Calculating Cost: Analyzing the Economic Impact of 10DLC Adoption

Are you looking for a powerful tool to reach your customers directly? If yes, then this is the perfect blog for you. 🎯

10DLC is user-friendly, cost-effective, and very useful compared to conventional marketing tactics. It offers an unparalleled SMS delivery solution for SMBs and guarantees messages are delivered effectively and in compliance. 

In the contemporary business world, the 10DLC has become essential. It supports bulk messaging and is effective in driving sales and boosting revenues for your business. It also protects the business owner from receiving spam texts. Thus, it is a valuable and dependable tool for communication, with a higher open rate than email marketing. 

This blog provides everything you need to know about 10DLC and the economic impact of 10DLC adoption.  

So, Let’s dive in. 🚀

What is 10DLC Messaging?

10DLC stands for a 10-digit Long Code. It is a messaging solution that allows businesses to send bulk texts to customers using a 10-digit telephone number assigned as a part of the North American Numbering Plan. The long code is used for customer interaction, appointment reminders, notifications, marketing campaigns, or transactional messaging.

10DLC is designed to support application-to-person messaging (A2P), which allows businesses to message customers from internet-connected devices. It enables individuals to customize their outreach to accommodate diverse customer preferences and demands. In addition to SMS or MMS, it also supports voice communication. Therefore, it is a profitable SMS marketing strategy for your SMB businesses. 

Companies must register and comply with regulations like the Telephone Consumer Protection Act (TCPA), which is governed by the FCC and CTIA and allows for two-way messaging. 

Features and Capabilities of 10DLC

The features and capabilities of 10DLC are:

1. It doesn’t require a separate number

Unlike short codes, a 10DLC works like a regular business number and does not need a different number to send bulk messages to clients and customers. For example, a corporation can utilize a single 10DLC to collect client feedback, remind them of an impending appointment, or run its real estate business.

2. Voice-Enabled

10DLC functions like a conventional phone number, so the corporation does not need to invest in additional numbers to communicate with its customers. This means the single business number can be used for phone calls, text messages, or faxes. 

3. Private Number

The businesses ensure that their 10DLC number is not shared and exclusive. Such private numbers are unlikely to be used by another firm, reducing the chances of being marked as spam. 

4. Pay-Per-Message

10DLC is cost-effective compared to shortcodes. It provides a pay-per-message option, just like a traditional phone line. It further lowers the expenses, as it does not charge for using the Keywords. Meanwhile, shortcodes are costly and offer only monthly rentals.

Economic Impact of 10DLC Adoption

10DLC Messaging offers numerous advantages for companies, such as allowing them to connect seamlessly and communicate with geographically diverse customers via SMS. It further improves message delivery rates and increases engagement. The additional benefits of this texting are:

I. Cost-effective with added flexibility

10DLC is cost-effective as it allows businesses to communicate using a single number via SMS, MMS, or voice calls. These simplified approaches lower the expenses of buying different numbers and operating several channels for various communication. 

It is ideal for small and large businesses as they can tailor the messaging without needing multiple numbers. The 10DLC messaging can send promotional texts, follow-up reminders, alerts, and notifications, allowing companies to improve the customer experience without exceeding their budget. 

II. Higher SMS message volumes and throughput

10DLC can handle the high demand of modern businesses and ensures timely and efficient communication with its customers exactly when it matters the most without delay. This messaging is excessively used for delivering one-time passwords (OTPs) securely.

Furthermore, it is also ideal for e-commerce and other retailers to send flash sales messages or real-time updates directly influencing customer satisfaction, experience, and revenue. 

III. Improved deliverability and reliability

The 10DLC numbers are registered exclusively for A2P messaging, so US carriers accept them as a source of mass messaging. Registering 10DLC  lowers the probability of your messages being ignored or abandoned as spam. 

The additional advantage of 10DLC is that it guarantees a more consistent delivery of your business communications to the intended audience. Such delivery dependability enhances your brand’s reputation. Moreover, it contributes to more successful marketing, increased message throughput, and improved engagement rates. 

IV. Local area code

A local number message not only identifies the recipient as someone from their area but also lessens the suspicion frequently attached to unfamiliar numbers. Therefore, businesses can use the local area code for each location to send out promotional SMS or urgent updates, directly influencing message open rate. 

Additionally, it enhances the message’s engagement rate as consumers are more likely to interact with texts they recognize.  This approach helps you increase brand loyalty and create a sense of connectivity with diverse audiences worldwide. 

V. Support a great customer experience.

10DLC is a suitable number for businesses to build long-term customer relationships. It has higher deliverability rates, ensuring that messages from your local business number reach your target audience without getting lost in spam filtering. Such a number adds a personal touch, making communication more friendly and less intrusive. 

Reaching customers promptly via SMS or phone calls establishes seamless and engaging relations, improving overall brand reputation. Notably, the 10DLCs adhere to regulatory compliance, which ensures customers that the messages they receive are safe. 

Who should consider using 10DLC?

10DLC is the ideal communication solution for sending reminders, alerts, or promotional content for businesses of all sizes. It is crucial for companies that depend heavily on notifications to keep their audience engaged and informed. Here is the list of companies that should consider using 10DLC and they are:

A. Companies needing cost-effective messaging

10DLC is a perfect blend of affordability, scalability, and reliability. Therefore, it is a cost-effective alternative for companies of all sizes to reach and communicate with their customers.  

Businesses can utilize the 10DLC messaging for internal communication to notify staff members and other stakeholders about company news, including policy updates and essential notifications. They can send event reminders to inform customers about releasing new products and timely alerts to guarantee that consumer data is secure. 

B. Retailers

The 10DLC can improve communication with customers and boost sales. It has the most significant potential to help the retail business. Retailers can use it to immediately alert customers about product delivery status updates and draw attention to other informative updates or new products to entice them to keep buying from their company. It may also be used for client feedback collection or OTP delivery.

C. Organizations that want to ensure compliance

10DLC numbers are pre-approved by mobile network operators so that organizations can use them securely without the risk of non-compliance. Various organizations, such as healthcare, financial, educational institutions, government agencies, or other non-profit organizations, must adhere to messaging compliance to avoid penalties. 

The nonprofit organization must comply with solicitation laws when engaging with donors or volunteers about fundraising events. The health worker must adhere to HIPAA regulations when sending public health notifications or appointment reminders. Meanwhile, government agencies can send community alerts or citizen engagement messages following government communication standards. 

D. Brands seeking better delivery rates

10DLC is best suited for companies that frequently face message delivery obstacles. It is pre-approved by mobile network operators, significantly removing delivery obstacles.

The companies using the 10DLC with higher delivery rates to send business messages are more likely to reach their receiver’s inbox. Likewise, the messages are less likely to be tagged as spam, or only a few are returned as undelivered.  

Best practices for 10DLC campaigns

Effective campaigns help businesses to create relevant messaging that drives engagement and sales. The best practices for 10DLC campaigns are: 

1. Descriptive names for your campaigns

The organization should ensure their campaigns’ names are clear so viewers can immediately understand the ads’ meaning. To make it simpler for users to understand and believe your messages, pick names that accurately convey the purpose and content of your campaign. This is sure to enhance the customer engagement. 

2. Include compliance information

Remember to include the compliance information in every text the businesses send. It should also include the brand’s name and help or opt-out instructions.  In addition to meeting legal obligations, brand awareness, openness, and opt-out options boost customer satisfaction and trust, enhancing clickthrough rates and conversions.

3. Provide accurate information

The business is responsible for ensuring that all information is correct. This includes information such as the company’s name, address, and tax ID that must match exactly with the official record files. Such accuracy is essential to prevent campaign approval delays or rejections.

4. Avoid public URL shorteners

US carriers often reject messages containing links such as bit.ly or tiny.url because these messages are usually fake and misleading. To ensure your content’s deliverability and integrity, use branded/private, paid-for short links. 

FAQs

What are the direct costs associated with 10DLC adaptation?

The costs associated with 10DLC adaptation are:

1. Initial setup fees for registration and verification.
2. Ongoing monthly fees
3. Pre-message fees
4. Additional carrier fees for maintaining the 10DLC numbers

What are the indirect costs associated with 10DLC adaptation?

The indirect costs associated with 10DLC adaptation are:

1. Training staff
2. Integrating new processes
3. Adjusting business processes
4. Ensuring compliance with new regulations
5. Potential fines for non-compliance. 

What economic benefits does 10DLC offer?

The economic benefits are:

1. Higher message delivery rates
2. Improved customer engagement
3. Enhanced customer experience
4. Potential revenue growth 

What are some real-world examples of 10DLC adoption?

The real-world examples of 10DLC adoption are:

1. Retailers using 10DLC for promotional messages
2. Appointment-based businesses sending reminders
3. Improved customer communication and engagement in various case studies. 

What happens if I don’t register for 10DLC?

You can continue using a 10DLC number without vetting. However, increased message filtering and higher costs are some of the primary downsides. We recommend vetting your business for the best experience.

What are the best practices for 10DLC campaigns?

The best practices for 10DLC campaigns are:

1. Create descriptive names for your campaigns
2. Include compliance information in every message
3. Provide a clear description of your campaign
4. Ensure all submitted information is accurate
5. Avoid public URL shorteners
6. Control the messaging throughput level