What activation rate measures
Activation rate measures what % of new users reach a meaningful value moment ('aha' event) after signup. It's one of the best leading indicators of retention because users who don't activate rarely stick.
Formula
Activation rate = activated users / signups
How to define activation (practical)
- Pick an event that correlates with retention (validate with cohorts).
- Use a threshold (e.g., created 3 items) to avoid counting one-off clicks.
- Keep definitions stable; changing activation breaks trend comparability.
How to improve activation
- Reduce time-to-value: simplify onboarding and remove friction.
- Drive users to the activation path: templates, defaults, guided steps.
- Fix early lifecycle quality issues: speed, reliability, and support clarity.
Activation benchmarks (directional)
- Define an internal baseline and target a steady upward trend.
- Activation benchmarks vary by complexity; enterprise workflows often activate slower.
- Measure activation within a fixed window to keep comparisons fair.
Activation QA checklist
- Ensure activation events are deduped across client and server.
- Separate new users from reactivated users in the numerator.
- Validate that activation predicts retention in cohort data.
Common mistakes
- Using vanity events as activation (not linked to retention).
- Mixing users vs accounts across periods.
- Comparing activation across channels without segmenting intent and persona.