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In simple terms it is a toll free number which is easy to remember. How easy it should be, to be called a phone vanity is debatable, but companies try to sell their number as vanity with just an option that allows you to choose a number, instead of system assigning a random number.
Like with any car number plates which DMV assigns at random, phone numbers are assigned by phone companies in somewhat similar manner, they do follow standards set up by the FCC and availability of numbers when they assign you numbers.
If you want to have your desirable car license plate number then you will have to go to DMV, pay extra fees and personalize your license plate, if such number or combination of characters is allowed and available with DMV. Same way if you personalize a phone number then that would be a vanity phone number.
Car license plate personalization is somewhat related to personal interests whereas phone vanity numbers, or Toll Free Vanity numbers are customized to enable general public remember the product, services, brand or company that the toll free vanity number represents. The main purpose of Vanity Phone Numbers is increase in-bound calls and revenue for business. Toll free vanity phone numbers should be easy for customers to reach the intended business.
Customization of Phone Numbers personal interests whereas phone vanity numbers, or as vanity numbers and how valuable these Toll Free Vanity Numbers are depends on four major criteria:
Toll Free Vanity Numbers should create unique appeal for customers to call in when they need the services that the Toll Free Vanity Number is associated with. This unique appeal could be memorable phase, repeat numbers, name of business or service that the number represents.
It should have quick recall value for customers. It is easy to recall 1111 that 7686 and so on. Similarly easy to recall SALE than ALES number sequence is big component of vanity phone numbers.
Strong personal interests whereas phone vanity numbers, or association with product, service, brand or company that Toll Free Vanity Number represents, if you are a gift shop then it is more valuable to have GIFT as vanity phase than ITEM or SEAT or LOCK etc.
Uniqueness of the number. How many potential businesses or services can have a number combination or phrase that you have and create competition for you? If you have a vanity number that ends in GIFT and you are a gift shop, there would be 1000 combination of Toll Free Vanity numbers that end in GIFT for 800- prefix, another 1000 combinations each with prefixes 888-, 877-, 866-, 855-, 844- . In total about 6000 Toll Free Numbers that potential competition can have that ends in GIFT.