Push Notification Strategy: How to Increase User Retention by 88%?

Push notifications are one of the most powerful tools in the mobile application arsenal. When used properly, they can increase user retention by up to 88%, improve conversions 3-4 times, and create a direct connection with customers. However, poorly implemented push notifications become annoying spam, leading to app uninstalls. In this comprehensive guide, we'll discuss how to create an effective push notification strategy.

The Power of Push Notifications in Numbers

Unlike email or social media, push notifications reach the user directly on their phone - even when the app is closed. This creates a unique opportunity to communicate in real-time and encourage immediate action.

Types of Push Notifications and Their Use

1. Transactional Notifications

These notifications inform about user-initiated actions and have the highest open rate (up to 80%):

• Order confirmation - immediately after purchase
• Shipping updates - dispatch, delivery
• Payment confirmation - successful payment
• Account security - login, password change

2. Marketing Notifications

These drive sales and engagement but require a more careful approach:

• Promotions and discounts - limited time offers
• New products - based on user interests
• Seasonal campaigns - holidays, Black Friday
• Loyalty programs - points, special offers

3. Behavioral Notifications

These respond to user actions in the app:

• Abandoned cart - 70% of carts are abandoned before purchase completion
• Price drop - for wishlist products
• Back in stock - product available again
• Viewed products - reminder about interest

4. Engagement Notifications

These encourage regular app usage:

• Reminder - for inactive users
• Achievements - gamification elements
• News - relevant content
• Personalized recommendations - based on history

Optimal Sending Time

Research shows that notification timing can affect open rates by up to 40%. Here are recommended times:

Time	Audience	Notification Type	CTR
8:00 - 10:00 AM	Everyone	Daily news, reminders	6-8%
12:00 - 2:00 PM	Workers	E-commerce, food	8-12%
5:00 - 7:00 PM	Everyone	Entertainment, promotions	10-15%
8:00 - 9:00 PM	Users at home	E-commerce, content	12-18%
Sunday 6:00-8:00 PM	E-commerce	Weekly promotions	15-20%

Personalization: The Key to High CTR

Personalized notifications achieve 4x higher CTR than generic ones. Here are the levels of personalization:

1. Basic Personalization

• Name - "Hi, John! We have an offer for you"
• Location - "Free delivery to New York today!"
• Language - English/local language based on settings

2. Behavioral Personalization

• Purchase history - "Your favorite Nike Air Max is back in stock!"
• Browsing history - "Discount on products you viewed"
• Categories - recommended products based on interests

3. Advanced Personalization (AI)

• Predicted behavior - likely conversion
• Optimal time - individual sending time
• Content recommendations - ML-based

Segmentation: Targeted Audience

Effective segmentation allows sending the right message to the right people. Main segmentation criteria:

Segment	Criteria	Notification Strategy
New users	Registered within 7 days	Onboarding, first purchase discount
Active buyers	Purchase within 30 days	New products, loyalty offers
At-risk group	Inactive 30-60 days	Re-engagement, special discounts
Churning	Inactive 60+ days	Aggressive offers, "we miss you"
VIP customers	High purchase value	Exclusive offers, priority
Cart abandoners	Incomplete purchase	Reminder, completion discount

A/B Testing: Continuous Improvement

A/B testing is essential for optimizing push notification effectiveness. What to test:

Elements to Test

• Headline - questions vs statements, emoji vs no emoji
• Message length - short (30 chars) vs long (90 chars)
• CTA - "Buy now" vs "Learn more"
• Time - different sending times
• Urgency elements - "Today only" vs "Limited offer"
• Personalization - with name vs without name

Testing Best Practices

• Test only one element at a time
• Use at least 1,000 users per group
• Wait for statistical significance (95%+)
• Document results and apply findings

GDPR Compliance: What You Need to Know

Mandatory Requirements

1. Clear consent (Opt-in)
   • User must actively agree to receive notifications
   • Cannot use pre-checked boxes
   • Must explain what notifications they will receive
2. Easy opt-out
   • One-button opt-out option
   • Settings in the app
   • Granular control option (e.g., opt-out of marketing only)
3. Data security
   • Don't put personal data in notification text (visible on lock screen)
   • Encrypt transmitted data
   • Keep consent records

GDPR-Compliant Opt-in Strategy

We recommend a "two-step" consent process:

1. Soft-ask - explain the benefits of notifications within the app
2. System dialog - only then show the official permission request

This strategy increases consent rates from 40% to 70%.

Key Metrics and KPIs

Metric	Description	Good Rate	Excellent Rate
Opt-in Rate	% who agreed to notifications	40-50%	60%+
Delivery Rate	% successfully delivered	95%+	98%+
Open Rate (CTR)	% of opened notifications	5-10%	15%+
Conversion Rate	Conversion from opened	1-3%	5%+
Opt-out Rate	% opted out per month	<5%	<2%
Uninstall Rate	Uninstalls after notification	<2%	<0.5%

Tools and Platforms

Firebase Cloud Messaging (FCM)

Google's free platform, suitable for most projects:

• Price: Free
• Pros: Reliability, integration with Firebase ecosystem, analytics
• Cons: Limited segmentation options, basic A/B testing
• Best for: Startups, small/medium projects

OneSignal

Most popular third-party push platform:

• Price: Free up to 10,000 subscribers, from $9/month
• Pros: Advanced segmentation, A/B testing, in-app messages
• Cons: Advanced features are paid
• Best for: Medium and large projects

Airship (formerly Urban Airship)

Enterprise-level solution:

• Price: From $100/month
• Pros: Full functionality, ML personalization, premium support
• Cons: High price
• Best for: Large enterprises, e-commerce leaders

Tool Comparison

Feature	Firebase	OneSignal	Airship
Starting price	Free	Free	~$100/month
Segmentation	Basic	Advanced	Enterprise
A/B Testing	Yes (limited)	Yes	Yes (advanced)
Personalization	Basic	Good	ML-based
Analytics	With Firebase Analytics	Integrated	Advanced
Integration	Easy	Easy	Medium

Pricing Overview

Push notification system implementation and management prices:

Service	Price	What's Included
Basic integration	200-500 EUR	FCM/OneSignal setup, basic notifications
Medium integration	500-1,500 EUR	+ Segmentation, A/B testing, analytics
Full system	1,500-4,000 EUR	+ Automation, personalization, GDPR
Enterprise	4,000+ EUR	Custom solution, ML, full integration

Common Mistakes to Avoid

Conclusion

Push notifications are an integral part of a successful mobile application. A properly implemented strategy can increase user retention by up to 88%, improve conversions 3-4 times, and create a strong connection with customers.

Key success factors:

• Personalization - segment your audience and tailor messages
• Right timing - send when users are active
• Value for user - every notification should be useful
• A/B testing - continuously improve your strategy
• GDPR compliance - ensure legal safety
• Measurement - track KPIs and respond to changes

Start with Firebase Cloud Messaging if you're building a new project, or OneSignal if you need more advanced features. Most importantly - start and continuously improve your strategy based on collected data.