Implementing any new communications channels, including push notifications, should serve your well-defined business objectives. That’s why it’s useful to take a look at your ROIs and learn how web push and mobile push can improve their results. 

Valuing your ROI results

Generally speaking, ROI, or Return on Investment is a financial metric that is widely used to evaluate the profitability of an investment. In the context of e-commerce, ROI specifically measures the return generated from the money invested in various marketing, advertising, and operational activities related to an online store.

A positive ROI indicates that the e-commerce business is generating profit from its investments, while a negative ROI suggests that the costs exceed the returns. Monitoring ROI is crucial for e-commerce businesses to make informed decisions about resource allocation, marketing strategies, and overall business growth. Additionally, ROI analysis helps e-commerce entrepreneurs and marketers optimize their efforts to maximize profitability and ensure a sustainable and successful online business.

ROI with push notifications

Having the basic definitions out of the way, we can take a look at ROI connected strictly with push notifications. Let’s look at some areas where push notifications can have a positive impact. 

Customer engagement: Push notifications can help increase customer engagement by sending timely and relevant messages to your audience. This can lead to higher user retention rates and more frequent interactions with your app or website.

Conversion rates: Well-targeted push notifications can drive users back to your app or website, increasing the likelihood of conversions. For example, you can use push notifications to promote special offers, discounts, or limited-time deals.

Retention and churn reduction: By keeping your audience engaged and informed, push notifications can help reduce churn rates. They can be used to remind users about your app's value and encourage them to return.

Cart abandonment recovery: For e-commerce businesses, push notifications can be effective in recovering abandoned shopping carts. Reminding users about their pending purchases and offering incentives can lead to increased sales.

Personalization and user segmentation: Tailoring push notifications to specific user segments based on their behavior, preferences, and demographics can lead to higher ROI. Personalized messages resonate more with users.

Customer feedback: Push notifications can be used to solicit feedback, reviews, or ratings from users. This can help improve your product or service and build stronger relationships.

Promotion of new content or features: If you have recently added new content, features, or updates to your app or website, push notifications can be an effective way to inform your audience and encourage them to explore the changes.

Time-sensitive information: Push notifications are excellent for delivering time-sensitive information, such as breaking news, flash sales, or urgent updates. They have a high chance of being seen quickly by users.

App or website reminders: Push notifications can be used to remind users about the value of your app or website, encouraging them to log in, explore new features, or perform specific actions.

Measuring your ROI with push notifications

Click-Through Rate (CTR): This metric measures the percentage of users who clicked on a push notification after receiving it. 

Conversion rate: This metric tracks the percentage of users who completed a desired action after clicking on a push notification. It could be making a purchase, signing up for a newsletter, or any other defined conversion goal.

Opt-in and opt-out: Measure the percentage of users who opted in to receive push notifications and those who opted out. This can help you understand user sentiment and the quality of your messaging.

Churn rate: Track the percentage of users who stop using your app or website over a specific period. Push notifications can influence user retention, so monitoring churn rate can provide insights into their impact.

App opens and pageviews: Monitor the number of times users open your app or visit your website after receiving a push notification. This helps gauge the effectiveness of the notifications in driving traffic.

Feedback and ratings: If you solicit feedback or reviews through push notifications, monitor the response rate and track the sentiment of user feedback.

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Analyzing push notifications results in the Analytics Panel 

Staying on top of your ROI indicators is crucial to good decision-making. That’s why in our Analyics Panel, you can find the most important statistics describing your push performance in real time. If you want to find out more about the panel, see our blog post describing it in more detail. 

And if you want to talk about push notifications and strategies, contact us at hello@pushpushgo.com