Activation Rate
Definition
Activation rate is the percentage of signups who complete a key action that signals they got value. High activation predicts retention.
Extended Definition
Formula: Activation Rate = (Users Who Completed Key Action / Total Signups) x 100. Example: 1000 signups, 400 completed core workflow = 40% activation. Define activation milestone carefully: must correlate with long-term retention. Slack activation = sending 2000 team messages. Improve activation by: reducing friction, better onboarding, showing value faster.
Related Terms
Retention Curve
A graph showing the percentage of users who remain active over time after signup.
Time to Value
How long it takes a new user to experience the core benefit of your product.
User Onboarding
User onboarding is how you guide new users from signup to their first moment of value. Great onboarding feels effortless. Bad onboarding means users churn before they understand what you do.