SMS are send and received faster from the time they are sent. This is a factor that can help the business communications in reaching customers in different ways.

You can reference the Statista report, In 2023, e-commerce brands worldwide sent 57.9 percent more SMS campaigns than the previous year, based on global data from a marketing automation platform. With a 7.6 percent click rate and a 0.13 percent conversion rate, this surge in SMS campaigns resulted in a 9.4 percent growth in orders.

How do you stand out in getting the attention of your customers using SMS marketing?

Enter Verified SMS Sender Names……

Verifying SMS sender names is a crucial step for businesses that want to ensure security, maintain customer trust, and improve the overall effectiveness of their messaging campaigns. It is important to use a platform that has the capacity to process Sender Names just like Taximail. In the convenience of your account you can request to register a Sender Name registration globally, simply indicate the country you want to request.

In today’s fast-paced digital landscape, businesses are increasingly turning to SMS marketing as a powerful tool for communication. SMS provides a direct, personal connection with customers, offering a high engagement rate compared to other channels. However, sending SMS messages from unverified or untrusted sources can have significant negative impacts on your business.

Here are the key reasons why businesses should verify SMS sender names:

1. Enhances Brand Trust and Recognition

When customers receive SMS messages from verified sender names, they can immediately identify the message source as legitimate. This builds trust, as customers are more likely to engage with brands they recognize.

Using an unverified or generic sender name (e.g., short codes or random phone numbers) can confuse recipients, leading them to question the authenticity of the message, and potentially marking it as spam.

2. Prevents Fraud and Phishing

Fraudsters often use unverified or fake sender names to trick customers into sharing personal or financial information. By verifying sender names, businesses can reduce the risk of impersonation and prevent phishing attacks.

Verified sender names add an extra layer of security by assuring recipients that the message is coming from a trusted source.

3. Ensures Compliance with Regulations

In many countries, there are regulations in place that require businesses to verify their SMS sender names before sending marketing or transactional messages. This is especially important in regions like the U.S. (TCPA), the EU (GDPR), and others where consumer protection laws are strict like Singapore, Hongkong that needs to register to first your sender name in their country and so more much. Some country may require added requirements and some have minimal requirements.

4. Improves Message Delivery Rates

Verified SMS sender names are less likely to be flagged as spam or blocked by carriers. SMS platforms and mobile carriers have systems in place that help identify and filter fraudulent or unverified senders.

By using verified sender names, businesses increase the likelihood that their messages will be delivered successfully to customers, improving overall campaign performance.

5. Boosts Customer Engagement

Verified sender names often lead to higher open and response rates. When customers see a familiar, trusted sender name, they are more inclined to read the message and take action (e.g., click a link, make a purchase, or respond to an offer).

This enhances the effectiveness of promotional messages, reminders, and notifications.

6. Enhances Customer Experience

Consistency and transparency in messaging are key to a positive customer experience. Customers appreciate clear communication from brands they trust. A verified sender name helps avoid confusion, making interactions feel more personal and professional.

It also allows businesses to differentiate themselves from spam or low-quality messaging services, which ultimately improves customer satisfaction.

7. Supports Better Marketing Analytics

Verified sender names contribute to more accurate tracking and reporting of SMS campaigns. Since the messages are more likely to be delivered and opened, businesses can gather better insights into campaign performance, customer behavior, and message effectiveness.

This data is invaluable for refining future marketing strategies and improving ROI.

In summary, verifying SMS sender names helps protect both businesses and customers by ensuring authenticity, improving engagement, and maintaining compliance with regulations. It's a small step with big benefits for security, trust, and marketing performance.

Below are some of the key risks and challenges businesses face when they use unverified SMS senders:

1. Damage to Reputation and Brand Trust

When businesses send SMS from unverified senders or numbers, it can create a sense of insecurity for customers. They may begin to question the authenticity of your messages and wonder whether they are dealing with a legitimate business or a scam. This undermines trust and may result in customers avoiding your communications altogether.

In the world of SMS marketing, trust is key. Verified and authentic sender Names/IDs assure customers that the messages are from a credible source. Unverified senders, on the other hand, make customers wary of phishing attacks, spam, or scams, ultimately tarnishing your brand’s reputation.

2. Legal and Compliance Risks

Many countries and regions have strict regulations governing SMS marketing to prevent spam and ensure privacy protection. Using unverified SMS senders can put your business in violation of these laws. Non-compliance can lead to significant fines, penalties, and even legal action. Moreover, if your SMS campaigns are flagged as spam or unsolicited, your business may face blacklisting by mobile carriers, making it difficult or even impossible to send SMS messages in the future.

3. Deliverability Issues and Message Blocking

Mobile carriers have stringent protocols in place to filter out spam and unsolicited messages. If you use an unverified sender, there's a high chance that your SMS will be blocked or marked as spam by the carrier. This can severely impact the deliverability of your messages, reducing the effectiveness of your SMS marketing campaigns.

Unverified senders may also be subjected to carrier throttling, meaning your messages will be delayed or sent in small batches, impacting their timeliness and overall engagement. As a result, your business could miss out on valuable opportunities to reach customers at the right time.

4. Increased Risk of Fraud and Phishing Attacks

Using unverified SMS senders increases the likelihood of customers associating your messages with fraudulent activity. Cybercriminals can easily exploit this by sending SMS messages that appear to come from a trusted brand but are, in fact, phishing attempts. If your business is sending SMS from unverified or suspicious numbers, customers may become hesitant to engage with any future communications, even if they are legitimate.

This creates a toxic environment of distrust and heightened caution among your audience, leading to a loss of customer engagement and potential revenue.

5. Poor Customer Experience and Engagement

SMS marketing is one of the most effective when it is timely, personal, and relevant to your customers. However, when messages are sent from unverified senders, recipients may ignore or delete the messages, leading to a poor customer experience. If customers believe they are being spammed or targeted by fraudulent sources, they are unlikely to engage with your business, leaving your marketing campaigns ineffective.

Unverified SMS senders also risk damaging the relationship you’ve built with your customers. If customers find it difficult to determine whether a message is legitimate, they may opt out of receiving messages from your business altogether, reducing your ability to nurture customer relationships.

6. Limited Analytics and Tracking Capabilities

When you use a verified SMS sender, you gain access to detailed analytics and tracking features that allow you to measure the effectiveness of your campaigns. Unverified senders, however, may lack these capabilities or provide inaccurate data. This limits your ability to optimize campaigns, track conversions, and make data-driven decisions.

Without accurate tracking, you can’t gauge the ROI of your SMS marketing efforts, making it harder to fine-tune your strategy and improve future campaigns.

7. Increased Costs and Operational Challenges

Dealing with the fallout from unverified SMS senders can be costly. You may need to invest significant time and resources to regain customer trust, re-engage customers, and re-establish your credibility. This operational burden could distract from core business activities and prevent you from scaling your marketing efforts.

Additionally, unverified senders often face higher operational costs, including fines from mobile carriers or third-party services that may block or filter your messages.

Conclusion

The use of unverified SMS senders in your marketing strategy poses considerable risks that could undermine your business’s reputation, legal standing, and operational efficiency.

While SMS marketing can be a powerful tool, it’s crucial to ensure that you are using a verified sender to protect both your business and your customers. Verification builds trust, improves message deliverability, and ensures compliance with relevant regulations, helping your SMS campaigns thrive and your brand maintain credibility.

In the long run, the small investment in using a trusted and verified SMS provider like Taximail will pay off by safeguarding your business from fraud, legal consequences, and reputational damage—while providing you with valuable tools for optimizing and measuring your marketing efforts.