SMS Marketing Overview: How It Works

In a nutshell, SMS marketing begins when a mobile user subscribes by sending a keyword as a message to a short code . This then places the phone number that sent the text into a database and triggers an auto responder that sends a text back to the consumer. After consumers send that first text message and are added to the database, they can be sent other marketing messages and alerts over time or until they unsubscribe.That’s it. It works just like that.

Keyword is synonymous with database and trigger. The keyword is what people need to send to the short code. It should be something short (two to six characters), easy to remember like the brand, or something related to the brand and should never be more than one word.

The code is the other half of what is happens in the first step. This code is like the phone number for the brand and allows for it to send or receive high volume text messages. The codes are registered with and leased from Nuestar and the Common Short Code Association (CSCA). Both short and long codes are nation specific and most can only send and receive messagesin the same country. There are ways to send messages to another country, but you will need to buy a code for that country or use an international long code from the UK, Germany, or Sweden.

There are two types of codes, a short code and a long code. The short code is a five to six digit number that is approved by mobile carriers to send and receive text messages. Codes that are 4 digits or less are reserved by the carrier for billing information and other communications with their own customers. A short code has the highest through put and is a larger investment. Common Short Code license fees range from $500 per month for random numbers to $1000 per month for a vanity number that actually spells out a word or brand name. CSCA short code leases must be paid in 3, 6, or 12 month increments and are non refundable.

After leasing your common short code, you must gain approval from the carriers prior to connecting. This process is known as provisioning.

This process is usually a joint effort between you (the CSCA listed content provider), your SMS Application Software provider, and the SMS Aggregator. The Aggregator submits your campaign keywords and message flow to the carriers for review. Upon approval of your messaging and campaign details, the aggregator works with the SMS Software Provider to connect the application between the short code and the aggregator/carrier connections. Once this is complete the carrier begins LIVE testing. During this process, they physically test your opt in and opt out keywords. Each one checking for exact match message flow and
compliance. It is during this time as well that they visit your website to make certain that your calls to action , privacy policy, and terms/conditions are compliant with Mobile Marketing Association Best Practices, Carrier Regulations, and the Telephone Consumer Protection Act of 1991.

Once all of this checks out to the “T” and “the comma”, they make the sign of the cross and you are LIVE. Remember though, this same process is conducted by EACH carrier. Provisioning can take from 5 weeks to 5 months or more and should be conducted under the consultation of someone whom has done it before to avoid unnecessary delays and associated costs.

The other type of code used is a long code. A long code is 10 digits, the same as a regular phone number. The number can be acquired a number of different ways and is much easier to get. Long codes can only send SMS one way. The long code is the choice of most spammers because the codes are less regulated and easier to get a hold of. It is as easy as purchasing a SIM card server and plugging in SIM cards to send from. The long codes are also cheaper to use, as low as $5 a month and quicker to implement. While long codes are usually the choice of spammers there are reputable ways to use them.

The hardest part is getting people to that first step, getting someone to text that keyword to the short code. SMS marketing alone is ineffective. It takes more than a keyword and a short code for SMS marketing to work. SMS works in conjunction with other marketing efforts. The other marketing efforts that are paired with SMS are how you let people know about the promotion and why they should take advantage of it. Imagine having a phone number but never giving it out to anyone, you would never get any calls. It is the same way with SMS marketing. If you never let anyone know what to text to what number then they never will. In
order to get subscriptions to your database they need to text you first and you have to tell them how. If you never tell anyone they will never know about and it will never be used.

People also need to be persuaded to take action. Before someone is willing to text the keyword to the short code they need a reason why. There needs to be a valuable Call-to-Action before someone will make that first step. This could be something like text the code to get a coupon, text the code to get something free, text the code to get valuable content; these are things that will give people a reason to use your keyword. Without a promotion of any sort with an external call-to-action no one will take the effort to make the text. You should also make clear your intent NOT TO SPAM THEM.

After that first step is taken though it is all smooth sailing. Everything rolls on from there. After the person has sent a text with the keyword to the short code, they have triggered an action at the software level; at the same time they have also opted into a database that has phone numbers from everyone who has previously texted the short code. The most common action triggered at the software level is an auto responder that instantly replies to the person who sent the text with 160 characters of awesome content. This information can be anything you want as long as it fits 160 characters; text, coupon, email, phone number, and website links.

After they receive the response text the process is over, they answered your call to action and now their phone number lives in your database to be used at a later time for SMS nurturing, other automated messages, real time alerts, and text blasts.