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Formula
Activation Rate = (Number of Activated Users / Total New Sign-ups) * 100
Know your metric
Importance of
Activation Rate
Measure of Initial Success
The activation rate measures the success of initial user engagement strategies, reflecting how well new users are adopting and finding value in a product or service.
Indicative of Product Appeal
A high activation rate often indicates that the product or service is appealing and meets user expectations upon first use.
Predictor of Future Growth
Strong activation rates can be a predictor of future user retention and revenue growth, as initially satisfied users are more likely to continue using the service.
Drawbacks of
Activation Rate
Not Reflective of Long-Term Engagement
Activation rate focuses on initial engagement and may not accurately predict long-term user retention or satisfaction.
Can Be Misleading
High activation rates can be misleading if users activate but do not continue using the product beyond the initial phase.
Resource Intensive
Increasing activation rates can require significant marketing and product development resources to improve initial user experiences, which may not always be sustainable.
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