Onboarding and activation

Activation is not the completion of a tour or registration, but rather early behavior related to future value and retention. Find that signal from data and research, then remove the steps between the user’s intent and the result; add learning only where the interface cannot be simplified.

What is onboarding and activation

Practical definitions

Onboarding is the user’s first experience with a product: all the steps that it takes from the moment of first registration or login. At this point, it’s important to show the person value, teach basic use, and not be intimidated by complex screens or demands.

**Activation is an event or series of actions after which the user begins to actually use the product, feels the benefit and stays more often. Usually activation is the moment when a person has made a key target action: reached the first check in e-commerce, made the first note in the application for notes, uploaded the contact to CRM and so on.

Why they are important for growth and money

Poorly working onboarding = high outflow and lost revenue. If the user does not know what to do, he will go to a competitor or simply delete the application, and not built into the key scenarios.

Example: Subscription for meditation. If the onboarding is long and the person does not hear the first meditation on the first two screens, the conversion to a paying audience will sag. Such a product will flow even with a large marketing budget.

Onboarding Structure and Scenarios

The classic user path

Usually the scenario looks like this:

1. Welcome screen + explanation of why the product and what to do.
2. Filling a couple of fields (minimum obstacles)
3. Demonstrate usefulness on real data or examples (preferably with personalization).
4. The first target action (activation).
5. Mild screenshots, tips, messengers on the background, so that they do not interfere, but help.

Example: in an online bank, activation is often the addition of a card or a transfer, not just the installation of an application.

Mistakes and anti-patterns

1. Too many screens, all mandatory.
2. The value is not immediately shown - a long wait for the result.
3. Require complex registration before first familiarity with the product.
4. Not adapted for different segments.

How to improve: throw out all the unimportant from the first steps, allow you to familiarize yourself with complex registration, use dynamic tips for user segments.

Metrics and how to count them

Key metrics

• Activation Rate (the percentage of users who reach the target action)
• **Time to Value (how much time it takes to feel good)
• Retention Day 1, 7, 14 (how many users are left after the first days).
• Revenue per new user (ARPU on new users after first experience)

An example of calculation: if 100 people downloaded an app and 20 made their first purchases, your activation rate is 20%. To accelerate growth, test how to increase this share by at least 5-10 points.

Where to look and how to look for benchmarks

Onboarding metrics are key for any market, but their values are purely dependent on the segment and product. For example, gaming products typically have a higher activation rate than B2B SaaS. For reference:

Do not compare the activation rate of different products without the same definition of event, window and audience. A useful benchmark is the own dynamics of comparable cohorts and the relationship of the activation event with subsequent retention.

More metrics and comparisons are in Amplitude guides and Mixpanel benchmarks.

Experiments for growth and monetization

How to test and what to improve

Look at the activation curve by segment: if someone falls off among new users, find out where exactly (by screens, by steps, by requests for support).

Try these hypotheses:

• Transfer the payment step after the first success, not before.
• Remove unnecessary registration fields (for example, surname or e-mail, if possible).
• Add a clear demonstration of benefits (case, video, interactive guide).
• Test the welcome bonus - sometimes even the free first feature draws deeper, speeds up the payment.

Example: fintech service checks a mini-simulation, in which the client sees the calculation of a potential cashback before registration. The test should separate curiosity from value: in addition to completing the demo, the team looks at whether the user has plugged in the right product and returned to the actual scenario.

How to Discard Failing Ideas

The main rule is to track everything, always look at the data on cohorts and first sessions. If adding a step or hint does not raise the metrics after 2 weeks, return the old version or try another.

See examples of tests and parsings in GrowthHackers and a16z Activation Framework.

Day 1, 7, 30: Retention after activation

Why do you activate some and lose others?

The user can go onboarding and activate, but further fall off. Reasons:

• They promised one thing, and constant experience another.
• The benefits were not obvious in practice.
• It is too difficult or long to press to the main feature.

Example: hotel booking service. The person installed the application, passed the first search (activation), but did not book – because he did not see the benefits or conditions worse than on Booking or competitors.

How to return users

A personalized remaster works the next or a couple of days after activation: a letter, a push or even a call if it is a large check.

In addition: to cling to a promotional offer on those who fell off after the first step - to involve, and then try to monetize.

Frequent mistakes and how to avoid them

Major failures

• Ignoring Segments: Everyone is shown the same scenario.
• Lack of analysis and quick iteration: Waiting long without improving conversions
• Too early or too late paywall/monetization: either you scare away or you don’t catch the motive for payment.
• There is no work with a return in the post-activation stage.

Anti-pattern: Do long, “explanatory” onboarding instead of a short demo of the main feature. If you have a music service, turn on the first song, and do not drive according to instructions.

FAQ

How to distinguish onboarding and activation in mobile products?

Onboarding is the first steps and user training. Activation is a specific action when a person first feels a benefit or has made a targeted action.

What are the most important metrics when assessing the effectiveness of onboarding?

Main: Activation Rate, Time to Value, retention of first days (Day 1/7/14 Retention)

Is it worth doing complex gamified onboarding scripts?

Gamification works if it helps to show value faster and simplify the first experience. But the complexity of onboarding often reduces conversions and confuses the new user.

How many screens are optimal for onboarding?

Usually 2-3 screens or steps are enough to avoid overloading. All the extra is taken out in tips and help during the work.

When is the best time to show paywall?

After the first demonstration of the main feature or after the first successful experience. Not immediately after registration - otherwise you can scare off.

How do I know if my onboarding is successful?

Compare the number of new users with the number of people who reached the key action and break down the loss by segments and channels. A big dump in the first step requires diagnosis, but in itself does not say that the interface is to blame: some traffic may come with the wrong expectation.