Key Takeaways:

Small business owners must comply with new outbound text message registration regulations requiring brand and campaign registration to avoid consequences such as fines and legal action.
“The Campaign Registry” serves as a critical resource in collecting information from senders, and small business owners should understand the implications for their organization, including the cost considerations for registration.
Campaign Service Providers (CSPs) are companies that provide business phone services like iPlum, Phone.com, twilio, RingCentral, Ooma, and Vonage.
CSPs can assist customers by registering on their behalf, reducing the burden on small business owners and ensuring compliance with these new regulations.

The New Industry Approach to Text Messaging

Text Messaging for Small Businesses: A New Approach

The U.S. wireless service industry is implementing a new approach to combat spam and improve the delivery of legitimate text messages. Businesses that send text messages to US ten-digit phone numbers must register the phone numbers they use for their SMS messaging.

In 2018, SMS (text messaging) was reclassified as an informational service, granting US mobile carriers the ability to regulate how SMS may be sent, what type of content may be sent, and implement and manage fees for different types of SMS. In 2021, US mobile carriers including Verizon, AT&T, and T-mobile reclassified all business SMS as 10DLC (ten-digit long codes) A2P (Application to Person), a new kind of SMS with numerous regulations, registration requirements, and fees. Failure to comply with these new regulations can result in increased costs, blocked SMS messages, or significant fines.

Outbound Text Message Registration

Businesses must register how they will use SMS with each mobile carrier. For example, companies must register with AT&T to send messages to AT&T customers, and Verizon and T-Mobile have their own registration requirements. The mobile carriers have authorized a new entity called The Campaign Registry (TCR) to collect brand information and SMS usage on their behalf.

The registration process enables business owners to use their phone numbers to send messages to customers who have expressed consent to receive messages from them. They can send personalized messages to their customers, including exclusive offers, discounts, and promotions. Moreover, businesses can also use this approach to send important transactional updates to their customers, such as order confirmations, delivery updates, and cancellation notifications.

With this new approach, businesses can effectively reach their customers where they are most active, using SMS messages to build strong relationships and increase revenue.

Requirements for Outbound Text Message Registration

Certain registration requirements must be met to send outbound text messages as a small business owner legally.

This involves providing contact information and agreeing to terms and conditions.
Once registered, the business can send messages to opted-in customers.
Additionally, keeping track of opt-ins and opt-outs is important to ensure compliance.
Suggestions include using a reputable SMS marketing platform and offering easy opt-out options to customers.

Following these requirements keeps the business legally compliant and builds customer trust. Other regulatory requirements for small business owners can be found in our article on the 5 steps you must take to legally establish your business in Texas. And another way to build on customer trust is to develop a customer referral program.

Consequences of Non-compliance with Regulations

Small business owners who do not comply with SMS marketing regulations can face severe consequences.

Messages sent by unregistered senders may incur additional charges and fines or be blocked altogether.

Violating these regulations may lead to penalties ranging from hefty fines and legal action, resulting in financial distress for the business. It is vital to follow all guidelines and obtain consent to maintain compliance with regulations.

Consequences of non-compliance with SMS marketing regulations can have a lasting impact on the success of a business.

Fines and legal actions, while financially damaging, can also tarnish a company’s reputation. And blocked messages can impede communication and lead to a loss of trust among customers. This, in turn, can lead to reduced revenue by losing existing customers and failing to convert new ones.

Small business owners must take action immediately to avoid the consequences of non-compliance with SMS marketing regulations.

Adhere to proper registration requirements, obtain consent, and follow all guidelines to avoid penalties. Don’t risk your business’s success by failing to comply with regulations.

The Role of The Campaign Registry (TCR)

The creation of the Campaign Registry dates back to 2003 when the Federal Communications Commission (FCC) launched the National Do Not Call Registry.

This registry aimed to avoid telemarketing calls to consumers who opted out of the program. Later in 2012, the FCC added text messages to the registry, which is when the Campaign Registry began.

“The Campaign Registry” plays a vital role in gathering information from senders.

It is a central database for all businesses planning to send outbound text messages. Various mandatory items must be included, such as business name, contact details, and message contents.

The Campaign Registry ensures compliance with rules and regulations and avoids spam messages.

In addition, the Campaign Registry provides a unique identification number to senders, known as “B number,” which is mandatory to add in all outbound messages. Without this number, businesses may face legal consequences. Therefore, the Campaign Registry acts as a shield not only for consumers but for businesses as well.

Implications for Small Business Owners

Small business owners can use text messaging effectively to enhance customer relationships and improve their marketing efforts.

Registering for this service can help businesses reach customers more directly and personally and save time and resources.
However, businesses must also follow regulations and obtain customer consent before sending text messages.
Additionally, businesses should use text messages strategically and avoid spamming customers.
Failure to comply with regulations can result in legal consequences and damage a business’s reputation.

Registering your business with The Campaign Registry (TCR)

Registering is usually a 3-step process at your Campaign Service Provider (CSP):

Add a brand. TCR charges $4 for brand creation (plus a $40 vetting fee for high-volume businesses); the typical approval time is within 24 hours.
Add a campaign. TCR charges $15 for campaign creation; the typical approval time is 3 to 5 business days.
Associate your numbers with the approved campaign.

TCR also charges an ongoing campaign fee of $1.50 to $10 monthly. CSRs vary in how they handle these fees.

Conclusion

Small business owners should become acquainted with outbound text message registration. This process involves registering with carriers to send text messages legally. This ensures security and prevents the business from being blacklisted.

Understanding regulations surrounding outbound messages is crucial. A lack of compliance may lead to penalties and brand damage. Becoming informed and compliant is essential for successful business text messaging.

Five Facts About Outbound Text Message Registration:

✅ US mobile carriers have reclassified business SMS as 10DLC A2P, a new kind of SMS with numerous regulations, registration requirements, and fees.
✅ Businesses that send text messages to US ten-digit phone numbers will be required to register the phone numbers they are using for their SMS messaging.
✅ Registration requirements differ across carriers such as AT&T, Verizon, and T-Mobile.
✅ Unregistered senders of SMS messages may incur additional charges and fines and may have their messages blocked.
✅ Campaign Service Providers (CSPs) will register on behalf of their customers.

Sources

Whether this is a problem you are currently facing or just something that has been weighing on your mind, feel free to contact me via phone or email so we can discuss your situation, goals, and solutions.

I built my first career in management consulting and have spent the last 20+ years using my passion and skills in community and economic development. For the past nine years, I have advised hundreds of start-ups and small businesses.

Outbound Text Message Registration: What Small Business Owners Need to Know

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