Local Caller ID Increases Answer Rates for Businesses

January 18th, 2017

Before the advent of local caller ID, most of us simply answered the phone when it rang. Now, however, there is a distinct decision-making process that goes into whether or not to answer a ringing phone:

  • Who is calling me?
  • Do I recognize this number?
  • Do I have the time right now to answer?
  • Is this someone I want to talk to?
  • Could this be important?
For businesses that rely on outbound dialing to engage consumers – whether for the purpose of sales, collections, appointment setting or any other conversion activity – convincing someone to pick up the phone is the first step in a successful outcome.

Fact: Consumers are 4 times more likely to answer a call from a local number

According to a survey conducted by Software Advice, consumers are 4 times more likely to answer when the call originates from a local area code, even when they don’t recognize the number itself or the caller’s name is unknown. Most consumers tend to assume that an out-of-state, unrecognized or 800 number is someone they do not know, and they are more likely to ignore the call or let it go to voicemail.

This presents a challenge to most contact centers who are reaching out to consumers located throughout the U.S., and businesses using offshore call centers face an even greater obstacle. Although we operate in a global economy, only 7% of consumers reported that they would answer an unidentified, out-of-state number. A majority of consumers (80%) said that they would be “extremely unlikely” to answer a call from an unidentified 800 number.

Recognition is key to getting a phone call answered. The more information you can provide to a contact before they answer the phone, the closer you are to establishing a relationship and closing a sale.

Since it would be highly impractical to try and set up local call centers in every major metropolitan area, how can your business provide a sense of familiarity and recognition that will convince a consumer to pick up the phone more often? One answer is to give your business a local presence by way of changing the displayed caller ID number to a familiar regional area code: Dynamic Caller ID.

Use Local Caller ID to increase answer rates

Dynamic Caller ID is a technology that enables an outbound call from a business anywhere in the world to display a phone number with a local area code. This means that when your business makes an outbound call, YOU control the name and number that displays on your contact’s phone or device.

There are several local presence dialer solutions on the market that can help you accomplish this. While some incorporate the caller ID information into the IP telephony switch, others use a list management approach that allows you to apply a local area code to any CRM, PBX or dialer that accepts custom fields in its outbound calling list. So no matter what dialer, PBX or CRM you’re using, as long as you can import lists and dedicate a custom field to caller ID, you can reach your outbound contacts with a local-area number.

Local Caller ID / Dynamic Caller ID is compliant with TCPA regulations

The Truth in Caller ID Act of 2009 very clearly called for transparency in the use of caller ID technology. The practice is known as “spoofing,” which is the manipulation of identifying data “with the intent to defraud, cause harm, or wrongfully obtain anything of value” is disallowed by consumer protection regulations. For example, a collection agency could not legally disguise its identity by displaying the name and phone number of a local hospital or school.

Using a Dynamic Caller ID to create a local caller ID is fully compliant with regulations designed to prevent spoofing. In fact, owning a Local Caller ID number actually facilitates compliance with FCC regulations that require a consumer to be able to easily return a call and either speak with a live representative or leave a voicemail for your company, even if the purpose of the returned call is to request being placed on a do-not-call list. When a consumer calls the local number presented by your Local Caller ID enabled dialer, the returned call can be forwarded back to any number you own including your 800 number then routed as an inbound call.

The ultimate goal of any consumer interaction is a positive customer experience, which helps build brand equity and trust among the base of consumers you hope to do business with. Honesty and transparency are key to maintaining consumer goodwill. Either the displayed name of your business along with your local presence number, or clearly identifying your business as part of the agent’s greeting and immediately informing your consumer of the nature of the call, can help your business achieve its desired outcomes.

A Local Caller ID number instantly gives you the perception of having something in common with your contact. While an out-of-state, unknown, or anonymous 800 number automatically says, “I don’t know you,” an in-state number says, “This might be someone I know… maybe I should answer.”

Getting more calls answered, which means gaining more opportunities to connect, convert and cultivate strong customer-company relationships, is possible with our Custom Services.

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Local Caller ID Increases Answer Rates for Businesses