message Service)

SMS messages are the most basic types of text messages. These texts can be up to 160 characters and text-only, meaning you can’t send images or video over SMS. SMS messages are compatible with virtually every mobile phone on the market and do not require an internet connection.

MMS (Multimedia Messaging Service)

MMS messages are an extension of SMS designed to send multimedia content, including images, video, audio, and text. MMS allows for more text than SMS, up to 1,600 characters. These messages are compatible with most mobile phones, but there are sometimes issues with formatting between different devices and carriers. MMS messages work over cellular networks but often benefit from an internet connection to transmit media content. 

OTT (Over-the-Top Services)

OTT messages use your phone's internet data connection rather than your mobile carrier's traditional SMS/MMS network. Apps like Facebook Messenger, WhatsApp, Telegram, and WeChat are all OTT messaging services. OTT messaging apps tend to offer more features than SMS, such as sending photos and videos, voice and video calls, group chats, and read receipts. These apps aren’t native to iOS or Android devices and must be downloaded by the user before OTT services can be accessed. 

RCS (Rich Communication Services)

RCS messages are an upgrade to MMS. These texts support text, high-resolution images, videos, audio messages, file transfers, location sharing, and more interactive elements like group chats and read receipts. However, RCS requires both the sender and recipient to have RCS-enabled devices and carriers that support RCS. 

RCS messaging offers the best set of features and security compared to legacy text messaging protocols. The only drawback is the lack of market penetration — something we expect will change with Apple’s new iOS launch. 

The future of RCS messaging for your business

The potential of RCS messaging hasn’t been fully realized, but early analysis has forecasters excited about what RCS texting can do for businesses of all sizes. “New feature-rich messaging apps, such as those built on the RCS platform, offer businesses powerful new opportunities for successfully interacting with consumers,” wrote the experts at Harvard Business Review. 

Brands such as Citi, UnoTV, Overstock, and Subway are early adopters of RCS. These companies provide case studies of how other businesses can make the most of RCS messaging. For example, Overstock uses RCS texting to send purchase, shipping, and delivery confirmations. Subway used RCS messages to send promotions with high-quality images; the campaign saw a 144% increase in its coupon redemption rate compared to the same promotion sent via SMS.

The analysts at Juniper forecast significant growth in RCS usage, expecting the user base to surpass 2 billion by 2028 — a prediction that seems well within reach given Apple’s planned release to its customers. Here’s what the mobile market could look like over the next few years. 

Given that RCS is poised to make MMS and SMS campaigns obsolete, let’s dive into why RCS can make such a big difference for your business. 

The advantages of RCS chat for your company and customers

The adoption and popularity of OTT apps signal how RCS will work for your company. Let’s break down in more detail how RCS messaging can strengthen your customer relationships. 

Deliver a better customer experience

Like WhatsApp and other OTT messages, RCS is packed with features that improve the user experience. Here are a few media capabilities built into RCS chat that can upgrade the customer experience. 

• Quality images, video messages, and GIFs
• Delivery and read receipts
• Video-calling capabilities
• Suggested replies
• Suggested actions
• Location sharing
• In-message payment options
• Sender verification
• QR codes

“With RCS, which has the richness of OTTs but is universal, consumers will get graphically branded messages from a verified sender, which may include suggested action buttons quick button replies, along with high-definition images and video,” wrote Harvard Business Review. “Survey respondents emphasize the importance of these messaging capabilities, with 81% saying that the ability to offer verified sender information is highly important.” 

Boost trust with sender verification

Brands that use RCS texting can be verified by a Verification Authority—a specialized entity, Mobile Network Operator, Chatbot Platform provider, etc. Once verified, your brand’s logo will appear at the top of the conversation along with your brand name and status badge (such as a checkmark).  

Verified sender information is among the most promising features of RCS messaging. By becoming a verified sender, your brand avoids being marked as spam and can build customer trust. Today, 70% of consumers have worried brand texts pose a data security risk; sender verification helps mitigate that anxiety.

Build strong customer communication

The many features available in RCS messaging enable brands to boost engagement and create a meaningful channel for two-way communication with customers. Interactive messaging lets customers take action directly, reducing admin for your brand while making it as easy as checking a text for customers to engage.

Imagine sending messages enriched with buttons that trigger specific actions. Customers can click a button to view product details, book an appointment, or initiate any relevant action – all within the same message thread. This ability saves customers time and frustration by eliminating the need to navigate through separate platforms.

Learn more from your data 

RCS messages generate better data and analytics from which your brand can learn. UnoTV’s RCS pilot gave the brand useful information that can trigger smarter, more targeted future campaigns. 

“With SMS, we don’t even know if the message was delivered to the user, but with RCS

we can see if it was delivered, if it was opened, and if it was interacted with,” said Violeta Rosales, UnoTV digital development lead. “It gives us a much better understanding of interactions.”

Leverage a more targeted UX 

RCS's rich multimedia experience lets your brand leverage chat history, analytics, and other customer data to build rich customer profiles. These detailed profiles become the key to crafting highly targeted messages – whether for automated responses or marketing campaigns. Tailoring compelling content that resonates with individual customers becomes much easier with this protocol. 

Use RCS messaging to grow your business

RCS messaging can supercharge your sales, marketing, and customer service. Here are a few ways to make the most of RCS’s advanced features to grow your business. 

Send captivating promos and specials

RCS messages allow brands to create eye-catching promos with image carousels, media cards, and GIFs. Many brands are already using WhatsApp to do this. Showcase multiple products at once with a call-to-action that takes the viewer straight to the shopping page, streamlining checkout. 

Early data suggests that media-rich promos significantly outperform traditional mobile campaigns. BodemerAuto, a car dealer, launched a Black Friday campaign using RCS to increase customer engagement. The campaign delivered a 17-fold clickthrough rate (CTR) improvement compared to a concurrent, text-only SMS campaign.

Manage appointments and reservations

Healthcare and hospitality companies can use RCS texting to manage appointments, send reminders, and sell event tickets. Live support, suggested actions, and AI chatbots can all be used in RCS texting to help customers manage their relationships with your business without tangling up customer service channels. 

How does this work? A salon could prompt a customer to set up an appointment with a “schedule now” button. The client would schedule their appointment directly through the text conversation. Suggested actions could also include a “reschedule” autoresponse. 

Automate account alerts 

Citi has traditionally used SMS to ask customers to verify account information, receive alerts on their spending, and get notified immediately of suspicious transactions. With RCS messaging, Citi can do more. 

“This RCS functionality allows customers to message Citi through the standard Android Messages app on their device and to access information such as their current balance and payment due date,” Wooters notes. “Our customers can also escalate their inquiry to a live agent, to address additional servicing needs.” 

Not only can Citi customers get real-time account alerts, but they can also take action directly in the message. 

Beat the competition with a great RCS strategy: 3 tips

Now is the time to start developing an RCS strategy. As this messaging protocol grows, brands that are prepared will have a competitive advantage over those that continue to rely on SMS or MMS. 

Treat your RCS text campaigns like e-mail. 

The features of RCS messaging allow you to be more sophisticated in your mobile marketing strategy. RCS messages can deliver powerful, specific CTAs, so customer segmentation is imperative. Set campaign goals, segment your contact list, and measure results the same way you would an email campaign. 

Please note that we do not suggest writing RCS messages that are as long or detailed as your e-mail campaigns. RCS messages should be used to augment your other communications channels in a more targeted, impactful way.

Start developing content on OTT apps.

More brands are signing on to use this messaging protocol every day. But, in the meantime, develop an OTT strategy that can help hone in on what content works and doesn’t. Plivo’s WhatsApp Business API allows users to effortlessly deploy WhatsApp for customer engagement while keeping costs low. 

WhatsApp for Business allows brands to send images, videos, and documents, making the messaging experience richer and more engaging. Plivo makes it easy to use the WhatsApp Business Platform to showcase a new product through a video, share a brochure as a PDF, or simply update customers on their latest transactions.

[Read more: Get Started with Plivo's WhatsApp API – Quick Onboarding Guide]  

WhatsApp for Business gives you a way to test different content and see what resonates. Try different campaigns to learn best practices and understand how customers respond to these richer messages. 

Utilize your customer data. 

Finally, remember that RCS messaging is simply another channel in an omnichannel approach to the customer experience. Like any tool, it’s best utilized with customer data from across your company — sales, customer service, marketing, and operations. Integrate RCS messaging with your other systems and channels to get the best results.  

Conclusion

RCS messaging is poised for explosive growth. Preparing your business for this messaging protocol now is a smart way to build customer loyalty and trust in the future. Learn more about RCS and how Plivo can help your business engage customers by getting in touch with sales.

The high risk of a security breach makes protective measures, such as two-factor authentication (2FA) and two-step verification (2SV), non-negotiable for businesses. 

An all-in-one solution like Plivo’s Verify API enables you to use 2FA and 2SV to confirm a user’s identity, yet these options operate in distinct ways that can impact your customer experience.

In this guide, we will share in-depth information about two-step verification vs two-factor authentication: their processes, semantic differences, security advantages, and how to determine which option is right for your company. 

What is two-factor authentication (2FA)?

Consumers often use two-factor authentication (2FA) in their day-to-day transactions, such as online banking, digital payments, accessing apps on their mobile devices, and others. 

Two-factor authentication uses two separate factors from different categories to authenticate a user and complete the login process. These categories could be something you know (like a password), something you have (like a smartphone or hardware token), or something you are (like a fingerprint or facial recognition). 

For instance, 2FA could require the user to know a password as well as a code from an authentication app, a fingerprint, or facial recognition. Typically, the user will type in their username and password on a device,  and then the website sends a separate one-time code (OTP) via text, voice call, or mobile app to enter the login page. Or, the user inputs their password and then uses a fingerprint or facial recognition on a separate device, like a phone or tablet, for authentication. 

This combination of using different factors from separate categories makes it significantly harder for a hacker to breach an account, even if they have the user’s password. They will still lack access to the second method (another device or biometric data). 

Examples of two-factor authentication

Here are some real-world examples of 2FA.

• Password and facial recognition on a laptop: After entering the credentials, users must complete the login by scanning their face using their laptop's built-in camera.
• Password and security token: A user inputs their password and then enters a code generated by a physical security token, such as a YubiKey.
• Password and push notification approval: A user enters their credentials on the desktop and then approves a push notification sent to their mobile device to confirm their login.

Benefits of two-factor authentication

• Provides better security: This multi-layered approach is especially effective in thwarting cyber attacks by requiring multiple forms of identification.
• Provides enhanced protection against phishing: Phishing attempts rely on social engineering to trick individuals into revealing passwords. However, biometric info or physical tokens can't easily be compromised through these methods. Even if a password is stolen, the second factor, such as a fingerprint or a security token, remains secure. 
• Designed to enhance customer trust: 2FA boosts user confidence and trust in account security. This leads to higher user satisfaction, engagement, and loyalty as customers feel more secure in their online interactions. 

Challenges of two-factor authentication

• Costs can easily escalate: Implementing 2FA can be costly and complex, requiring significant investment in new technologies, training, and ongoing maintenance and support. These costs can be a barrier for smaller businesses or those with limited budgets.
• Adoption by consumers may take time: Additional steps to log in can be seen as inconvenient, leading to potential resistance from users who prefer simpler, single-step logins. 
• Managing two devices adds complications: Losing the device used for 2FA can lock users out of their accounts, making it complex and time-consuming to recover access. Likewise, the need for two devices can be inconvenient or inaccessible for some customers. 

What is two-step verification (2SV)?

2SV also involves two verification stages, but unlike 2FA, which relies on two different methods, two-step verification relies on two knowledge factors. 

Compared to a simple one-step login process, 2SV is considered more secure. A user needs to know two separate pieces of information to access their account. However, 2SV is considered less secure compared to 2FA. 

How does 2SV work?

2SV generally involves the following steps:

1. The user enters their password to initiate the login process.
2. The user provides a one-time code sent to a registered device or answers a preset security question. The code is often sent via SMS, email, or generated by an authenticator app.

By requiring these two steps, 2SV ensures that even if an attacker obtains the user's password, they would still need access to the second verification method to gain entry.

Examples of two-step verification 

Here are some examples of 2SV in action:

• A one-time PIN in email or text: After entering their username and password, the user receives a single-use PIN or link to enter to access an account. Unlike push notifications, texts and emails are protected by their own passwords, making this method part of the same authentication category (knowledge factor) as the initial password.
• Security questions: Users are required to answer one or more security questions before they can complete the login process. This additional step ensures that only individuals who know the correct answers can gain access.
• Recovery codes: These are unique, system-generated codes provided when a password is forgotten, allowing users to regain access to their accounts. Often referred to as temporary passwords, recovery codes serve as a backup method for account recovery.

Benefits of two-step verification 

• Provides enhanced security: 2SV adds an extra layer of protection beyond just a password. This dual-step process makes accessing an account more challenging for unauthorized users.
• Easy to implement: Implementing 2SV is generally straightforward and can often be integrated with existing systems without major modifications. This makes it an accessible option for many organizations, regardless of size and budget.
• Better accessibility and experience for users: Users don’t need to switch between different devices or methods while logging in. They can access their accounts from anywhere with just a single device.

Challenges of two-step verification 

• More susceptible to phishing: While 2SV is more secure than using a password alone, it can still be vulnerable to phishing attacks, especially if the second verification step involves SMS verification or email codes. 
• Security questions weakness: Using security questions as a second factor can be weak, as answers can be guessed or found through social engineering. For instance, many people use security questions like their mother’s maiden name, which hackers can easily discover on social media. 
• Recovery process complexity: If users lose access to their registered device, they may be unable to complete the second verification step, which locks them out of their accounts. Recovery processes can be complicated and time-consuming, adding inconvenience.

What’s the difference: two-step verification vs two-factor authentication

Here’s a simple chart to illustrate the difference between two-factor authentication vs two two-step authentication. 

Picture the safety features of a car. All airbags are safety features, but not all safety features are airbags. 

Similarly, every two-factor authentication is a form of two-step verification, but not all two-step verification methods qualify as two-factor authentication.

The key difference between two-step verification vs. two-factor authentication? 2FA requires two factors from separate categories. On the other hand, 2SV has two knowledge factors, such as a password followed by a code sent via SMS text message or email​. 

For example, logging into your bank account using 2FA might involve entering your password (something you know) and then scanning your fingerprint (something you are). This approach uses two distinct types of factors, significantly enhancing security. 

In contrast, 2SV for logging into an email account might involve entering your password (something you know) and then entering a code sent to your email or phone (also something you know). 

Why 2FA is considered better than 2SV

2FA is inherently more secure and trusted in industries such as banking, government, and healthcare due to its use of varied authentication factors. 

Other security tips for verifying access

To enhance the security of your accounts and systems, consider implementing the following additional measures.

1. Use strong, unique passwords: Use passwords that are long, complex, and unique for each account. Avoid using easily guessable information like common words, birthdays, or names.
2. Enable multi-factor authentication (MFA): Whenever possible, use MFA, which combines several types of authentication factors, such as something you know (password), something you have (hardware token), and something you are (biometric data).
3. Use authenticator apps: Authenticator apps are less susceptible to interception and SIM-swapping attacks. Authenticator apps generate time-based one-time passwords (TOTPs) that can only be accessed on the registered device​.
4. Secure your devices: Lock your devices using passwords, PINs, or biometrics. Also, regularly update your devices to the latest software versions to protect against vulnerabilities​.
5. Monitor account activity: Regularly check your account activity for unauthorized access attempts. Many services will notify you of suspicious login attempts so you can quickly respond to potential threats​.
6. Educate yourself and your users: Stay informed about the latest security threats and best practices for online security. Awareness and education are key to defending against the evolving threat landscape.

By combining these security measures with 2SV or 2FA, you can significantly enhance the protection of your accounts and sensitive information, making it much harder for unauthorized users to gain access.

How Plivo uses 2FA to strengthen your privacy and security

Plivo is designed to build strong defenses for businesses and operators. We assume that a cyber attack is always imminent and focus on providing the best user experience with intuitive and easy-to-use authentication technologies.

1. Increase conversion rates using multiple channels

All 2FA voice and SMS OTP messages must be delivered to the user’s device quickly. Plivo’s powerful platform ensures those messages arrive within a few seconds to avoid disrupting the customer experience. 

Plivo flags invalid phone numbers, identifies the fastest and most reliable route for message delivery, and supports high-volume messaging to guarantee that OTPs reach users promptly. This seamlessly increases conversion rates by ensuring that users can access services without delays or security concerns.

2. Reduce errors with phone number lookup

Plivo’s new Lookup API can automatically determine the format, type, country, and carrier for any phone number worldwide. This detailed information helps you assess risk, prevent fraud, block fake accounts, and increase customer acquisition without additional user input.

3. Reduce the total cost of ownership 

Plivo provides a direct route to end users with a maximum of one hop, ensuring there is no route dilution or blending. This capability allows users to make calls and send SMS text messages globally without delays or the cost of repeated undelivered messages.

Pricing for Plivo's Lookup API starts at $0.004 per request. Bundled packages are available with monthly fees for further savings.

After using the allocated API requests in each plan, additional requests cost $0.004 for each additional request. 

Plivo’s 2FA fraud protection features 

• Geo permission management: Plivo lets you control the list of destination countries for SMS text messages and voice calls from your account. This feature allows you to disable communications to high-risk countries where you do not have users.
• ‍International toll fraud protection: Manage connectivity to global high-risk premium numbers prone to international toll fraud. You can also maintain your own destination number blacklists for greater control and security.‍
• Pattern-based alerts: Set up alerts for unusual SMS or voice activity on your account. Trigger alerts when there is a significant drop in delivery rates, indicating potential messaging to invalid or unallocated phone numbers.

Conclusion

While both two-step authentication and two-step verification are great at safeguarding your customer’s data, 2FA offers greater security by using different types of authentication factors. 

Ultimately, choosing the right authentication method depends on your business needs and the level of security you require. Implementing 2FA can significantly enhance your security posture, providing peace of mind for both you and your customers.

Ready to implement a 2FA solution for your business? Get started with Plivo.

Governments worldwide have started mandating 10DLC registrations in response to the rise in SMS fraud. The US government has declared that all SMS/MMS messages sent to US phone numbers from unregistered 10DLC numbers will be fully blocked from September 1, 2023. Elsewhere, the consequences of not registering your number include increased carrier fees and other penalties. 

10DLC registration helps differentiate legitimate messages from spam. Here’s everything you need to know about registering your 10DLC phone number to make sure your messaging campaigns reach their intended customers and don’t get flagged as fraudulent. 

What is 10DLC registration?

10DLC registration is the process of registering your 10-digit long code (10DLC) phone number with a specific campaign (known as the messaging use case, or the reason for sending your message). Registration shows that your number and messages associated with it are approved by a mobile carrier. This approval helps verify your organization’s legitimacy and the purpose of your messages.  

Some common campaign types for 10DLC phone numbers are:

• Marketing: Promotional offers, loyalty program updates, and more
• Transactional: Order confirmations, delivery notifications, or password reset codes.
• Customer support: Real-time support through SMS chat.

Registration is especially important for application-to-person (A2P) 10DLC phone numbers. Most phones filter and sort messages based on the campaign type. For example, transactional messages and OTPs will be prioritized, whereas other marketing messages might be delivered late. 

Ultimately, registering your 10DLC phone number can build your brand’s credibility, prevent compliance issues, and ensure campaign success.

How does the 10DLC process differ for direct customers vs. resellers?

The 10DLC registration process can vary depending on your business type. A brand that directly communicates with customers can register its business entity directly.  

However, if you’re an independent software vendor (ISV) who sends SMS and MMS messages on your customer's behalf, you must register separately for each customer. 

For example, consider a hypothetical messaging platform for businesses in the United States Ovilp Corp. It should register its own brand and each of its customers' brands as individual brands. 

How does the 10DLC registration process work?

You can register your 10DLC phone number via campaign service providers (CSP) who liaise between your business and carrier. This CSP is usually the A2P provider or messaging service you use to send your messaging campaigns.

Here’s a general overview of the registration process. 

1. Submit your details  

The first step is sharing your business and campaign details with your CSP or A2P provider. This includes information like:

• Business type
• Business registration number
• Phone number
• Physical address
• Tax ID
• Website details 
• Campaign type and purpose
• Opt-in and opt-out methodology
• Sample messages

You might also have to submit extra information depending on your A2P provider. Some A2P providers offer pre-defined campaign categories to choose from, while others might ask you to create custom campaigns.

2. Register your campaign

Once you share all the relevant details with the A2P provider, they will send your 10DLC application to The Campaign Registry (TCR). TCR is a central database that stores information about registered 10DLC phone numbers and their associated campaigns and is managed collaboratively by phone carriers in the United States. 

3.  Vet your campaign

Once the A2P provider submits your campaign to TCR, mobile carriers will thoroughly vet it. This process verifies the legitimacy of your business and ensures your intended use aligns with the chosen campaign category. 

As all campaigns are manually verified by carriers, it can take anywhere from one to two weeks for your registration to be processed. 

You can track the status of your 10DLC registration through your A2P provider. You can send SMS or MMS messages immediately if your registration is approved. 

However, if your registration is rejected, you’ll have to share additional information depending on the feedback provided by the phone carrier and go through another round of vetting.

How much does it cost to register your 10DLC number?

There are three main costs associated with registering your 10DLC number, as shown in the table below. 

Here’s what each of these fees goes toward. 

Brand registration fee

This is a one-time fee to register your brand with the registry. It costs $4 for sole proprietors and low volume standard brands (those that have less than 6,000 messages per day). 

If your business sends over 6,000 messages, you must register as a standard brand, which costs $44 and includes extra vetting.  

Campaign vetting fee

This is another one-time payment, typically around $15 per campaign. It pays for the manual vetting process required to analyze each campaign's purpose and deliverability factors.

Monthly campaign fees

These are recurring fees you pay based on the type of campaign you're running, ranging from $1.50 to $10 per month. The first payment will be for three months and must be paid when your campaign is approved. After that, you’ll be charged either monthly or quarterly, depending on your A2P provider’s protocols. 

Here’s the fee breakdown for different campaign types. 

• Regular campaigns: $10 per month
• Low-volume mixed campaigns: $2 per month
• Political campaigns: $10 per month
• Charity campaigns: $3 per month
• Sole proprietor campaigns: $0.75 per month

Additional fees

In addition to the fees mentioned above, mobile carriers charge a fee for every message sent. This fee depends on the message type and your brand’s registration status. 

Unregistered brands must pay a higher surcharge, varying from $0.01 (AT&T and Verizon) to $0.006 (T-Mobile).

Standard brands might also sometimes opt to pay a Trust Score Appeal fee.  Every time a brand undergoes the vetting process, it’ll be given a Trust Score—this reflects your business’s legitimacy and potential for spam. You can apply for an appeal if you get a low trust score. 

Here are the rates:

• $10 if the score is less than 45 days old
• $40 if the score is more than 45 days old 

Also, Low-volume Standard and Standard brands pay an additional $40 when resubmitting a brand registration application. 

Note: These are the rates when publishing this blog and may vary in the future. We recommend checking with your A2P provider or mobile carrier. 

10DLC vs. Toll-free phone numbers

While most organizations prefer using a 10DLC number for A2P messaging and a toll-free number for voice calls, that’s not always the case. You can register your toll-free number via your service provider and they’ll send it to the Toll-Free Number Administration (TFNA) for approval. 

Unlike 10DLC registration, there’s no extra fee for registering your toll-free number. Plus, you can use it while your application is being processed.

However, toll-free numbers take longer to process (typically four to six weeks) and only support one-way broadcast messages. 

Depending on your preferences, you can use 10DLC or toll-free numbers for SMS/MMS messaging campaigns. Make sure you register either number type with the relevant authorities and comply with the SMS/MMS messaging regulations. 

Registering your 10DLC number with Plivo

If you’re looking for an A2P provider to manage your 10DLC phone numbers and campaigns, then Plivo can help you streamline the entire process in four simple steps.

1. Create a profile

Start by creating a profile for your brand on Plivo. Your profile will include details like your legal name, authorized contact, physical address, and business registration details. This is also where you’ll specify the type of business you run—private, public, nonprofit, government, or sole proprietor.

If you’re a reseller, you can use Plivo’s Profile API keys to set up individual profiles for each customer.

2. Register your brand 

The next step is registering your brand (or brands, in the case of resellers) with TCR. Standard brands (those who send more than 6000 messages per day) can opt for additional vetting at this point. 

Track the status of your brand registration application via the Plivo Console.

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3. Register your campaigns

Once your brand is registered, you can register each of your campaigns. Here’s where you add details like campaign description, type, sample messages, and opt-in workflows for each campaign to the form shown below.

Add your campaign details to the Plivo console and initiate the campaign registration process.

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In the console, you can track the status of your campaign registrations—active, processing, or failed. If a campaign is rejected, you can review the feedback provided and reapply.

4. Link campaigns to phone numbers

The final step is linking each active campaign to a phone number. Also, while there’s no limit on the number of campaigns a 10DLC phone number can be linked to, we recommend segmenting your numbers based on the campaign type—separating things like appointments, promotional offers, and customer support, for example. 

This makes it easy to keep track of numbers and helps you avoid snowshoeing—sending the same message from different numbers, which is considered a violation by most mobile carriers.

Why partner with Plivo?

Plivo offers enterprise-grade communication solutions that are secure, reliable, and scalable. We’re SOC 2 certified and compliant with major privacy and security regulations, such as GDPR, HIPAA/HITECH, PCI DSS, and ISO 27001:2022. 

Plivo guarantees a 99.99% uptime owing to direct relationships with over 1,600 Tier 1 and local carriers. We’re backed by seven global POPs and two NOCs for continuous, round-the-clock coverage.

Curious to learn more about how Plivo can help you register your 10DLC phone numbers and manage your A2P messages? Request a trial account and explore our platform commitment-free.   

SMS marketing has an open rate of over 90%, compared to just 20%- 30% for email. However, managing a text message marketing campaign with a standard 10-digit phone number can be cumbersome. 

Fortunately, SMS short codes are a great alternative. This article explains why SMS short codes are your secret weapon for high-volume text message marketing. We'll explain what they are, why short codes are better than regular numbers, and how to leverage them to boost audience engagement.

What is a short code?

Short codes, also known as short numbers, are brief digit sequences, typically five or six digits long. They enable businesses to send and receive text messages at scale. Short codes are easy to remember and quick to type in, improving the user experience.

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Let's delve into the different types of short codes and how they function.

Types of SMS short codes

There are two types of short codes used in SMS marketing and communications. 

Shared short codes

• Shared short codes are like public phone numbers. Multiple businesses can use the same short code.
• They are the most affordable option.
• However, you have no control over who else uses the code, which can confuse customers.
• You might also miss out on replies sent to the shared code by other companies.

Note: Shared short codes are phased out in countries like the USA and Canada.  

Dedicated short codes (leased short codes)

• Dedicated short codes are exclusive to your business.
• You have complete control over how the code is used.
• They ensure customers only receive your messages and the replies go directly to your system.
• Dedicated codes come at a higher cost than shared codes.

Whichever type you decide to use, all short codes can offer specific benefits to your business. 

What are the benefits of short codes for businesses?

Short codes offer several advantages over long codes or email. 

1) Improved deliverability

One of the foremost challenges in marketing is ensuring your messages reach the intended audience. Emails can be blocked by spam filters and social media ads get lost in viewers’ feeds. Short codes, however, have high delivery rates. People are accustomed to checking their text messages frequently, and short codes stand out from spammy marketing tactics.

2) Enhanced brand recall

Short codes are far easier to remember than standard ten-digit phone numbers. This memorability translates to better engagement and campaign participation. Vanity short codes take recall a step further. These spellable codes align with your brand name or campaign (e.g., "4Alerts" for a notification service). Vanity codes enhance brand recognition but may come with an additional cost.

3) High throughput and performance

Designed to handle large volumes of messages efficiently, short codes are a feasible solution for high-traffic campaigns like contests, discount alerts, or appointment reminders. They allow you to send messages to a large audience quickly and reliably, ensuring smooth communication and timely delivery.

4) Cost-effectiveness (for shared short codes)

Shared short codes offer an excellent solution for businesses looking to optimize their SMS marketing campaigns without breaking the bank. Multiple companies can share the same short code, reducing overhead costs.

Here’s a quick comparison of pricing in the United States for the different types of short codes. 

We recommend shared short codes for businesses exploring SMS marketing on limited budgets. However, a shared code means less control over branding than a dedicated code. Also, they can be used to send messages only in countries where they are provisioned. So, if your customers are not located in the US, do not get a US short code.

How do businesses use short codes?

Short codes aren't a one-size-fits-all solution. This section helps you learn how short codes are used across different industries for different purposes. 

Short codes in financial services and banking 

Banking and financial services rely on short codes to implement multi-factor authentication (MFA) for their customers. MFA adds a layer of security to protect sensitive information and prevents unauthorized account access. 

For example, the bank sends a text message with a unique code to the customer’s phone. The customer must enter the code to make the transaction or access their accounts online.

Short codes in retail/e-commerce 

Short codes can send a high volume of text messages over a short period of time. This capability makes them useful for retail and e-commerce marketing campaigns, such as sweepstakes or giveaways, as well as flash sales, discounts, and promos. Short codes can also be used in event-based promotions. 

Short codes in healthcare 

SMS short codes support two-way communication, allowing patients to respond to messages such as booking reminders. Healthcare providers and organizations can send post-visit surveys to understand patient feedback and satisfaction, regular checkup reminders, and vaccine availability. 

How do you get short codes for business text messaging?

Here’s how to secure a short code for your business with Plivo: 

1. ‍Read the guidelines: Before applying, ensure your campaign meets the guidelines for the US or Canada.‍
2. Download the application: Get the application form for your country and fill it out carefully.‍
3. Submit your application: Apply with Plivo's support team. They will review it and may ask for more information. This usually takes less than a week.‍
4. Add funds to your account: Carriers require upfront leasing fees (minimum three months). Plivo will collect these fees when you submit your application. These fees cover setup and the initial rental period, even if your application is rejected.‍
5. Plivo submits your application: Plivo will purchase the short code for you and apply it to all carriers.‍
6. Go through the carrier review process: Each carrier will comprehensively review your application and may seek clarification. Plivo will collaborate with you to address any queries, but approval is not guaranteed. This thorough process can take 6-8 weeks.‍
7. Short code goes live after testing: Once approved, the short code will be integrated into the carrier's network and tested. Then, Plivo will configure the short code for your account and make it ready to use.

Important note: Plivo cannot control carrier regulations or interpret laws. We recommend you consult a lawyer to ensure your campaign complies with all applicable laws.

Porting an existing short code

You can also switch your existing short code from another provider to Plivo. Before starting this process, make sure that you meet the following requirements. 

US port-in: Provide Plivo with three months of payment receipts from your current provider. You may also need authorization from the Common Short Code Administrator.

Canada port-in: Provide Plivo with a copy of your approved short code application from your current provider or a copy from the Canadian Telecommunications Association. You may also need a migration letter on your company letterhead.

Plivo will submit the porting application to the carriers. For a short grace period, traffic will flow through Plivo and your previous provider to avoid downtime.

By following these steps, you can get short codes and leverage the power of SMS advertising to communicate with your customers conveniently and effectively.

What makes Plivo the best choice for businesses with high SMS volume?

Here's why you should choose Plivo for your short code needs.

Decrease SMS spending 

Plivo is committed to helping your organization reduce SMS spend. We achieve this in two key ways:

1. High-volume carrier relationships: Plivo sends a large traffic volume through the carriers. This gives us leverage to negotiate favorable pricing, which then passes directly to the customers. You benefit from lower per-message rates.
2. Multi-cloud approach: Plivo embraces a multi-cloud strategy. This strategy allows us to find the most cost-effective routes for your messages across different carriers. You only pay for what you use, avoiding unnecessary charges.

More features at competitive rates 

Plivo offers more features and benefits at a lower cost. Here's a breakdown of what you get.

• Priority onboarding: Get started quickly with priority onboarding. We streamline the process to minimize delays.
• Test credits: With complimentary test credits, experiment and perfect your messaging campaigns. Ensure everything works flawlessly before you launch.
• Premium routes: Access premium routes for your messages and calls. These routes offer the highest possible deliverability rates, ensuring your critical messages reach their targets.
• Fast-tracked carrier registrations: Don't waste time waiting for carrier registrations. Plivo expedites the process by handling all necessary compliance requirements so you can start sending messages sooner.

Here’s a snapshot of Plivo’s short code rental charges by country.  

Enjoy global reach and superior deliverability

Plivo serves businesses and customers in over 220 countries. This vast global reach is complemented by industry-leading international deliverability rates. 

• Global coverage: Reach your target audience anywhere in the world. Plivo's extensive network ensures your messages are delivered effectively, regardless of location.
• High deliverability rates: Our industry-leading deliverability rates mean a higher chance of your messages reaching their intended recipients. This translates to fewer messages needing to be sent, further reducing costs.

Industry-leading fraud protection

Fraudulent messages can cause significant financial loss to your business. Plivo's Fraud Shield solution offers reliable protection to ensure business security.

• Country-specific thresholds: The system employs country-specific, hourly thresholds to identify and intercept fraudulent messages before they're sent. 
• Geo-permissions: Control the countries where your SMS is sent. Plivo blocks messages to locations not included in your destination list. 

‍Request a trial today to learn more about how Plivo can help your business thrive with short code messaging. Get customized rates for annual agreements.

In 2023, fraud remained a top challenge for banks, fintechs, and credit unions. Nearly 60% of these business types suffered direct fraud losses exceeding $500K in that year. Fraud rates are increasing in both consumer and business accounts, making data security a top priority for companies. 

Phone number verification is a common, and highly effective, security best practice. By verifying a user's phone number, companies can ensure that the user is who they say they are and mitigate the risk of fraud. 

In this guide, we'll explore how to implement phone number validation during new user enrollment and highlight the benefits of using Plivo's robust phone verification solution. 

What is phone verification?

Phone verification involves confirming the ownership of a phone number entered by a user. Businesses and services commonly use it to authenticate their users' identities and ensure they can access the phone number they provided during signup. 

The verification process involves sending a code to the user's phone number, which can be delivered via text message, phone call, or messaging app. This process is particularly useful for enhancing security in online banking, e-commerce, and social media platforms. 

• Online banking: Banks and other financial institutions use verification codes to increase the security of their online services. They send a code to the user's phone number when they log in from a new device or initiate a large transaction. 
• E-commerce and marketplaces: Online retailers use verification codes to confirm the phone numbers of their shoppers before processing orders to prevent fraud and ensure that delivery updates are sent to the right customer. 
• Social media platforms: Websites like Facebook and Twitter also use phone verification codes to verify new accounts, prevent spam, and block fake numbers. 

Why use phone verification software?

Phone verification can be used for various purposes. For example, when a customer attempts to log in from a new device or location. Or, when sensitive changes are made to their account, phone verification acts as an immediate check to ensure the authenticity of the person requesting the transaction. 

Verifying phone numbers during new user enrollment is not new—companies have been doing it for decades. However, verification during new user onboarding has become increasingly susceptible to interception by fraudsters. They employ various tactics such as SIM swapping, phishing, and exploiting vulnerabilities in mobile networks.

1. SIM Swapping: Fraudsters can convince mobile carriers to transfer a victim's phone number to a new SIM card under their control. This allows them to intercept verification codes sent via SMS, gaining unauthorized access to the victim's accounts.
2. Phishing: Fraudsters send fake messages or emails that appear to be from legitimate companies, tricking users into revealing their verification codes or personal information.
3. Network Exploits: Some fraudsters exploit weaknesses in mobile networks to intercept SMS messages. These vulnerabilities can be found in older, less secure protocols still used by some carriers.

Given these growing threats, customers are more cautious than ever about sharing their personal information with businesses. Phone verification software is crucial for upholding the high-security standards that build customer trust. The best verification software includes robust governance, access controls, and compliance with security regulations to safeguard your business. 

Plivo’s phone verification platform software is designed to help companies get granular access over their verification methods, with features that: 

• Monitor your messaging patterns, establish thresholds for each country, and send automatic alerts if a pattern emerges that is unusual. 
• Fine-tune and override messaging throughput thresholds for each country. 
• Calculate your cost savings from preventing fraud with the built-in reporting. 
• Use pre-approved templates optimized for conversions.
• Reduce implementation by up to 90%.

Even if the phone number is verified, there are chances of fraudulent calls and illegal activities which can be prevented with reliable verification software. Plivo’s Verify API ensures just that—SMS and voice verification with robust fraud control. 

How does phone verification work?

Verifying a customer’s phone number is relatively straightforward. Companies most often partner with players like Plivo to add verification to their apps and platforms. Here’s how the typical phone number verification process works:

• Customer Enters Phone Number: The system automatically requests the phone verification service to send a one-time passcode (OTP).
• Sending OTP: The OTP can be sent via text, voice notification, or app notification.
• User Receives OTP: The customer receives the OTP and types it into the app.
• Verification: The app checks the entered OTP with the server to ensure it’s correct.
• Confirmation: If the OTP is correct, the user’s phone number is confirmed as verified.

When a customer enters their phone number, the system automatically asks the phone verification service to send a one-time passcode (OTP). This could be sent via text, voice notification, or app notification. Once the user receives the OTP and types it into the app, the app checks this code with the server to ensure it’s correct. If it’s right, the user’s phone number is confirmed as verified. 

To safeguard against fraud or unauthorized virtual phone numbers, codes can be sent only a certain number of times (to avoid spam), and all data sent back and forth is encrypted. Sometimes, a CAPTCHA ensures the user is real and not a robot. 

How does phone verification improve risk management?

Phone verification is an important tool to detect potential fraud early on. A reliable API call assesses the number and delivers critical information about it, such as:

• Availability (reachable or not) 
• Current network 
• Country of origin 
• Original network 
• Roaming country (if roaming is on)
• Roaming network name
• Roaming status
• Risk score 
• Unusual patterns
• Validity 

Unusual patterns may mean something's not right, like the current network being different from the original one, or the phone being associated with multiple accounts. While these patterns don’t always mean fraud is happening, it's a good idea to be cautious when dealing with those phone numbers or specific country codes.  

Best practices for phone number verification for new user enrollment 

When you have a new user, you’ll need to focus on three areas: 

• Phone number input: Collecting phone numbers from the user through an input field
• Phone number validation: Validating the phone number to ensure it is legitimate and follows the required format
• Phone number verification: Verifying the phone number by confirming the user has access to it

Best practices for phone number input

1. Place the country code in a distinct field

Plivo offers an easy-to-use interface that accommodates various global phone number formats. By separating the primary international phone code, Plivo enhances user-friendliness and ensures that phone numbers are correctly formatted into the standard E.164 format.‍

2. Change the phone number to E.164 format

‍E.164 is a standardized international format that guarantees unique identifiers for each number. Plivo’s Lookup API returns this virtual number format, which is also utilized across most of Plivo’s services, including the Verify API and Messaging APIs.

For instance, if a user inputs a Lithuanian phone number, such as 370860112345, Plivo instantly converts it into the international E.164 format as +37060112345, before sending it to other carriers. It’s important to note that the “8” is dropped in this format; the “'8” is only needed when calling within Lithuania.

Best practices for phone number validation

When you integrate Plivo's phone number Lookup API into your system, you gain access to comprehensive phone number intelligence that helps you programmatically determine the carrier, number type, format, and country for any phone number worldwide. 

Use the Plivo Lookup API to:

1. Confirm the phone number is valid 

Before including the customer in your contact list, validate phone numbers to ensure clean customer data and minimize delivery errors. SMS API calls to invalid or non-SMS-capable numbers result in a 400 Bad Request API response, which developers can conveniently relay upstream. Here’s an error message as an example. 

{ "api_id": "df5d4304-66af-11eb-91d8-0242ac110004", "error": "19332631167 is not a valid phone number" }

2. Check for line type, including mobile, landline, and VoIP numbers

Identify mobile and landline phone numbers correctly to select the right channel for your messaging and get the best conversion rates. SMS or push notifications have high conversion rates; plus, if you want to send rich media formats SMS messages, sending them via a mobile phone number will drive engagement. 

3. Create a list of approved country codes to permit 

Using a list of allowed countries when users sign up helps you meet compliance requirements, reduce fraud, and manage new user registrations smoothly. Plivo’s Lookup API automatically includes the country area code in its responses, making it simple to set up and maintain an allow list tailored to your business needs.

4. Reduce fraudulent transactions

Mitigate risk by comparing the location of the IP address and the country with other details of the phone number. If needed, add extra verification steps. for high-risk or invalid phone numbers, like premium or VoIP numbers, or if the carrier network is suspicious to improve the customer experience.

Best practices for phone number verification

1. Send a one-time passcode to verify user access to that number

Plivo’s Lookup API integrates directly into your application, allowing you to automate the process of sending OTPs via SMS when a user registers, logs in, or performs a security-sensitive action. For users who might not have reliable SMS services or prefer not to use text messages, Plivo offers the option to deliver OTPs through automated voice calls. 

Like SMS, the voice call process is integrated into your application via Plivo’s Voice API. When an OTP needs to be delivered, the API triggers a voice call to the user’s phone number.

2. Use adaptive routing for OTP delivery 

Plivo’s adaptive routing technology automatically selects the best possible route for delivering SMS and voice messages based on real-time conditions. Implement adaptive routing to increase the reliability of OTP deliveries, especially in regions known for fluctuating network conditions. This approach helps ensure that your OTPs reach your users promptly, regardless of their location.

3. Add a secondary 2FA layer

Plivo's two-factor authentication features go beyond messaging. The platform handles over a billion transactions each month and achieves an impressive 99.99% API uptime. Besides, Plivo offers senders a direct route to end users, with a one-hop maximum without route blending or dilution. This helps users send messages or make voice calls to every country globally, avoiding delays or paying for repeated failed messages. 

4. Enable real-time analytics and reporting

Plivo provides detailed analytics and real-time reporting on the status of every OTP sent, whether via SMS or voice. Use Plivo’s analytics dashboard to monitor and analyze OTP transactions. This enables you to identify and resolve delivery issues quickly, optimize the verification process, and enhance the overall user experience by reducing delays and failures in OTP reception.

Use Plivo’s Lookup API for phone number verification and validation 

Plivo has direct relationships with Tier 1 carriers globally and has invested in our network infrastructure to ensure high-quality data calls without annoying lags, delays, or dropped audio. We offer a robust set of features to support a variety of use cases including: 

• Two-factor authentication
• Voice notification
• Phone verification
• Phone system IVR
• Voice surveys
• Click to call
• Call forwarding service
• Call tracking
• Number masking

Ready to get started? Sign up for a free trial. 

Recent advancements in voice call technology have been a double-edged sword. While they have introduced numerous benefits for businesses, this technology has also opened the door to new types of fraud. 

One common method scammers use is fake caller ID spoofing. This crime is designed to deceive recipients into believing they are communicating with a trusted source — such as a business, bank, or government agency. This tactic not only aims to gather sensitive data for identity theft but also to defraud individuals. 

Many businesses that rely on phone calls to connect with customers are facing high levels of distrust. Caller ID spoofing makes customers suspicious of all calls, not just the ones they should be wary of. This practice has eroded trust in voice calls and made life difficult for business owners. 

It’s important for both businesses and consumers to understand how these scams work and how to protect against them. Together, we can help restore trust in business communication and ensure that legitimate businesses can effectively make voice calls.

What is number spoofing (caller ID spoofing)?

Caller ID spoofing occurs when someone manipulates the caller ID feature to trick a call recipient into thinking a call is coming from a familiar, credible source—when it might not be. Spoofing aims to convince victims to reveal personal information or otherwise mislead a target into taking a compromising action. 

What are the significant risks to both consumers and businesses?

Phone spoofing poses significant risks to both consumers and businesses, impacting trust and operational efficacy in several ways.

1. Erosion of customer trust

One of the most significant impacts is the erosion of customer trust. Fraudsters can deceive customers by impersonating a business's phone number, thereby tricking a target into believing the call is from a real representative. The customer may reveal personal or financial information later used to commit fraud. If a customer falls prey to these scams, it can cause others to lose trust in your company and sever ties with your brand.

2. Damage to the brand reputation

Caller ID spoofing may damage the brand's reputation, as it links the company's name to negative experiences. Even if a business is not responsible for fraud, misuse of its phone number or unwanted calls to customers can lead to bad publicity and damage to its image. Rehabilitating the company's reputation takes significant time and resources. 

3. Lower the effectiveness of your communication campaigns

When people are alert to potential scams, they may be less responsive to legitimate business outreach. This apprehensiveness can decrease the effectiveness of telemarketing campaigns, appointment reminders, customer service follow-ups, and other voice-based communications. It may be harder to reach customers to convey important information.

4. Legal and compliance risks

If businesses frequently use spoofed caller IDs, they could face regulatory scrutiny. This is particularly true for industries that heavily regulate consumer data protection, such as finance and healthcare. Businesses have an obligation to implement stronger verification and security measures, which can add to operational costs.

5. Increased customer service challenges

Dealing with fraudulent calls can take up resources that would be better spent in other service areas. Businesses then have to manage customer complaints and concerns, which can further detract from their ability to provide quality service.

How does caller ID spoofing work?

Caller ID spoofing uses various technologies such as traditional spoofing services, Voice over Internet Protocol (VoIP), and techniques like orange boxing. Let's explore how these methods work and their potential impact.

Spoofing services: How they operate

Spoofing services function similarly to prepaid calling cards. They allow users to present a different spoofed phone number or name on the recipient's caller ID than the actual number from which they are calling. 

Here's how this process typically works: 

1. Customers pay for the service upfront and receive a personal identification number (PIN).
2. To initiate a spoofed call, the user dials a number provided by the service, enters their PIN, and then inputs the desired outgoing call number along with the caller ID they wish to display.

This method not only masks the caller's true identity but also allows for extensive manipulation. Users can input any number or name they choose to show up on the caller ID display.

Voice over IP spoofing: A digital facade

VoIP technology uses the internet to make calls, bypassing traditional phone lines. This flexibility makes VoIP technology especially vulnerable to spoofing. Scammers exploit VoIP to manipulate caller ID information seen by the receiver, making it appear as though the incoming call is coming from a legitimate source, such as a bank, government agency, or known contacts. This method can be used to impersonate legitimate services or contacts. 

Orange boxing: Advanced caller ID manipulation 

Orange boxing involves more sophisticated technology to intercept and alter caller ID signals. This method uses either software or hardware to fake the caller ID that appears during an incoming call. Historically, this method required in-depth telephony knowledge and expensive equipment. However, recent advancements in open-source software have significantly lowered the barrier to entry for orange boxing, making it accessible to a wider range of individuals with minimal technical expertise.

How to tell if a phone number is spoofed 

There are a few telltale signs that a phone number is spoofed. Numbers you don’t recognize, suspicious caller IDs, or unusual greetings when you answer the phone are all signs it could be a scammer. If a caller uses a robot or pre-recorded voice and requests personal information, you should be on alert that it could be a spoof attempt. Legitimate companies or organizations rarely ask for sensitive information like Social Security numbers, bank account details, or passwords over the phone. Likewise, scammers often use urgency to pressure you into action. Be suspicious of calls demanding immediate payment or personal information.

How to stop someone from spoofing your number

Unfortunately, there's no foolproof way to completely stop someone from spoofing your phone number. However, here are some steps you can take to minimize the risk and mitigate the damage. 

• Use a call-blocking feature: Explore call-blocking options that can help filter out calls from unknown numbers, suspected spammers, and even specific regions. 
• Keep your device secure: Always update your phone’s operating system, and consider installing a third-party call-blocking app. These apps can analyze incoming calls, identify potential spammers, and block unwanted calls. 
• Review your privacy settings: Check the privacy settings on your social media accounts and other online platforms to limit the sharing of your phone number.

Stay informed: Be aware of common spoofing tactics, such as urgent requests, demands for personal information, and offers that seem too good to be true.

How to recognize spoofed calls

Recognizing phone number spoofing is critical for businesses. Here are some common indicators that can indicate call spoofing. 

• Displays a sense of urgency: Caller ID spoofing often comes with a high-pressure aspect, forcing one to act immediately. The caller may claim to be from a government agency, bank, or law enforcement and require that the consumer has to do something right away to fix some supposed problem or face some other serious repercussions. This, in spoof calls, is a tactic to push customers into decisions without giving time for thought or the possibility of checking the identity of the caller’s number.
• Requests for personal information: No legitimate companies solicit personal information from customers over soliciting phone calls, like their social security number, bank account numbers, and passwords. This is precisely what spoofers want for extracting valuable personal data for their fraudulent purpose.
• Display name doesn’t match your stored contact: If the caller ID displays a name or number that you recognize, but does not match the details stored in your contacts, it could be a sign of number spoofing. For example, you might get an incoming call where the caller ID indicates it's from your bank, but the number shown is different from the one you have saved. This discrepancy should prompt you to hang up and call back using a number you trust.
• Robocalls: Calls with pre-recorded messages are known as robocalls. They deliver an automated pre-recorded voice message and are often legal and take place with the customer’s consent. However, many times, spoofed calls can also be automated or have pre-recorded messages where the receiver is prompted to press buttons or give personal information out. This may range from messages on winning to debt collection or even messages that threaten legal action. 

Additional Tips to Recognize Number Spoofing

• Inconsistencies in Information: Any discrepancy between the information provided by the caller and the company’s records should be a red flag.
• Verify caller authenticity: Encourage employees to verify the caller by hanging up and contacting the company or individual directly using a known and trusted number.‍
• Use caller ID management tools: Implementing advanced caller ID management tools and spam detection software can help filter out potential spoofing attempts.

By being aware of these signs and using cautious judgment, you can protect yourself from falling victim to number spoofing.

How to avoid spoofing

Spoofing scams are becoming increasingly sophisticated. To avoid them takes constant vigilance and the proper precautions. 

The best way to avoid phone number spoofing is to screen unknown calls. If you don’t recognize a number or a caller ID, let the call go to voicemail. Even trusted caller IDs can be mimicked by scammers; therefore, never give out personal information, such as your Social Security number, bank account details, or passwords, in response to an unsolicited call.

If you receive a suspicious call, hang up and call back the number you know to be legitimate. And, if you receive a suspicious communication, try to verify the information independently. Don't rely solely on the information provided in the communication.

How does number spoofing impact businesses?

Number spoofing poses a serious threat a company’s finances, operations, and overall success. One of the biggest risks is to a company’s reputation: when scammers spoof a business's phone number to carry out fraudulent, it directly damages customer trust in the brand. This damage can have significant long-term effects beyond financial losses. 

There are other direct and indirect financial concerns that spoofing raises. When customers fall victim to scams, they can agree to unauthorized payments or lose sensitive data that costs the company to recover. Dealing with the aftermath of a spoofing incident, such as customer service inquiries, legal issues, and the implementation of security measures, can also be expensive.

Likewise, spoofing attacks can disrupt business operations. For example, a large volume of spam calls can overwhelm customer service lines, hindering legitimate customer interactions.  

And finally, businesses can face legal and regulatory consequences if they are perceived as being involved in spoofing activities, even if they are not directly responsible. You may be liable for fines and lawsuits due to regulatory noncompliance.

How to prevent number spoofing scams with Plivo

The right tools can also help you prevent phone number spoofing scams from targeting your customers.

Plivo plays a crucial role by providing secure and reliable communication services. Our platform adheres to industry standards and regulations to combat fraudulent activities. The platform offers features like number verification, authentication, and compliance with STIR/SHAKEN protocols, ensuring caller ID information's integrity and protecting against spoofing.

Using Plivo's infrastructure, businesses can secure their communication channels, safeguard their customers from spoofing attempts, and uphold their brand reputation. Product managers can address security vulnerabilities and improve customer protection by monitoring communication traffic. 

With Plivo’s API, developers can integrate anti-spoofing measures such as number verification and authentication protocols into their systems and ensure the security of inbound and outbound communications.

How does Plivo help businesses combat number spoofing? 

Plivo plays a crucial role by providing secure and reliable communication services. Our platform adheres to industry standards and regulations to combat fraudulent activities. The platform offers features like number verification, authentication, and compliance with STIR/SHAKEN protocols, ensuring caller ID information's integrity and protecting against spoofing. 

Using Plivo's infrastructure, businesses can secure their communication channels, safeguard their customers from spoofing attempts, and uphold their brand reputation. Product managers can address security vulnerabilities and improve customer protection by monitoring communication traffic. 

With Plivo’s API, developers can integrate anti-spoofing measures such as number verification and authentication protocols into their systems and ensure the security of inbound and outbound communications. 

STIR/SHAKEN

‍STIR/SHAKEN stands for Secure Telephone Identity Revisited (STIR) and Signature-based Handling of Asserted Information Using toKENs (SHAKEN). These technical standards are developed to enhance caller ID information trust by authenticating calling numbers. 

The Federal Communications Commission (FCC) mandates that carriers adopt these standards to combat robocalling and ensure that the displayed caller number and name are accurate. In this system, digital certificates issued by a secure telephony identity (STI) governance authority verify that a calling party is indeed who they claim to be, using a process similar to digital data signing. This video explains STIR/SHAKEN in greater detail. 

Plivo assists businesses in implementing STIR/SHAKEN to secure their communication channels. Plivo users can sign outgoing calls, ensuring the right level of caller ID attestation. This helps increase the likelihood of calls being answered by providing recipients with verified caller information. 

Plivo also verifies the attestation levels for incoming calls on its platform, allowing businesses and their customers to make informed decisions about answering calls. Customers must submit their business details and the phone numbers they wish to use, enabling Plivo to determine and assign the appropriate attestation levels based on these verifications. 

This comprehensive support from Plivo’s compliance operations team facilitates seamless integration of STIR/SHAKEN protocols, which aim to prevent deceptive practices such as caller ID spoofing and build trust in telecommunication environments.

Number verification

Plivo’s Verified Caller ID enables customers to authenticate their phone numbers with Plivo before using them as caller IDs for outbound calls. 

Verified Caller ID allows businesses to confirm that calls are made using authorized numbers and caller IDs they possess, thus preventing any calls being made with a spoofed caller ID. 

Customers can complete this verification process manually through the user-friendly console interface or programmatically using automated workflows via the new API endpoints. 

Get started with Plivo today 

Unfortunately, the rise of advanced technologies has made it easier for scammers to exploit phone systems, making it non-negotiable for companies to adopt stronger measures to protect themselves and their customers.

Plivo is here to help.  Plivo offers robust, industry-leading tools designed to help businesses secure their communication channels against spoofing and other types of fraud. By leveraging powerful authentication and monitoring solutions, Plivo ensures that your business communications remain safe and your customer interactions are genuine.

‍Get started with Plivo today.

Building a strong customer base often comes down to two essential components: customer acquisition and customer retention. While gaining new customers is valuable, relying solely on customer acquisition is not the optimal approach for long-term success.

Undoubtedly, customer retention holds more significance than acquisition. This is especially true for B2B SaaS businesses that operate on a subscription model. 

Mixpanel's Product Benchmark report estimates that the typical B2B customer retention rate for SaaS businesses is roughly 35%. It just goes to show keeping customers around is no easy feat!

Focusing on customer retention can boost the lifetime value of customers and cut down acquisition costs. 

As customers stick around, they help businesses gather more insights about their preferences and behaviors. Plus, existing customers are more likely to make repeat purchases (60% to 70% chance) compared to new prospects (5% to 20% chance), making them more responsive to upsells and cross-sells and less sensitive to price changes.

So, how do you actually keep customers coming back? 

In this blog post, we recommend nine solid B2B customer retention strategies to help you build the right mix of tactics for your business. 

How is B2B Customer Retention Different from B2C?

B2B and B2C customer retention is distinct, purely driven by unique customer behaviors, transactional dynamics, and relationship strategies. 

Here are the different aspects of how they are unique in their own way:

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9 Expert B2B Customer Retention Strategies that Work

The Pareto principle holds true in customer relationships, where 20% of your customers often generate 80% of your revenue.  

So, if you belong to the league of brands that is ready to roll up your sleeves on this front, here are some top B2B strategies we recommend for you to make customer retention seamlessly happen. 

Additionally, we’ll also illustrate how, as an omnichannel customer service platform, Plivo CX can effectively contribute to retaining B2B customers.

1. Personalizing every customer touchpoint

Meeting today’s high expectations for seamless, instant customer support requires a strategic and personalized approach. Just think about how often you experience personalization with platforms like Spotify and Netflix—they always seem to know the perfect song or show for you. 

Customers now expect this level of service from every business interaction. In fact, nearly 62% of consumers say they’d lose loyalty if they received a non-personalized experience.

Start by mapping out the customer journey to spot and fix any bottlenecks. Embracing an omnichannel strategy is key to delivering a consistent experience across all touchpoints. Automation frees up agents to focus on more complex issues—77% of agents report they can deliver better service when routine tasks are automated.  

Adding AI-powered chatbots into the mix can efficiently manage inquiries, ensuring every interaction is relevant and helpful. Businesses can connect with customers on their preferred channels, delivering smooth, personalized support every step of the way.

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💡Insider tip: 
Plivo CX comes with several features that can help you implement these strategies without any delay:

• Unified Agent Desktop: The platform brings all customer interaction channels, such as AI-powered live chat, voice, SMS, email, and WhatsApp, into one interface, providing comprehensive customer data and the full context of issues.
• OpenAI-Powered Chatbots and IVR: The platform enables you to automate routine tasks and initial customer interactions with OpenAI-powered chatbots and IVR, freeing up agents time. 
• Drag-and-Drop Workflow Builder: Plivo CX's Drag-and-Drop Workflow builder can optimize the customer journey by enabling you create custom workflows. 

2. Anticipating needs before they arise proactively 

According to customer engagement research by Salesforce, 73% of customers expect companies to understand their unique needs and expectations.

For instance, when a company selects IBM's cloud storage suite, IBM assigns a dedicated team of specialists to engage with the customer immediately. They provide in-depth training and ongoing guidance for a smooth setup process.

Empowering your customer support team with a solid knowledge base transforms proactive service. Imagine it as a central hub packed with information about your products, services, and common issues. Many inquiries are basic questions already covered in your FAQs. Instead of burdening human agents, let chatbots handle these queries.

With a well-organized knowledge base and self- service module, your support agents and your customers can access solutions quickly, ensuring they receive timely assistance.

‍

💡Insider tip: 

• Intuitive Chatbot: You can utilize Plivo CX's OpenAI-powered chatbot to streamline customer interactions with accurate responses and efficient routing.
• Customizable IVR Solution: The customizable IVR system can help you offer personalized self-service options tailored to customer needs around the clock. 
• Custom Knowledge Base: Plivo CX empowers proactive support by enabling the development of a custom knowledge base, facilitating faster access to information for agents. 

3. Building bridges with passive customers

You probably have sent this to your customer–'On a scale of 0 to 10, how likely are you to recommend this product/company to a friend or colleague?'  

Within the NPS framework, there are three customer segments, one of which is Passives. Passives are not actively endorsing a brand, nor are they spreading negativity. 

However, there are risks associated with Passives:

• Competitive pricing from competitors can entice them away
• The absence of essential product features may prompt them to explore other options
• Even minor service issues, such as slow responses to emails, can erode their loyalty
• Frustrating product experiences, like inadequate knowledge base support, may push them toward competitors

To address these risks effectively, consider the following strategies:

• Be proactive in engagement and gather valuable feedback through surveys
• Promptly address concerns, whether through public responses or exceptional after-sales service
• Implement self-service support for quick resolutions
• Utilize data analytics to personalize communication tailored to their preferences and needs

While there's no universal solution for turning Passives into Promoters, improving their experience can help build lasting relationships, eventually retaining them. 

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💡Insider tip: 

• Unified conversations: Plivo CX's omnichannel contact center platform can enable your customer service agents to personalize conversations and enhance speedy communications across preferred customer channels.
• Self-Service AI bots: You can provide 24/7 support with OpenAI-powered chatbots that can be trained on customized content for more accuracy and relevance.

4. Elevating advocacy by rewarding loyalty 

Have you explored the benefits of loyalty programs for your business? 

Loyalty programs can be a powerful strategy for B2B customer retention and partner engagement, offering numerous advantages for your brand when implemented effectively! It drives stability, encourages repeat purchases, and boosts revenue, fostering long-term growth. 

These programs also strengthen business relationships, forging valuable partnerships with shared benefits. Moreover, they unlock opportunities for upselling and cross-selling, enhancing your overall experience and operational efficiency.

However, B2B loyalty programs differ from their B2C counterparts:

Here are a few examples of B2B businesses that have successfully implemented loyalty programs:

• Take the Salesforce Partner Program, for instance. It offers extensive support and rewards to partners through training, certification, and marketing resources. They also utilize smart tactics such as tiered memberships, providing partners with more perks as they excel.
• HubSpot’s Partner Program targets startups, offering discounted access to their high-quality tools. They focus on personalized support and co-marketing initiatives to drive growth.
• Mailchimp & Co. caters to freelancers and agencies, providing exclusive training and priority support. This empowers partners to deliver exceptional services and fosters advocacy, boosting loyalty and ensuring customer retention.

In summary, nurturing advocacy through well-crafted loyalty programs can drive business success.

5. Maximizing value: The upsell and cross-sell approach

Want to keep customers coming back for more? Offer them more! Companies can deepen customer relationships and boost retention by providing access to additional products and services. One effective approach is offering bundle deals that combine different items at a reduced price. 

Another smart move is providing personalized upsells and cross-sells based on each customer's unique needs and usage patterns. Using data to understand what customers want is crucial. These strategies go beyond just increasing revenue—It's all about building stronger bonds with customers by delivering what they want when they want it.

6. Listen, act, track, measure and repeat

Closing the loop on customer feedback is key for keeping folks happy and loyal. Amazon nails it by listening, acting fast, and staying on top of things.

Traditional metrics like CSAT and NPS surveys are useful, but they only scratch the surface in today's fast-paced world. With omnichannel personalized support and automation, relying solely on these metrics might not tell the whole story. To truly understand your customers, you need to dig deeper and address any process gaps. 

For example, metrics such as average response time and total conversation count give quantitative insights into agent workload and issue resolution speed. 

Analyzing trends in abandoned metrics can also highlight instances where agents may be overwhelmed, leading to longer customer wait times or indicating a need for more training in customer engagement.

With comprehensive data, you can gain a holistic understanding of operations and optimize customer engagement for better customer retention.

7. Voice of customer: insights that drive co-creation

Did you know that companies with strong omnichannel customer engagement keep an average of 89% of their customers? Are you actively listening to your customers? 

Analyzing Voice of Customer (VoC) insights can help you identify early signs of friction to prevent churn, customize products or services to better meet customer needs, and assess demand for new offerings.

To run effective B2B Voice of Customer (VoC) programs, follow these steps:

• Assess Revenue Coverage: Measure the percentage of your revenue base from which feedback is collected to gain comprehensive customer insights
• Engage Multiple Stakeholders: Gather feedback from various decision-makers within each account to satisfy B2B purchasing requirements
• Prioritize by Value: Differentiate accounts by their value to effectively address issues, prevent churn, and maximize revenue

Active VoC methods involve direct engagement with customers to gather insights in real-time. 

• Customer Interviews: Engage in both online and offline interactions to capture detailed feedback
• In-App Surveys: Utilize real-time insights to gather feedback on specific app features or services while customers are actively using them
• Live Chat Support: Provide immediate assistance and uncover customer support issues and feature requests during interactions
• Phone Support: Offer direct assistance and gather valuable feedback, revealing common phrases, customer sentiments, and recurring issues

Passive VoC methods capture customer feedback indirectly through monitoring and analytics. 

• Website Analytics: Track user behavior on your website to understand customer preferences and pain points
• Social Media Listening: Monitor social media channels for customer feedback, sentiment, and brand mentions
• Review Mining: Analyze customer reviews and ratings to identify trends and areas for improvement
• NPS Surveys: Send periodic surveys to gauge customer loyalty and satisfaction levels
• Historic Support Call Data: Analyze historical support call data to uncover recurring issues, customer pain points, and areas for improvement

This dual approach can empower you to gain comprehensive insights into customer needs, facilitating informed decisions for product and service improvements that align closely with customer expectations. 

8. Financial insights for proactive customer engagement

When it comes to B2B customer retention, leveraging financial data and predictive churn analytics is a game-changer. Your financial data uncovers subtle signs—like a drop in purchases or missed payments—that can signal at-risk customers. 

Meanwhile, predictive churn analytics use advanced algorithms to predict potential churners based on past behavior. Armed with these powerful insights, you can proactively nurture customer loyalty by reaching out with personalized strategies, exclusive offers, and exceptional support. 

Don’t just wait and watch—provide tailored customer support that includes additional training or resources to address specific challenges, reassuring customers. 

For at-risk accounts, extend special deals such as discounted pricing or exclusive features to reaffirm their choice of your product and enhance their experience. 

9. Finding meaning in the quiet

Silence speaks volumes. You may notice that clients who were once enthusiastic about your products or services suddenly go missing in action. When the silence becomes too loud to ignore, it's your cue to step in. 

By tracking churn data every month, you can clearly understand whether the customer churn rate is increasing or decreasing. This proactive approach allows you to identify potential issues early and take timely actions to retain valuable customers and strengthen relationships. 

Try Plivo CX for B2B Customer Retention

The role of well-developed strategies for enhanced customer retention cannot be overstated. Ultimately, the journey towards customer retention isn't about pushing products or services—it's about nurturing connections and creating spaces where customers feel valued.  

With Plivo CX, you can put the above strategies into action. The web-based omnichannel customer service platform is designed to help you:

• Create personalized experiences that guide new users with care
• Stay one step ahead of customer needs by being proactive in your support
• Use OpenAI-driven chatbots to quickly address common questions and concerns, just like a helpful assistant
• Empower customers with self-service options that make them feel capable and informed

Ready to see your B2B customer retention in motion? Speak to our experts today!

Customer service teams often directly shape the overall perception of your brand through every interaction. A single negative experience, such as long wait times, unhelpful responses, or a lack of resolution, can quickly erode customer trust and loyalty, leading to lasting damage.

In a PWC survey, a single bad customer experience drives away one in three customers, or 32% leave after a bad experience. 

Next-generation businesses are increasingly turning to customer service automation to boost their support team's productivity. By utilizing technologies such as intelligent chatbots and voicebots, companies can handle more inquiries, offer 24/7 support, and quickly resolve customer issues. 

However, to discover whether it is a worthwhile investment or not, let’s go through all the pros and cons of customer service automation. 

Pros of Customer Service Automation

Here’s how the adoption of customer service automation adds a layer of efficiency to your customer service workflows:

1. Cost-effectiveness

Customer service automation reduces labor costs without causing any adverse impacts on your CX. There are a lot of queries that can be solved with minimal human intervention. 

As a 2023 Gartner survey indicates, 79% of businesses consider automation to be essential in their customer experience strategy. Also, AI-powered automation can reduce customer service costs by up to 30%. 

To give an example, intelligent chatbots driven by generative AI can handle most of the simpler, first-contact queries, reducing the burden on your customer service agents. This reduces operational costs and the pressure to hire more support staff as you scale. 

Furthermore, a unified agent desktop enhances customer experience and agent productivity. By enabling customers to use their preferred channels and giving agents a holistic view of each issue, regardless of the channel, this omnichannel approach ensures faster resolutions and boosts overall efficiency.

Besides chatbots, deploying solutions like automated and customizable workflows and IVR can help minimize labor costs. 

2. Round-the-clock support 

Customer service automation provides a competitive edge by offering always-on support, which is crucial for businesses serving diverse geographies and overcoming time zone challenges.

For instance, if your US-based business has a target market in Asia, there is a 12-hour gap between time zones. Providing real-time support can be difficult in such a scenario. That’s where OpenAI-powered self-service chatbots assist customers with basic questions and queries, even after your customer service agents clock out. 

As per a 2024 Zendesk report, 64% of CX leaders are increasing investments in chatbots.  

Also, auto attendants provide 24/7 customer support by greeting and guiding inbound callers after hours, enhancing customer experience and building trust in your brand's commitment to providing timely solutions.

3. Simplified scalability

Legacy customer support solutions often become quickly saturated by an increasing volume of queries. During peak holiday seasons like Black Friday, your inbound queries will likely skyrocket, leading to long waiting times. This can negatively impact your customer satisfaction (CSAT) scores. 

With customer service automation comes the added advantage of seamless scalability. When you deploy a customer service automation solution, any spike in your inbound queries becomes manageable. 

Instead of hiring more support staff, an AI-powered chatbot can handle the increased influx of queries, assisting multiple customers simultaneously, even during high-demand hours. 

4. Optimized support performance

Modern customer service automation software tools are built with advanced tracking and reporting features that offer all the insights you need to help agents perform at their peak. 

Live dashboards let you see how your agents are performing and live customer queues, helping you make real-time adjustments for smoother customer service operations.

Additionally, features like call barge and whisper allow customer support team leaders and managers to course-correct when it matters the most—on the spot, during live calls. Such swift adjustments can be huge life savers in sensitive customer interactions and convert disgruntled customers into loyal customers. 

Plus, access to historical insights allows customer service managers and leaders to make sense of past performance and identify areas of improvement. 

5. Improved first contact resolution (FCR)

Your first-contact resolution rate (FCR) significantly impacts customer satisfaction. It measures the percentage of customer issues solved in the first contact. 

Customer service automation solutions like chatbots and IVR systems serve as the first line of contact, enabling customers to get instant answers and solutions to their queries without connecting with a human agent. 

For instance, chatbots can quickly help customers track orders and take suitable actions to resolve their queries. Meanwhile, an automated call distributor system can route customers to the right agent and help deliver a speedy resolution for even the most complex customer queries. 

6. Increased customer satisfaction 

In a hyper-competitive business space, modern customer support teams need to be on top of their game regarding customer experience. Automated customer service software helps teams become more proactive in their approach. 

Reactive customer support means agents respond to customers only when they need help. Proactive customer service, on the other hand, focuses on anticipating customers’ needs.

It involves sending automated customer feedback surveys after every interaction to capture their experience and any additional suggestions or comments. 

Another way to use customer service automation is by sending automated SMS/Email alerts for reminders, important product/feature updates, and promotions. 

7. Establish a uniform tone and voice 

Automated customer service ensures that every interaction is on-brand and consistent, whether SMS, emails, or voicemail greetings. 

Chatbots and voicemail greetings can also be programmed to deploy specific phrases and use a specific tone that best aligns with your brand. The idea is to consider the customer’s journey across various touchpoints and ensure that customers have a smooth and hassle-free experience. 

Let’s say a customer wants to return an item. The automated response should clearly outline the steps to take while keeping the message consistent across each channel.

8. Maximize agent time for high-value interactions 

Consider a scenario where agents are supposed to answer every inbound query, no matter how minor. Your agents would be overwhelmed with the queries, and there would be limited time and energy to focus on more complex matters and critical queries. 

One of the main advantages of customer service automation is that it reduces the burden on human agents and takes over basic customer queries and frequently asked questions. 

Meanwhile, human agents can divert their energy and time to more important tasks, such as addressing personalized service requests or handling customer complaints. 

Drawbacks of Automated Customer Service

Despite its many benefits, customer service automation, if not implemented thoughtfully, can lead to adverse outcomes. Here are some limitations you must know: 

1. Cost of poorly implemented automation

Poorly configured customer service automation is an absolute red flag—it drives away customers and does the opposite of its purpose. If your chatbots respond with generic answers to every question, this leaves the customers with more confusion and adds a layer of complexity. 

2. Financial and operational hurdles 

Customer service automation, like AI chatbots, can be a significant investment and, like any SaaS solution, requires regular upgrades and maintenance. 

Therefore, customer service teams need to be careful with incorporating automation into their support workflows—you don’t need to automate every step in the customer journey, only those that need it the most. 

Additionally, it takes some time for internal teams and customers to get acquainted with the changes associated with customer service automation. Without testing out these automated processes, you can frustrate your customers with complexities and turn them away. 

3. Inability to solve complex issues

Chatbots can address simple queries like basic troubleshooting and order tracking. However, when it comes to nuanced customer interactions, they may lack the context and sophistication to recognize the complete issue at hand and the customer's underlying frustrations. 

Tackling such complex issues calls for the creative problem-solving of well-trained human agents and the ability to grasp real situations. 

This is because many AI-powered chatbots are rooted in machine learning, which may not give customers a satisfactory response to their queries, where a human agent can fill in the gap. 

4. Lack of human touch

AI-driven conversations may seem robotic and lack the much-needed empathy that customer interactions demand. 

Imagine the frustration of a customer experiencing repeated technical issues when they have to encounter the same generic technical responses. Chatbots may fail to acknowledge the frustrations that the customer is facing and further aggravate the customer’s discontentment.

In such situations, human agents can swoop in, identify emotional cues and deliver the much-needed reassurance that helps calm the customer and nudge them to an effective solution. 

5. Potential downtime

Customer service automation systems are regularly maintained and updated. This can hamper business continuity, as customers are unable to access automated customer support for their queries. 

Take the case of an AI-based chatbot system set for an update during peak demand. The last thing you want is for customers to leave your website without having their queries resolved.

Undoubtedly, customer service automation can greatly help your support operations. However, without proper backup plans and maintenance schedules to ensure uninterrupted service, the advantages of automated customer service may appear ineffective. 

6. Limited compatibility with legacy systems

Modern AI-based chatbots and other customer support automation technologies may face compatibility issues with traditional and legacy systems. These systems often do not have the interfaces to integrate with the latest automation tools. 

Connecting customer service automation with your legacy tech stack or homegrown systems would demand extensive customization to make it more compatible. On top of that, the customization and ongoing maintenance involved will drive up operational costs. 

Besides, if your customer service team is used to working with legacy systems, they will need extensive training to operate customer service automation efficiently. 

Even if you manage to build a workaround and integrate customer automation into traditional systems, it will only have limited functionality, which hardly solves the purpose for you. 

7. Risks of end-to-end automated customer support 

In the long run and without intervention, fully automated customer service may generate more problems than benefits. AI chatbots deploy natural language processing (NLP), in which text processing can be hampered by slang and colloquialisms. 

This can lead customers to dead ends when they are trying to get a solution to their query, resulting in poor CSAT customer satisfaction scores. 

How to make the most of automated customer service

A robust customer support system needs the right combination of human intervention and automated customer service technology. To achieve this balanced compatibility,  you need to identify the scope of automation within your customer service operations. Get clarity on where you can deploy chatbots, which workflows you can automate and when human agents should take over the conversation.

Remember, automation should complement agent-customer interactions and not hamper them with a robust support system that can handle all kinds of customer queries and conversations.

Consistently track and monitor your workflows to create a seamless customer service experience.

Leverage a reliable omnichannel customer service automation tool like Plivo CX to seamlessly integrate automated customer service workflows into your existing systems (ERP, CRM, helpdesk, etc.), including homegrown ones. 

Besides that, here are some key features that can make your drive to customer automation a breeze: 

• Unified Agent Desktop: Provide seamless omnichannel customer service across email, voice, SMS, WhatsApp, and live chat
• OpenAI-powered Self-Service Chatbots: Offer 24/7 support for complex customer queries
• Drag-and-Drop Workflow Builder: Create automated customer journeys across all communication channels
• Metrics and Reporting: Analyze interactions and collect real-time feedback for tailored responses
• Agent Coaching Tools: Utilize call recording, barge, and whisper for effective agent coaching

Customer service automation pros and cons: The final verdict 

Customer service automation, when combined with human support, can enhance customer experience. While it offers benefits like 24/7 service and efficiency, you must strategically use it for routine tasks and rely on human agents for complex issues to ensure a personalized touch and promote customer loyalty.

Plivo CX and its drag-and-drop workflow builder lets you incorporate automation to elevate support and match evolving expectations. Easily create automated processes for handling customer interactions. Connect different components like chatbots, human agents, and other actions to build a seamless customer journey. 

Ready to level up your customer service?

Book a demo now!