.png)
Estd 4.22.2023
In today's hypercompetitive SaaS landscape, user engagement is currency. Push notifications have emerged as critical touchpoints in the customer journey, yet many executives struggle to accurately measure their effectiveness. With users receiving dozens of notifications daily across multiple platforms, understanding how your messages perform isn't just good practice—it's essential for survival and growth.
Research from Airship indicates that well-executed push notification strategies can increase app retention by up to 190%, while poorly implemented ones can drive users away permanently. This stark contrast underscores why measuring engagement correctly matters for your bottom line.
Let's explore the metrics, methodologies, and benchmarks that leading SaaS companies use to evaluate their push notification performance.
Key Push Notification Metrics Every SaaS Executive Should Track
Delivery Rate
What it is: The percentage of sent notifications that actually reach users' devices.
How to calculate: (Number of notifications delivered ÷ Number of notifications sent) × 100
Why it matters: A low delivery rate indicates technical problems or permission issues. According to Braze, the industry average delivery rate is between 90-95%, so falling below this threshold merits immediate investigation.
Open Rate
What it is: The percentage of delivered notifications that users tap on.
How to calculate: (Number of notifications opened ÷ Number of notifications delivered) × 100
Why it matters: This is your primary engagement indicator. Mixpanel data suggests that the average open rate across industries is around 5-8%, but top-performing SaaS companies aim for 12-15%.
Conversion Rate
What it is: The percentage of users who complete a desired action after opening a notification.
How to calculate: (Number of desired actions completed ÷ Number of notifications opened) × 100
Why it matters: This ties notification performance directly to business outcomes. Whether the goal is feature adoption, subscription renewal, or upsell acceptance, this metric translates engagement into value.
Time to Action
What it is: The elapsed time between notification delivery and user response.
How to calculate: Average time between notification delivery timestamp and action timestamp.
Why it matters: According to Leanplum, 90% of push notifications that get opened are acted upon within the first hour. Longer response times may indicate poor notification timing or insufficient value perception.
Opt-Out Rate
What it is: The percentage of users who disable notifications after receiving them.
How to calculate: (Number of users who opt out ÷ Number of notifications sent) × 100
Why it matters: This is your canary in the coal mine. OneSignal research shows that the average opt-out rate is around 3-5%. Rates exceeding this suggest your notification strategy may be damaging the customer relationship.
Setting Up Proper Attribution Models
Measuring push notification effectiveness requires proper attribution. Many executives make the mistake of using last-touch attribution, which often undervalues the role of notifications in the conversion path.
Implementing Multi-Touch Attribution
Modern SaaS leaders are implementing multi-touch attribution models that consider:
- Impression attribution: Counting notifications that were displayed, even if not clicked
- Influenced conversions: Tracking users who saw a notification and converted through another channel within a defined timeframe
- Sequence analysis: Understanding how notifications perform at different stages of the customer journey
According to AppsFlyer, companies using sophisticated attribution models see 23% more accurate ROI calculations on their messaging investments.
Segmentation: The Key to Meaningful Measurement
Raw engagement metrics can be misleading without proper segmentation. Effective measurement requires breaking down performance by:
User Segments
- New vs. returning users
- Free vs. premium tiers
- Active vs. at-risk customers
- Feature adoption levels
Message Types
- Transactional notifications
- Feature announcements
- Educational content
- Promotional offers
- Re-engagement campaigns
A CleverTap study found that segmented push campaigns show engagement rates up to 4-7 times higher than non-segmented blasts. This dramatic difference highlights why one-size-fits-all measurement approaches fall short.
Benchmarking Against Industry Standards
Context is crucial for interpreting your engagement metrics. Current benchmarks from Localytics for SaaS applications include:
- Average opt-in rate: 43%
- Average open rate: 6.7%
- Average conversion rate: 1.5-3.5%
- Average retention lift from push: 21%
However, these benchmarks vary significantly by:
- Industry vertical (B2B vs. B2C)
- App category (productivity, communication, analytics)
- Target audience (executives, knowledge workers, general consumers)
Advanced Measurement Techniques
Forward-thinking SaaS executives are going beyond basic metrics to develop deeper insights:
A/B Testing Framework
Implement systematic testing of:
- Message copy variations
- Send time optimization
- Notification frequency
- Visual elements
- Personalization variables
Leanplum's research indicates that personalized notifications show 800% higher open rates than generic messages, making testing these elements essential.
Cohort Analysis
Track how push engagement evolves over the customer lifecycle:
- First 30 days vs. long-term users
- Pre-upgrade vs. post-upgrade behavior
- Response patterns during onboarding
Retention Impact Analysis
Measure the incremental lift in:
- Session frequency
- Time-in-app
- Feature adoption
- Churn reduction
Implementing an Effective Measurement Strategy
Based on best practices from leading SaaS organizations, here's a framework for building your notification measurement system:
- Define clear objectives for each notification campaign (activation, engagement, conversion, retention)
- Establish relevant KPIs aligned with those objectives
- Implement proper tracking at both the notification and session levels
- Create segmented dashboards for executive visibility
- Set up automated alerts for significant performance variations
- Schedule regular review cycles to refine your notification strategy
Common Measurement Pitfalls to Avoid
Many SaaS companies make critical mistakes when measuring push notification engagement:
- Focusing only on open rates without considering downstream impacts
- Failing to account for notification fatigue in long-term metrics
- Not controlling for external variables like promotional campaigns
- Missing platform-specific differences between iOS and Android
- Overlooking the impact of notification permissions on delivery metrics
Conclusion: From Measurement to Action
Effective push notification measurement isn't about collecting data—it's about driving decisions. The most successful SaaS companies create feedback loops where engagement metrics directly inform notification strategy.
By implementing these measurement practices, you can transform push notifications from potential annoyances into strategic assets that enhance the customer experience while driving key business outcomes.
The differentiator between average and exceptional SaaS companies often lies in these seemingly small touchpoints. When properly measured and optimized, push notifications can significantly impact retention, expansion revenue, and ultimately, your company's valuation.
For SaaS executives serious about growth, the question isn't whether to measure push notification engagement, but rather how sophisticated your measurement approach will be.