StreamWave, a video streaming app, wants to test a new push notification strategy aimed at reactivating dormant users. Users are considered dormant if they have not opened the app in the last 28 days.
The product team ran a 14-day randomized A/B test. Control users received the current generic push reminder, while treatment users received a personalized push sent at the user's historically most active hour. Determine whether the new strategy significantly improves resurrection rate and whether the observed lift is large enough to justify rollout.
| Group | Users Assigned | Resurrected Within 7 Days | Resurrection Rate |
|---|---|---|---|
| Control | 48,500 | 2,328 | 4.80% |
| Treatment | 48,900 | 2,640 | 5.40% |
Additional business inputs:
| Parameter | Value |
|---|---|
| Significance level | 0.05 |
| Desired power | 0.80 |
| Minimum detectable effect (absolute lift) | 0.40 percentage points |
| Baseline resurrection rate for planning | 4.80% |