Business is booming for IVR systems — and this market segment is poised for even more growth. 

Fueled by the increasing adoption of cloud-based customer experience tools, the interactive voice response (IVR) system market is projected to reach $8.30 billion by 2030, with a steady growth rate of 6.31% from 2024 to 2030. 

Businesses of all sizes can utilize the benefits of IVR systems. Small to medium-sized companies can take advantage of IVR’s versatility and adaptability. For enterprises, these tools run 24/7, allowing customers to reach a business at any hour without incurring team overtime costs.

In this guide, we’ll discuss different cloud IVR solutions, how they compare with one another, key features to consider when choosing an IVR solution, and how to select the right one for your business.

What is IVR?

Interactive voice response (IVR) is an automated telephony system companies use to manage customer calls. It provides callers with a list of options to choose from using voice or by selecting a number on their phone’s dial pad. When a customer calls a business and hears a pre-recorded voice guiding them through options like "Press 1 for account information”—that's IVR in action. 

IVR menus lead customers through a series of prompts with one of two options as the end result: 

1. Self-service resolution: If the query is straightforward, customers can solve their problems with pre-recorded self-service alternatives. For instance, if a customer wants to know their bank account balance, they can enter their account number followed by an OTP or PIN, and confirm their balance.‍
2. Connect to an agent: If the query is complex or requires human assistance, the IVR system will automatically send the customer to the right agent. Similarly, if a transaction is disputed and the customer needs help, an advanced IVR system can identify the need for specialized assistance and direct the call to the right trained agent.

In both cases, IVR menus offer a range of benefits for customers and businesses alike. 

{{cta-style-1}}

What are the benefits of using IVR software?

Here are the top benefits to consider as you explore your options. 

1. Improve customer service with effective call handling

The best IVR systems are designed to enable customers to resolve their queries as often as possible. An IVR solution can easily direct customers to automated inbound customer service or a knowledge base, resulting in shorter waiting times and more satisfied customers. 

2. Save operational costs by automating routine questions

By automating routine calls, you free up your team’s time for more complex issues. Investing in IVR services pays dividends. At Plivo, we’ve seen companies substantially save operational costs by implementing IVR systems. It’s even possible to keep your workforce small and mighty by implementing an IVR system that intelligently routes callers based on specific criteria. 

3. Enhance call routing and management capabilities

IVR systems quickly connect your customers to the right department or agent, cutting down on hold times and getting them to the right person faster. Imagine a customer calling with a technical issue. Instead of being bounced around, they go straight to the tech team. It's efficient, less frustrating for the customer, and helps to solve problems faster.

4. Get insight into customer behavior and queries

IVR systems can collect data on what your customers are calling about, helping you spot patterns and trends that can guide your product or service’s future roadmaps. If many callers ask about the same issue, it shows that you need to focus on and fix that issue fast. 

5. Provide round-the-clock self-service support 

Having customer service representatives on duty around the clock is not the best idea (nor the most affordable one). IVR systems are accessible around the clock and effectively handle customer calls across numerous time zones, which helps businesses solve resource management difficulties. 

Key features to look for in an IVR solution

There are a few important factors to consider while selecting an IVR system for your business. 

• Customizable call flows: A customizable call flow is a powerful tool for designing personalized IVR experiences for your callers. Create specific workflows and communication channels based on customer needs and preferences. 
• Call routing and forwarding: The best IVR systems are well-equipped to handle intelligent call routing and forwarding. That means you can set up the IVR to route calls based on CRM data or other predefined values. ‍
• Speech recognition and DTMF tones: IVR systems are designed to be convenient for both you and your customers. A dependable IVR system should have robust speech recognition and support for DTMF tones (the tones you hear when pressing phone keys). This way, customers can choose their menu option by speaking or pressing buttons, making the whole process intuitive and accessible for everyone. 
• Extensive integration: An IVR tool should seamlessly integrate with all popular business systems, including payment processing, workforce management tools, customer relationship management systems, and more. This ensures that your IVR has all the necessary intel to perform operations. 
• Analytics and reporting: Strong analytics and reporting features in your IVR system help you track call patterns and understand what your customers ask about. With this information, you can make data-driven decisions to improve your service and address any recurring issues.

The best 7 cloud IVR solutions at a glance

We’ve rounded up the best IVR services to help you choose the right platform for your needs. Read the table below for an overview of our top picks. 

The 7 best cloud IVR solutions in 2024

Here’s a rundown of the best IVR systems in the market.

1. Plivo

G2 rating: 4.5 out of 5

Plivo’s standout IVR solution is packed with fully customizable features designed to deliver all the benefits listed in this guide. It offers features like callbacks to hold customers’ place in line and reply on their voice channel, stick routing to route repeat callers to the same agent to improve experience, and feedback to collect important CSAT scores after each call automatically. Plivo’s IVR is highly popular among businesses of all sizes because of its affordability and reliability. 

Key features 

• Ease of use: Provides easy-to-use APIs and XML, making it easy to create custom IVR flows tailored to meet your business needs.
• Fully customizable: Create multi-level IVR menus tailored to your business. Design custom greetings, prompts, and messages using either pre-recorded audio or text-to-speech.
• Intelligent call routing: Advanced call routing options ensure that calls are directed to the most appropriate agent or department based on predefined criteria such as caller input, agent skills, or business hours.
• Outbound IVR support: In addition to using IVR for inbound calls, you can set up custom menus for outbound use cases such as voting and surveys.
• Global reach: Get stable connections in more than 220 countries and territories.
• Developer-friendly: Access comprehensive documentation and a helpdesk for developers.
• Reporting and analytics tools: Get insights into call patterns, customer interactions, and system performance. 
• Scalability: Easily adjusts to the needs of your business; suits growing companies perfectly.

Is Plivo right for your business?

If you are looking for a cost-effective but scalable communication solution with a user-friendly interface and robust API capability, then Plivo may be the perfect IVR system for you. It is particularly helpful for businesses that are dependable on voice and/or SMS services globally. 

Plivo pricing

Generally, Plivo's pricing is considered competitive compared to other players in the market. Please refer to the official website for more details about our pricing.

2. Twilio 

G2 rating: 4.2 out of 5 

Twilio is known for its flexibility and rich developer tools, thus becoming a favorite business option for firms that require customized communication solutions. The company’s strong global presence and reliable infrastructure ensure high service availability. 

Key features 

• Customizable call flow: Build and modify call flows using the drag-and-drop interface in Twilio Studio. 
• Call routing: Automatically route callers to the appropriate department or escalate to live agents with context collected by the IVR. 
• Extensive API library: Supports diverse communication tasks.
• Global reach: Get stable connections in more than 180 countries.
• Developer-friendly: Access comprehensive documentation and a helpdesk for developers.
• Scalable: It can grow as your company grows.

Is Twilio right for your business?

Twilio is well-suited for businesses that want customizable and scalable communication systems. For instance, it would be ideal for companies with strong development teams to utilize its many API options.

Twilio pricing

3. Talkdesk

G2 ratings: 4.4 out of 5

Talkdesk is popular because of its friendly user interface and reliable customer support.  

Key features 

• Multi-level IVR: Set up multiple customizable menus, levels, and prompts.
• Customizable call routing: Multiple routing options are available.
• AI-powered tools: Use functions like predictive dialing and speech analytics.
• Seamless integrations: Integrates well with popular CRM software like Salesforce.  

Is Talkdesk right for your business?

If you need a reliable, easy-to-use call center solution with advanced AI features and seamless CRM integration, Talkdesk could be a good match for your business.

Talkdesk pricing

4. CallHippo

G2 rating: 4.4 out of 5 

CallHippo is loved for its cheap cost and ease of use. This IVR is a great option for small to medium businesses that need a straightforward, functional solution.

Key features 

• Multi-level IVR menus: Create multi-level IVR menus to route calls intelligently based on predefined criteria.
• Customizable IVR menu: Customize call flow based on your needs.
• Call routing: Automate call distribution using smart call routing based on various parameters.
• Analytics tools: Get detailed insights into call data, performance metrics, and agent productivity. 
• Integrations: Integrates well with popular third-party tools like Zapier, Pipedrive, and HubSpot.

Is CallHippo right for your business?

If you are a small or medium-sized business looking for an inexpensive, easy-to-install IVR solution, CallHippo may be your best bet.

CallHippo pricing

5. Dialpad

G2 rating: 4.2 out of 5 

Dialpad is on this list for its advanced VoIP features and seamless integration with Google Workspace and Microsoft Office 365. It's ideal for businesses looking for a modern, cloud-based communication solution.

Key features 

• Easy setup and customization: Create and customize call flows easily using their online dashboard.
• Call routing and forwarding: Set up call forwarding to multiple numbers.
• Analytics tools: Get real-time tracking of important metrics.
• Integrations: Integrates with popular tools like Salesforce, Zendesk, Google Workspace, HubSpot, and Microsoft Teams.

Is Dialpad right for your business?

Dialpad is perfect for businesses that need advanced VoIP features and strong integrations with other business tools. It’s beneficial for remote teams.

Dialpad pricing

6. Genesys Cloud CX

G2 rating: 4.3 out of 5

Genesys Cloud CX is an AI-powered contact center platform that enhances customer and employee experiences. It features easy-to-use tools like drag-and-drop flow building, omnichannel bot support, and advanced speech recognition, making it ideal for businesses needing a scalable and versatile IVR solution.

Key features 

• Drag-and-drop flow builder: Create multilevel IVR interaction flows and menus using a simple drag-and-drop interface.
• Omnichannel bot support: Design and manage self-service flows in one app, making them available on voice, web, SMS, or messaging channels with full context.
• Speech enablement: Automatic speech recognition for menus or integration with native and third-party natural language understanding (NLU) for improved accuracy.
• Customer identification and personalized routing: Identify customers and verify their identity during self-service.
• Open APIs: Use public APIs to better manage and configure call flows, audio prompts, and other data.
• Visual and adaptive IVR: Provide intuitive touchscreen navigation for customers and build self-service applications that adapt to real-time customer journeys across channels.

Is Genesys Cloud CX right for your business?

Genesys Cloud CX is ideal for businesses seeking a comprehensive, scalable, and AI-powered IVR solution. The platform’s extensive integration capabilities and omnichannel support make it a versatile choice for companies across various industries, from healthcare to retail.

Genesys Cloud CX pricing

7. Nextiva 

G2 rating: 4.5 out of 5

Nextiva is a unified, AI-powered customer experience platform. As part of its contact center solution, it offers both a basic IVR and an advanced IVR. What makes Nextiva stand out from other IVR services is its AI-powered tools, which enable customers to speak in their natural language, state their requests, and get help instead of relying on a long list of IVR menus. 

Key features 

• Conversational AI: Offers open-ended prompts, automates routing intelligently, queues callback, and more. 
• Speech recognition and text-to-speech: Integrates with advanced speech technologies to offer voice commands and text-to-speech capabilities
• Customizable call flows: A web-based portal offers pre-built templates and drag-and-drop functionality for easily creating and managing call flows. 
• Virtual agents: Automate routine interactions using AI-powered virtual agents, freeing up human agents for more complex tasks.
• Integrations: Seamlessly connects with CRM systems, databases, and other tools.
• Analytics tools: Provides comprehensive analytics on call interactions.

Is Nextiva right for your business?

Nextiva is an excellent choice for businesses seeking a robust, scalable IVR solution. Its advanced call routing, integration capabilities, and AI-powered features suit companies of all sizes. 

Nextiva pricing

Get started with Plivo today

The right IVR solution is different for every business. Start by understanding your business’s needs and goals, listing specific must-have and nice-to-have features like customization, global presence, and customer support.  

Think Plivo might be the right IVR solution for your needs? Get started with Plivo.

According to a 2022 report by IBM, data breach costs reached an average of $4.35 million, a 3% increase over the previous year. Yet, despite the increasing frequency and severity of data breaches, a significant number of companies still fail to implement common-sense security measures. 

According to a 2023 survey by the Ponemon Institute, 64% of organizations have not fully implemented multi-factor authentication (MFA) across their systems and applications. This statistic is particularly alarming given that research shows MFA can prevent more than 99.9% of account compromise attacks 

One-time passwords (OTPs) play an integral role in MFA, 2FA, and basic account security. OTPs are a simple, yet effective way to  protect sensitive information and ensure secure transactions. 

This guide provides an in-depth look at OTPs and equips product managers and engineers to implement and leverage security measures that protect users and technology platforms.

What does OTP stand for?

A one-time password, or OTP, refers to unique codes generated for use in only one login session or transaction. 

OTP systems generate temporary passwords for authentication. These passwords are usually a series of numbers, such as “123456”. Their validity expires after a single use. These passwords are auto-generated by a trigger and sent to the user via email, voice call, WhatsApp,or SMS.

Why are OTPs better than static password generation?

Unfortunately, it’s common for someone to use the same static password (such as 123456) for ten different accounts. However, this practice leaves all ten accounts vulnerable to breaches. Poor passwords are the root cause of 81% of company breaches; 27% of hackers get in by guessing unoriginal and predictable passwords. Stolen and reused credentials cause 86% of hacking incidents. 

OTP generation is instant and has only a single-time-use validity. Hackers can’t steal, guess, or reuse an OTP. When used in combination with one or more other login factors, OTPs are extremely effective in securing user accounts. 

How do one-time passwords work?

OTP systems rely on “shared secrets” between the user's device (typically a smartphone app or hardware token) and the authentication server. A shared secret is a unique key that is known only to the user's device and the authentication server. It's typically generated during the initial setup of the OTP system. 

When someone attempts to access an app or account that uses OTP authentication, the network server's protocol generates a series of characters or numbers (the shared secret) using OTP hash algorithms. A device or an authenticator app will send these single-use codes. 

OTPs come in three main forms:

1. Time-synchronized OTPs: A hardware device or two-factor authenticator apps, such as Google Authenticator or Microsoft Authenticator, syncs the OTP device's clock  with the authentication server's clock. Both generate a current-time-dependent OTP that gets hashed to create another unique numerical OTP. It uses a Unix timestamp to ensure universal time coordination, avoiding time zone issues.
2. Lockstep-synchronized OTPs: The HMAC-based one-time password (HOTP) method generates an OTP based on a previous OTP, using the older seed code to create a new seed code and hash chain. It’s hard to reverse-engineer and, hence, more secure against hacking. The OTP tool generates random, non-repeating passwords that prevent pattern recognition.
3. Transmission-based OTPs: This is the most common and well-known form of OTP implementation. Every OTP generates a new password and sends it to the end user via SMS, WhatsApp, email, or even voice call. It is also the easiest to implement for developers since an authentication server simply generates a random password and sends it to the user.

What are 2FA and OTP? How are they different?

Two-factor authentication (2FA) is a type of multifactor authentication system that requires two different types of verification before granting access to an account. These verification types are either:

1. Something you know, such as a password or PIN.
2. Something you have, such as a device like a mobile phone.

The idea behind 2FA is that a user's account remains secure even if the first factor (a static password) is compromised since the second factor remains intact.

OTPs are specific passwordless authentication tools within a 2FA system that provide an extra layer of security. The second factor isn;t always an OTP; it can be other passwordless authentication methods, such as biometric verification or hardware tokens.

How to implement OTP

Before outlining how to implement OTPs, it’s important to understand the mechanism behind OTP generation and verification.

Understanding OTP generation and verification

OTP systems integrate a PIN using a microprocessor-based smartcard, a token. These tokens generate numeric or alphanumeric codes that make the OTP authentication effective. The HMAC algorithms work with a variable parameter to generate these OTPs, such as time-based OTPs (TOTPs) and event-based OTPs.

Note: If you use TOTPs, a user who seeks access gets time-stamped OTP values that expire after a few seconds or minutes. The security token in the smart card uses the exact algorithm for verification and helps prevent replay attacks.

Implement OTPs in 4 steps with Plivo

Plivo’s Verify API enables you to start sending OTP verifications in under five minutes. Simply follow these steps to get started.  

• Step 1: Sign up with Plivo using your business email address.‍
• Step 2: Set up an application in the Plivo console and get your API key and token to send and validate code.‍
• Step 3: Verify the accessibility to the phone numbers you want to use to send verification codes.‍
• Step 4: Install the required libraries into your development environment to use the Plivo API. Get the Plivo Software Development Kit (SDK) for your selected language: Python, Ruby, JavaScript, and other languages are all compatible with Plivo.

To summarize, create a Plivo account with an application. Define the right parameters, such as session expiry, log in attempts, length of OTP, etc. Get a library/module/SDK available in different programming languages from Plivo to make or direct HTTP requests to Plivo’s API.

{{cta-style-1}}

Plivo protects your system from unauthorized access

Pilvo’s off-the-shelf solution makes it easy to go live in just one sprint. With built-in, complementary Fraud Shield and pre-registered sender IDs, Plivo’s Verify API handles security and compliance in one streamlined experience. 

We manage the entire end-to-end process, from number procurement and sender ID and template registration to OTP generation, storage, and validation. Plivo boasts the market’s highest OTP conversion rates (95%) as well as the lowest cost per conversion. Our users do not pay monthly phone number rental fees, nor do they pay any extra fees for fraud control or verification. 

[Learn more: Verify API - SMS and Voice OTP Verification]  

3 Key benefits of one-time passwords

Enhanced security through unique, temporary codes

Algorithms generating OTP codes guarantee uniqueness; users can use each code only once. Users receive OTPs through email or text messages on their phone number, which only they can access and enter to verify their identities. The process prevents hackers from accessing user data for phishing, password sniffing, brute force attacks, and man-in-the-middle attacks.

Reduction in stolen passwords and password sharing

OTP authentication effectively mitigates common bad security habits, such as password reuse, weak passwords, and credential sharing. Since users can only use OTP once, it reduces the risk of stolen and reused login information. OTPs also prevent replay attacks by thwarting hackers who try to intercept and reuse valid data transmissions. 

A frictionless user experience

The simplicity of use associated with OTPs hits the right balance between security and a great user experience. Customers can receive their code using their method of choice and type it in to complete the login process. In turn, IT administrators spend less time on password queries since OTPs automate password management.

5 best practices to implement one-time password authentication

As you implement a one-time passcode solution, keep these tips in mind. 

1. Combine OTPs with 2FA and MFA: Integrate OTPs with other authentication mechanisms, such as biometrics or smart cards, for more secure user access.
2. Use cryptographically secure generators: Cryptographically secure random generators will send a new random OTP each time. No attacker can guess the new OTP by studying previous OTPs. 
3. Provide backup options: Implement secure fallback mechanisms, such as backup codes or alternative authentication methods for users who cannot access their OTPs.
4. Limit OTP length: Balance security and user convenience by keeping OTPs six to eight digits long.
5. Regularly update systems: Review OTP systems to address new security threats and vulnerabilities.

How Plivo helps with OTP implementation

With its API, Plivo’s cloud-based communications platform can send codes to your customers worldwide.  Automate sending and receiving SMS and voice OTP via over 1,600 carriers in 220+ countries and territories.

Here’s why Plivo stands out from other SMS OTP service providers.

• High deliverability: We assure high delivery with our simulated handsets as test nodes and genuine phone numbers from regional carriers. The test nodes' responses enable our dynamic routing engine to route messages around delays to ensure deliverability.

• Turnkey single-API solution: Simply integrate with Plivo using a single API to get started in five minutes or less. 
• Multichannel support: Plivo users can send OTPs using SMS, voice, and WhatsApp, with email and RCS messaging coming soon. 
• Carrier-specific routes: We employ intelligent routing to find ideal routes and phone numbers and ensure high deliverability. We also check sender ID and template compliance to avoid carrier failures. 
• Built-in fraud control: Plivo's Fraud Shield helps prevent and respond to potential cases of SMS pumping fraud. Set thresholds for different countries, determine your alert preferences, and curb fraud-related expenses with this free tool. 
• Support: Our premium service includes round-the-clock assistance, detailed documentation, seven worldwide points of presence, and 99.99% uptime SLAs.
• No additional costs: Plivo offers simple pricing options that allow you to pay only for the resources you utilize. No fees are associated with authentication, regulatory compliance, fraud protection, or SMS verification. Get Volume Pricing to determine if an annual agreement is the right solution for you.
• Best-in-class documentation: Our comprehensive documentation will address most of your questions and help you get started quickly.

Join thousands of businesses in over 220 countries and territories that use Plivo to simplify customer communications.

Request a trial to see how we can help you send your first one-time passcode.

Plivo’s Verify API is a turnkey solution designed to make it easy to send one-time passcodes to your users. Market leaders in finance, tech, and healthcare have all come to rely on Plivo’s Verify API — and it’s easy to see why. 

Plivo’s Verify API simplifies the implementation of two-factor authentication (2FA) and multifactor authentication (MFA) and offers a seamless user experience through SMS and voice OTP verification. With features designed to prevent fraud and boost conversion rates, Plivo's Verify API stands out as a comprehensive tool that meets the diverse needs of businesses in virtually every industry. 

Read on for six compelling reasons why companies of all sizes have embraced Plivo's Verify API as their go-to solution for user verification.

Best-in-class, built-in fraud protection

SMS pumping fraud is a growing problem. A recent study estimated that SMS OTP fraud made up around 5% of all SMS traffic — and that percentage is only increasing. 

Many verification platforms will charge extra for fraud protection. For instance, Twilio’s Fraud Guard starts at $2,500 for 100,000 SMS sent. Telesign Verify Plus will cost your business around $1,500 for 10,000 new customers. Plivo’s Fraud Shield is free — and comes built into Plivo’s Verify API. 

Plivo Fraud Shield is an AI-driven model that automatically detects and blocks fraudulent messages. With geo permissions and automatic responses to signs of fraud, it can prevent SMS pumping from eroding your budget. Fraud Shield’s settings allow you to customize how your system responds to signs of fraud and automate alerts to quickly take action in case of a breach. 

Geo permissions give you control over the countries to which your SMS traffic is sent. That means we’ll block any messages intended for countries not on your approved destination list free of charge. Head to our Verify landing page to see how much you could save by implementing geo permissions and switching to Verify. 

{{cta-style-1}}

The lowest costs per verification

Plivo’s pricing is designed to help businesses get the best value from their OTP solution. That’s why only messaging (SMS/ WhatsApp) or voice costs apply — verification is free. 

What does that mean for your business? Other verification solutions charge an additional fee when a user completes the one-time password completion process. That means your business pays twice: first to send the code and again when the customer uses the code. 

Plivo doesn’t charge you again when the customer submits their code. Nor do we charge for Fraud Shield. As the chart below demonstrates, Plivo is the most affordable solution compared to our competitors. 

Plus, save even more: 

• Plivo’s Verify API helps bypass the number/sender ID registration and template whitelisting process, reducing your overhead costs. 
• Verify API uses Plivo’s pre-approved phone numbers, meaning you don’t have to spend extra on monthly phone number rental fees. This can result in thousands of dollars in savings annually. 
• Volume discounts are also available for enterprise-level messaging needs. 

Highest OTP conversion rates 

Plivo Verify users can leverage our solution’s 95% conversion rate across multiple channels. Plivo Verify can send OTPs via WhatsApp, SMS, and voice, with email and RCS messaging coming soon. That means your customers can choose their preferred method for receiving an OTP, guaranteeing a higher likelihood of conversion. 

On the technical side, Plivo offers specialized routes from carriers that are not available via our SMS and Voice APIs. This intelligent routing system identifies the best routes and number types for conversions. We also deliver automatic load balancing and route traffic to another carrier in case of a carrier failure.

Fast, painless implementation

Plivo’s Verify API is designed to “go live in one sprint.” We manage the entire end-to-end process, from number procurement and sender ID and template registration to OTP generation, storage, and validation. With our developer-first APIs and sample code, companies can slash implementation time by 90%.

Go live in just five minutes and send OTPs to users in 220+ countries and territories. 

Compliance made easy

Plivo takes compliance seriously. We are HIPAA compliant and have earned ISO 27001:2022, SOC 2 Type 2, and PCI DSS certifications. Plivo’s Verify API helps users bypass regulatory paperwork and go live instantly using pre-registered sender IDs (for example, PLVRFY or PLVSMS). Plus, Plivo Verify users can access pre-vetted templates to ensure spam blockers do not filter out messages. 

World-class support 

There’s a reason why Plivo is rated #1 in customer satisfaction on G2 with a score of 99/100. Plivo offers superior support, with white-glove onboarding featuring personalized live sessions led by experienced solutions engineers. Our support team can offer expert advice on industry best practices and compliance and prioritized issue resolution with 24/7 premium support.

Get started with Plivo Verify

Plivo Verify is a flexible, scalable solution that provides the best value to businesses seeking to improve their security with OTPs. Built-in Fraud Shield and low costs make our turnkey solution accessible for companies of all sizes. Plus, developer-friendly support documentation and fast, easy implementation mean you can start sending OTPs to your customers in just five minutes. 

Learn more about Plivo Verify by requesting a free trial.

New user verification is an integral part of security for e-commerce, entertainment, and technology companies alike. Data from the Federal Trade Commission shows that total fraud and identity theft cases have nearly tripled over the last decade. New user verification solutions aim to combat these crimes by confirming the identity of a new user during the registration or onboarding phase of a service or platform. 

The decision to build or buy a user verification system isn’t always straightforward. Technical resources, cost, and scalability are just a few factors that can help your business choose to buy an out-of-the-box verification API or create a custom solution in-house. Keep these pros and cons in mind as you weigh your options.

Build vs. buy: understanding your options

Before we discuss the pros and cons of each path forward, let’s first understand what the new user verification process entails. 

New user verification is when a customer registers for a new account or service, and the business requests personal information such as the customer’s name, birthdate, and address. The company then verifies the accuracy of this information, which might involve simple steps like confirming the customer’s email or phone number through a one-time passcode. 

For more sensitive transactions, such as opening a bank account, applying for a loan, or transferring large amounts of money, businesses might cross-check the provided details against various databases to ensure they align with existing records. Some companies use biometric verification in addition to one-time passcodes, such as fingerprints or facial features. 

Throughout the identity verification process, companies must balance robust fraud prevention with minimizing customer disruptions. Your business must verify new users efficiently so the customer experience is not interrupted. It’s a tricky balance, but it's an important one to get right. 

With this in mind, let’s examine some of the key factors that can influence your customer experience and fraud protection results, whether you build or buy your new user verification solution. 

{{cta-style-1}}

Fraud protection

Of course, fraud protection is the number one reason for implementing new user verification. Building an in-house solution means you have full control over your system’s fraud protection features. However, it takes significant resources to combat the new and growing threat of SMS pumping fraud. 

An API like Plivo’s Verify includes built-in fraud protection for free. Fraud Shield is an AI-driven model that automatically detects and blocks fraudulent messages. Automatic message thresholds and geo permissions make it easy to customize your company’s fraud defense with little to no developer resources. 

“Plivo’s no-cost, built-in Fraud Shield solution has lowered costs and boosted ROI, all while allowing us to focus on growth instead of constantly monitoring for signs of SMS pumping fraud,” said a prominent global technology platform, one of Plivo’s clients.

Assess your readiness to build your own fraud protection features by answering these questions: 

• Does your team have the expertise required to build a robust system? Do your developers have specialized knowledge in security and authentication protocols?
• Are you prepared to stay current with changing security regulations and specific industry standards? 
• Is your company equipped to handle sensitive user data in-house? What are the risks of trusting a third-party provider?

Cost per verification and ROI

The next biggest factor to consider is your budget. The budget for building an in-house verification solution will vary significantly based on the complexity of the system, the size of your user base, and the level of security required. 

There is a wide range of costs to consider when building a solution in-house: personnel costs, such as salaries; infrastructure costs; development and testing costs; and maintenance and compliance ongoing expenses. Ultimately, it helps to calculate two metrics in order to compare the upfront investment of building your own solution to the ongoing cost of an off-the-shelf solution. Calculate your Total Cost of Ownership (TCO) and your cost per verification. 

TCO is the full cost of building and maintaining an in-house solution versus purchasing from a vendor. Cost per verification considers the total price of verifying new users. 

Plivo offers the lowest cost per verification among turnkey solutions on the market today. Plivo Verify charges nothing for both Fraud Shield and OTP verification services. Plivo users only pay SMS, voice, or WhatsApp charges. Plus, Verify API uses Plivo’s pre-approved phone numbers, meaning customers do not pay monthly phone number rental fees. 

Verification methods

There are many ways to verify new users, some more complicated than others. Even within categories, there are multiple channels to consider. For instance, Plivo offers one-time passcodes delivered via voice, SMS, and WhatsApp - with RCS and email coming soon. 

New user verification needs to be lightweight, functional, and user-friendly for your customers. Bugs or downtime can frustrate new users and prevent them from completing account sign-ups. When weighing your options, consider your technical needs. 

Answering these questions can help: 

• How well would a third-party solution integrate with your existing systems? 
• What verification methods do potential new users prefer?
• Do you need a highly customized solution to meet specific industry requirements? 
• Is your solution scalable and capable of handling increasing volumes of users without compromising performance?

Scalability

Do you need a solution that can grow with your business? Plivo’s turnkey solution is designed to verify users in 220+ countries and territories within five minutes. That type of global reach is tough to match with an in-house solution. Plus, there are development costs that hit your bottom line each time you need to scale your system to reach new users. 

Ease-of-use

Plivo’s Verify API is designed to “go live in one sprint.” Developer-first APIs and sample code can slash implementation time by 90%. 

This ease of use provides a great experience for your team—and your customers, too. Plivo Verify boasts a 95% conversion rate across multiple authentication channels. This high rate demonstrates that customers are reliably receiving and sending one-time passcodes to verify their identities. 

Consider how the verification process will impact your user onboarding and retention. Determine if you need the ability to quickly adapt the verification process to user preferences or new technologies. A third-party solution is often more flexible and frictionless than an in-house solution. 

Compliance

Finally, determine what compliance hurdles your new user verification solution needs to overcome to go to market. Depending on your industry, your user verification solution may need to be HIPAA, PCI DSS, or GDPR compliant. This adds a layer of complexity to the development process as well as a new level of risk for your company to consider. 

Plivo is ISO 27001:2022, SOC 2 Type 2, and PCI DSS certification, as well as HIPAA compliant. We help our customers bypass regulatory paperwork and go live instantly using pre-registered sender IDs (e.g., PLVRFY, PLVSMS). Plus, Plivo Verify users can access pre-vetted templates to ensure messages are not filtered out by spam blockers. 

Which option is right for your business? 

There’s no single best new user verification solution for every business. Some companies will choose to invest the time and resources to develop and maintain an in-house platform. Others can turn to Plivo to get best-in-class fraud protection, easy implementation, and low-cost verification in one seamless API. Learn more about Plivo Verify and request a free trial to get started. 

At Plivo, security is more than just a checkbox — it's at the core of our operations and our commitment to you. That’s why we're excited to announce that we've upgraded our Payment Card Industry Data Security Standard (PCI DSS) certification from version 3.2.1 to the more advanced PCI DSS 4.0. 

Plivo Earns PCI DSS 4.0 Certification

Plivo Cloud has achieved PCI DSS 4.0 certification, the most recent update to the requirements. This accomplishment reinforces our commitment to compliance and data security, giving you even greater confidence in our services.

Understanding PCI DSS: The Gold Standard in Data Security

The PCI DSS is a rigorous set of requirements designed to ensure that any company that processes, stores, or transmits credit card information maintains a secure environment. This certification is crucial for any organization that processes payments. 

With PCI DSS 4.0, Plivo meets industry-standard controls and requirements using:

• Firewalls and antivirus software: We implement essential tools for protecting against unauthorized access and threats.
• Data encryption: We safeguard your information by encrypting data during transmission using TLS 1.2+ and securing it at rest with AES-256 encryption.
• Passwords and multifactor authentication: We enforce strict access controls to ensure that only authorized personnel can access sensitive information.
• Roles and responsibilities: We clearly delineate responsibilities to maintain compliance and security at every level of the organization.

These requirements are regulated by the PCI Security Standards Council (PCI SSC), a consortium of major credit card brands like Visa, Mastercard, American Express, and Discover. 

Plivo’s PCI DSS Certification: What It Means for You

Plivo is proud to hold a PCI DSS Level 1 certification, which applies to organizations that annually process more than six million credit or debit card transactions. Achieving and maintaining this certification involves rigorous annual audits by authorized PCI auditors and regular scans by approved scanning vendors to ensure ongoing compliance.

 A third-party, cloud-based payment platform handles our transactions to reduce Plivo’s exposure to direct payment data, yet our PCI DSS compliance remains essential. This certification aims to reassure you that Plivo’s platform provides the necessary infrastructure to protect your data.

PCI DSS Compliance: A Shared Responsibility

While Plivo takes extensive measures to secure your data—such as encrypting data in transit and at rest, and redacting sensitive details in logs—it's important to remember that PCI DSS compliance is a shared responsibility. As our customer, you play a critical role in maintaining the security of your data. This includes:

• Secure authentication credentials: Ensure that your login details and API keys are protected and not shared.
• Use the Plivo console securely: Follow best practices for secure access and use of our console.
• Ensuring compliance in your applications: Make sure that the instructions your applications send to Plivo adhere to PCI DSS requirements.

This partnership approach is vital to keeping the platform secure for everyone involved.

Beyond Compliance: The Plivo Promise

Our upgrade to PCI DSS 4.0 is just one aspect of our broader commitment to data security. For large enterprises, this level of compliance is part of a comprehensive suite of security measures we offer. From robust internal controls to continuous monitoring and threat assessments, we go beyond what's required to provide a platform you can trust.

If your organization needs a reliable partner to securely handle payment data communications, we invite you to explore what Plivo can offer. Reach out to our sales team to learn more about how our enterprise solutions can meet your security needs.

Your security is, and always will be, our top priority. We deeply appreciate your trust in Plivo, and we’re committed to continually enhancing our platform to protect your data.

In today's competitive market, high-quality customer interactions are essential for maintaining service standards. By integrating Plivo’s audio stream with AI-driven transcription and sentiment analysis, you can improve call quality monitoring. This blog showcases how you can utilize existing technologies to maintain exceptional customer experiences and service standards.

Why Call Quality Assurance Matters

For businesses that rely on live phone conversations, such as call centers and sales teams, monitoring call quality is essential. Identifying trends, analyzing sentiment, and pinpointing areas for improvement help evaluate agent performance, boost customer satisfaction, and drive business growth. However, traditional call quality analysis methods can be time-consuming and resource-intensive.

Integrating Plivo’s Audio Stream with AI-driven service

Plivo’s application offers a streamlined approach to call quality analysis by utilizing its audio stream capability. This feature, combined with AI-driven services for real-time transcription and sentiment analysis, automates significant aspects of the process. However, it is important to note that audio streaming alone does not encompass the entire call quality assurance, and should be integrated into a wider quality control framework.

For demonstration purposes, we will reference Amazon Transcribe and Amazon Comprehend to showcase the application’s capabilities, though any compatible AI service can be used.

{{cta-style-1}}

How It Works

Plivo’s application initiates a WebSocket for real-time audio streaming and transcription. Here’s a step-by-step overview of the process:

‍

1. Initiate a Call: A participant calls a phone number managed by Plivo.
2. Route the Call: The call is routed to the recipient through Plivo’s WebSocket, capturing the audio stream for transcription.
3. Transcription: The captured audio is transcribed in real-time by the selected transcription service.
4. Sentiment Analysis: Transcripts are sent to an AI-driven sentiment analysis service to gauge the emotional tone of the conversation.

Getting Started with Plivo’s Voice API

To deploy this solution, follow these steps:

1. Sign Up with Plivo: Create an account and procure a phone number via the API or console.
2. Set Up Your Application: Associate the number with an application that initiates calls and establishes audio streaming over the WebSocket. Use the sample code below as a reference:

‍

1. Integrate with AI Services: Follow Plivo’s audio stream integration guide on GitHub to set up your chosen transcription and sentiment analysis tools.‍
2. Test Your Setup: Dial the configured phone number to trigger the call, establish the audio stream, and observe the transcription and sentiment analysis in action.

Why Choose Plivo?

Plivo’s Voice API and audio streaming features are designed for flexibility and efficiency, making it easy to integrate with any AI-driven transcription and sentiment analysis services. This versatility ensures that you can customize the solution to fit your specific needs, enhancing your contact center’s quality assurance processes with advanced automation.

By leveraging Plivo’s application, you can automate call quality analysis, providing valuable insights that help improve agent performance and customer satisfaction. Get started today and take your contact center to the next level with Plivo’s powerful integration capabilities. For more details, explore our developer resources and start optimizing your customer interactions now. Happy analyzing!

Security is on everyone’s mind, and at PlivoCX, protecting your information is our highest priority. We want to earn your trust when it comes to keeping your data safe. As part of that commitment, we are pleased to announce that we’ve renewed our SOC 2 Type 2 certification, which incorporates controls relevant to HIPAA compliance.

‍

Validating Our Security Practices

SOC 2 Type 2 Certification

Our all-in-one CX suite simplifies marketing, automates customer service, and fuels growth — all while maintaining stringent security controls on sensitive customer information. This year, we renewed our SOC 2 Type 2 certification. The SOC 2 criteria validates our security processes to meet strict industry standards over time. Specific areas covered include:

• Regular communication of changes to customers
• Robust internal access control to production environments
• Thorough system monitoring and ongoing risk assessments
• Reliable disaster recovery, data backup measures, and system availability
• Responsive system and security monitoring and incident response processes
• Effective employee onboarding and termination processes

Plivo’s controls will continue to evolve to maintain the privacy and security of customer data and perfect our security systems.

HIPAA Compliance: A Shared Responsibility

For our healthcare clients, we provide HIPAA business associate agreements (BAA) to safeguard sensitive patient information in accordance with healthcare regulations. While our SOC 2 report encompasses controls pertinent to HIPAA, achieving full compliance is a shared responsibility, necessitating both CX Suite and our clients to diligently uphold their respective roles.

‍

Security as an Ongoing Effort

While compliance certifications are essential, we don’t see security as just a box to check. Our team is dedicated to continuously strengthening protections through more advanced systems, employee training, and industry best practices. We’ll keep you updated on our progress.

We’re proud of our team’s hard work over the past year, and we’ll continue striving to implement robust security measures and achieve accreditations.

Read more about our renewed SOC 2 Type 2 compliance, our security measures, and how we're continually protecting your data on our security page.

Your security is always our top priority. We appreciate your trust in us.

SMS notifications are the heart of business communication. From sending customer service updates, appointment reminders, order confirmations, event reminders, and marketing campaigns, to billing alerts, SMS notifications play a vital role in your communications strategy. 

With an average click-through rate of 20%-35%, and open rates averaging around 95% (compared to email’s 21%), it’s no surprise why more teams prefer SMS as a channel to communicate and engage with their customers. 

This guide will walk you through how SMS notification services work, their benefits for your business, and how to find the best SMS notification service for your business. 

What is an SMS notification service?

An SMS notification service is a platform that lets you send text messages to your customers instantly. Depending on the customer’s mobile device settings, they’ll receive this SMS text message notification on their cell phone’s messaging app, lock screen, or home screen. 

Here’s how it works: 

• Integrate an SMS API (Application Programming Interface) into your existing systems. 
• When a trigger event occurs (like a new order or an appointment reminder), the system communicates with the SMS gateway.
• The gateway then processes and sends the message to the customer's mobile network within seconds. 

{{cta-style-1}}

4 key benefits of an SMS notification system

Sending text messages to your customers helps you build meaningful connections and communities with your customers. It adds a useful dimension to your overall communications strategy. With SMS, you can reach customers where they’re most likely to engage (their phones), in ways that they want to connect (concisely and creatively). 

An SMS notification system makes sending text messages to your customers easier and faster — without exorbitant costs or development hassle. 

Let’s take a look at the core benefits of using an SMS notification system. 

• Instant communication with customers: A reliable SMS notification system allows you to send messages quickly and at scale helping you reach thousands of recipients at a relatively low cost. ‍
• High open and response rates: Do you have an exciting offer you want your customers to see as soon as possible? SMS is the best way to reach your audience in seconds.  ‍
• Cost-effective method of communication: SMS is a cost-effective way to reach customers at scale. Generally, the price of an SMS notification system depends on two factors: the tool's price and the number of messages sent per campaign. Many tools have fixed costs, although Plivo offers a pay-as-you-go pricing model. This option is great for small-to-medium businesses to connect with their customers affordably.‍
• Improved customer engagement and satisfaction: SMS notification systems allow you to deliver personalized text messages. Segment your audience based on who they are, what drives them, and how and why they shop. A dedicated SMS notification system can automate some of these complex backend functions. 

Why should you choose Plivo as your SMS notification system? 

Sending SMS is simple and affordable with Plivo. We’re trusted by thousands of businesses including IBM, Workday, Deckers, Greyhound, and Wix. Our SMS API platform programmatically sends and receives text messages to customers worldwide easily and efficiently. We support over 220 countries and territories, and let you customize your sender ID in 100 countries outside of the US and Canada. 

Plivo offers a number of powerful features out of the box: 

• Long message concatenation
• Support for any character set
• Default message body purging
• Message feedback API
• Handle opt-out intent
• Message queueing
• Number pooling
• Sticky sender
• Smart queuing 
• Message redaction

All of these features are designed to make it easier to create, manage, and optimize SMS with your audiences. See why Plivo outranks other SMS notification systems. 

1. Scalable solutions for businesses of all sizes

It shouldn’t be hard to connect with your customers as your business grows. Plivo is designed to meet your scaling needs, both from a cost and ease-of-use perspective. 

With Plivo, you can programmatically create personalized SMS alerts and notifications for any type of activity on customers’ accounts. Plivo’s RESTful API is easy to work with, and its syntax is familiar to developers who have experience with Twilio’s API. 

The SMS notification system doubles down on ease of use by offering Plivo High-Level Objects (PHLO). PHLO is a visual design studio that lets you build customized communication workflows for both SMS and voice with zero coding. 

The studio uses pre-built templates for tasks like IVR, voicemail, alerting, and surveys, so your development team isn’t bogged down with complicated technical details and is focused more on delivering the project at hand. 

Plivo offers flexible pricing plans and volume discounts, making SMS notification an extremely affordable option. 

2. Easy integration with existing systems

Plivo's SMS API is designed to integrate seamlessly into your existing applications. Whether you're using Java, C#, Python, PHP, Ruby, Node.js, or Golang, Plivo provides comprehensive server-side SDKs and detailed documentation to help you get started quickly.

The API uses consistent interfaces for creating, retrieving, updating, deleting, and listing resources. This consistency makes it easier to build and manage applications, with the ability to handle multiple SMS messages in a single API request.

Built-in support for GSM and Unicode character sets allows you to communicate in any language, including emojis and special characters. This feature ensures that your messages are correctly displayed to recipients globally.

3. Comprehensive analytics and reporting

When it comes to analytics, two things matter the most: what kind of data your tool collects and how well it distills that data so you can truly collect useful insights and make data-driven decisions. 

Plivo provides access to detailed SMS analytics for all your inbound and outbound messages including:

• Date: The time at which the message was queued in Plivo.
• From: The source number of the text message.
• To: The destination number of the text message.
• To country: Country ISO of the destination country.
• Direction: Message direction — Inbound or Outbound.
• Status: The current status of the message.
  Statuses for Outbound messages aresome text
  • Queued
  • Failed
  • Send
  • Delivered
  • Undelivered
• Statuses for Inbound messages aresome text
  • Received
  • Delivered
  • Undelivered
• Error reason: The reason for failure in cases where message status is Undelivered or Failed
• Total amount ($): Total amount charged for this message. This includes the carrier pass-through fees.

Using a combination of these filters, you can narrow your search to relevant messages. You can also download the message details as a CSV file to export to a third-party analytics tool. 

4. Optimize message delivery

If you want to send your messages across a group of phone numbers (long code and short code), you can use Plivo’s powerpack for SMS. Powerpack lets you create number pools that can be used to improve message delivery and boost open rates of your SMS and MMS campaigns.

Plus, it uses a sticky sender for a consistent experience. Engage with your customers using a recognizable phone number to deliver a personalized experience that integrates information from the customer’s history with your brand. 

Features like automatic smart queuing along with source number-based rate limiting keep you compliant with country-specific volume restrictions and related rate limits. It also lets you use local phone numbers because when you send messages from a local number, customers are more likely to open and respond to messages. 

How businesses use Plivo’s SMS notification services

Companies at different stages of growth use Plivo to build deeper relationships with customers. Our SMS platform gathers customer insights while empowering communication campaigns that boost customer acquisition and build customer loyalty. 

Here are some of the most common ways companies use Plivo: 

• Customer service updates: Companies use Plivo to send instant updates to customers about their service requests, ensuring they stay informed about the status of their queries or issues.
• Appointment reminders: Plivo helps businesses reduce no-shows by sending automated reminders to customers about their upcoming appointments, enhancing overall efficiency and customer satisfaction.
• Marketing campaigns: Businesses use Plivo to run marketing campaigns, sending promotional messages, discounts, and special offers directly to customers’ mobile phones, driving engagement and sales.
• Emergency notifications: In urgent situations, organizations rely on Plivo to send emergency alerts to employees or customers, ensuring timely and reliable communication during critical times.

Ready to get started with SMS notifications for your business? Request a trial with Plivo.