Three reasons to use phone number signup

More and more companies have started using phone number for new signups, at least verification by phone number for new signups. Few of them such as Go-jek, Uber support only phone number signup. Does signup with phone number work well in ecommerce? Should your ecommerce store use it?

Here are three reasons why you should use phone number signup:

  1. Almost everyone has a phone number. More importantly, mobile is the primary device for many new users who shop online, especially those from emerging markets. These customers don't even have an email address or own a laptop computer.

  2. No more fraudulent orders as you get real verified customers with phone number signup. Companies have been using phone number for two-factor authentication to reduce fraud. Phone number signup provides a convenient and secure option for your business and its customers.

  3. SMS campaigns are more effective and provide better ROI compared to email marketing. On average, a customer receives over 60 marketing emails per week. Unlike these campaigns that are often ignored, SMS campaigns have a very high open rate (>70%) and gets immediate user attention. Hence, SMS campaigns are often used for urgent special offers to drive more sales.