State of Customer Messaging - 2022 REPORT - OneSignal
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What’s Inside Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 State of Customer Messaging in 2022 How Messaging Strategy is Evolving . . . . . . . . . . . . . . . . . . . . . . . . . . 05 The Value of a Multichannel Approach . . . . . . . . . . . . . . . . . . . . . . . 09 Delivering Hyper-Personalized Experiences at Scale . ...... 12 Growth Hacking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Earning Push Notification Opt-in Permission . . . . . . . . . . . . . . . 20 Measuring Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 How OneSignal Can Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 State of Customer Messaging in 2022 2
Introduction Today, users expect hyper-personalized, relevant, and timely communication across every touchpoint. It’s hard to fathom how many unprecedented changes have occurred in the last few years — and humbling to think what that could mean for the future. Some digital trends that we assumed were temporary a short time ago have now permanently altered how we communicate, congregate, and conduct business. Creating a multichannel communication strategy has become table stakes for companies who want to compete in today’s digital age. Although mobile was already an important channel prior to 2020, the pandemic has transformed it into a top priority for many companies. As people continue to spend more time on digital channels, the opportunities to engage with users across a range of devices have become more abundant. Reports show that users spent 30 percent more time per day on mobile apps in 2021 and app spending rose by 20 percent to reach $170 billion. But new opportunities also breed new challenges. As the demand for digital experiences has increased, so have user expectations for those experiences. Users spent 30% more time per day on mobile apps in 2021 and app spending rose by 20% to reach $170 billion. State of Customer Messaging in 2022 3
Today, users expect hyper-personalized, relevant, and timely communication across every touchpoint — whether they’re ordering groceries on an app, tracking an online order, or confirming an upcoming vaccination appointment. There’s no question that attracting, retaining, and converting users requires robust data and technology solutions. But what impact can those solutions and features really have on your business? And how can companies continue to evolve to meet the challenges ahead? We surveyed more than 500 product and marketing professionals, engineers, and C-suite members from small startups to international brands and compiled statistics from 10 billion daily messages sent through OneSignal to help you evolve your communication strategy in 2022 and beyond. State of Customer Messaging in 2022 4
How Messaging Strategy is Evolving Marketers, developers, C-suite members, product, sales, and business owners all ranked push notifications as the number one most important channel to their business. Although push notifications are a relatively new channel compared to email, they’ve become an invaluable resource for sending both transactional and marketing messages. In addition to being a highly visible form of communication, this channel has the ability to reach a global audience even after they’ve exited an app or a website. They’re also an incredibly versatile medium, which is why marketers, developers, C-suite members, product, sales, and business owners all ranked push notifications as the number one most important channel to their business. State of Customer Messaging in 2022 5
61% of respondents said that mobile push notifications are currently the most important channel for their business. Customer Communication Ranking Based on Importance Source: OneSignal Survey However, the rising popularity of push notifications doesn’t mean that older channels are becoming irrelevant. In fact, survey respondents still ranked email as the second most important channel to their business. Compared to push notifications, email has greater longevity in a user’s inbox and provides more room for content, making it well-suited to communication like news- letters, invoices, and onboarding workflows. Despite some early skepticism about the fate of email in a mobile-first era, email continues to be a valuable resource — even for mobile apps. If there was any question as to why mobile push notifications were voted as the most important channel, this statistic says it all. The immediacy of State of Customer Messaging in 2022 6
mobile push notifications makes this channel ideal for re-engaging users and enticing them back to an app or website. The majority of respondents said that mobile push notifications are the most effective re-engagement channel for their business. Most Effective Re-engagement Channel Source: OneSignal Survey Although cost-per-install for mobile apps is at an all-time low, retaining and converting app users into paying customers is becoming more expensive. As customer loyalty wanes amidst rising competition, companies will continue to look for opportunities to improve retention and increase customer lifetime value (LTV). And for good reason — studies have shown that a five percent growth in customer retention can result in revenue gains of 25 to 95 State of Customer Messaging in 2022 7
percent. Compared to new customers, retained customers also spend more and make purchases more often. If you’re looking for opportunities to boost customer loyalty, mobile push notification will continue to be a must-have channel. Majority of respondents said that mobile push notification will be the most important channel to their company in the next couple of years. Most Important Communication Channel in Next 1-2 Years Source: OneSignal Survey State of Customer Messaging in 2022 8
The Value of a Multichannel Approach Mobile push notifications may be considered the most valuable channel, but that doesn’t mean it’s the only one you need. Using multiple channels to communicate with customers has been shown to help companies reach a larger audience, respect audience preferences, improve their user experience, and ultimately boost brand loyalty. Another benefit of a multichannel approach is that it allows you to match your messaging content and context to the appropriate channel. Whereas push notifications and SMS are well-suited to time-sensitive content and alerts, email might offer more content “real-estate.” Understanding the strengths and drawbacks of each channel can help you choose the right one for each messaging use case. For instance, our data shows that in-app messages have 25 to 30 times higher click-through rates than push notifi- cations on average. This performance gap is likely due to the fact that in- app messages are displayed to an engaged app audience. In-app messages also don’t require opt-in permission, so they have the potential to reach a broader audience than other channels. Simply put, if you’re only using one channel, then you’re missing out on a massive opportunity to engage more users on their terms. 68% of respondents said that having a multichannel communication strategy was very important or extremely important to their user experience. State of Customer Messaging in 2022 9
Understanding Messaging Use Cases Across Channels We asked survey respondents to characterize their use of different channels into three categories: transactional messages, marketing messages, or both transactional and marketing messages. What are Transactional Messages? Transactional messages are typically automated messages that are triggered by a specific action that a user or customer has taken. These messages are unique to each user and contain important information regarding the action in question. Transactional messages are sent on a “need to know” basis and are critical to creating a seamless user experience. Examples of transactional messages include order confirmations, delivery updates, shipping information, account balance alerts, and password reset links. State of Customer Messaging in 2022 10
What are Marketing Messages? Marketing messages are sent to influence a user into taking a specific action. Whereas transactional notifications are more logistical in nature, marketing messages are meant to delight and entice your audience. They’re typically sent to segmented user groups and include some personalization to make the content more relevant to the recipient. Marketing messages can promote special offers or deals, or may simply share relevant content to entice users into re-engaging with your site or app. Types of Messages Sent by Channel Source: OneSignal Survey We found that most channels were used in a versatile way for both transactional and marketing messages. However, web push notifications were used most often for marketing messages and SMS was favored for transactional messages. State of Customer Messaging in 2022 11
Delivering Hyper-Personalized Experiences at Scale Notifications that use personalized content have a 259% higher engagement rate than notifications that don’t use personalized content. Message Targeting & Personalization In a short span of time, personalization has gone from being a “nice to have” to a fundamental customer expectation. And the stakes are higher than ever — more than half of consumers say that they’re more likely to become repeat buyers after a personalized shopping experience, whereas 45 percent say that an un-personalized experience would cause them to shop elsewhere. In other words, investing in personalization is paramount in order to compete and thrive. When it comes to your brand communication, the impacts of personalization are profound. If you’re not personalizing your brand communication, then it’s not just your user experience that’s suffering. The customer engagement generated by personalized content completely eclipses that of non-personalized content. This delta represents a profound growth opportunity for savvy companies to gain a competitive edge. State of Customer Messaging in 2022 12
Messages that use Segments have 83% higher rates of engagement than those that don’t. Personalization isn’t just limited to message content. Segmenting your audience can help you personalize your messaging strategy to an even greater degree by targeting messages to the right audience and delivering them at the right moment in their user journey. In addition to these personal- ization benefits, proper segmentation can help you automate and scale your messaging strategy with greater ease and efficiency — two benefits that will help you outpace your competition. Across all channels, mobile push notifications have the highest increase in engagement when segments are used. When Segments are used for mobile push notifications, the average engagement rate improves by 50 percent. State of Customer Messaging in 2022 13
Message Design When it comes to your messaging strategy, aesthetics matter more than you might think. Images, emojis, gifs, and other design elements can help draw attention to a message and lend emotional context and depth to the content. Impact of Images on Push Notification CTR Across Google Play Store App Categories App Category Avg. Increase in CTR App Category Avg. Increase in CTR Art & Design +289% Lifestyle +53% Beauty +64% Maps & Navigation +58% Books & Reference +131% Medical +1,634% Business +128% Music & Audio +267% Education +119% Parenting +90% Entertainment +138% Photography +522% Events +23% Productivity +58% Finance +52% Shopping +53% Gaming +267% Social +1,147% House & Home +322% Sports +71% Source: OneSignal State of Customer Messaging in 2022 14
On average, notifications that use templates have 17% higher engagement rates compared to those that don’t. Messaging templates offer a variety of benefits, whether you’re using them for email, SMS, push notifications, or in-app messages. On a basic level, using templates can save you time and resources when crafting messages and reduce the margin for error when sending content to different devices. In addition to streamlining content creation, messaging templates help to deliver a consistent and recognizable brand experience that extends beyond an app or website — and ultimately helps to create a seamless omnichannel experience that users trust. State of Customer Messaging in 2022 15
Although using templates is smart, not all templates are created equally. High-quality templates are typically built to be responsive to different device types so that the content always looks good no matter where it’s viewed. A good template will also help to create a hierarchy of information and use design elements like headers, buttons, and spacing to make the content easier to understand and point to a specific action the audience should take. On average, notifications using OneSignal templates have 31% higher engagement rates than notifications that use custom templates. State of Customer Messaging in 2022 16
Growth Hacking It’s not uncommon for campaign optimization to take a backseat to other competing priorities. Oftentimes, companies settle for good performance numbers without realizing that they’re forgoing greater ROI and growth potential. There are a variety of simple, yet overlooked opportunities to improve messaging performance. The statistics below highlight the significant impact that small strategic changes can have on your success. Honing Notification Timing Notifications sent using Intelligent Delivery perform better than notifications that are scheduled for a specific time. Timing may not be the first thing that comes to mind when you think of personalization, but it certainly falls under that umbrella. In addition to the message content, the timing of a message can make it resonate or seem irrelevant. For time-sensitive content such as transactional messages, the importance of having good timing is obvious. But timing can also impact the effectiveness of marketing campaigns. Using engagement triggers to customize the delivery time of promotions and opt-in requests to each user’s journey can help increase the likelihood of conversion. State of Customer Messaging in 2022 17
Optimizing Message Performance with A/B Testing On average, A/B testing leads to a 15% improvement in message engagement. A/B testing, or split testing, is the process of testing out different message variations on sample audience groups in order to optimize campaign performance. Testable notification elements include title, subtitle, body copy, images, icons, badges, emojis, sounds, logos, launch URL, and CTAs. State of Customer Messaging in 2022 18
Message Localization Notifications using localization have a 28% higher engagement rate than notifications that don’t. On a basic level, message localization entails customizing your messaging campaigns based on users’ location. One of the most common types of message localization is language localization, a process by which messages are automatically translated into different languages based on a user’s phone location or preferred language settings. If you operate an international company, language localization is a must- have feature because it helps to create a more personalized and seamless user experience. Even for national brands, localization techniques such as altering message send time by timezone can improve UX and engagement rates. State of Customer Messaging in 2022 19
Earning Push Notification Opt-in Permission Using a pre-permission prompt improves iOS opt-in rates by 50%. In a world where the average person receives upwards of 60 notifications a day (including spam messages), many users have become more selective about the types of communication they’ll allow and increasingly wary of vague requests. Oftentimes, when users reflexively click “no” to web browser and mobile permission requests, what they’re really rejecting is irrelevant interruptions and unexplained demands. Herein lies the catch-22: how can companies live up to customer expectations for push when the first notification a user receives undercuts the value of this medium? Today more than ever, users expect companies to earn their trust before asking for access in return. With regard to opt-in messages, meeting this expectation requires honing your message timing and using a pre-permission prompt. Pre-permission prompts appear before the native iOS prompt and pro- vide users with the context they need to make an informed opt-in decision. Whereas Android devices automatically allow push notifications (with options to disable), iOS users must first provide consent by responding to Apple’s native permission prompt, which makes pre-permission prompts even more vital. State of Customer Messaging in 2022 20
Using OneSignal’s in-app messaging tool, it’s easy to execute a pre-permission prompt that automatically triggers the native prompt. The best part? You don’t need to implement a complex messaging flow in order to see results. Creating a single, short prompt message improves iOS opt-in rates by 50 percent. Although pre-permission prompts aren’t yet vital for Android, that may soon change with the release of Android 13. In addition to future-proofing your messaging campaign, implementing Android pre-permission prompts can actually improve the user experience and prevent users from opting out of notifications in their phone’s settings. In fact, Android apps that implemented pre-permission prompts boosted their opt-in rate by 15 percent. Android apps that implemented pre-permission prompts boosted their opt-in rate by 15%. State of Customer Messaging in 2022 21
Measuring Success It’s no secret that measuring the success of messaging campaigns can help you pinpoint areas for optimization. Tracking engagement can also help you boost revenue and unlock additional growth opportunities for your business beyond your messaging strategy. A majority of consumers today expect brands to provide personalized cross-channel experience — delivering on that expectation in real-time demands that businesses collect and leverage first-party data wisely. Click-through rate is the primary KPI used to measure messaging strategy effectiveness. KPI to Measure Messaging Strategy Effectiveness Source: OneSignal Survey State of Customer Messaging in 2022 22
Click-through rate (CTR) is the number of clicks that a message receives divided by the number of times it’s shown (i.e. impressions). Measuring CTR can tell you how effective your messaging strategy is at inciting action, which is why it’s a popular performance barometer. Good CTR typically means that messages are relevant to their target audience, whereas poor CTR can indicate room for improvement. Although CTR is an essential baseline metric, it won’t give you the full story behind a click. For instance, it’s possible for a notification promoting an online sale to earn a high click-through rate and not lead to many purchases. To truly understand user engagement, it’s important to identify where users drop off in their journey and evaluate CTR in relation to other overarching goals. A majority of respondents were very or extremely confident that messaging campaigns were having a positive impact on company goals. Confidence in Messaging Campaigns Positively Impacting Company Goals Source: OneSignal Survey State of Customer Messaging in 2022 23
How OneSignal Can Help As you look for a messaging provider, it helps to understand the ROI of different solutions. However, locating objective data on that subject can be tricky. We wanted to help take some guesswork out of your search and pro- vide greater visibility into the ways that OneSignal can impact bottom-line performance. In order to do so in an objective way, we commissioned For- rester Consulting to conduct a Total Economic Impact™ (TEI) study to ex- amine the potential return on investment (ROI) companies may realize by using our product. Download the full study to discover why our clients earned 425% ROI over three years and other ways we supported their growth. The Total Economic Impact TM of OneSignal Download Study State of Customer Messaging in 2022 24
About OneSignal OneSignal is the market-leading customer messaging and engagement solution, offering mobile and web push notifications, in-app messaging, SMS, and email. OneSignal’s powerful multichannel platform enables over one million businesses to deliver billions of messages daily. Powered by superior architecture, OneSignal is designed to scale and deliver personalized and engaging messages. By providing an open API, extensive documentation, free accounts, and intuitive personalization and analytics tools, OneSignal helps businesses of all sizes provide a seamless messaging experience to create meaningful customer connections. Trusted by Leading Brands State of Customer Messaging in 2022 25
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