Measures the percentage of new users who complete a desired action, such as signing up, making a purchase, or subscribing to a service. It is a critical metric for evaluating the effectiveness of onboarding and initial user experience. This is once again an specific case of the more general [[Conversion Rate]]. ## Key Influences - **Onboarding Process** – A smooth, engaging onboarding experience increases the likelihood of conversion. - **Clarity of Value Proposition** – Users are more likely to convert if they immediately understand the product’s benefits. - **User Experience (UX) & UI Design** – Intuitive design, minimal friction, and clear call-to-actions enhance conversion. - **Incentives & Hooks** – Discounts, free trials, or personalized recommendations can improve first-time conversions. ## Differences from Related Metrics - **[[User Activation Rate]]** – Measures the percentage of users who reach a key activation milestone that indicates they have realized value (e.g., first engagement with a core feature). Activation is about user progress, whereas conversion is about initial action completion. - **[[Onboarding Completion Rate]]** – Tracks the percentage of users who finish the onboarding process. While related, onboarding completion does not necessarily mean conversion (e.g., a user might complete onboarding but not subscribe or make a purchase).