SMS short codes have emerged as a powerful tool for businesses to connect with consumers quickly and effectively in the evolving mobile marketing landscape. These short numerical codes, typically 5 to 6 digits long, enable companies to send promotional messages, alerts, and updates to a wide audience at once. However, the industry has seen a significant shift from shared to dedicated short codes due to various challenges and restrictions.
Let us explore the reasons behind the ban of shared SMS codes and the process of obtaining a dedicated short code for your business.
Risk of spam and scams
Shared SMS short codes posed a high risk of being associated with unsolicited messages, leading to an increase in spam and scams. This association not only damaged the reputation of legitimate businesses but also led to increased scrutiny and regulation by mobile carriers and governing bodies.
Lack of brand identity
With multiple businesses using the same shared short code, it became difficult for companies to establish a unique brand identity through their messaging campaigns. On the other hand, dedicated short codes allow a distinct code associated solely with one brand, enhancing brand recognition and trust among consumers.
Message filtering and blocking
If one business engaged in practices that violated carrier policies, the shared nature of these codes could result in the entire code being blocked or filtered by mobile networks. This could also affect other businesses sharing the code.
Limited control and customization
Shared short codes offered limited control over the messaging process, including restrictions on message content and frequency. This made it challenging for businesses to tailor their SMS campaigns to their specific needs and goals.
Regulatory compliance issues
Shared SMS codes made it difficult to ensure compliance with regulations such as GDPR or TCPA, as multiple parties were involved. Dedicated short codes simplify compliance, as there is a clear, direct relationship between the business and the end recipient of the messages.
Obtaining a Dedicated Short Code
Transitioning to a dedicated short code involves several steps. First, businesses must decide between a random or vanity short code—the former being randomly assigned and typically less costly, while the latter is chosen for its memorability. The application process involves coordinating with a short code registry, obtaining approval from mobile carriers, and ensuring compliance with all relevant regulations. While the process and costs are higher than with shared codes, the benefits of having a dedicated short code make it a worthwhile investment for businesses aiming to leverage SMS marketing effectively.
Final thoughts
The move away from shared SMS short codes reflects the industry’s commitment to providing safer, more reliable, and personalized communication channels. By obtaining a dedicated short code, businesses can better engage with their audience, foster trust, and drive their marketing efforts forward in a compliant and effective manner.
