Business Metrics

What is Activation?

Definition

The moment when a new subscriber first experiences meaningful value from a service, increasing their likelihood of long-term retention.

Understanding Activation

Activation is the key milestone in the subscriber journey — it's when a user goes from 'signed up' to 'finding value.' Each service has specific activation criteria: for Dropbox it's saving the first file, for Slack it's sending 2000+ team messages, for Spotify it's following artists and creating playlists. Reaching activation within the first few days is critical — users who don't activate within the first week have a dramatically higher churn rate. For consumers, pushing past initial setup to truly use a service's core features helps determine whether the subscription is worthwhile.

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