SMS short codes are essentially numerical text messages followed by either a prefix or alphabet, used to send large-scale, bulk messages for both marketing and non-marketing purposes. Additionally, SMS short codes can be transmitted as both MMS (Multimedia Messaging Service) and SMS (Short Message Service). The primary distinction between short codes in SMS and MMS lies in the number of characters, and the inclusion of images and videos. SMS short codes are limited to 160 characters and cannot include images or videos, whereas MMS short codes allow for messages beyond 160 characters and can incorporate images and videos. Short codes also differ from long codes. Short codes are 5-6 digit numbers designed for high-volume messaging, supporting fast delivery of SMS and MMS with fewer carrier restrictions. Long codes (10-digit numbers) are better for two-way communication, have lower messaging speeds, and may have stricter carrier limitations for MMS file sizes.
Short code SMS marketing campaigns provide extensive information about an organisation’s business plans in a timely manner to the customers. SMS short codes are one of the most effective means of SMS marketing and advertising campaigns, which not only boost customer interaction but also broaden the scope of brand engagement.
This article will detail how SMS short codes can be utilised effectively to encapsulate SMS marketing campaigns that suit a particular business model. Furthermore, it will explore the types of SMS short codes, how they are obtained and provisioned with respect to their use.
What are SMS short codes ?
SMS short codes, or text messaging codes, are usually a 5 or 6-digit short sequence of numbers, smaller than a phone number. SMS short codes are used for both transactional and promotional purposes. SMS short codes used for transactional purposes generally consist of high-security financial information that is case-sensitive and customer-specific. Usually, banks and financial institutions send OTPs (One Time Passwords) and other key account details through transactional SMS short codes. SMS short codes used for promotional purposes aim to promote business organisations for marketing and advertising purposes.
A short code can be defined as a 5 or 6-digit telephone number designed for high-throughput two-way messaging. These promotional text messaging codes are used after obtaining consent from customers, wherein it is mandatory for business organisations to gain the customer’s consent in clear, textual language to send and receive SMS messages for marketing and promotional purposes. It should be noted that text messaging codes cannot be used for international roaming, as they can be utilised by business organisations to promote their businesses within the demographic limits of the country in which they operate.
SMS short codes are a preferable form of marketing communication for customers over emails or calls. They also have higher open rates and “Opt-In” ratios, which can be used to reach a larger audience. SMS codes are more suitable for sending bulk promotional messages within a short period of time as it ensures high deliverability and brand recall.
Types of SMS short codes and its Uses
Broadly speaking, there are two major types of SMS short codes: shared short codes and dedicated short codes. Apart from these two types, there are other types of SMS short codes as well.
Shared Short Codes
When multiple business organisations use the same 5-digit text messaging codes for their business purposes, it is called a shared short code. They are more affordable than dedicated short codes. Usually, the selection of numbers in this type of code is random, and multiple business houses use the same code to promote their businesses. The use of shared short codes can confuse and mislead the customer. In a situation where the customer “Opts Out” from receiving promotional messages, all the businesses using the short code would become unsubscribed.
Dedicated Short Codes
Unlike shared short codes, dedicated short codes are specifically allocated to each business. The cost of obtaining a dedicated short code is higher than that of a shared short code. However, they ensure that the business and its customers are in direct touch with respect to key and important business decisions and promotional services.
Vanity Short Codes
Vanity short codes are a type of dedicated short code used to promote a particular brand. The selection process of this particular short code is quite competitive in nature, and it is also expensive. For example, Domino’s Pizza uses the code “DOMINO12345” to promote special offers.
Random Short Codes
Random short codes are randomly assigned sets of text messaging codes selected by the system. The user of the code has no control over how the codes are picked and assigned to them. They are the least expensive type of short code.
What are short code text messages?
Short code text messages are usually sent after the intended purpose of the business-related text message is established. These messages are typically linked to a keyword campaign, where the use of a particular keyword within the text reveals to the recipient that the messages are used as automated reminders or updates related to discounts or promotional offers.
How to use SMS short codes?
Different businesses use short codes based on the nature and goals of each business, as well as according to the needs of their SMS marketing campaigns.
- Banking and financial institutions use Multifactor Authentication, also known as MFA, so that the bank and its customers can mutually gain access to data-sensitive and high-security financial transactions. Due to their secure nature, these MFAs are governed by the data protection laws of each country. They usually send OTPs and authentication codes or provide secure transaction passwords to customers as part of their short messaging codes.
- Retail business outlets and e-commerce services typically use keyword campaigning. For example, if a particular promotional marketing campaign involves a discount, they can send text messages such as “DISCOUNT12345” or “DISC12345.” Other kinds of bulk customer messages can be used for brand recall value or for sending regular business updates depending on the purpose of the texts.
- Hospitals and medical service providers use short codes to remind patients about appointment dates, cancellations, check-up reminders, and to gather customer feedback on their services.
Examples of Short Codes Usages
After ascertaining the specific marketing goals that align with the business values, business organisations need to look into the SMS marketing campaign activities for which they can use their short codes. Owing to its limited nature, constricted word limit, and the competitive pressure to stay different and relevant, various business organisations may use SMS alerts and SMS authentication to suit their marketing needs. The following are some of the most common purposes for which SMS short codes are used:
- Short code Marketing and Promotion: Businesses regularly send marketing and promotional short codes for customer engagement. They might send them in the form of discounts, predetermined offers, exchange offers, or hot deals that make use of keyword campaigning. Retail, e-commerce services, food and beverage industries, fitness, wellness, and entertainment outlets usually send messages that read “DEALS” or “HOT DEALS” as prefixes to their coded text messages. This not only helps customers with brand engagement but also helps them maintain their brand loyalty.
- Short code SMS and Poll Surveys: Business houses and organisations usually collect customer feedback and short code polls. These feedback surveys can either assess the effectiveness of short code SMS marketing campaigns or explore how businesses can improve their quality of service and customer engagement. In addition to serving as a reflection of how effectively a marketing campaign has functioned, it also provides scope for improvement, with zero filters, as businesses directly get to know what their target audiences feel about their operations.
- Short code Alerts and Notifications: Short Codes in the form of real-time notifications and automated messages are sent for transactional purposes, retailing, and e-commerce services. With respect to transactional codes, fraud alerts can be sent. E-commerce services may provide logistical and tracking data related to their products and services via short code text messaging services. Healthcare services may provide regular updates on appointments, check-ups, follow-ups, availability, or usage of medicines.
- Short code Donations and Fundraising: Short code messaging can be used for charitable donations and SMS fundraising purposes on a text-to-text basis. It can also be used for spreading awareness about pandemic or epidemic viruses like COVID.
- Short Codes for Two-Factor Authentication (2FA): SMS campaigns sent via short codes function with two-factor authentication. A 2FA is a data protection scheme where businesses are restricted from accessing sensitive data. Hence, all forms of short code textual marketing campaigns must involve a two-way communication channel. This two-way communication channel operates only if the recipients of the short-coded messages expressly consent in clear, unambiguous textual language to the receipt of the messages, either in the form of SMS, OTP, or by authenticating consumer preferences for brand enlargement. Banks and financial institutions use both 2FA and MFA for their short code SMS marketing campaigns.
How to get a short code number?
Text messaging codes that are five-digit codes are obtained through a government-sanctioned process, assigned to business organisations after careful scrutiny and provisioning. These text messaging codes can be used for promotional purposes according to the norms and standards set by each country’s governing body regarding how such codes are to be utilised for marketing purposes. Violations of the rules and regulations concerning the use of text messaging codes could result in legal action specific to the laws of that country.
For example, the implementation of the Telecommunication Consumer Protection Act (TLCPA) in the United States provides the statutory rules and regulations governing the use of short codes, including their usage, registration, and application. In concurrence with the applicable data protection laws, the Cellular Telecommunications Industry Association (CTIA) oversees the implementation and furtherance of the short code provisioning process. Such governmental bodies examine the mode, time, specifications, and nature of the messages sent through short codes for SMS marketing campaigns. Some countries that do not have a proper regulatory body follow the guidelines laid down by mobile networking companies regarding the usage of short codes for SMS marketing campaigns.
At the outset, it is important to file an application with the appropriate government body of the country to initiate the process of obtaining both Random and Vanity short codes.
Acquiring Random SMS Short Codes
Once the applicant receives the necessary governmental approval for the use of random short codes, following careful scrutiny of requisite documents, the system assigns a random set of codes over which the SMS provider has no control. These codes cannot be reviewed in advance and are not easily memorable; however, they are the most cost-effective compared to vanity short codes. They can be effectively utilised for fundraising and political campaigns.
Provisioning Vanity Short Codes
Vanity short codes are a type of dedicated short code used for SMS marketing and promotional campaigns for specific brands. They are usually custom-made, providing a code that can be reviewed in advance and chosen accordingly. Vanity short codes are significantly more expensive than random short codes, but they are closely associated with a particular brand. Brands focused on merchandising, maintaining brand loyalty, and strengthening brand affinity often use vanity short codes.
Initially, the applicant must choose a short code from the short code registry of a particular country. An application, along with the required fees, should be submitted with the selected short code. After thorough scrutiny, network carriers may be invited to review the application. They may either accept or reject it. If the carriers approve the application, they may impose certain conditions that the applicant must adhere to. Upon compliance, the carriers will assign the short codes, which can then be used for SMS marketing campaigns.
If the carriers reject the application, the applicant must enquire about the reasons for denial. If the reasons can be addressed, they must go through the approval process again. However, if the issues cannot be resolved, the applicant can apply for a different short code for a branded SMS number. In such cases, the applicant may have to go through the entire process once again.
What is a short code service provider?
Short code service providers are basically number carriers who provide the short codes for SMS marketing campaigns through lease or based on the volume cost of sending messages. They are usually SMS gateways that allow businesses to operate according to their needs using their domain. This is important because it offers messaging solutions that enable brands to communicate with their customers effectively. It is easy to integrate and scalable, as it provides data protection by complying with global data protection laws. Furthermore, it also offers a varied range of dedicated support systems that help businesses resolve SMS text message issues without delays.
How much do short codes cost?
Short code service providers and mobile carriers provide a long list of short code pricing and available plans that include both the setup and leasing costs. Tariff rates differ depending on the short code service provider and network operator of each country. These are some of the important points which businesses can consider before preparing a budget for SMS marketing campaigns.
Broadly, short codes are either charged by the volume of text messages or leasing charges. Leasing charges are usually quarterly, half-yearly, or annual in nature, where the short codes are given to business houses following the periodical payment of leases. Usually, lease charges are exclusive of additional costs.
The additional costs payable can include provisioning, hosting, SMS and MMS delivery, and platform-providing charges. These charges are applicable to the short code domain service providers and network operators and can either be recurring or non-recurring in nature.
For example, in the USA, the lease of a random short code for a month approximately costs $500, and it costs $1,000 for a month in the case of vanity short codes. These charges are exclusive of the carrier charges, which cost $800 for random short codes and $1,500 a month for vanity short codes.
Bulk messaging costs differ depending upon the network operators. The network operators have varied plans and tariff rates based on the number of messages that can be sent. The rates differ for the minimum limit, starting from 150,000 messages to more than 10,00,000 messages. Volume discounts are applicable for these messages. They are also exclusive of the additional charges and setup costs.
One-Time Setup Fee: These costs usually cover the initial SMS service setup fees, which cover registration and compliance fees. These are usually non-recurrent in nature and are charged as a one-time setup fee calculated per message. The rates and plans vary depending on the service provider.
Standard setup and Accelerated setup refer to the time taken to obtain, provision, and put into use the short codes obtained for SMS marketing campaigns.
Standard short code setups usually take a period of 8-12 weeks to complete the process. It is minimal in cost, and it follows the regular scrutiny process applicable according to the laws of the land. It is much more suitable for new businesses and businesses that have flexible timelines.
On the other hand, Accelerated setup takes a time period of 4-6 weeks, wherein the short code setup process is fast-tracked to obtain the SMS carriers’ approval. It is much more costly than standard setups, and it is used by businesses that are bound by marketing and timing deadlines.
Dedicated short code leasing fees are rates applicable for dedicated short codes that are exclusively assigned to one particular business organisation. Unlike shared short codes that can be leased by multiple organisations simultaneously, dedicated short code leasing fees are charged monthly and are exclusive to the business opting to choose it. The rates differ based on random short codes and vanity short codes.
Random short code leases are usually cost-effective as the 5-digit numbers are provided by the short code service provider. They usually range from $500-$1,000 a month.
Vanity short code leases are much costlier because the numbering of short codes is customised to accommodate the brand’s interest. They range from $1,000-$2,000 a month. Brand-specific businesses may find this ideal, as it ensures superior brand engagement.
In addition to leasing charges for random and vanity codes, there might be credits. They typically charge based on the volume of messages sent. Credits usually refer to the number of units used for SMS messages that are purchased in bulk. The rates vary depending on the length of the messages and whether it is sent as SMS or MMS. Depending on the nature of messages sent, businesses can use one or more units to send SMS via short codes. It usually ranges from 0.05 cents to 0.3 cents per message.
Conclusion
In hindsight, the use of short codes for SMS marketing campaigns provides numerous benefits. They are easy to remember due to their brevity, and in addition to that, they have a wider reach, increased engagement, and higher deliverability.
They also ensure that the messages are sent using the best practices that include 2FA, as they establish a clear value proposition while using a transparent process. Moreover, they employ simple keywords to deliver bulk messages in a time-bound manner.
Short codes, as part of SMS marketing campaigns, statistically achieve better turnout ratios than traditional marketing efforts. This gives businesses dual advantages, allowing them to achieve better value for money and improved outreach without having to invest more in bridging the communication gaps created by traditional marketing methods. Therefore, adopting short codes for SMS marketing campaigns can prove to be an effective method of digital marketing in the smartphone era.
FAQs
What is the difference between a short code and a long code ?
A short code is a short numerical code that consists of a maximum of 5 to 6 digits, whereas long codes consist of 10 digits, with a few of the digits being area-specific. Short codes can be used only for messages (SMS and MMS), whereas long codes can be used for both calls and messages (SMS, and MMS).
How long does it take to get a short code?
It mainly depends upon the provisioning process and applicable regulatory provisions in the country from which the short code is obtained. Any time period ranging from 4 to 12 weeks may be required, depending upon the kind of short code setup and the purpose for which it is established.
Can I use a short code for international messaging?
Yes, you can definitely use short codes for international messaging in the case of non-marketing purposes.
What are the main industries that use SMS short codes?
Banks, financial institutions, retail e-commerce services, health and medical services, food and beverage, entertainment, fitness and wellness services, and logistical services are some of the main industries that use SMS short codes.
Are short codes more reliable than long codes?
Yes, short codes are more reliable than long codes as they are easier to memorise and have wider outreach.
How much does an SMS short code cost per month? Typically, the tariff rates vary according to the short code service providers and network operators. In the United States, the charges for leasing vary around $500 to $1,000 in the case of random short codes, and $1,000 to $2,000 in the case of vanity short codes.
Can I lease a short code for a short-term campaign?
Yes, you can lease a short code for a short-term campaign, whether quarterly, half-yearly, or annually, depending on the marketing prerequisites and short-term leasing tariffs.