Choosing a Short code for your Business: Shared Short Code or Dedicated Short Code?

Choosing a sender identity for business messaging is a crucial decision.

This is because every organization’s need differs, and the selection of an incorrect application number can be a roadblock to effective business communications.

When it comes to  Salesforce business messaging, organizations often prefer to opt for short codes for good reasons. Short codes are the best for high-volume messaging, branding, and SMS deliverability.

A limited number of digits makes it easier for audiences to remember a short code. But the most challenging part for firms when selecting a short code is 

Whether to choose a shared short code or a dedicated short code?

This is one of the major concerns that two variants of short code create for firms. So, a thorough understanding of these two concepts might help you make the right decision.

What is the Difference Between a Shared and a Dedicated Short code?

High volume messaging and good SMS deliverability are a few reasons why short codes work for business. And this is why firms opt for a dedicated or a shared short code.

As the name should tell you, a dedicated short code is dedicated to your firm. The entire lease amount of the dedicated short code is paid by a single owner. In layman’s terms, only one brand owns and uses a dedicated short code for  Salesforce messaging.

On the flip side, a shared short code is when a business leases a short code to a firm at a fraction of the cost of a dedicated short code. 

A shared short code is used by more than one brand at a time. This is a good option for small firms with a limited budget to run a business and can’t afford an expensive dedicated short code.

Pros and Cons of Dedicated Short code

Pros

• Better Branding

When a specific short code is associated with a brand, it is easily recognizable by the people.

On the flip side, if a short code is associated with several brands, it gets difficult for people to relate a short code to a specific brand.

So, a dedicated short code gives more recognition to a brand.

• Freedom to Use Any Keyword 

Like a shared short code, there is no restriction to using specific keywords that others haven’t used before with a dedicated short code. Brands are free to use any keyword of their choice for effective marketing campaigns.

• No Chances of Misuse

Your short code is more secure because you are the sole user of the dedicated short code.

There’s no possibility of short code misuse by any other business entity, which is sometimes the case with a shared short code.

Cons

• Expensive to Own

A dedicated short code is an expensive option that firms with limited-budget can’t afford. Oftentimes, you have to pay a monthly fee to maintain and host a dedicated short code.

Also, the cost of a dedicated short code depends on the type of short code you choose for your brand, whether it’s a random, vanity, or FTEU short code.

Besides, as you’re the sole user and your short code no other firm shares your short code, you bear the entire cost of a short code, which makes it more expensive to own.

• Needs Time to Set-Up

Dedicated short codes aren’t quick to set up. It takes 6-8 weeks to get a dedicated short code approved.

This could even stretch upto 12 weeks, which is not acceptable to users who want to use a short code for running an event or campaign urgently.

Pros and Cons of Shared Short code

Pros

• Cost-effective Option

A shared short code is shared by many users. Thus, a single user doesn’t have to bear the entire cost of a dedicated short code.

This makes it a cost-effective option for firms with limited capital. 

Firms can reap the benefits of a short code at a fraction of the cost of a dedicated short code. 

• Accessible

Not all businesses can own and reap the benefits of a short code as it’s an expensive option to buy.

This is something a shared short code helps with.

A limited budget can never be a constraint with a shared short code if you want to reap the benefits of a short code for business messaging. This is why it is easily accessible.

Cons

• Possibility of Misuse

As thousands of business owners use the same short code for business messages, they are bound to use it appropriately.

A mistake of any one user can impact all other users of the shared short code. Even if any one business entity misuses the short code, the wireless carrier restricts the short code for all users.

• Brand Confusion

When more than one brand uses a short code, there’s a fair chance that two or more brands are using the same keyword.

So, when a subscriber subscribes to receive messages from a different brand using the same short code, it creates confusion in the subscriber’s mind.

This could also lead to opt-outs as a subscriber might confuse your brand with some other brand.

Which one to choose: A Dedicated Short Code or a Shared Short Code?

Dedicated short codes are good for branding and are more secure, whereas shared short codes are easy to set up and a cost-effective option for firms with limited capital.

Both- dedicated and shared short code have their own pros and cons, which users need to consider before choosing a sender identity.

With a thorough understanding of both concepts, users can make the right choice based on their business requirements and make the best use of available business capital.

To know more about short codes or if you want to bring your own number, turn to our experts at care@360smsapp.com or contact us here for assistance.