Industry KPIs: Push notifications continue to be an effective awareness and performance channel

The trend: There's been a significant increase in the effectiveness of push notifications on Android, according to 2023 data from our Industry KPI partner MoEngage—although metrics vary by industry.

• In retail, the highest click-through rate for broadcast push notifications was 1.3% in Q2 2023, while travel and hospitality hovered between 1.7% and 1.8%. However, the conversion rate for travel and hospitality fell to just 1.0% by Q3.
• Meanwhile, delivery rates for broadcast push notifications have shown sluggishness, but retail has been a standout, with an increase from 70.8% in the first quarter to 74.8% in Q3 2023.
• The media and entertainment sector had notable growth in Q3 2023, with behavior-based personalized notifications achieving a conversion rate of 7.8%, better than the 7.0% for journey-based notifications. This shows that customizing content to individual behaviors is particularly effective in this industry.
• Conversely, the retail industry saw higher conversion rates from journey-based notifications (7.5%) compared with 5.7% for behavior-based ones, indicating the complexity of retail customer journeys.
• The travel and hospitality and banking, financial services, and insurance sectors saw lower engagement in Q3 2023, suggesting that these industries could use a more detailed approach to effectively reach customers.

Why it matters: Studies show that push notifications are essential for companies like Uber, Amazon, and airlines to send offers and updates to their customers.

• Push notifications are effective because they reach customers directly and quickly—critical for sharing time-sensitive offers and information. Their ability to be customized boosts user interaction, retention, and sales, and features like geo-targeting allow for precise location-based promotions.
• Modern notifications also include rich media for a better user experience, and data analytics are key to improving strategies based on delivery, opening, click-through, and conversion rates.

OS matters: MoEngage data also shows Android has surpassed iOS in push notification conversion rates, especially in personalized notifications based on customer behavior and journey.

• Despite that, iOS continues to show strong performance, with increasing conversion rates through 2023, reflecting its effectiveness with similar personalization tactics.

The big takeaway: Optimizing push notifications is crucial, requiring a deep understanding of user behavior and preferences.

• As this technology advances, incorporating rich media and detailed personalization, businesses can achieve significant benefits from well-planned, data-driven marketing campaigns.

Go deeper: Interested in seeing more push notification benchmarks? Industry KPI subscribers can get right to benchmarking performance against over 400+ industry benchmarks; see more here.

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