Company
Date Published
June 12, 2024
Author
Bill Higbee
Word count
1246
Language
English
Hacker News points
None

Summary

Estimating the value of notifications is crucial for maximizing return on investment (ROI). To quantify this, a three-step approach can be used: estimating how often notifications deliver a financial impact, assessing the dollar value of that impact, and calculating the ROI. By reframing notifications from a customer's point of view and using trusted research to build estimates, businesses can estimate the value of their notifications. For example, flight delay notifications can have an estimated ROI of 210%, while shipping notifications can have an estimated ROI of 130%. To increase the validity of analysis, best practices include using actual data whenever possible, clearly stating assumptions and data sources, and considering the impact on customer lifetime value and support organization costs.