What is Activation Rate?
Share of new users hitting a key value milestone.
How to calculate it
Calculate Activation Rate as: Users reaching activation event / Signups × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
350 of 500 new sign-ups complete their first project (the 'aha' moment) -> 70% activation.
Example 2
350 of 500 new sign-ups complete their first project -> 70% activation. Cohorts that activate retain at twice the rate of those that don't.
Why it matters
Activation rate is the share of new users who reach a key value milestone and is an early predictor of retention and conversion. It pinpoints whether onboarding is successfully getting users to their 'aha' moment. Choosing a weak or arbitrary activation event undermines its predictive power.
Benchmark context
Define the activation event around your product's core value moment; benchmark against your own cohorts, since the right event is product-specific.
Common pitfalls
Choosing a weak activation event.
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