>[!summary] > User Activation Rate is the percentage of users who successfully experienced the product's value firsthand User Activation Rate is the percentage of users who successfully reach an **activation milestone**, meaning they experience the product's value firsthand. This differs from [[onboarding completion rate]], which only tracks whether users have signed up or completed initial setup—activation measures actual engagement with the core value proposition. > [!formula] > $\text{User Activation Rate(\%)} = \frac{\text{Users who reached activation milestone}}{\text{Total sign-ups}}$ ## Why is it important - A high activation rate is **critical for long-term product success**. Without activation, sign-ups remain a vanity metric. - It serves as a **leading indicator of retention**, as users who experience value early are more likely to return. - It is also a **usability metric**, indicating whether users can quickly grasp and benefit from the product. ## Strategies to Improve Activation Rate Many strategies that improve conversion rates also help with activation, such as: - **Promotional codes** to incentivize users to take key actions or make first purchase. - **Reducing friction** by minimizing the number of steps/screens required to activate. - **In-app tutorials and guided experiences**, ensuring users understand the product and are directed towards an event that delivers value immediately.