SMS Software

Small Businesses and 10DLC: Is It the Game-Changer You’ve Been Waiting for?

As of August 31, 2023, the messaging rules for businesses have changed dramatically; adherence to 10DLC regulations has shifted from a nice-to-have feature to a requirement, with unregistered 10DLC numbers now facing blockages.

This change poses a critical question for super small businesses operating on limited resources: Is 10DLC a necessary tool for growth?

Here’s why diving into the 10DLC landscape can be a game-changer for super small businesses:

➝ It is Budget-Friendly – An economical solution for connecting with your customer base.
➝ Provides Localized Engagement – Foster a familiar local presence in your community.

Dive in as we dissect its role, merits, and potential drawbacks to help you make an informed decision for your business venture.

Introduction to 10DLC: What Exactly is it?

10DLC stands for 10-digit long codes. Simply put, it’s a system where businesses can send messages to their customers using a 10-digit phone number. It’s known to be pretty cost-effective and ensures your messages actually reach the people they are meant to — a win-win for small-scale businesses, especially.

10DLC, or 10-Digit Long Code, is quickly rising as the gold standard for application-to-person (A2P) business messaging in the U.S. and Canada. This system facilitates businesses in reaching out to customers directly through local phone numbers. Crafted with precision, 10DLC assists wireless carriers in filtering genuine traffic, thereby reducing spam texts for users.

The Advent of 10DLC: Where Did It Come from?

Let’s take a step back and see where it all began. Earlier, 10-digit numbers were solely for P2P (Peer-to-Peer) non-commercial messaging. The big advice for businesses was to stick to short codes (those 5 to 6-digit numbers) or toll-free numbers for bulk, A2P (Application-to-Person) messaging.

But those short codes came with a hefty price tag. And toll-free numbers screamed “scam alert” to a lot of people. So, businesses gravitated towards the more budget-friendly 10-digit long code for commercial messaging, which was actually reserved for low-volume P2P channels.

But then two things happened: message traffic blew up, and spammers jumped in, making a mess of things. Mobile Network Operators (MNOs) saw this and figured businesses needed their own special lane for A2P messages to keep things clean and spam-free. That’s how 10DLC came to be.

Fast forward to July 5, 2023, businesses not registered with 10DLC started incurring penalties. The situation escalated quickly, and by August 31, all unregistered 10DLC numbers faced a complete blockage.

10DLC for Super Small Businesses

For super small businesses looking to refine their communication strategies, 10DLC paves the way with impressive potential. Leveraging 10DLC can mean tapping into the preferences of the consumers who desire the ability to text a business and catering to those who wish more businesses would reach out to them through text.

Additionally, the system brings to the table a promising 98% open rate for text messages, a figure that far surpasses email rates.

The Direct Benefits of 10DLC for Small Businesses

When we talk about super small businesses, every penny and every strategy counts. Here is where 10DLC marches in, bringing a basket of direct benefits:

  • Cost-Efficiency: For businesses operating on a shoestring budget, 10DLC offers an economical way to maintain robust communication with customers without burning a hole in the pocket.
  • Local Presence: Leveraging a local 10-digit number not only fosters a sense of community but also builds trust among local customers — a small yet significant step in establishing a brand identity.
  • Spam Reduction: For your customers, this system means fewer spam texts, a relief that indirectly uplifts your business’s image, associating it with secure and spam-free communication.
  • Enhanced Deliverability: A unique feature of 10DLC is the assignment of a reputation score to each number by TCR. Mobile carriers rely on this score to prioritize the transmission of messages. A commendable reputation score guarantees better deliverability, shielding you from the hurdles of spam filters and delayed transmissions.

Potential Drawbacks of 10DLC for Small Businesses

Embracing 10DLC doesn’t come without its own set of hurdles, especially for super small businesses grappling with limited resources:

  • Set-Up Process: Establishing a 10DLC system isn’t a plug-and-play affair. It demands time and expertise, which might be scarce in a small business setting.
  • Regulatory Compliances: Abiding by the carrier and regulatory compliances can be a meticulous process, perhaps slightly overwhelming for businesses just starting out or operating on a smaller scale.
  • Scalability Concerns: As your business grows, will the 10DLC grow with it? There is a looming question mark on its scalability that poses a concern for businesses with an eye on rapid expansion.
  • Delayed Setup: Unlike other instant solutions, getting a 10DLC can take some time, a delay not every fast-paced small business can afford.

10DLC Pricing Explained

Here we break down the different fee categories associated with A2P 10DLC messaging for businesses in the U.S.

Fee Breakdown

  • Brand Registration: $4 (one-time fee at the time of registration)
  • Campaign Registration: Varies depending on the use case type of your campaign. 
  • Vetting (Optional): $40

Campaign Registration Fees for Standard Use Cases

Sr. No. Use Case Type Cost
1 Standard use cases $10/month
2 Low-volume mixed use-case $1.50/month
3 Charity / Nonprofit (501(c)(3)) $3/month
4 Emergency Services $5/month

Campaign Registration Fees for Special Campaign Use Cases

Sr. No. Use Case Type Cost
1 Agents and Franchises $30/month
2 Charity $3/month
3 Emergency $5/month
4 Sole Proprietor $0.75/month

Real-World Use Cases of 10DLC for Small Businesses

10DLC numbers come with the promise of high-volume, low-cost text messaging, trumping shortcodes with better delivery quality and lower filtering risk. Here, we spotlight how super small businesses can really make this tool work for them in real-world scenarios.

1. SMS Marketing Campaigns via 10DLC

Picture this: a super small business launching laser-targeted SMS marketing campaigns without a hefty budget, reaching out to the local clientele through personalized messages.

The texts are not just promotional; they weave a narrative that resonates with the customers. 10DLC makes this not just possible but convenient, allowing super small businesses to craft impactful marketing narratives that strike a chord without breaking the bank.

2. Customer Feedback and Reviews

By leveraging 10DLC, businesses can effortlessly seek feedback and encourage customers to share their reviews. It is a straightforward way to gather authentic feedback and build a community of satisfied customers.

3. Streamline Appointment Scheduling with 10DLC

Leverage the capabilities of 10DLC to enhance your appointment management. By integrating 10DLC into your communication strategy, you can send automated reminders to customers, helping you stay on top of your schedule and significantly reducing the no-show rates.

So, Is 10DLC Needed for Super Small Businesses?

It is not just advisable but mandatory to adhere to 10DLC regulations if SMS services are a part of your business communication strategy. For super-small businesses, adapting to 10DLC can be seen as a double-edged sword.

The benefits are quite clear: cost-effective messaging solutions, a localized business presence, and assured message delivery. All this can significantly aid in building a robust communication framework, especially when integrated with user-friendly platforms like JustCall.

If your business leans heavily on SMS communications and you are prepared to navigate the regulatory landscape, 10DLC not only becomes a necessity but also a tool that can potentially streamline operations and foster growth. 

With a foundational role at Saas Labs, Anand has been a key player in establishing the Product Management function and spearheading the launch of our Conversation Intelligence solution. His expertise in AI innovation guides both the strategic direction of the products and a team committed to excellence.

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