Trust is essential for effective communication, particularly in a digital landscape where fraud is a concern. Caller ID, introduced in the 1980s, aimed to build trust in phone communications by displaying the caller’s number or name. This enabled users to choose if they wanted to answer a call. However, the early versions of caller ID had several limitations, including limited character display and lack of support during call waiting. Over time, it became evident that these technical constraints limited its effectiveness, especially as communication needs evolved. By 2001, approximately 43% of U.S. homes had adopted caller ID (Encyclopedia.com, 2018). Displaying the caller’s number or name gave users the confidence to answer calls without hesitation. However, decades later, the evolution of communication has revealed critical gaps in this once-revolutionary technology.

Today, businesses are facing unprecedented challenges in reaching customers through phone calls. An alarming 50.3 billion robocalls were placed in 2022 across the United States, according to WhistleOut, many of which involved spoofing tactics that erode trust. Customers, wary of answering unidentified or suspicious calls, often miss legitimate communications, impacting business operations.

Enter branded calling—a transformative solution that reinvents phone communication by displaying verified caller identities alongside branded visuals such as logos and tailored messages. Unlike traditional caller ID, which only provides basic information, branded calling adds a layer of trust and personalization. It can showcase a business’s logo, and on some devices, it can show the reason for the call, making the communication more engaging and trustworthy. Many mobile subscribers do not receive caller ID, and when they do, the CNAM (Calling Name) databases that provide this information are often inaccurate or outdated. Branded calling addresses these issues by ensuring up-to-date and verified information is displayed, significantly improving call answer rates and customer trust. First Orion solutions, such as INFORM^® branded calling and SENTRY^® call blocking, help businesses rebuild trust, enhance customer engagement, and ensure regulatory compliance.

Caller ID: Its Evolution and Decline

Caller ID was a groundbreaking innovation when it was introduced. Providing information about the caller before the call was answered empowered users to make informed decisions. However, as technology advanced, this once-simple feature struggled to keep pace.

Early Success and Limitations

Caller ID significantly changed how people used phones in the late 20th century. Businesses used it to build rapport with their customers, fostering stronger communication. Yet, its limitations soon became apparent:

• Limited Character Display: Early versions of caller ID could only display a small number of characters, which limited the amount of information that could be conveyed.
• No Support During Call Waiting: Caller ID initially did not work during call waiting, reducing its effectiveness in certain situations.
• Static Information: Caller ID displayed only basic data, which could not be tailored to specific audiences.
• Vulnerability: As networks advanced, bad actors exploited the system’s lack of authentication.

The Impact of Spoofing

Caller ID spoofing emerged as a major threat in the digital era. Scammers manipulate the displayed number to mimic a trusted entity, tricking recipients into divulging sensitive information or transferring money. According to the CFCA, telecommunications fraud losses increased by 12% in 2023 compared to 2021, amounting to an estimated $38.95 billion, representing 2.5% of telecommunications revenues.

Legislation like STIR/SHAKEN aimed to address these issues, but alone, it is insufficient. According to the Federal Communications Commission (FCC), STIR/SHAKEN has led to a significant reduction in spoofed robocalls, though billions persist each month, highlighting the need for additional solutions. While these protocols authenticate calls at a network level, unfortunately, the attestation is often not trustworthy because not all actors on the network act in good faith.

Benefits of Branded Calling

• Enhanced Trust – Branded calling rebuilds the trust eroded by robocalls and spoofing. Companies calling from a branded number helps to reassure the recipients that the call is legitimate, increasing the likelihood of answering.
• Better Customer Engagement – The FTC reported that phone calls resulted in the highest per-person reported losses in 2023, with a median loss of $1,480. Additionally, branded calling can reduce the likelihood of falling victim to phone-based scams, helping customers feel more secure in their interactions and enabling businesses to connect with their audience more effectively. Tailored messages also enhance the customer experience, making communication more personal and relevant.
• Fraud Prevention – By authenticating calls through solutions like INFORM with call authentication implementation, branded calling eliminates the risks of spoofing. Customers can feel confident that their interactions are secure.
• Regulatory Compliance – Branded calling aligns with evolving regulations, including STIR/SHAKEN protocols. This protects businesses from legal issues and ensures they meet the highest standards of call security. Implementing First Orion’s advanced call authentication moves your protection far beyond the “basic requirements” with end-to-end authentication.

Industry Applications of Branded Calling

Healthcare

Hospitals and clinics use branded calling to remind patients of appointments or provide test results. According to a First Orion healthcare case study, branded calling led to a 20% reduction in missed appointments and improved overall patient communication efficiency. Patients are more likely to answer when they recognize the healthcare provider, reducing no-shows and improving care delivery.

Retail

Retailers leverage branded calling for order confirmations and delivery updates. According to a First Orion case study, branded calling led to a 25% increase in customer answer rates and a 10% reduction in call declines, significantly enhancing the customer experience while streamlining logistics.

Financial Services

Banks use branded calling to alert customers of suspicious activity, such as unauthorized transactions or login attempts, preventing fraud. According to a First Orion financial services case study, branded calling led to a 15% increase in successful fraud prevention calls, allowing financial institutions to better protect their customers and reduce financial losses. Verified branding ensures customers trust the communication, avoiding costly phishing scams.

Automotive

Car dealerships leverage branded calling to enhance customer outreach for various services, including scheduling appointments and notifying customers about promotional events. According to a First Orion report, dealerships experienced a significant 25% increase in answer rates when using branded calling solutions, leading to more effective communication and higher customer satisfaction. This improvement ensures that customers are well-informed about their service appointments, reducing missed opportunities and optimizing dealership operations.

Guide to Implement Branded Calling

1. Assess Needs: Identify your communication challenges and goals. e.g., customers not answering calls from unknown numbers.
2. Choose a Provider: Partner with a trusted solution provider like First Orion
3. Implement the Technology: Work with your provider to integrate branded calling into your systems.
4. Educate Teams: Train employees to use branded calling effectively.
5. Monitor Results: Track key metrics like answer rates and customer satisfaction to optimize your strategy. Use tools like First Orion’s AFFIRM™ to monitor your brand’s reputation and ensure your calls effectively reach customers.

Traditional caller ID, once a vital tool, has become inadequate in today’s complex communication landscape due to increased spoofing and advancing technology. Branded calling addresses its shortcomings by verifying identities, building trust, and enhancing customer engagement. Solutions like First Orion’s INFORM and SENTRY empower businesses to connect with customers meaningfully and securely.

As branded calling evolves, it will become the standard for trusted business communication worldwide. To learn more, visit First Orion’s Branded Calling Solutions.