Increase Conversions with OTP SMS

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Aayush Bangali

mins read

June 1, 2024

Increase Conversions with OTP SMS

Key Takeaways

  1. OTP SMS is an authentication methodology for businesses used by them in multiple scenarios including abandoned carts, checkout process, subscription purchases, onboarding etc.
  2. Although OTP is widely popular on SMS channel, yet the same is available across channels including WhatsApp. It adds an element of speed, security, and a seamless user experience to the user onboarding process
  3. OTP SMS can be enabled through OTP verification service providers like Verify Now by Message Central. You can start sending OTP SMS even without any DLT registration in India or any A2P 10DLC registration in the US
  4. OTP SMS can affect conversions in various business scenarios including abandoned shopping carts, signup process, 2 factor authentication etc.
  5. Businesses have seen considerable improvements in conversion percentage after implementing OTP SMS instead of lengthy authentication menthods

What is OTP?

OTP is a methodology of user verification which authenticates a user with SMS as a channel. This can be used in various situations like: -<Bullet Points>

  1. Abandoned carts,  
  1. Checkout process,  
  1. Subscription purchases
  1. Onboarding  

Why Enable OTP SMS?

According to Baymard Institute, 70% of online shopping carts are abandoned. The major reason behind this is due to the long details which need to be filled to checkout. That is when OTP comes in. By sending an OTP SMS, a lot of other verification details can be let go of.

OTP SMS has the potential to reduce this funnel leakage, i.e. abandoned carts, by a significant percentage. The following features of OTP SMS make it an ideal single touchpoint: -<Bullet POints>

  1. Speed: OTP SMS is a fast and easy method of authenticating a user. It is kind of an express lane, thereby reducing the overall shopping time. This considerably increases the conversion rate.  
  1. Security: Sending OTP is one of the most trusted channels of authentication. There are very less chances of breach. Although, pointers for OTP SMS fraud prevention should always be kept in mind while implementing OTP authentication.  
  1. User Experience: A user flow is measured against the effort, time and no. of steps a user must perform to complete a desired action. With OTP SMS, all three including the efforts from their end, the time spent on tasks and the steps they have to perform to complete the purchase are reduced to just one.  
  1. One Information, Multiple Channels: OTP is also a good alternative to the signup information that platforms take from users. Now, with the emergence of phone number-based OTT channels like WhatsApp, the significance of the phone numbers has increased multifold.  
    WhatsApp broadcast can be used to reach users via their phone numbers. You can also refer to our guide on an example of a WhatsApp broadcast message.  

How to Enable OTP SMS for Increased Conversions?

  1. The first step you should take is to select a trusted SMS provider. Verify Now by Message Central is one of the best SMS verification services. It has global connectivity, the best SMS routes and competitive SMS rates. The team also provides 24/7 customer support.
  2. With Verify Now, you can simply signup for free in just 2 steps. The platform works on a pay as you go model and you do not have to pay any sort of subscription charge.  
  3. Once you have signed up, you can test the SMS verification for free. Once tested, you can start integrating the verification APIs using the API documentation given inside the platform.
    You can also watch a video to see how OTP SMS APIs can be integrated. You can also reach out to the team for any help.
  4. Once the integration is done, you can simply top up and start sending OTP SMS.

Where to Enable OTP SMS?

You can multiply conversions in a no. of scenarios by enabling OTP SMS. A few of those high impact ones are mentioned below:

  1. Shopping Carts: You can enable OTP SMS to ensure that there are more no. of conversions than drops from shopping carts while checkout. You can also use SMS APIs to send abandoned cart SMS notifications.
  1. Signup: You can use OTP based onboarding to ensure a short and better user experience. This can be used for both login and signups.
  1. 2 factor authentication: You can use OTP SMS as a part of your two or multi factor authentication process.
  1. Approval and Secure Access: OTP verification can be used to ensure that information is accessed only by an authorized entity and its sanctity is maintained.  

Why Verify Now for OTP SMS?

Verify Now is an OTP SMS provider by Message Central. It is one of the best platforms to use for sending OTP SMS. For countries like India, Verify Now also enables OTP SMS without any DLT registration. You should select Verify Now because:

  1. A one stop developer friendly API based solution
  2. The best SMS routes
  3. Competitive SMS rates  
  4. 24/7 customer support  
  5. Analytics and dashboard

You can signup for free or get in touch with the team for any custom needs. The platform is trusted by 70+ organizations across the globe.

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