By 2025, SMS marketing will be a $12.6 billion market in the United States. This is a significant increase from just $2 billion in 2015. Mobile device usage continues to increase, and the SMS market continues to grow. More enterprises are using text short codes to send messages at scale.
In this blog, we’ll discuss what SMS short codes are and how they differ from long codes. We’ll explore how businesses can utilize short codes for mobile marketing, brand engagement, customer service, and operations. Finally, we’ll cover the Telephone Consumer Protection Act (TCPA) compliance for SMS marketing and answer questions about text short codes.
What is an SMS Short Code?
SMS short codes are five- or six-digit phone numbers that can be used to send and receive text messages. They’re commonly used to send marketing messages, mass text notifications or alerts, and account verification codes.
This is not to be confused with MMS, where enterprises can send multimedia such as video, audio, and images.
Short Codes vs. Long Codes
Long codes are 10-digit phone numbers tied to an area code — for example, your home phone, or Syniverse’s contact number, 813-637-5000. Long codes can be used to send and receive texts, faxes, and calls, while SMS short codes can only be used to send and receive texts — both support two-way messaging.
One of the biggest differences between short codes and long codes for SMS is the volume of messages they can handle. Short codes can send more messages at one time than long code numbers.
Another key difference is accessibility. Short codes take longer and cost more to get. This is especially true if you choose a custom vanity code (for example, Domino’s Pizza uses DOMINO, or 366466).
Traditionally, long codes were only for person-to-person (P2P) messaging. However, they are commonly used for application-to-person (A2P) purposes today. The industry standard for A2P long codes in North America is called 10DLC. To learn more about A2P 10-digit long codes and enterprise use cases for them, check out our guide to 10DLC here.
When Should You Use a Short Code?
Short codes can send more messages per second, making them ideal for large, time-sensitive campaigns. They work well for time-sensitive events like TV polls or alerting customers to upcoming sales.
Short codes have non-marketing uses, too. An airline might use them to send out alerts about flight delays, or a medical practice might use them to send appointment reminders.
So, when would you want to use an A2P long code instead?
Verified nonprofits and political campaigns may qualify for reduced long code messaging fees.
This depends on your specific messaging use case. Our article here explains how to use 10DLC for political campaigns.
Examples of enterprise text messages from both short code and long code numbers.
Your choice between a short code vs. long code for SMS will depend on your specific use case.
The type of business you have also influences this decision. Contact the Syniverse sales team if you have questions about what’s best for your business or organization.
Common Short Code Use Cases
How can SMS short codes increase customer engagement and brand loyalty? From mobile marketing campaigns to customer service, here are some of the most common use cases for SMS short codes, with real-world examples.
Mobile Marketing
Short codes can send many texts quickly, making them popular for mobile marketing campaigns. They are often used for sweepstakes, purchase rewards, and special promotions.
Use Case: A restaurant chain runs an SMS promotion where customers can text “FREE” to the vanity short code BURRITO (2877486) to enter to win a year’s worth of free burritos. This creates buzz around the brand and encourages more customers to sign up for text alerts, growing the audience for future marketing campaigns.
Loyalty Programs
Short codes can also create text-based loyalty programs that encourage repeat business and build brand trust. These types of loyalty programs are easier and less expensive to set up than in-app reward programs.
Use Case: A cosmetics retailer sends customers a text with a coupon code for 20% off as a reward for making their tenth purchase. Later, they send a $5 off coupon to reward customers signed up for one year. Because they’re rewarded for their loyalty, customers feel more inclined to shop there again.
Multi-Factor Authentication
Multi-Factor Authentication (MFA) is a security feature that requires users to grant access via a secondary device, such as a text message. This added layer of security helps protect sensitive information and prevents unauthorized access. Many businesses are using short codes to implement MFA for their customers. This is especially common in the financial and healthcare industries.
Use Case: A bank sends a text message with a code to a customer’s phone, which the customer must enter to access their account online. This ensures that even if someone gets the customer’s login credentials, they can’t access the account. The person would still need the code sent to the customer’s phone.
Personalization
An “opt-in” is when a customer actively chooses to receive text messages from a business. This is a crucial aspect of SMS marketing as it ensures the customer has given consent to receive messages. It also allows customers to personalize their experience from the start. They can choose the types of messages they want to receive.
Use Case: Patients can opt-in to receive text notifications about their prescriptions by texting “JOIN” to an easy-to-remember short code. Or they can opt in at other touchpoints like the pharmacy counter, or through an online portal. Patients might also sign up for notifications about vaccine availability. They can receive personalized health tips for their age or information on events.
Crisis Communications
SMS short codes are a great tool for businesses to improve customer relations. One common use case is crisis communications, where businesses can quickly and effectively communicate important information to a large group of customers during an emergency.
Use Case: A regional power company uses a short code to quickly send updates and instructions to all of their affected customers during a power outage.
Financial Services
When it comes to financial services, customer trust is everything. Sending balance updates and fraud alerts from a dedicated short code means customers recognize those messages as more trustworthy, making them more likely to be acted on.
Use Case: A bank sends a text alert after a customer’s card is used to pay for a big-ticket item far away from their home address, to confirm that they were the one who made the purchase. The customer texts back “YES”— this gives them peace of mind knowing that their bank is actively monitoring for suspicious credit card activity.
Logistics
Short codes can also be used in various operational capacities. One common use case is logistics, where they can be used to track shipments and deliveries.
Use Case: A national shipping company sends text updates to customers, including the tracking number and estimated delivery date, from a dedicated SMS short code. This allows customers to stay informed about the status of their package and can also help the company identify and resolve any potential issues.
Union Communications
Another use case for text short codes is in union communications. This can be a quick and efficient way for the union to reach many members at once, without having to rely on traditional mail or email.
Use Case: A union might use a short code to communicate with members about upcoming meetings, strikes, or other important events.
SMS Marketing Compliance: What is the TCPA?
TCPA stands for Telephones Consumer Protection Act. This law regulates telemarketing calls, pre-recorded messages, and auto-dialers, to protect consumers from unwanted communication. While using short codes to send text messages to consumers is faster and more engaging than traditional marketing methods, it also comes with unique rules.
All for-profit businesses that engage in mobile marketing must be TCPA compliant. Passed in 1991, this law is designed to protect consumers from unwanted telemarketing calls and text messages. Businesses that don’t adhere to these regulations could face penalties or legal action.
Penalties for Non-Compliance
The standard penalty for non-compliance with the TCPA is $500 per violation. However, if a violation is found to be willful or intentional, the penalty can increase to $1,500 per violation.
Companies like DirecTV, Dell, Jiffy Lube, and the Huffington Post have faced multi-million-dollar class action lawsuits for sending consumers unwanted text messages.
Don’t let the same thing happen to you. Before applying for a short code, your company must be ready to commit to TCPA compliance.
How to Keep Your SMS Marketing TCPA Compliant
To ensure compliance with the TCPA, businesses should:
- Receive expressed written consent from consumers before sending text messages.
- Include an “opt-out” option in all text messages, allowing consumers to unsubscribe anytime.
- Disclose how many texts a consumer can expect to receive.
- Only send messages during business hours.
- Include your business name in all communications.
SMS Text Short Codes: Frequently Asked Questions
How do I get a short code for mobile marketing?
In the US, short codes for mobile marketing can be obtained from the official US Short Code Registry. Short codes do not work internationally. If you’re outside of the US, you’ll need to go through your country’s short code registry. For example, txt.ca in Canada or short-codes.com in the UK.
As an official US Short Code Registry partner, Syniverse helps enterprises manage their mobile messaging campaigns. After you lease a short code, our team ensures campaigns go off without a hitch.
Who owns SMS short codes?
SMS short codes are owned by a provider like the U.S. Short Code Administration. These providers then lease short codes to companies for a specific period of time. During this period, the company has the right to use it for their campaign.
How do I look up SMS short codes?
You can conduct an SMS short code lookup on the US Short Code Registry website. You’ll see if it’s currently being used and find information about the company using the code. To conduct a text short code lookup, simply click on the button “Find a Short Code” in the navigation. Then, enter the code in the search box to see if it is available.
You have three options when conducting a text message short code lookup:
- Search for a specific short code
- Search for a “memorable” short code based on criteria (e.g. short codes that start with 2)
- Search for a randomized short code
Leverage the Power of SMS Short Codes for Your Mobile Marketing Campaigns
SMS short codes are powerful mobile marketing tools. Short codes can help you achieve your goals, whether you’re looking to increase sales or engage customers. They can also improve internal communications.
Syniverse CPaaS (Communications Platform as a Service) Concierge allows businesses to integrate real-time communication features, like SMS short codes, into their apps or platforms.
Syniverse is a global leader in mobile messaging services. We can offer faster message delivery, lower latency, reduced costs, and greater messaging control. Contact the Syniverse sales team today to learn more about our enterprise mobile marketing services and how to get started with SMS short codes!
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