What is a Shared short code?

Ever wondered how businesses sent those quick, catchy text messages you loved to engage with? The secret lied in shared short code SMS, an innovative, cost-effective way that connected with audiences instantly!

Whether it’s a flash sale alert, a voting prompt for your favorite show, or a simple appointment reminder, shared short codes are the behind-the-scenes heroes making it all happen. But what exactly are they, and why were they so popular?

In this guide, we’ll break down everything you need to know about shared short code SMS: how it worked, why businesses used to love it, and how it transformed communication strategy. Let’s get started 🚀

What Is a Shared Short Code?

A shared short code was a 5-6 digit phone number owned by multiple companies or organizations and could be used simultaneously to receive as well as send SMS messages.

Unlike a dedicated short code, which is exclusive to a single company, a shared short code was more cost-effective because multiple users shared the same number.

These short codes were typically used in SMS marketing, customer service, and two-way communications.

For example, you might recall seeing a short code like “55555” being used by a company to send promotional messages or conduct surveys.

Why Shared Short Codes Were Popular?

Businesses were always searching for ease of communicating with their audience. Shared short codes represented a new and important answer that changed how businesses communicate with consumers through text messages.

Why, then, did shared short codes become so popular? Was it because they were cheap, easy to use, or could contact many people simultaneously?

Let’s look at reasons why shared short codes have gained popularity:

• Cost-Effectiveness: Dedicated short codes were expensive, especially to small and medium businesses where shared short codes offer a cost-saving alternative, allowing companies to benefit from SMS or message marketing without paying exorbitant fees.

• Ease of Use: Registering a shared short code was easier and quicker compared to dedicated short codes that required an extensive approval process.

• Scalability: Organizations could start small and scale their SMS campaigns as their base expanded, with shared short codes being an option that worked for start-ups and growing organizations.

• Wide Adoption: Different industries, including retail, healthcare, and entertainment, utilized shared short codes to communicate with customers, thereby making it a popular and trusted medium of communication.

Benefits of Shared Short Codes

Shared short codes were not just a trend; they were a powerhouse of significance and interaction. But what was it that made different? Cost-effectiveness, wider reach, and more, these small numbers had a highly significant impact.

Shared short codes come with lots of benefits that make them the best choice for businesses:

1. Budget-friendly

Since the cost of SMS short codes was shared among multiple businesses, it significantly reduced the financial burden. This made it an ideal solution for small businesses or those with limited budgets.

2. Easy setup

Shared short codes were pre-approved, meaning businesses could start using them almost immediately. This was a massive advantage for multiple brands or companies that needed to launch time-sensitive campaigns.

3. Multi-purpose

Shared short codes can be used for a variety of purposes, including marketing efforts or campaigns, customer support, appointment reminders, and more.

4. Increased Reach

SMS had an incredibly high open rate (over 98%), making it one of the most effective communication channels. Shared short codes allowed businesses to tap into this potential without significant investment.

5. Two-Way Communication

Shared short codes enable businesses to engage in two-way conversations with their customers, fostering better relationships and improving customer experience and satisfaction.

Use Cases for Shared Short Codes

Shared short codes are versatile and could be used across various industries to streamline communication, engage your customers, and drive action.

Here are some common use cases:

A. SMS Marketing Campaigns

Businesses widely use shared short codes to send MMS text messages for promotional messages, limited-time offers, special deals, and discounts to customers. Since multiple companies share the same short code, it significantly reduces the cost compared to owning a dedicated short code.

However, shared short codes come with keyword limitations, meaning businesses must use unique keywords to differentiate their campaigns. This makes it an affordable option for small businesses looking to reach a large audience through SMS marketing.

B. Customer Engagement

hared short codes were used by businesses to interact with customers by conducting

activities such as interactive surveys, polls, feedback requests, or customer testimonials.

These activities allow businesses to interact with their customers and gain useful feedback without requiring personal short codes, making it simple to maintain ongoing communication with a large number of users.

C. Two-factor authentication (2FA)

Shared short codes are also commonly used by companies to send text messages with verification codes or one-time passwords for secure login and authentication processes. Businesses should avoid including sensitive personal information in these messages to protect user security.

Using a shared short code, companies can give their customers timely and secure verification messages without bearing heavy costs of implementation.

D. Voting and Contests

Shared short codes are typically used for voting text campaigns for television shows,

competitions, or public events. Some companies use vanity short codes to offer memorable, branded experiences to their audience.

Multiple businesses or events can share a single short code to allow participants to vote, enter contests, or interact with the event, which lowers the cost of short code texting services for event organizers.

E. Event Alerts

Companies employed shared short codes to send reminders, updates, or notifications for events, meetings, or subscription plans. These reminders can be webinar reminders, alerts on new product releases, or promotions for limited-time offers.

It is simple to distribute the brief code in a way that the price is maintained low without losing contact with the customers. The businesses must follow the guidelines of the mobile carriers so that they do not send unwanted messages.

Difference between a shared short code and a dedicated short code

Shared short codes were used by multiple companies, thereby being cost-effective and appropriate for smaller campaigns. Shared short codes helped companies to engage with customers by sending promotion and reminder messages via text.

Dedicated short codes are owned by one business, offering complete control, Improve user experience, customization, and high capacity, perfect for large-scale or high-volume messaging.

Let’s see the key difference between a shared short code and a dedicated short code:

Alternatives to Shared Short-Code Numbers

There are numerous benefits that shared short code numbers offer, but in some cases, they were not perfect for some businesses.

Due to high abuse rates, shared short codes often led to an increase in spam messages and carrier bans. Because of this, many wireless carriers restricted shared short codes due to spam and compliance issues.

Here are some alternatives to consider:

A. Dedicated Short Codes

A dedicated short code was exclusive to one business and offered greater control and branding opportunities. However, they were more expensive and required a longer setup process.

B. Long Code Numbers

Long codes were standard 10-digit phone numbers that could be used for SMS and voice communication. They were more affordable than short codes but lacked the same level of scalability and throughput.

C. Toll-Free Numbers

Toll-free numbers allowed customers to send and receive SMS messages without incurring charges. They were ideal for customer support and service-based businesses.

D. WhatsApp Business API

For businesses looking to leverage messaging apps, the WhatsApp Business API offered a powerful alternative. It allowed for rich media messaging, automation, and global reach.

E. Email Marketing

While not a direct alternative to SMS, email marketing remains a cost-effective way to reach customers. However, it typically has lower open rates compared to SMS.

Conclusion

Shared short code SMS had been a lifesaver for businesses that wanted to reach their customers through SMS. They offered a cost-effective, flexible, and efficient way of carrying out marketing campaigns, sending alerts, and stimulating two-way communication. While they were not suitable for all businesses, their benefits made them a preferred solution for many.

The more technology grows, the more methods there are now than ever to reach your targeted audience. Regardless of whether you use a dedicated short code or a shared one, the important thing is understanding how your people take information in and then feeding it to them accordingly.

FAQs

What is the difference between a shared short code and a dedicated short code?

A shared short code was used by multiple businesses, while a dedicated short code was exclusive to one business. Dedicated short codes offered more control and branding opportunities but were more expensive.

Could you use a shared short code for international messaging?

Shared short codes were typically country-specific. If you needed to send international messages, you had to consider using a long code or a messaging app like WhatsApp.

How much does a shared short code cost?

The cost of a shared short code varied depending on the provider and the volume of messages. However, it was generally more affordable than a dedicated short code.

Could you customize the shared short code?

No, shared short codes were pre-assigned and couldn’t be customized. If you need a custom number, consider a dedicated short code.

What industries benefit the most from shared short codes?

Industries like retail, healthcare, education, and entertainment benefited significantly from shared short codes due to their versatility and cost-effectiveness.