Blog 66: Why are email marketing and push notifications so effective?
- Idea2Product2Business Team
- Jul 1, 2024
- 3 min read
Updated: 5 days ago
In blog 65, we looked at lifecycle marketing strategy, an always-on marketing strategy that continuously engages the target audience from initial contact to deep relationships.
Customer relationship management or CRM is a shared database (between marketing, sales, and support) that provides a 360-degree view of a prospect and a customer. Data points include, personal identification details, demographic details, product usage behaviour, usage behaviour on various acquisition channels, customer lifetime value (CLV) etc. By leveraging these data points, we can engage with prospects and customers more effectively.
When it comes to prospects, we need to reach out to them using customer acquisition channels (refer blog 54 and 56) such as:
- Emails
- Paid social media ads.
- Display ads.
- Website
- SEO
- Content marketing and etc.
When it comes to customers, we need to encourage customers to integrate our products into their daily lives. 'Hooked – How to Build Habit-Forming Products' by Nir Eyal discusses how companies that develop strong user habits achieve high retention and usage metrics (refer blogs 22 to 27 for more on the Hooked model).
To create a habit-forming product, you must link its use to frequent internal triggers and use external triggers to drive users to take action. These external triggers can be emails, push notifications and etc. Emails and push notifications can be used to communicate offers, discounts, loyalty programs, cross-sell/up-sell programs, and other personalised information.
Let us look at email marketing and push notifications in a little more detail.
Email marketing is a versatile communication channel. It can be leveraged for prospects and customers. There are broadly two types of emails: transactional and marketing emails.
Transactional emails are individual, one-off emails. For e.g. an ecommerce company may send out emails with a receipt and another email when the order has been shipped.
While marketing emails are more strategic and they need to be sent out in a certain logical order. These emails can be:
· Lead nurturing.
· Welcome emails.
· How-to
· Newsletters
· Promotional offers.
· Milestone emails.
· Feedback emails.
· Specific emails to certain user segment.
· Re-engagement emails.
· Abandoned cart emails.
Below is an example of the different emails that can be sent across the lifecycle.
Push notification is a direct way of communicating with customers (once the app is installed). It is a message that pops up on a device. These notifications must provide value to the user, or they will be ignored. Or, even worse, some users will uninstall the app. Once the app is installed, users have the option to opt-in or opt-out of push notifications.
As per studies and surveys:
· 44% of iOS users and 91% of Android users opt-in to push notifications.
· Push notifications have a delivery rate of 90%, 50% higher than open rates of emails.
· The click through rate (CTR) is seven times higher than emails.
· 40% of users interact with push notifications within an hour of receiving them.
· App users who receive one or more push notifications in their first 90-days have 190% higher average retention rates than those who don’t receive any push notifications.
So clearly, push notifications can significantly increase user engagement.
Other push notification use cases include:
· Guiding users in their app experience.
· Updates complementing the app’s gamifying experience.
· Time-sensitive offers and discounts.
· Latest news updates.
· Transactional updates.
· Engaging with disconnected users.
· Customer support.
Push notifications must be monitored and evaluated. Key metrics are click-through-rate (CTR)/open rate, opt-in rate, and conversion rate. Each of these metrics need to be measured with respect to its frequency and timing. Similar to emails, the Headline, Copy, Call-to-action for push notifications must also be tested.
Jump to blog 100 to refer to the overall product management mind map.
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I wish you the best for your journey. 😊
