Activation Rate

Also called Activation

The share of new users who reach the point where they first experience the product's core value, the aha moment, rather than signing up and drifting away.

Why it matters

Activation is the bridge between acquisition and retention: users who never activate almost never stick. Improving it is often the highest-leverage fix for a leaky funnel, cheaper than buying more traffic.

For example

Of 1,000 people who sign up, 300 complete setup and send their first message, so the activation rate is 30 percent.

Go deeper

The Adjacent User Theory Andrew Chen · article How the users just beyond your core, the ones who almost activate but do not, hold the key to unlocking the next wave of growth. Open andrewchen.com →

Related terms

Also in Starting Up

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

eChai Partner Brands The partnership →