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SMS Short Codes: Your Complete Guide

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SMS Short Codes: Your Complete Guide
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  • SMS Short Code


A standard 10-digit phone number isn’t the only way businesses can send and receive texts from customers. SMS short codes are another phone number type that helps companies send high volumes of text messages securely and quickly. But how do businesses use them and get one?

This guide will tell you everything you need to know about SMS short codes, including the different short code types, top benefits, and how to lease one. We’ll also answer frequently asked questions like, What is an SMS short code and how do they work?

If you’re considering using an SMS short code, read this article before you begin the leasing process. 

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What is an SMS Short Code?

Have you ever received a promotional message, a verification number, or an event confirmation text from a shorter phone number? That number is known as an SMS short code.

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An SMS short code is a 5 or 6-digit number that can send and receive texts at scale. SMS short codes were built for high-volume texting campaigns. SMS short codes are easy for customers to remember, which helps boost brand recognition. Additionally, extensive vetting is required for businesses that want to obtain SMS short codes, which can increase customer trust. These are just some ways SMS short codes can benefit your business. 

Different Types of SMS Short Codes

There are several types of short codes, including dedicated and shared short codes. However, shared short codes are no longer available for brands to use. Let’s take a look.

  • Dedicated short codes. A dedicated short code is a code that is created specifically for your business. The two types of dedicated short codes include vanity and random.  

    • Vanity: Vanity short codes, also called memorable short codes, are specific numbers that your brand chooses. Vanity short codes allow you to create codes that align with your brand or are easier for customers to remember. Because your brand gets to customize vanity short codes, these codes are more expensive. An example of a memorable shortcode would be: 989898.

 

    • Random: Random short codes, on the other hand, are randomly generated for you. These short codes are less expensive, but you aren’t able to choose or customize the codes. An example of a random shortcode would be: 357129

 

  • Shared short codes. A shared short code involves multiple businesses using the same code. However, shared short codes are no longer available. Service providers stopped offering shared short codes because multiple businesses using the same shared code created too many technical issues and fraud concerns. 

Benefits of Using a Short Code for SMS

Here are the main reasons your business should consider choosing an SMS short code. 

  • High throughput. Short codes are built for high-volume texting, ensuring your business can send SMS messages to customers reliably and quickly. Short codes have the highest text message throughput of all phone number types, meaning they send messages faster.

  • Less carrier filtering. Businesses must go through an extensive approval process to obtain a short code. This process, which includes submitting information about your brand and how you’ll obtain opt-ins, helps keep your short code messages from getting flagged or filtered by carriers as spam.

  • Brand recognition. When you use a short code, you can increase brand recognition. That’s because a shorter number is easier to remember than a 10-digit phone number. You can stand out from other companies with short codes unique to your brand.

  • Scalable solution. Short codes handle mass messaging at scale, allowing your business to text large groups of customers at the same time. You can also run several campaigns at the same time.

  • Get your messages read. Text messages have a 98% open rate, so you can guarantee the vast majority of your customers will read your messages. 

 

Cost and Compliance Considerations for SMS Short Codes

While there are many benefits of using short codes to send mass texts, there are some costs and compliance tasks businesses should first consider.

Cost Considerations

Businesses can lease short codes through the short code registry. It usually costs upwards of  $1,000 monthly to lease a vanity short code or $500 monthly for a random short code. However, even after you lease a shortcode, you must register it and find an SMS platform to launch your text messaging campaign. This means there are additional costs you will need to consider even after your short code is leased. 

For example, short codes require registration, hosting, MMS, and carrier-required fees, and these costs add up. Mozeo simplifies these additional costs by combining them into one monthly payment that begins once the short code application is submitted. Mozeo takes care of leasing the short code, registering it with the carriers, and communicating with carriers throughout the review process so your business doesn’t have to. The monthly payment for Mozeo is $1,500 for a random short code and $2,000 for a vanity short code. Short codes can be leased for 6 or 12 months. 

Compliance and Registration Considerations

After you lease a short code, you can’t start using it until you are approved by wireless service providers. Businesses must undergo an extensive review process to register a short code. This includes submitting an application containing your company’s name, EIN number, and short code use case. This application review process can take 6 - 10 weeks as each mobile carrier will view it.

To get approval, businesses must follow the regulations of the Telephone Consumer Protection Act (TCPA) and the Cellular Telecommunications Industry Association (CTIA). 

To stay in line with TCPA and CTIA standards, you must provide a clear opt-in method that ensures customers consent to receiving SMS messages. You must also have a way for customers to unsubscribe from texts with keywords such as “STOP.” If you are unsure whether or not your business complies with the TCPA regulations, look no further than our TCPA compliance checklist. 

 

6 Top Use Cases for Short Code Texting

Here are some common examples of how your business can effectively use SMS short codes. 

Mass SMS Marketing Campaigns

Businesses use short codes to promote deals or launch marketing campaigns. Use a short code to share special offers, discounts, or launch a new product.

Pajama Llama has a special deal just for you! Use code SAVE10 at checkout for 10% off your next order. Shop now: [link]. Reply  STOP to STOP.

Event Reminders

Use your SMS short code number to remind registered attendees about upcoming events.

Reminder: Cara’s Coffee Tasting starts at 3 p.m. on Sept. 3. Get ready for an amazing time! Reply STOP to STOP.


Alerts 

Use a short code to ensure people subscribed to your text program see important text messages regarding emergencies or public safety. 

FLOOD WATCH: Due to heavy rain, your surrounding area may be at risk for flooding. Please avoid traveling near rivers and streams. Reply STOP to STOP.


Donations and Fundraising

Nonprofit organizations can set up text-to-donate campaigns using a short code or simply request donations at scale. For example, people can donate to a charity or organization by texting a keyword like ‘GIVE’ to a dedicated short code. 

Help children get the Christmas gifts they deserve! Text ‘GIVE’ to 776445 to donate $20 to Gifts for Kids. 

Text-to-Win

Use short codes for text-to-win campaigns where participants text a keyword for a chance to win special prizes. For example, you could advertise your text-to-win campaign and short code on a jumbotron. 

Hey Buckeyes fans! Reply with GOBUCKS for a chance to win exclusive Ohio State football merchandise! Reply STOP to STOP.


One-Time Passwords (2FA)

Use short codes to send one-time passwords (OTPs) to users who need to verify their identities with a two-factor authentication process. These passwords can increase the security of accounts.

Your OTP to verify your account is 529837. The password will expire in 10 minutes. 

Meet Mozeo, Your SMS Short Code Partner

When it comes to SMS short codes, Mozeo is the perfect partner. Obtaining SMS short codes is a long and complex process, but Mozeo makes it easier for businesses. You won’t have to worry about managing extra fees or the price of leasing a short code because Mozeo includes them all in one monthly payment. You won’t have to deal with all the back-and-forth messages with carriers because the Mozeo team handles that for you. 

Want an enhanced SMS short codes experience? Get started with Mozeo today. Once approved, you can text customers at scale and build customized workflows.