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Home - Short Codes - What is a Shared short code?
Reviewed by : Prasanta Raut
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 🚀
Table of Content
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.
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:
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:
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.
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.
Shared short codes can be used for a variety of purposes, including marketing efforts or campaigns, customer support, appointment reminders, and more.
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.
Shared short codes enable businesses to engage in two-way conversations with their customers, fostering better relationships and improving customer experience and satisfaction.
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:
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.
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.
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.
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.
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.
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:
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 code was exclusive to one business and offered greater control and branding opportunities. However, they were more expensive and required a longer setup process.
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.
Toll-free numbers allowed customers to send and receive SMS messages without incurring charges. They were ideal for customer support and service-based businesses.
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.
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.
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.
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.
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.
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.
No, shared short codes were pre-assigned and couldn’t be customized. If you need a custom number, consider a dedicated short code.
Industries like retail, healthcare, education, and entertainment benefited significantly from shared short codes due to their versatility and cost-effectiveness.
Prasanta, founder and CEO of Dialaxy, is redefining SaaS with creativity and dedication. Focused on simplifying sales and support, he drives innovation to deliver exceptional value and shape a new era of business excellence.
Prasanta Raut