What is Short Code?

What is Short Code? Short code is a popular form of mobile marketing, and one that many businesses may want to consider. Short code is just one type of SMS (short message service) marketing, however, so it is important to understand what short code is and how short code works to decide if it is right for your business.

With the increasing popularity of SMS text messaging and mobile marketing, short code is used in many places, from popular televised contests that allow viewers to text in their votes, to offers for free coupons at local restaurants. Businesses and organizations starting an SMS marketing campaign may be interested in short code, though short code is only one of several ways to run an SMS marketing campaign. 

A short code is essentially a special phone number that is designed for use with cell phones and similar mobile devices. A person with a mobile phone types in a text message, dials the short code, and hits send to complete the call. The message sent to the short code initiates some type of automatic action, like signing the sender up for mobile alerts or sending a coupon code to the person’s mobile device. 

Short code varies slightly from country to country, but in the United States, it is a 5 or 6 digit number, which cannot begin with the number 1, that is assigned by the Common Short Code Administration. The Common Short Code Administration makes sure that each short code is unique, and it works with wireless service providers like Verizon and T-Mobile to make sure they can all support the use of short codes through their wireless network. Some short codes are also assigned to each individual wireless company. 

There are several ways that a person or organization can get a short code:

  • They can apply to the Common Short Code Administration for a short code or for multiple short codes. The cost is $500 a month to be assigned a random code, and $1000 a month for a short code that the business selects themselves, called a vanity short code, though, like any other telephone number, this code must not already be in use by another business. The person or business must apply for the short code and pay for the lease of the short code up front , with the minimum lease being 3 months.  Through this method, the business will have a dedicated short code that remains solely for their use as long as they continue their lease.
  • They can sign up for a shared common short code through a short code service provider. The short code service provider leases a short code from the Common Short Code Administration, then rents out the short code service to other companies. This works because, even though the companies are sharing a short code, they each have their own keywords. So, for example, if the short code they were sharing was 223344, one company might have customers send the keyword “touchdown” to 223344 to get football scores, while another company might use the keyword “drinks” to send a free drink coupon to its customers. This approach is generally much cheaper than leasing a dedicated short code directly from the Common Short Code Administration, but gives the company less control over the short code.
  • They can get a short code through their wireless service provider, in cases where the wireless service provider allows customers to use its short codes. The costs for this service vary.

The use of short codes is carefully regulated, and users must follow certain rules about the contents of their messages and customer participation. Customers must opt-in to start receiving messages from a short code service, and must have the option to opt out when they want to stop receiving messages, usually by texting the word “STOP” to the short code.

Short codes messages offer the advantage of being easy to remember and use for customers, but they also can cost both the business or organization and the customer more money than other forms of SMS text messaging. Short codes fit well with some businesses’  SMS marketing strategies, but others may want to consider different forms of SMS marketing.