Activation Rate

Activation Rate refers to the percentage of new users who complete a specific action after signing up for a product or service. This action could be creating an account, setting up a profile, or completing a tutorial. Activation Rate is a crucial metric for product managers as it helps measure the effectiveness of onboarding and user engagement strategies.

Think of Activation Rate like a party invitation. If you send out 100 invitations but only 30 people show up, your Activation Rate is 30%. The higher the Activation Rate, the more successful your product is in getting users to take that crucial first step towards becoming active and engaged users.