SMS Short Code: What It Is & How to Use It

Want to send a message that gets remembered? With SMS short codes, your customers are only 5 digits away from engaging with your brand. Discover how these little digits can supercharge your communication strategy and keep your audience connected.

Pop quiz: what’s the fastest-growing marketing channel around? Hint: it’s not social media.

In 2024, 79% of consumers opted in to receive texts from businesses. Response rates from SMS are 209% higher than from voice calls, Facebook, or email campaigns.

SMS marketing is so effective precisely because consumers want to get your messages, and one delivery tactic that should not be overlooked is the SMS short code. It’s a unique marketing channel where every recipient has opted in. Unlike regular one-on-one text messaging, SMS short codes allow you to send up to 100 SMS or MMS messages per second, effectively engaging more users than ever before.

First, What Is a Short Code SMS?

The SMS short code is a 5-6 digit number you can use to get customers to opt into your SMS marketing campaigns.

In the above image, the SMS short code is 811111, and the opt-in keyword is “READTHIS.” SMS marketing software will then validate that code whenever it receives a message to ensure the consumer gets the proper offer or the matching opt-in confirmation.

When consumers send the right keyword to your short code, they opt in to receive your SMS and MMS (multimedia) messages. Now you have their mobile number and permission to send them marketing messages. Cue those promotional texts!

SMS Short Code vs Long Code

So, what are the differences between SMS short code and long code? Here are some highlights:

• SMS short code is a shortcut number 5-6 digits in length. A long code is the standard length phone number (typically ten digits, depending on your country).
  
  Below is an example of Chipotle using its 6-digit SMS short code for a raincheck campaign.
  
  
• An SMS short code is used to opt into a brand’s SMS marketing. A long code number, on the other hand, is used for non-marketing messaging—typically for customer service and other chat applications.
• Use short codes if you plan on sending or receiving a high volume of messages. They allow you to send up to 100 messages per second, while long codes limit you to sending only one message per second.
• Set-up time for short codes can take anywhere from 3 days to several weeks. For long codes, you can use the number immediately.

Common Short Code: Accessible From Any Carrier

Originally, wireless carriers developed shortcodes as shortcuts to regular 10-digit mobile phone numbers. The drawback was that they only worked within the originating carrier (i.e., a short code under AT&T could only be used by AT&T customers).

The mobile industry saw the need to reach outside the walled garden of each carrier and decided to implement what is now known as the Common Short Code (CSC). Any mobile phone customer could use this shortcut number regardless of carrier.

SMS Short Codes Benefits

• Boosts Open Rates: SMS short codes are highly effective in improving open rates. With an open rate of around 98%, messages sent via short codes are almost sure to be read. This far surpasses email, where open rates typically hover around 20%. Short codes are a great tool to get your message in front of customers immediately.
• Increases Customer Engagement: Short codes enable businesses to run interactive campaigns like contests or polls. They encourage customers to respond quickly and easily. The simplicity of sending a quick text to a short code increases participation and helps drive higher customer engagement rates, making your audience more likely to take action.
• Quick Delivery: Short codes are designed for fast message transmission. Businesses can send thousands of SMS messages simultaneously, ensuring time-sensitive promotions or reminders are delivered in seconds. This is especially beneficial for campaigns requiring immediate customer interaction, such as flash sales or appointment confirmations.
• Cost-Effective: For businesses looking to maximize their budget, short codes are a cost-effective way to reach large audiences. SMS marketing is relatively inexpensive, especially considering its high return on investment (ROI). Reaching many customers at once without breaking the bank is a huge advantage.
• Mobile-Friendly: As SMS is tailored for mobile devices, short codes allow businesses to reach customers directly on their smartphones. No apps or extra steps are required. Customers tend to keep their mobile phones within reach, so they’re more likely to see and respond to SMS messages than other forms of communication.
• Increases Brand Awareness: Vanity short codes, in particular, help businesses reinforce brand recognition. A memorable code like “12345” or “BUYIT” sticks with customers, making it easy for them to engage with your brand. Businesses can use a consistent short code across campaigns to strengthen their brand identity and keep customers engaged.
• Wide Reach: Short codes work across all major carriers, ensuring you can reach a broad audience without compatibility issues. They’re accessible to customers with basic mobile phones–no internet connection is required.
• Compliance and Opt-Ins: SMS short codes are often used for opt-in campaigns, ensuring that your business adheres to rules around consumer consent. This keeps your marketing efforts compliant with laws like the Telephone Consumer Protection Act (TCPA) and builds trust with your audience.

Types of Short Codes

Before starting your journey to SMS marketing with short codes, you should familiarize yourself with the different types of short codes. There are four main types: vanity, random, dedicated, and shared. Here’s a quick breakdown of each.

1. Shared Short Codes

Shared short codes were once used by multiple businesses, with each company assigned a unique keyword to differentiate its campaigns. Sometimes, hundreds, even thousands of brands use one number. For example, two businesses would share the short code “555555,” but one used the keyword “BOOKS,” and the other used “MOVIES.” The manager of the shared short code ensured that no two brands had the same keyword since each keyword corresponded to a unique brand or campaign.

While once a popular, cost-effective option, most mobile carriers began phasing shared short codes out in 2021 due to regulatory concerns and the potential for spam or abuse. As a result, obtaining a new shared short code from major carriers in the U.S. and many other regions is generally impossible. Carriers are moving businesses toward dedicated short codes or alternatives like 10-digit long codes (10DLC) for sending SMS campaigns.

While shared short codes are still available in some regions or from certain providers, they are increasingly rare and not recommended due to potential compliance issues and carrier restrictions.

Use Case: Historically, shared short codes were popular among small businesses and startups looking to save costs while running SMS campaigns. They were often used for promotions, contests, and customer opt-ins.

Consideration: Due to regulatory changes and carrier restrictions, shared short codes are very rare in most markets, and businesses have been encouraged to shift to dedicated short codes or long codes for better compliance and customer trust.  

2. Dedicated Short Codes

Dedicated short codes are assigned exclusively to one business. Whether vanity or random, the key advantage of a dedicated short code is that it’s reserved solely for your brand’s use, meaning there’s no risk of another company using the same code and causing confusion. This exclusivity ensures your customers receive consistent, branded SMS messaging, making it easier to build trust and keep your communications clear. Dedicated short codes are often used for companies that send high volumes of SMS messages, as they provide flexibility in messaging without sharing resources.

Use Case: Dedicated short codes are best for businesses that need complete control over their SMS marketing campaigns and send a high volume of messages, such as banks, airlines, or large retail chains.

Consideration: While more expensive than shared short codes, the control and exclusivity make them a top choice for brands prioritizing consistency and security in their messaging.

3. Random Short Codes

Random short codes are assigned by mobile carriers or service providers. Businesses don’t get to choose the number, so it might seem less memorable at first glance. However, random short codes still serve as a powerful tool for sending and receiving SMS messages. They are a more budget-friendly option compared to vanity short codes and are often used by small to medium-sized businesses. Despite not being customizable, random short codes function perfectly well for campaigns like reminders, alerts, and customer support.

Use Case: Random short codes are great for businesses that want to run SMS campaigns but don’t require high brand recognition in their numbers. They’re often used for transactional messages like appointment reminders and delivery updates.

Consideration: While they lack the brand-specific appeal of vanity codes, random short codes are more affordable and still adequate for most SMS marketing needs.

4. Vanity Short Codes

Vanity short codes are custom numbers businesses can choose to make their campaigns more memorable and branded. These short codes are often composed of numbers that spell out a word related to the company or its offerings, making them easy for customers to recall. For instance, a coffee chain might use “COFFEE” (263333) as their vanity short code. The main advantage of vanity short codes is brand recognition. They are perfect for businesses running large marketing campaigns where it’s essential for customers to easily remember the number to respond, vote, or opt into promotions.

Use Case: Vanity short codes are ideal for large-scale branding campaigns where brand identity plays a significant role.

Consideration: Vanity short codes can be expensive, with higher setup fees and monthly costs than other types, but the branding benefit often makes them worth the investment for larger companies.

Using SMS Short Codes to Promote Your App

Now that you know what SMS short codes are, how do you use them for SMS marketing? There are many options. But here are four of the most effective tactics you can use.

1. Mobile App Downloads via In-Store Signage

One of the simplest ways to promote your mobile app is through a keyword campaign in your physical stores. All it would take is posters and signs on your property.
For example, hang posters at your brick-and-mortar retail outlet inviting customers to text a keyword to your SMS short code to download your app. Sweeten the deal by offering instant discount coupons when they install your app.

Here is an example of physical signage in Ace Hardware touting their “mobile-only offers.”

2. Mobile App Downloads via Ads

Another tactic, and probably the most widely used, is advertising your short code.

Use the number in website banner ads, bulk SMS messages, and advertisements on traditional media such as TV, radio, print, and billboards. The confirmation message they receive from you can contain a direct link to download your app.
Here is a campaign for a road trip app using an outdoor billboard.

3. Access to an Exclusive Members Club

One of the most effective ways to engage your users is to set up a short code for them to join your elite members’ club for exclusive offers and discounts.

For example, Michael’s encourages people to text APP1 to 273283 to download their new app and get the exclusive project builder.

4. Alerts and Updates

Have your users text your SMS short code to receive updates and alerts about your app via mobile. For some people, this is their preferred communication method, allowing you to engage them outside of the app or away from their email inbox.

Just Remember: Play Nice

One important reminder: do not try to game the system by buying phone lists or sending messages to random numbers. 

Be a responsible SMS marketer and ensure every text or multimedia message you send goes to someone who opted in. Otherwise, your organization could be fined up to $500 per message sent to a spammed consumer. Local governing bodies enforce strict rules and regulations governing SMS marketing. You don’t want to mess with them.

Other SMS Short Code Use Cases

Promoting your app is just one of the many ways you can use short codes. Businesses use short codes to maximize engagement and improve customer experiences in several ways.  Short codes are frequently used in marketing campaigns to deliver exclusive promotions and discounts. Businesses can encourage customers to text a keyword (e.g., “SALE” to 12345) to receive a special offer. This is an easy way to drive immediate engagement and increase sales, especially during holiday seasons or special events.

Short codes are also a popular tool for running SMS contests or polls. For example, a brand might ask customers to text a specific keyword to enter a giveaway or vote in a poll. This boosts engagement while allowing businesses to interact directly with their audience.

Another great usage for SMS short codes is streamlining customer support interactions. Customers can text specific keywords to receive automated responses or initiate live chats. For example, “HELP” to 55555 could trigger an FAQ response or connect the customer with a support agent, making it easier for businesses to handle large volumes of inquiries.

Short codes are widely used for two-factor authentication, where users receive a one-time password (OTP) via SMS to verify their identity. This adds a layer of security for services like banking, e-commerce, and social media platforms.

Finally, service-based businesses such as healthcare providers, salons, and auto repair shops often use short codes to send appointment reminders. A simple SMS reminder reduces no-shows and keeps customers informed.

How to Get an SMS Short Code Service

Now that you you have an idea how effective short codes are for SMS marketing, you may be wondering how to get a short SMS number.

1. Determine Your Needs

Decide whether you need a vanity short code (a custom, memorable number) or a random short code (assigned to you). Vanity codes are more expensive but offer better branding, while random codes are more cost-effective.

Shared short codes may or may not be available depending on your market.  

2. Apply for a Short Code 

The application process for short codes varies from region to region. Here are the details for various countries:

SMS Aggregators

For larger enterprises that operate globally, one way to avoid the red tape of short code applications is to use an SMS aggregator. SMS aggregators are third-party service providers that act as intermediaries between businesses (or enterprises) and mobile network operators (MNOs).

They facilitate the process of sending and receiving SMS messages at scale by connecting businesses to multiple carriers globally through a single platform. Instead of businesses having to negotiate individual agreements with every mobile carrier, SMS aggregators manage those relationships, allowing companies to send bulk SMS messages quickly and efficiently.

3. Set Up and Test

• After approval, your SMS marketing provider will assist in setting up the short code for use. You’ll need to test it thoroughly to ensure it works across all major carriers.
• Conduct message delivery tests and make sure opt-in/opt-out functionality works correctly.

4. Launch Campaigns

• Once testing is complete, you’re ready to start sending messages using your short code. To ensure smooth operation, monitor campaign performance and compliance regularly.

The entire process can take weeks to months, depending on approval times, so planning ahead is essential.

Additional Costs

SMS aggregators (or SMS providers) will charge you a one-time set-up fee. Depending on the country and provider, this fee varies for your chosen SMS short code service and can range from $1,100 to $3,000.

An SMS aggregator or short code service provider will also charge you for hosting your short code on their system. 

And just because you’re leasing a short code doesn’t mean you can send messages for free. You’ll have to pay a messaging fee for each SMS or MMS message you send out. This fee – anywhere from $0.04 to 0.05 a message – goes to your SMS aggregator or SMS short code service provider.

Try SMS Marketing Today

SMS marketing has been around for quite some time now and is a proven marketing channel simply because text messages allow you to deliver time-sensitive info to your users.
CleverTap offers an extensive SMS marketing feature set that allows you to schedule campaigns, have them triggered by in-app user activity, or even add personalization to your messages. Sign up for a demo today.