How Does Caller ID Work?

Summary:

• Caller ID displays a caller’s number—and sometimes name—using data passed via ASCII code between phone carriers and devices.
• The displayed phone number is set by the caller or their provider, but the name (CNAM) is controlled by the recipient’s carrier using third-party databases.
• CNAM can be difficult to update accurately across different carriers and devices, since it is decentralized.
• Some services can help businesses register with CNAM efficiently so that their names are more likely to display correctly when calling different prospects.

When it comes to sales calls, Caller ID is a hot topic. But there are also a lot of questions around it.

How does Caller ID even work? How does your name and phone number display to prospects, and where does this information come from? What are the rules, and who regulates it?

Further, how do solutions like CNAM work, and how can you register your numbers properly to avoid display issues when calling different prospects?

Below, we’ll answer these questions and clear up the confusion around how Caller ID works. We’ll also highlight what can be done inside of PhoneBurner’s power dialer to bring you the best results for outbound sales.

What Is Caller ID?

Caller ID is the information displayed on any caller ID-enabled device. This includes the phone number and sometimes the name of the caller(s). The service is included with just about any traditional phone line, VOIP line, or mobile phone.

Phone companies send this caller information as part of the call, using ASCII code, typically before the phone even starts ringing.

How Are Caller ID Names and Numbers Determined?

When someone receives a phone call, two separate pieces of information may be displayed: the phone number and the caller’s name. These elements are handled in very different ways.

Caller ID Number (the phone number shown)

The phone number shown in Caller ID comes from the caller’s phone provider.

• For traditional landlines or wireless phones, the displayed number is the one registered to the device.
• For VoIP services, the number can often be selected or changed by the caller—either through a web interface or with help from a service agent.

This number travels with the call—it’s not looked up or changed by the receiving phone company.

Caller ID Name (CNAM)

Unlike the phone number, the name that shows up when you call—called CNAM (Caller Name)—is usually controlled by the phone company of the person you're calling. That company checks a database to match your number with a name.

Most major carriers get this name information from a shared system of databases called the Line Information Database—or LIDB for short.

If your name is listed correctly there, it’s much more likely to display when calling landlines and many VoIP numbers.

Registering your CNAM through your phone carrier—especially if they connect to LIDB—is one of the best ways to make sure your name shows up more consistently.

That said, some mobile carriers and smaller providers use different sources—or don’t show names at all—so results can still vary.

This inconsistency is why many businesses look for solutions to register their numbers with CNAM databases directly. While CNAM updates aren't instant or universal, working with a trusted provider can help ensure your information is properly submitted and more likely to display consistently across different carriers. When it does, you give yourself a better chance to build trust and make headway with your prospects by showing a name and number they trust when you call.

See Also: 9 Tips for Getting More Sales Meetings with Prospects

Troubleshooting CNAM: Common Issues & How to Solve Them

Making sure your CNAM is accurate with your phone carrier—and properly listed in the Line Information Database (LIDB)—can help prospects recognize who’s calling and increase your chances of getting a live answer.

Most major carriers check LIDB when deciding what name to display. But because not all carriers use the same systems, and some mobile networks don’t show names at all, things don’t always work the way you'd expect.

Here are some of the most common issues with CNAM, and what you can do to address them:

Important Reminders about CNAM Registration

When used correctly, CNAM registration can improve answer rates by helping contacts recognize who’s calling. While not every carrier displays names the same way, registering your CNAM with your phone provider—especially if they submit to LIDB—can significantly improve consistency.

Keep in mind that updates may take time, and small formatting issues can lead to delays or display problems.

That’s why it’s important to understand how CNAM works and how to get the most out of it:

• Control: While you don’t control the display directly, you can influence it by registering accurate info with your carrier or a trusted provider that submits to LIDB.
• Update Speed: Changes may take a few weeks to propagate, but submitting consistent, properly formatted data helps reduce delays.
• Consistency: CNAM may vary by carrier, but registering through the right channels increases the odds that your name displays correctly across more networks.
• Mobile Optimization: All major U.S. wireless carriers support CNAM and display it to users with premium caller ID services—reaching an estimated tens of millions of mobile subscribers.

Reducing CNAM Registration Errors by Working with Professionals

Some professional services assist with CNAM submissions and updates, helping you improve display accuracy across different carriers and devices. This increases the likelihood that your calls will show up with a correct and recognizable name, giving you the best shot at a connection.

PhoneBurner can work with you to navigate this process, submit the right data, and follow best practices. This makes your calls more likely to display with a clean, accurate caller ID name that helps build trust and can improve call engagement metrics for your sales team.

What Is Branded Caller ID (BCID)?

Branded Caller ID (BCID) is a service that gives your company control over the name that displays on call recipients' mobile devices.

Unlike CNAM which is free to businesses, Branded Calling is a paid service offered by third-party providers that work with major wireless carriers. 

Because consumers are increasingly reluctant to answer unknown calls, BCID can help reduce skepticism and thereby increase connect rates and call engagement metrics.

Make Caller ID Work for You

Caller ID(s) help improve user experience via proper identification of the calling party. However, because this information can come from different places, and include different information, businesses and consumers understandably have questions about this feature.

To recap: Caller IDs are determined by the caller’s carrier, or in some cases, directly by the caller or the software products used to place calls. Businesses can update their CNAM records via their carrier or LIDB registration, or leverage a provider like PhoneBurner to handle registration for them. It’s important to understand how this information gets displayed in order to maximize live answers and facilitate callbacks, while maintaining integrity and adherence to calling rules and regulations.

PhoneBurner gives business flexibility over the numbers they use along with other features to build trust, reduce spam flags, and boost live answer rates. Learn how we can help with your outbound calling when you sign up for a free trial today.

Frequently Asked Questions

How is Caller ID determined?

The display name on Caller ID is determined by the receiving party’s phone carrier. Most major carriers use a shared system of databases known as the Line Information Database (LIDB) to match phone numbers with CNAM (“C-alling NAM-e”), and display them to subscribers who have this service. However, not all carriers use the same data sources, so occasional inconsistencies may still occur.

Why do calls show up as spam/scam?

Mobile carriers use complex algorithms to identify calls that appear nuisance-like and label them as "Spam/Scam Likely" or similar to alert their subscribers. Follow these tips to avoid spam and scam likely labels.

Where can I find additional tools & resources?

For actionable tips, download our free eBook Outbound Sales: 10 Strategies to Close More Deals to supercharge your outbound strategies and tactics today.

For trends and call data, explore the insights compiled in our annual Sales Calls Statistics Report.