Activation Rate

Activation Rate is a metric that measures the percentage of users who complete a certain milestone in the onboarding process of a startup's product.

This milestone is usually a specific event that increases the likelihood that the user will come back and continue using the product, such as creating a profile, completing a tutorial, or making their first purchase.


FORMULA

[Numbers users who complete the set milestone / Total number of users who signed up] Γ— 100 = Activation Rate (%)


For startups, the activation rate is a critical metric to track because it indicates the effectiveness of the onboarding process in converting new users into engaged customers.

If the activation rate is low, it may suggest that the onboarding process is too complicated or confusing, and users drop off before completing key milestones. By monitoring the activation rate and identifying where users are dropping off, startups can improve the onboarding process and increase the likelihood of users becoming engaged customers.

Activation rate can also help startups to gauge the quality of their leads and assess the effectiveness of their marketing efforts. If many users sign up but fail to complete the activation milestone, it may indicate that the marketing messages are not accurately targeting the right audience.

Tracking the activation rate can help startups to optimize their onboarding process and improve the chances of acquiring and retaining loyal customers.

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