SMS marketing has an open rate of over 90%, compared to just 20%- 30% for email. However, managing a text message marketing campaign with a standard 10-digit phone number can be cumbersome.
Fortunately, SMS short codes are a great alternative. This article explains why SMS short codes are your secret weapon for high-volume text message marketing. We'll explain what they are, why short codes are better than regular numbers, and how to leverage them to boost audience engagement.
What is a short code?
Short codes, also known as short numbers, are brief digit sequences, typically five or six digits long. They enable businesses to send and receive text messages at scale. Short codes are easy to remember and quick to type in, improving the user experience.
Let's delve into the different types of short codes and how they function.
Types of SMS short codes
There are two types of short codes used in SMS marketing and communications.
Shared short codes
- Shared short codes are like public phone numbers. Multiple businesses can use the same short code.
- They are the most affordable option.
- However, you have no control over who else uses the code, which can confuse customers.
- You might also miss out on replies sent to the shared code by other companies.
Note: Shared short codes are phased out in countries like the USA and Canada.
Dedicated short codes (leased short codes)
- Dedicated short codes are exclusive to your business.
- You have complete control over how the code is used.
- They ensure customers only receive your messages and the replies go directly to your system.
- Dedicated codes come at a higher cost than shared codes.
Whichever type you decide to use, all short codes can offer specific benefits to your business.
What are the benefits of short codes for businesses?
Short codes offer several advantages over long codes or email.
1) Improved deliverability
One of the foremost challenges in marketing is ensuring your messages reach the intended audience. Emails can be blocked by spam filters and social media ads get lost in viewers’ feeds. Short codes, however, have high delivery rates. People are accustomed to checking their text messages frequently, and short codes stand out from spammy marketing tactics.
2) Enhanced brand recall
Short codes are far easier to remember than standard ten-digit phone numbers. This memorability translates to better engagement and campaign participation. Vanity short codes take recall a step further. These spellable codes align with your brand name or campaign (e.g., "4Alerts" for a notification service). Vanity codes enhance brand recognition but may come with an additional cost.
3) High throughput and performance
Designed to handle large volumes of messages efficiently, short codes are a feasible solution for high-traffic campaigns like contests, discount alerts, or appointment reminders. They allow you to send messages to a large audience quickly and reliably, ensuring smooth communication and timely delivery.
4) Cost-effectiveness (for shared short codes)
Shared short codes offer an excellent solution for businesses looking to optimize their SMS marketing campaigns without breaking the bank. Multiple companies can share the same short code, reducing overhead costs.
Here’s a quick comparison of pricing in the United States for the different types of short codes.
We recommend shared short codes for businesses exploring SMS marketing on limited budgets. However, a shared code means less control over branding than a dedicated code. Also, they can be used to send messages only in countries where they are provisioned. So, if your customers are not located in the US, do not get a US short code.
How do businesses use short codes?
Short codes aren't a one-size-fits-all solution. This section helps you learn how short codes are used across different industries for different purposes.
Short codes in financial services and banking
Banking and financial services rely on short codes to implement multi-factor authentication (MFA) for their customers. MFA adds a layer of security to protect sensitive information and prevents unauthorized account access.
For example, the bank sends a text message with a unique code to the customer’s phone. The customer must enter the code to make the transaction or access their accounts online.
Short codes in retail/e-commerce
Short codes can send a high volume of text messages over a short period of time. This capability makes them useful for retail and e-commerce marketing campaigns, such as sweepstakes or giveaways, as well as flash sales, discounts, and promos. Short codes can also be used in event-based promotions.
Short codes in healthcare
SMS short codes support two-way communication, allowing patients to respond to messages such as booking reminders. Healthcare providers and organizations can send post-visit surveys to understand patient feedback and satisfaction, regular checkup reminders, and vaccine availability.
How do you get short codes for business text messaging?
Here’s how to secure a short code for your business with Plivo:
- Read the guidelines: Before applying, ensure your campaign meets the guidelines for the US or Canada.
- Download the application: Get the application form for your country and fill it out carefully.
- Submit your application: Apply with Plivo's support team. They will review it and may ask for more information. This usually takes less than a week.
- Add funds to your account: Carriers require upfront leasing fees (minimum three months). Plivo will collect these fees when you submit your application. These fees cover setup and the initial rental period, even if your application is rejected.
- Plivo submits your application: Plivo will purchase the short code for you and apply it to all carriers.
- Go through the carrier review process: Each carrier will comprehensively review your application and may seek clarification. Plivo will collaborate with you to address any queries, but approval is not guaranteed. This thorough process can take 6-8 weeks.
- Short code goes live after testing: Once approved, the short code will be integrated into the carrier's network and tested. Then, Plivo will configure the short code for your account and make it ready to use.
Important note: Plivo cannot control carrier regulations or interpret laws. We recommend you consult a lawyer to ensure your campaign complies with all applicable laws.
Porting an existing short code
You can also switch your existing short code from another provider to Plivo. Before starting this process, make sure that you meet the following requirements.
US port-in: Provide Plivo with three months of payment receipts from your current provider. You may also need authorization from the Common Short Code Administrator.
Canada port-in: Provide Plivo with a copy of your approved short code application from your current provider or a copy from the Canadian Telecommunications Association. You may also need a migration letter on your company letterhead.
Plivo will submit the porting application to the carriers. For a short grace period, traffic will flow through Plivo and your previous provider to avoid downtime.
By following these steps, you can get short codes and leverage the power of SMS advertising to communicate with your customers conveniently and effectively.
What makes Plivo the best choice for businesses with high SMS volume?
Here's why you should choose Plivo for your short code needs.
Decrease SMS spending
Plivo is committed to helping your organization reduce SMS spend. We achieve this in two key ways:
- High-volume carrier relationships: Plivo sends a large traffic volume through the carriers. This gives us leverage to negotiate favorable pricing, which then passes directly to the customers. You benefit from lower per-message rates.
- Multi-cloud approach: Plivo embraces a multi-cloud strategy. This strategy allows us to find the most cost-effective routes for your messages across different carriers. You only pay for what you use, avoiding unnecessary charges.
More features at competitive rates
Plivo offers more features and benefits at a lower cost. Here's a breakdown of what you get.
- Priority onboarding: Get started quickly with priority onboarding. We streamline the process to minimize delays.
- Test credits: With complimentary test credits, experiment and perfect your messaging campaigns. Ensure everything works flawlessly before you launch.
- Premium routes: Access premium routes for your messages and calls. These routes offer the highest possible deliverability rates, ensuring your critical messages reach their targets.
- Fast-tracked carrier registrations: Don't waste time waiting for carrier registrations. Plivo expedites the process by handling all necessary compliance requirements so you can start sending messages sooner.
Here’s a snapshot of Plivo’s short code rental charges by country.
Enjoy global reach and superior deliverability
Plivo serves businesses and customers in over 220 countries. This vast global reach is complemented by industry-leading international deliverability rates.
- Global coverage: Reach your target audience anywhere in the world. Plivo's extensive network ensures your messages are delivered effectively, regardless of location.
- High deliverability rates: Our industry-leading deliverability rates mean a higher chance of your messages reaching their intended recipients. This translates to fewer messages needing to be sent, further reducing costs.
Industry-leading fraud protection
Fraudulent messages can cause significant financial loss to your business. Plivo's Fraud Shield solution offers reliable protection to ensure business security.
- Country-specific thresholds: The system employs country-specific, hourly thresholds to identify and intercept fraudulent messages before they're sent.
- Geo-permissions: Control the countries where your SMS is sent. Plivo blocks messages to locations not included in your destination list.
Request a trial today to learn more about how Plivo can help your business thrive with short code messaging. Get customized rates for annual agreements.
