Quick Answer (TL;DR)
Notification Interaction Rate measures percentage of notifications acted upon. The formula is Notification actions / Notifications sent x 100. Industry benchmarks: Push: 5-15%; In-app: 15-30%. Track this metric when optimizing notification strategy.
What Is Notification Interaction Rate?
Percentage of notifications acted upon. This is one of the core metrics in the engagement metrics category and is essential for any product team serious about data-driven decision making.
Notification Interaction Rate measures how deeply users interact with your product after the initial activation. Strong engagement is the bridge between activation and retention --- users who engage deeply are far more likely to stick around and eventually pay (or pay more).
Understanding notification interaction rate in context --- alongside related metrics --- gives you a more complete picture than tracking it in isolation. Use it as part of a balanced metrics dashboard.
The Formula
Notification actions / Notifications sent x 100
How to Calculate It
Suppose you measure notification actions at 500 and notifications sent at 2,000 in a given period:
Notification Interaction Rate = 500 / 2,000 x 100 = 25%
This tells you that one quarter of the base is converting or meeting the criteria.
Benchmarks
Push: 5-15%; In-app: 15-30%
Benchmarks vary significantly by industry, company stage, business model, and customer segment. Use these ranges as starting points and calibrate to your own historical data over 2-3 quarters. Your trend matters more than any absolute number --- consistent improvement is the goal.
When to Track Notification Interaction Rate
When optimizing notification strategy. Specifically, prioritize this metric when:
You are building or reviewing your metrics dashboard and need engagement indicators
Leadership or investors ask about engagement performance
You suspect a change in product, pricing, or go-to-market strategy has affected this area
You are running experiments that could impact notification interaction rate
You need a quantitative baseline before making a strategic decision
How to Improve
Optimize the numerator. Increase the number of users or events in notification actions through better UX, clearer CTAs, and reduced friction in the conversion path.
Qualify the denominator. Ensure notifications sent represents the right audience. Better targeting means a higher conversion rate.
Build habit loops. Design triggers (notifications, emails, integrations) that bring users back to perform the core action on a regular cadence. Habits drive sustainable engagement.
Improve feature discovery. Users cannot engage with features they do not know exist. Use contextual tips, progressive disclosure, and smart defaults to surface relevant capabilities at the right time.
Study power users. Your most engaged users reveal the product's highest-value workflows. Analyze their behavior patterns and find ways to guide other users toward similar usage.
Common Pitfalls
Ignoring sample size. Small sample sizes produce volatile rates that do not reflect true performance. Ensure you have statistically significant data before drawing conclusions or making changes.
Confusing activity with value. High engagement numbers can mask users who are struggling rather than thriving. Pair engagement metrics with satisfaction and outcome metrics.
Measuring without acting. Tracking this metric is only valuable if you have a process for reviewing it regularly and a playbook for responding when it moves outside acceptable ranges.
Related Metrics
Collaboration Rate --- percentage of users who interact with other users
Search Usage Rate --- percentage of sessions that include a search
Content Consumption Rate --- percentage of available content consumed
API Call Volume --- number of API calls made by users/integrations
Product Metrics Cheat Sheet --- complete reference of 100+ metrics