What is an SMS Short Code? Definition, Types, and Pros & Cons

Shortcodes, or SMS short codes, are five—to six-digit phone numbers businesses use mostly for SMS marketing and other text communication with their customers. They are unique phone numbers for fast, one-way, or two-way messaging.

Shortcodes are easy to remember and often best for organizations with large contact lists and high messaging needs. They replace A2P messaging, standardizing using a 10-digit phone number, also known as a long code, for SMS.

Customers only need to enter a five or six-digit number to quickly send a message and subscribe to updates from their favorite brands or businesses.

Businesses can choose from four types of short codes.

Vanity short codes are custom, easy-to-remember numbers that businesses choose, often to match their brand or a catchy keyword (like “827438” or “TARGET”). These codes help customers remember the brand and can make marketing campaigns more effective. Because of the added branding value, vanity codes are usually more expensive than other SMS codes.

Providers assign random short codes automatically without unique customization. These codes are a more budget-friendly option for businesses that don’t need specific digits. Although they aren’t as memorable as vanity codes, random codes work just as well for sending messages and are still an effective way to reach customers by SMS.

Dedicated short codes are specifically assigned to only one business and ensure no other company uses the same code. This gives the business complete control over how it uses the code. Dedicated short codes offer higher security and privacy and are a good choice for companies that want a secure, reliable way to communicate with customers.

With shared short codes, multiple businesses use the same code but have unique keywords (like “SHOP” or “JOIN”) to identify their messages. Shared short codes used to be a cost-effective option for smaller businesses. However, recent regulations discourage shared codes due to security and compliance concerns, especially in the U.S. Many companies now prefer dedicated short codes.

Short code messages are text messages that you receive or reply to and are similar to regular SMS from brands or businesses. Below are some examples of these messages.
 

Short codes help businesses quickly send messages to large groups. These 5—to 6-digit numbers are easy to remember, which makes them great for building brand awareness and keeping customers engaged. Short codes are perfect for high-volume messaging, such as marketing campaigns, reminders, and secure messages like OTPs.
 

• Send over 100 messages per second, perfect for large audiences.
• Easy for customers to remember, which strengthens brand recognition.
• Vanity and dedicated short codes allow businesses to personalize messages.
• Useful for SMS marketing, appointment reminders, and secure communications.

Short codes are helpful, but they do have limitations. They can be expensive, take weeks to set up, and only work for SMS (not voice calls). These issues can make short codes less ideal, especially for smaller businesses.
 

• Monthly and per-message fees are often high, which can add up for small businesses.
• Getting a short code can take up to 12 weeks, causing delays.
• Short codes don’t support voice calls, so businesses need a separate call number.
• Short codes only work in specific countries and with certain carriers.
• Due to limitations on shared short codes, each company needs its code now, which can be expensive for businesses with low budgets.
• Businesses must undergo an approval process, which takes time and extra effort.

You can get short codes from different service providers like Twilio, Pilvo, EZ Texting, etc. But before getting these short numbers, evaluate and choose one that meets your needs.

The general steps to get these numbers are given below.

You must determine your needs, such as whether you need short codes for marketing, alerts, or two-factor authentication (2FA). Determining needs is necessary as it helps you get the correct type of shortcodes. For example, dedicated short codes would be great if you want them for 2FA.

Choose a trusted SMS service provider that offers short codes. Some of them are Twilio, EZ Texting, Plivo, and EngageLab.

Decide if you want a random short code (assigned to you) or a vanity short code (a custom, memorable number, like “12345”). Vanity codes usually cost more because they’re customizable.

You must submit an application providing details about your intended use, compliance with regulations, and potential messaging content. Your provider will help you apply to mobile carriers and explain how you’ll use the code (for marketing, reminders, etc.).

Carriers then check if your use follows their rules, which can take a few weeks. Ensure you comply with regulations set by the Federal Communications Commission (FCC) and the Mobile Marketing Association (MMA), including obtaining user consent before sending messages to them.

Short codes come with setup and monthly fees. Vanity codes typically cost more than random ones. The most affordable is the shared one.

After payment approval, your short code will be active and ready to message customers directly. But before that, check and take the initiatives mentioned below.
 

1. Properly Build Your Messaging System

    

   Once you have your short code, set up the required infrastructure to send and receive messages. This typically involves:
    

   • Link it to the SMS service you use to send and receive messages.
   • Set how your system should reply to different types of customer messages.
   • Configure your system to manage incoming messages from customers automatically.
      

2. Test Thoroughly
    

   Before going live, test your short code carefully to ensure it works well and meets all rules. Once testing is complete, you can launch your short code for customers. Regularly check its performance and track user engagement to keep things running smoothly.

The cost of getting shortcodes can range from a few 100s to 1000s of dollars, depending on the subscriber’s location. The price also depends upon the service provider, the type of shortcodes, and the subscription type (monthly, quarterly, yearly, etc.).

Acquiring and maintaining a short code can be expensive, along with the application process, which can take weeks to months. The cost associated with these codes may include application, setup, and usage fees.

For instance, here’s a sample cost breakdown for Twilio in the US and Canada.
 

Short codes help businesses connect with customers through SMS for marketing, reminders, and secure messages. However, they can be costly, take a long time to set up, and don’t support voice calls or work in all countries. For a more affordable and global solution, businesses can consider virtual phone numbers that work over the Internet.

Calilio provides virtual numbers, which allow you to make calls and send and receive SMS over the internet. With our business phone system, you can send bulk SMS to large audiences, with access to numbers from 100+ countries. Sign up today!!

Short codes are easy to remember, so they’re great for promotions, reminders, and alerts, which helps boost customer response.

Many businesses, government offices, and non-profit organizations use short codes because these phone numbers are easy to remember and help build brand image among the customers.

Short codes are only for text messages and don’t accept calls. They usually provide a regular phone number if you need to speak with the company.

When you text a short code, you usually get a reply from the business, and you are also automatically permitted to receive text messages from them.