How To Get Started With User Activation?
And cut through the confusion & complexity.
I would say that the topic of user activation is one of my favourites to work on & write for, because:
It's extremely data-driven exercise. Guesswork doesn’t apply here and the amount of computation you need to do is tremendous (which is what I love).
You always need to reiterate from the beginning in every new company you join. Yes, you can get the framework and base foundation, but you cannot copy the output.
Being not part of the core PM team, it's a great way to deeply learn about your customers, how they interact with your service/business, and how you can serve for the longer stay.
This is going to be a more foundational and in-depth go-to guide for teams to pick up and figure out how to approach user activation.
Let's deep dive.
What is activation?
User activation is defined as the point where new users successfully navigate through the initial setup and onboarding process for the first time. This process encompasses a range of activities, events, or specific benchmarks that users must achieve to be considered 'activated'.
These activities might encompass actions such as registering, creating a user profile, and accomplishing their inaugural task. Alternatively, it might involve initiating a free trial, going through the introductory guide, inviting team members for collaborative work within the product, and ensuring the entire team is engaged.
However, user activation is not confined solely to new users. For existing customers, activation can occur when they start using a newly introduced feature, access a new section of your product by upgrading from a free to a paid subscription, or when they enhance their experience by switching from a basic to a more advanced plan.
Our ultimate objective is to increase our base of 'active users', regardless of whether they engage daily, weekly, or monthly.
Why is it important not to overlook user activation?
There are a few major points, in my opinion, on why I believe companies/teams should never skip adding 'activation' into their roadmap.
It's a bridge between product and marketing.
Many would consider user activation as focusing only on the product side of things, and in some instances, that is correct. But from my observation, what companies are missing is to tie that back to their user cohorts they acquire and the sources they are coming from. Activation is an area where you either win or lose them quickly and where the whole concept of 'product-channel fit' kicks in. Never look at it as a silo, but rather as a bridge.
Activation is the only place where you touch 100% of your newly acquired users.
Every single newly acquired customer needs to go through activation in order to be valuable for your business. So it's up to you to create an amazing activation experience for them and try as much as possible to minimize drop-offs.
A key area where you impress or not your customers.
Getting users to experience as fast as possible your core value proposition should be your top priority when designing your activation experience. This is also the time to get them 'impressed' by showcasing that you understand their needs and can solve their problem.
An accelerator into better user retention.
Getting your users to be long-term retained starts with well-defined activation steps and processes. The faster your user reaches the 'aha' and 'habit' moment, the higher the chances are of them being retained.
What are the steps of defining an activation flow?
In this module, we are going to deep dive into the individual steps that define a successful activation experience. We will look into simple examples from top companies and what is the best way to figure out these 'moments' for your business.
In order to simplify the complexity of the activation process, below you can see how it looks from a step's point of view a user needs to take. It's important to understand the difference between the different states of retention and engagement. The data below will be excluding the 'Signed Up' step, as I think it's quite straightforward.
When you define your activation, it's important to work BACKWARDS (from Habit > Aha > Setup Moment).
Setup Moment
In a simple definition, this is the initial phase where a user configures or personalizes the product, setting the stage for their future interaction and engagement with it. Think of it as the steps that a user needs to do in order to get "warm started" within your product.
There are 3 must-have categories in your setup moment:
User Information: Think of it as everything about the user, company, credit card, location, etc.
User Permissions: Channel, location, or device permissions.
User Social: To get value, users need others in the experience.
Basically, you are searching within your user data for the action/actions that correlate best with the Aha Moment, as these steps are connected.
For Slack, important information to collect would be email and name. For a first-time user, their onboarding asks you to invite friends/colleagues to experience the core usage of the platform.
For Pinterest, email, name, gender, and topics of interest are key data points, as they can personalize your feed once you onboard, so you can start engaging immediately.
Setup Metric For Pinterest: Follow 5 Topics, Within First Day of Singing Up
For AirBnB, they collect personal and social information as well.
Setup Metric For AirBnB: First Night Booked Within / in 1 Month
Aha Moment
This is the moment when a user first realizes the value of the product, often marked by significant insight or revelation about how the product can benefit them. This is key in the whole activation experience, as it's the time when the user gets "real value" out of your product and starts building a habit around it.
Using the example from above
For Slack, it will be the time when user start to interact with the platform ( chats ).
Aha Moment Metric For Slack: Exchanged 3 Messages ( at least ) Within The First 7 Days
For Pinterest, since you've given your basic info and topic of interest, it's important for them to get action around pinning content on the feed, as this is what makes the platform unique.
Aha Moment Metric For Pinterest: First Pin Within The First 7 Days
For Airbnb, the time horizon is a bit different, as you might book the first night but complete it after more than 1 month. That's why the focus is more on the experience in the metric.
Aha Moment Metric For AirBnB: Completed Booking With Ratings of 4 Stars In The First 6 Months.
Habit Moment
This is described as the point at which a user regularly incorporates the product into their routine, indicating it has become a habitual part of their life or work.
Building the Habit Moment within your activation flow is a way to retain users in the long-term, as they already have an idea of how your product can solve their problem.
There are 3 important aspects to remember when defining the Habit Moment:
Building a Habit = Repeat behavior.
You should not copy/paste other products' Habit Moments, as the time to establish it varies based on behavior.
Every user is in a different mindset during their habit formation.
Lets use the examples from above again:
For Slack, since you've explored the uniqueness of the platform, they want you to start engaging daily to be retained longer.
Habit Moment Metric For Slack: Exchange ( at least ) 1 Message 4 Out of First 7 Days
For Pinterest, since pinning is not a daily thing, it's important to keep the core action and engagement within the first month; otherwise, the user will slowly disengage and churn.
Habit Moment Metric For Pinterest: Pinned / Repined 4 Days Out of First 28 Days
For Airbnb, they know people usually travel on average 2 to 3 times per year. So their habit metric is about getting more bookings on their platform.
Habit Moment Metric For AirBnB: Booked 2 Times Within First Year
How to measure activation?
Now that we have an understanding of what activation is and the components within it, it's time to delve into how to quantify it.
I typically begin by examining the activation funnel at the highest level. This approach helps to understand how various cohorts are performing and to identify opportunities for improvement or potential issues. Below is some 'dummy data' I've created to showcase a good way to analyze and take action. There are many ways to interpret this data.
What is a good activation rate?
It's challenging to pinpoint a one-size-fits-all activation rate, as it varies based on product type, industry, milestone definition, and other factors.
Below, you'll find data from a study by Lenny, which was compiled through surveys of numerous companies across different industries and segments. To provide a more specific and actionable guideline, consider the 60th percentile as indicative of a 'good activation rate' and the 80th percentile as a 'great activation rate'.
What is activation rate and how to calculate it?
The activation rate refers to the proportion of newly acquired users who reach a specific milestone in their journey with your product or service. This milestone is often the 'aha moment', which is designed to deliver value to the users as quickly and effectively as possible.
The formula to calculate an activation rate is:
Activation Rate = ( # Users Hitted the Your Activation Milestore ) / ( # Users who Successfully Singed Up )
Common Mistakes to Avoid When Defining the Activation Milestone
Not Clear of the Activation Milestone in Your Business
Often, the mistake here is defining the activation metric too early or too late in the user journey. Key clarifications include:
Sign-up completion is not an activation milestone.
Retention is not an activation milestone.
Generating revenue is not an activation milestone.
Increases in vanity metrics like sessions or app logins are not activation milestones.
Not actionable
A frequent error in startups is picking an easily attainable metric, either because it's simpler to reach or the volumes are larger. However, a good activation milestone needs to be actionable, measurable, and easy to experiment with (allowing for quick data gathering).
Ex. An e-commerce platform initially sets an ambiguous activation goal like ‘users feeling satisfied’. Realizing the need for a more actionable metric, they change this to ‘users completing their first purchase within two weeks of signing up’, which is a measurable and actionable milestone.
Over-complication the activation definition
Keep the activation milestone straightforward. A complex definition with too many variables can muddy the understanding of what constitutes true user activation. Aim for a clear, concise metric that reflects meaningful user engagement.
Ex. Example: A company initially sets an activation milestone requiring users to complete 10 different tasks within the first week. Realizing this is too complex and overwhelming for new users, they simplify it to just two key actions: completing their profile setup and making their first transaction.
Focusing Too Narrowly on Early Engagement
Broaden your view beyond initial interactions. True activation extends past first logins or actions, encompassing sustained use and value realisation, which is crucial for long-term engagement.
Ex. An app initially considers a user activated after their first login and a single use of a basic feature. They later adjust this to include continued engagement over a month, such as revisiting the app several times and using multiple features, to better capture true activation.
Overlooking User Journey Variability
Remember that users have diverse paths to activation. Avoid a one-size-fits-all approach. Recognize and account for different user experiences and backgrounds, adapting the activation milestone to fit various user journeys.
Ex. A fitness app initially sets a uniform activation metric of completing three workouts in the first week. However, they soon adapt to different user fitness levels by customising activation milestones: new exercisers might have a goal of one introductory workout, while more experienced users are encouraged to try a variety of advanced workouts in their first week.
What are common ways to improve your user activation?
I will share a few of the top focus areas I deep dive, when working on user activation. For sure, they are way, but these are 1 I`ve found quite impactful.
Focus on onboarding ( simpler with less frictions )
Its probably the highest impactful area, to increasing your activation rate. Think about everything testing and improving everything around: clear CTAs, removing unnecessary link or areas that drive the user outside of the low or reducing steps in the onboarding flow etc.
Focus on your copy writing
Effective copywriting plays a vital role in user activation. Clear, compelling, and concise language can guide users through the onboarding process, explain the product's value, and encourage engagement.
Focus on comms ( email flow & follow up )
Emails not are not a channel that you can underestimate in your activation flow. Not everyone will engage and many will drop-off. The idea is to use proper email sequencing, frequency and value, not just to spam & remind them about your product, but to showcase value and move them to experience the core value proposition.
Think strategies like: email follow ups, how-to videos, sending email once they complete a step in the activation flow or even personalisation content for new users etc.
Add incentive / reveal value prop earlier
Offering incentives or revealing the value proposition earlier in the user journey can motivate users to activate quicker. Whether it’s a free trial, a discount, or early access to premium features, incentives can make users more eager to explore and use your product.
Personalize the experience
By tailoring the onboarding experience to individual user needs and preferences, you make the product more relevant and engaging. This could involve customising content, recommendations, or functionalities based on user data, thus creating a more connected and satisfying user experience.
Simplifying Core Functionalities
Simplifying the core functionalities of your product ensures that new users can easily understand and use the essential features. This simplicity is critical for activation, as it allows users to quickly realize the product’s value without feeling overwhelmed.
Embarking on the path to user activation is an exciting and dynamic journey. In my experience, gaining a deep and empathetic understanding of your users is crucial. It's about connecting with their needs and motivations. Pair this insight with a clear and practical activation metric that truly reflects user engagement.