Phone numbers are critical fields in any customer onboarding form. These are used to connect with customers for promotional campaigns to provide tracking details, etc. However, some people may not want to be contacted by marketing teams and hence submit fake numbers. In other instances, it may simply be a typographic mistake. Either way, you can prevent unreachable numbers from entering your database by verifying the numbers.
What is phone number verification?
Verifying phone numbers involves checking the number submitted by customers to ensure it is correct and reachable. Numbers are verified by first checking the number of digits. A mobile phone number must have 10 digits or 11 digits with ‘0’ as the first digit. Next, the phone number is checked to ensure that it works and the person using the number is the same person who submitted the information.
Verifying a phone number is often a key part of Know Your Customer (KYC) and Anti Money Laundering (AML) strategies. It also aids with regulatory compliance.
How to verify phone numbers?
One Time Authentication codes or OTPs are one of the ways to verify a phone number. This involves sending customers an OTP via SMS to the phone number submitted. Customers must then enter the code to authenticate the number. OTPs are often seen as the simplest way to check that a phone number is reachable and owned by the person who submitted the number.
However, it may slow down the onboarding process and add an extra step, inconveniencing customers. Additionally, this process will become known to customers, proving to be both costly and time-consuming. The good news is that there’s a better option available.
Using automated phone verification tools simplifies the process. It minimizes input required from customers and delivers quicker results. Once entered in a form, phone numbers are compared to data extracted from third-party reliable databases. It checks that the number is correct, complete and in use by the customer. Unverified numbers are flagged so that the customer can change it and resubmit a number they can be reached on.
Verification tools also check customer phone numbers against lists of politically exposed people and known fraudsters to assign a risk score for each customer.
Phone verification for fraud prevention
Verifying phone numbers before they are added to a customer database goes a long way towards minimizing the risk of fraud. It ensures that only validated information enters the database and keeps fraudsters from impersonating true customers. It also limits the business’s exposure to money laundering and other such illegal activities.
In addition to verifying phone numbers when they are entered into a database, automated verification tools can be used to batch-verify numbers existing in the database. This helps fight against data decay. After all, customers don’t always update their phone numbers if they switch to different cell phone providers or when they move to a different state. Verification helps ensure that all the phone numbers in your database are up to date.
Other benefits of phone verification
In addition to preventing fraud, automated verification tools benefit businesses in many other ways.
- Smoother customer onboarding
Automated verification lets businesses offer customers a seamless, quick onboarding process. There’s no wait for OTPs and it reduces the number of clicks required. Real-time verification results also ease the check-out process.
- Better customer relationships
Having verified phone numbers in their database clears the way for smooth communication between businesses and their customers. In addition to verifying that the phone number is reachable, it helps businesses understand their audience.
It improves segmentation and helps businesses reach out with relevant promotional messages. In turn, this strengthens the relationship and earns their loyalty.
Having verified customer phone numbers in their database ensures that when you reach out to a customer, you connect with the right person. This helps with accurate personalization. It also ensures that customers receive tracking information on time. This builds a stronger brand reputation for reliable customer service.
- Increased marketing campaign ROI
The phone is the easiest way to reach customers. That said, there is a cost linked to calling customers or sending them SMS messages. Having verified phone numbers minimizes the risk of businesses getting connected to the wrong person.
Hence, there’s a higher chance of converting a sales call. When it comes to SMS campaigns, having verified numbers also helps ensure that customers are addressed by the right name thereby encouraging them to interact with the message.
Getting started with phone verification
Irrespective of the industry, all businesses need to verify customer phone numbers. The simplest way to do this is by integrating automated phone number verification tools at all customer onboarding points.
Choose a tool that covers the regions your customers are based in, is easy to use and provides real-time and batch verification. Make this part of your overall data quality strategy and experience the benefits for yourself.