Growth Frameworks For Your Marketplace: What You Must Know To Build Savvy Push Notifications

Growth Frameworks For Your Marketplace: What You Must Know To Build Savvy Push Notifications

In the world of marketplace businesses, driving growth is essential for success. However, the approach to achieving growth can vary depending on whether you are supply-constrained or demand-constrained. Identifying which side of the marketplace you are more concerned about in the mid-term is crucial in determining your growth strategy.

Supply-constrained marketplaces focus on increasing engagement from suppliers and turning them into "power sellers" or "power users." The goal is to deepen the relationship with suppliers, making your platform their primary channel and source of income. By understanding the unit economics and lifetime value (LTV) of supply-side acquisition, you can effectively grow the supply side. Capturing more demand with the same or similar types of supply is a cost-effective starting point. Once you dominate a specific market, you can expand into adjacent categories.

On the other hand, demand-constrained marketplaces focus on product innovation and expansion to attract more users and capture additional demand. Product expansion at a low cost is crucial in driving growth. Global network effects, where the value to consumers is driven by the total number of users on the network, can be attractive. However, expanding into new geographies too early can leave local marketplaces vulnerable. For local marketplaces, achieving market leadership in one geography and replicating the success quickly in other locations is a common strategy.

When it comes to building savvy push notifications, three key elements are crucial: timeliness, personalization, and actionability. Push notifications should be delivered at the right time, tailored to the user's preferences, and provide actionable information. The challenge lies in developing a cadence where users make your app a daily habit. If users do not open your app regularly, they may miss out on valuable experiences.

To ensure users engage with your push notifications, it is essential to deliver on their expectations from the first notification experience. If users do not find value in the initial notifications, they may choose to opt-out of receiving them or even uninstall the app. Therefore, it is crucial to build safety nets and carefully assess the metrics related to notification strategy, such as the opt-out rate, uninstall rate, and actions per hundred pings.

Personalization is key in creating effective push notifications. By adding personalized tidbits and using relevant emojis, you can make the notifications feel like they are coming from a close friend. In an experiment, using emoji-heavy notifications resulted in significantly higher user engagement and open rates. However, it is important to note that if a notification vibrates a user without a sense of urgency, there is a higher likelihood of immediate app uninstallation.

While push notifications can be effective in boosting retention and engagement rates, it is important not to solely rely on them as a growth hacking tool. Building a solid foundation for user engagement and retention is essential before implementing push notifications. By understanding the unique dynamics of your marketplace and creating compelling push notifications, you can drive growth and enhance the user experience.

Actionable Advice:

1. Determine whether your marketplace is supply-constrained or demand-constrained to focus your growth strategy effectively.
2. Assess the metrics related to your push notification strategy, such as opt-out rate, uninstall rate, and actions per hundred pings, to optimize engagement.
3. Personalize your push notifications and consider using relevant emojis to enhance user engagement and open rates.

In conclusion, understanding the dynamics of your marketplace and implementing growth frameworks tailored to your specific constraints is crucial for success. By effectively growing the supply side or capturing more demand, you can drive growth and enhance the user experience. Additionally, building savvy push notifications that are timely, personal, and actionable can further boost engagement and retention. With the right strategies in place, you can unlock the full potential of your marketplace and achieve long-term success.