If you want customers to interact with your business without downloading an app, creating a USSD service can be one of the most practical options available.
USSD allows customers to access services directly from their mobile phones by dialing a short code and following a menu. It works on basic phones as well as smartphones and does not require mobile data.
For businesses, this can create a simple channel for customer registration, payments, inquiries, account services, surveys, ordering, information requests and other transactions.
But how do you actually create a USSD service? How much does it cost? Do you need to build an application? Do you need your own USSD code? And what should you consider before launching?
This guide explains what businesses need to know before creating a USSD service.
What Is a USSD Service?
USSD stands for Unstructured Supplementary Service Data.
It is a mobile communication technology that allows users to interact with a service through short codes such as:
*123#
A customer dials the code on their phone and receives a menu.
For example:
Welcome to ABC Business
Check Balance
Buy Product
Make Payment
Contact Support
Exit
The customer selects an option by entering the corresponding number.
Unlike a mobile application, USSD does not require the customer to download anything.
It can also work without an internet connection, making it particularly useful for reaching customers who may have limited access to mobile data.
Why Would a Business Need USSD?
The biggest reason businesses create USSD services is accessibility.
You may have a website, mobile application, Facebook page and WhatsApp number, but some customers may still prefer a simple phone-based service.
USSD gives customers another way to interact with your business.
For example, a business could allow customers to:
Register for a service
Check account information
Make payments
Request information
Check balances
Submit forms
Take surveys
Place orders
Check order status
Access promotions
Request customer support
Join a membership program
Register for events
Access educational information
Instead of asking customers to install an app or navigate a website, you can give them a short code.
How Does a USSD Service Work?
A typical USSD service has several components.
1. The customer
The customer uses a mobile phone to dial your USSD code.
2. The USSD code
This is the short code customers use to access your service.
For example:
*123#
3. The USSD application
Behind the menu is an application that determines what the customer sees and what happens when they select different options.
4. Your business system
The USSD service can connect to your database, payment system, CRM, inventory system or other business software depending on your requirements.
5. The response
The customer receives information or completes an action through the USSD menu.
The interaction can therefore look like:
Customer → USSD Code → USSD Application → Business System → Customer
What Can You Build With USSD?
USSD is not limited to displaying information.
A properly designed service can support interactive business processes.
Here are some examples.
1. Customer Registration
You can allow customers to register themselves through USSD.
For example:
Welcome
Register
Existing Customer
Help
If the customer selects Register:
Enter your name:
Then:
Enter your phone number:
Then:
Select your location:
The information can be stored in your business database.
This can be useful for membership organizations, schools, events, financial services, retailers and service businesses.
2. Payments
USSD can also be incorporated into payment workflows.
For example:
1. Make Payment
Customer selects the option and enters the required information.
The business can then initiate or connect the process to an appropriate payment mechanism.
For businesses handling large numbers of transactions, integrating payments with customer records can also make reconciliation and notifications easier.
3. Customer Surveys
You can use USSD to collect information from customers.
For example:
How satisfied are you with our service?
Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
The responses can be collected and analyzed later.
This can be useful after purchases, events, customer service interactions or campaigns.
4. Product Ordering
A business could create a simple ordering system.
For example:
Welcome to ABC Shop
Food
Drinks
Household Products
Check Order
Customer Support
The customer selects products and provides the required information.
The business can then process the order.
For businesses with a large customer base, this can provide an additional ordering channel without requiring customers to install an application.
5. Balance Checking
If your business maintains customer accounts, you can potentially allow customers to check information through USSD.
For example:
1. Check Balance
The customer authenticates themselves and receives the relevant information.
This type of functionality can be useful for membership organizations, subscription businesses and other services where customers need regular account information.
6. School Services
Schools can potentially use USSD for services such as:
Student registration
Fee information
Parent inquiries
Event registration
School announcements
Surveys
Application inquiries
Admission information
For example:
Welcome to XYZ School
Admissions
Fees
School Calendar
Contact School
Parent Services
USSD can therefore become an additional communication and self-service channel.
7. NGO and Community Programs
Organizations working with large populations may also use USSD to collect information or provide services.
Possible applications include:
Registration
Surveys
Beneficiary information
Feedback
Program information
Event registration
Community reporting
Information requests
One advantage is that the customer or beneficiary does not necessarily need a smartphone or mobile internet connection to access the service.
8. Customer Support
You can create a simple USSD support menu.
For example:
Welcome to ABC Company
Check Account
Report a Problem
Request Assistance
Find Branch
Talk to Support
This does not necessarily replace human customer support.
Instead, it can handle simple requests before customers need to contact an employee.
How Do You Create a USSD Service?
Creating a USSD service usually involves several stages.
Step 1: Define the Problem You Want to Solve
Do not start by asking:
"How do I get a USSD code?"
Start with:
"What should customers be able to do through USSD?"
This distinction is important.
Your USSD service should solve a specific business problem.
For example:
Customers currently call our office to check their account balance.
A USSD solution could allow:
Dial code → Enter customer details → Receive balance
Another business might have this problem:
Customers have difficulty registering for our services.
The USSD solution could provide:
Dial code → Registration → Confirmation
Step 2: Design the USSD Menu
Before development begins, map the customer journey.
For example:
Main Menu
Register
Make Payment
Check Status
Contact Us
If the customer chooses 1:
Registration
Enter your full name:
Then:
Enter your location:
Then:
Enter your email:
Then:
Registration successful.
Keep menus simple.
Customers should not have to navigate through dozens of options.
Step 3: Choose a USSD Provider
You need a technology/provider partner that can help connect your business service to the mobile network environment.
The provider may help with aspects such as:
USSD access
Short-code arrangements
Application connectivity
APIs
Hosting
Integration
Technical support
The exact process depends on the provider, network requirements and the type of USSD service you want to operate.
Step 4: Develop or Configure the Backend
Your USSD menu is only the customer-facing part.
Behind it, you need logic that tells the system what to do.
For example:
Customer selects:
1. Check Balance
The system might:
Request the customer's phone number or account number.
Validate the customer.
Query the database.
Retrieve the balance.
Display the result.
For a payment service, the process could involve additional payment and transaction verification steps.
Step 5: Connect USSD to Your Business Systems
This is where APIs become particularly important.
Suppose you already have:
A customer database
Payment software
CRM
Inventory system
School management system
Membership database
You may want USSD to communicate with those systems.
For example:
USSD → API → Customer Database
or:
USSD → API → Payment System → Database
This prevents your USSD service from becoming an isolated system.
Step 6: Test the Service
Before launching, test every menu option.
Test questions should include:
Does the code work?
Are menus easy to understand?
What happens if the customer enters an incorrect option?
What happens if information is missing?
What happens if the customer abandons the session?
Are transactions recorded correctly?
Are confirmations sent?
Is sensitive information protected?
Does the service work consistently?
Testing is particularly important for services involving payments or personal information.
Step 7: Launch and Promote the USSD Code
Once your service is operational, customers need to know about it.
You can promote your USSD code through:
SMS
WhatsApp
Posters
Receipts
Websites
Social media
Email
Business cards
Packaging
Advertising
Staff communication
For example:
*Need to check your account? Dial 123#
The shorter the instruction, the easier it is for customers to remember.
How Much Does It Cost to Create a USSD Service?
There is no single price for a USSD service.
The total cost depends on what you are building.
A simple information service may have very different costs from a USSD platform connected to payments, customer databases, APIs and other systems.
Potential cost components can include:
| Cost Area | What It Covers |
|---|---|
| USSD access | Access to the USSD channel |
| Short code | The code customers dial |
| Development | Building the application |
| API integration | Connecting USSD to other systems |
| Hosting | Running the application/backend |
| Database | Storing customer information |
| Maintenance | Technical updates and support |
| Transactions | Costs associated with certain transactions |
| Messaging | SMS notifications where applicable |
Some providers may offer packaged solutions while others may charge according to usage, functionality or infrastructure.
Therefore, instead of asking only:
"How much does USSD cost?"
ask:
"How much will the complete USSD solution cost for my specific business requirements?"
That will give you a much more useful quotation.
Is USSD Expensive for a Small Business?
Not necessarily.
The answer depends on the complexity of the service.
A small business that only needs a straightforward customer-information service may require a much simpler setup than a financial or enterprise application.
For example, compare:
Simple USSD
Main Menu
About Us
Services
Contact Us
with:
Advanced USSD
Main Menu
Register
Login
Check Balance
Make Payment
Buy Product
Transaction History
Customer Support
The second system requires substantially more backend logic and integration.
Therefore, define your requirements before requesting pricing.
Do You Need a Mobile App If You Have USSD?
No.
USSD and mobile applications solve different problems.
A mobile app can provide a richer interface with images, maps, notifications, advanced account features and other functionality.
USSD provides a simpler text-based interaction that customers can access from a phone without downloading an application.
Many businesses can therefore use both.
For example:
USSD: Quick transactions and simple requests
Mobile App: Advanced customer experience
Website: Detailed information and online services
WhatsApp: Conversations and customer support
SMS: Notifications and marketing
A multi-channel approach can allow customers to use the channel they prefer.
USSD vs Website
| Feature | USSD | Website |
|---|---|---|
| Internet required | No | Usually yes |
| Smartphone required | No | Usually for best experience |
| App installation | No | No |
| Text-based interaction | Yes | Not necessarily |
| Rich graphics | Limited | Yes |
| Complex interfaces | Limited | Better suited |
| Quick transactions | Suitable | Suitable |
| Accessibility on basic phones | Strong | Limited |
USSD is therefore not necessarily a replacement for your website.
It can complement it.
USSD vs Mobile App
| Feature | USSD | Mobile App |
|---|---|---|
| Download required | No | Yes |
| Mobile data | Not required | Usually required |
| Basic phones | Can work | Generally no |
| Rich interface | Limited | Yes |
| Installation | No | Yes |
| Simple transactions | Suitable | Suitable |
| Advanced functionality | Limited | Strong |
The right choice depends on what you want customers to accomplish.
USSD vs SMS
USSD and SMS are also different.
SMS is particularly useful when you want to send information to customers.
USSD is useful when you want customers to interact with a menu and provide information or make selections.
For example:
SMS
Your order has been shipped. Tracking number: 12345.
USSD
*Dial 123# to check your order status.
They can therefore work together.
A customer could receive an SMS and then use USSD to perform an action.
Can USSD Work With Bulk SMS?
Yes, businesses can combine interactive USSD with outbound SMS as part of a broader communication strategy.
For example:
A customer registers through USSD.
↓
The business stores the customer's information.
↓
The business sends a confirmation SMS.
↓
Later, the business sends an SMS notification.
↓
The customer dials USSD to check additional information.
This creates a customer journey across multiple communication channels.
For businesses looking to combine customer communication with services such as Bulk SMS, WhatsApp, USSD and other business communication tools, you can explore MSpace here:
https://mspace.co.ke/r/C3D8071C4D
What Should You Ask a USSD Provider?
Before choosing a provider, don't simply ask for the price.
Ask questions such as:
1. What is included in the setup cost?
Determine whether development, hosting, integration and support are included.
2. Is the USSD code shared or dedicated?
Understand exactly what type of code you are receiving.
3. What are the recurring charges?
Ask about monthly fees, maintenance and other recurring costs.
4. Are there session or transaction charges?
Understand how usage is billed.
5. Can the service connect to an API?
This is important if you already have other software.
6. Can you integrate payments?
If payments are part of your business model, clarify the available options.
7. Can you access transaction data?
Find out how you will monitor usage and transactions.
8. What happens when the service goes down?
Ask about technical support, monitoring and service availability.
9. Can the service scale?
A service handling 500 users may have different requirements from one handling 500,000 users.
10. What security measures are available?
This becomes particularly important if the service handles personal information, account information or payments.
How to Make Your USSD Service Easy to Use
A technically functional USSD service can still fail if the customer experience is poor.
Follow these principles.
Keep Menus Short
Avoid overwhelming customers with too many choices.
Instead of:
Product A
Product B
Product C
Product D
Product E
Product F
Product G
Product H
Consider grouping related options.
Use Simple Language
Customers should immediately understand what each option means.
Instead of complicated technical terminology, use straightforward phrases such as:
1. Buy Product
2. Make Payment
3. Check Order
4. Get Help
Provide Confirmation
After an important transaction, provide confirmation.
For example:
Your registration was successful. You will receive a confirmation SMS shortly.
This gives the customer confidence that the process worked.
Give Customers an Exit
Always provide a way to leave or return to the main menu.
For example:
0. Back
9. Main Menu
99. Exit
Who Should Consider Creating a USSD Service?
USSD can be relevant to many types of organizations.
Potential users include:
Retail businesses
Schools
Churches
NGOs
Financial service businesses
Healthcare organizations
Insurance businesses
Real estate companies
Transport companies
Membership organizations
Event organizers
E-commerce businesses
Customer-service teams
Subscription businesses
Service providers
Government and community programs
The key question is not whether your industry "uses USSD."
The better question is:
Would my customers benefit from being able to access this service through a simple phone menu?
If the answer is yes, USSD may be worth exploring.
What Information Do You Need Before Requesting a USSD Quote?
Prepare a basic requirements document.
Include:
Business name:
Your organization.
Target users:
Who will use the service?
Expected usage:
How many users or sessions do you anticipate?
Main functions:
What should customers be able to do?
Payment requirements:
Will customers make payments?
Existing systems:
What databases, websites, APIs or software need integration?
Notifications:
Will you need SMS or WhatsApp notifications?
Customer data:
What information will you collect?
Reporting:
What information do you need to monitor?
Having these details ready can make discussions with providers much easier.
Don't Build USSD Just Because You Can
The technology is only valuable when it solves a genuine customer or operational problem.
Before investing in development, identify the exact process you want to improve.
For example:
Problem: Customers constantly call to ask about their order.
USSD solution: Customers dial a code and check order status themselves.
Or:
Problem: Customers struggle to register for a service.
USSD solution: Customers complete registration through a short menu.
Or:
Problem: You need to collect information from thousands of participants.
USSD solution: Customers complete a structured questionnaire using their phones.
This approach ensures your USSD investment is connected to a measurable business objective.
Can USSD Be Combined With SMS, WhatsApp and Other Channels?
Yes, and this is where USSD can become part of a larger customer communication strategy.
Imagine this customer journey:
1. Customer sees an advertisement
↓
2. Customer dials USSD
↓
3. Customer registers
↓
4. Customer receives an SMS confirmation
↓
5. Business sends relevant updates
↓
6. Customer uses WhatsApp for support
↓
7. Customer uses USSD to check account information
This combines different channels according to what each channel does best.
USSD handles interactive phone-based services.
SMS handles direct notifications and messaging.
WhatsApp can support conversational communication.
Websites and apps can handle richer experiences.
The goal is not necessarily to choose one channel.
It is to create a customer journey that makes sense for your business.
Ready to Create a USSD Service for Your Business?
If your customers need a simple way to register, access information, interact with your business, make requests, receive notifications or complete transactions without downloading an application, USSD may be worth exploring.
The important steps are straightforward:
Define the problem → Design the menu → Choose a provider → Build the backend → Integrate your systems → Test → Launch → Promote
The cost will depend on the complexity of your requirements, the provider, integrations, usage and ongoing services.
If you are also looking for business communication solutions that can bring together channels such as Bulk SMS, WhatsApp, USSD and other customer communication tools, explore MSpace:
https://mspace.co.ke/r/C3D8071C4D
Start by identifying the one customer problem you want USSD to solve. Once that is clear, it becomes much easier to determine what technology, integrations and budget you actually need.
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