Dealerships rely heavily on text messaging to communicate with customers, whether for service updates, appointment reminders, or promotional content. However, regulatory changes are reshaping the way businesses in the automotive industry can use messaging. Since September 2023, new carrier registration rules in the U.S. have required businesses, including dealerships, to register their phone numbers with a centralized carrier registry. Failure to comply results in blocked messages, posing significant communication challenges for unregistered businesses.
At myKaarma, we’ve adapted our communication platform to address these regulatory shifts, ensuring dealerships remain compliant while continuing to serve their customers efficiently.
Here’s a breakdown of what’s changed and how it impacts dealership communication.
The Core of Carrier Registration: 10DLC and Toll-Free Numbers
The carrier registration process revolves around two types of numbers: 10DLC (ten-digit long code) and toll-free numbers.
- 10DLC refers to local area codes tied to specific geographic locations. These numbers require a more involved registration process but are typically the primary way dealerships communicate with customers.
- Toll-free numbers are national and don’t have a specific area code. While toll-free numbers offer similar functionality to 10DLC, they come at a higher cost and are typically seen as more formal or business-like in customer communications.
Both types of numbers are subject to these new carrier registration rules. Failure to register either a 10DLC or toll-free number can result in dealerships being unable to send messages to their customers.
Adapting to the Changes
Before these new regulations, dealerships typically used a local 10-digit number for each department to send messages. Now, myKaarma has implemented a system that supports this new requirement, allowing dealerships to register their phone numbers through the platform, ensuring they remain compliant.
In cases where dealerships haven’t filled out the necessary registration forms or where the registration process has failed, myKaarma ensures that these dealerships can still operate by assigning a toll-free number as a fallback. Toll-free numbers are automatically provisioned for the service department, as this department handles the majority of customer interactions. According to data, 98% of dealership messages come from the service department, which is why the fallback system focuses on this area.
Ensuring a Smooth Transition
The transition to this new registration system hasn't been without challenges. Some dealerships have struggled with the additional administrative burden of filling out registration forms and ensuring compliance. To address this, myKaarma has implemented a new dealer registration flow, simplifying the process for both new and existing dealerships.
When a new dealership joins myKaarma, they’re now required to fill out a form providing essential details, such as the legal business name, which is then sent to the carrier registry for approval. If a dealership's registration fails or is still in progress, myKaarma automatically switches the dealership to a toll-free number to avoid any disruption in communication. Once the registration is approved, dealerships can return to their preferred 10DLC number for ongoing communications.
In addition to these updates, myKaarma is also working on enhancing the caller ID registration process. This update will ensure that when dealerships contact customers, their business name will appear alongside the phone number, increasing the likelihood that customers will recognize the dealership and respond to the message.
Looking Ahead: Continuous Improvements
As the automotive industry adapts to these new regulatory requirements, myKaarma continues to enhance its platform to support dealerships. We are preparing to introduce admin tools that will allow dealerships to check their registration status within the platform, initiate new registrations, and troubleshoot any issues.
Despite the challenges, myKaarma’s solution ensures that dealerships can continue communicating with their customers while remaining compliant with the latest regulations. As the industry moves forward, dealerships must adapt to these changes, and myKaarma is committed to helping that process with minimal disruption.
Conclusion
Carrier registration has become a crucial part of dealership communications, and non-compliance can lead to blocked messages and disrupted customer interactions. By adopting myKaarma’s communication tools, dealerships can ensure that their phone numbers are registered, messages are delivered, and business continues to operate smoothly. While transitioning to this new system has challenges, myKaarma’s proactive solutions, such as fallback toll-free numbers and admin tools, offer a seamless way for dealerships to stay compliant and connected.