About Toll Free Numbers for Small Businesses
In the 20th century, toll-free numbers made it easier for customers to reach companies without having to pay long-distance charges. In the 21st century, long-distance charges are practically a thing of the past; however, customers still want access to businesses in ways they can't get online. As reported in the Wall Street Journal, NASCAR implemented a toll-free number because "Research conducted by Convergys in 2010 found that 56 percent of consumers would prefer to use a self-service solution for resolving their issues quickly."
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Toll-Free Numbers
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Toll-free numbers can be issued at the local or national level. The concept emerged in the 1970s when marketers discovered a way to get customers to initiate the business relationship. The original toll-free exchange was 800. Since then, that has expanded to include 888, 877 and 866. The Federal Communications Commission (FCC) says, "Toll-free numbers allow callers to reach businesses and/or individuals without being charged for the call. The charge for using a toll-free number is paid by the called party (the toll-free subscriber) instead of the calling party."
Benefits
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A toll-free number gives the perception of a higher level of professionalism, consciously or subconsciously. In "How to Start a Home-Based Mail Order Business," Georganne Fiumara writes that a toll-free number tells your customers you want to hear from them, and they "are seven times more likely to call if they can use a toll-free number." Inbound calls gives you the opportunity to sell other products and services. Sole proprietors can forward the calls to a cell phone.
Disadvantages
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Maintaining a toll-free number can be expensive. Fiumara writes, "Some companies charge monthly fees (some do not) and a per-minute charge. If you receive a large number of calls, your telephone bill could be a few thousand dollars per month." For national listings, a staff is required to field calls at all hours of the day and night. Everyone who calls is not a potential customer, but you still have to pay to answer the caller's questions. On their own, toll-free numbers are not a marketing tool.
Getting Connected
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Toll-free service can be purchased through your current long-distance provider, Sprint or Verizon. Verizon charges $15 a month plus by-minute rates. The FCC says, "Toll-free numbers are assigned on a first-come, first-served basis by entities referred to as 'Responsible Organizations' or RespOrgs, or other toll-free service providers." Special equipment may be required, depending on the service provider, that could add to the cost of the service.
Vanity Numbers
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Vanity numbers spell out words or suggest words. 1-800-FLOWERS is one of the most widely known vanity numbers and is easily remembered on Mother's Day and Valentine's Day. Vanity numbers are a marketing tool that can encourage brand switching. Even if consumers have a favorite restaurant with a local number, they're more likely to call the number they remember first. Vanity numbers are in short supply, and a broker may be required to negotiate a deal with the person who owns a specific number.
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