This value can take the form of viewing an ad, making a purchase, or converting from a free trial to paid subscription. We define activation as the point at which a user finds value in the product and goes on to provide value to the business. Activation isn’t only about bringing users to the aha moment. Throughout this chapter, you’ll see that we define activation more strictly than others. 500 Startups’ founder Dave McClure describes activation as “users enjoying their first visit”, “ Startup Metrics for Pirates“. Most of the existing content out there about activation define a new user as activated when they have a good user experience and derive value for the first time. We calculate real growth in new users by measuring activation. They’re vanity metrics that fail to measure real usage or engagement in your product and the real ROI of your marketing spend “ Make Your Pirate Metrics Actionable“. ![]() This means metrics like total number of app downloads, new account sign-ups, and Daily Active Users are poor measures of new user growth. 2.1 | Defining growth in new usersįirst, we have to talk a little bit about how we’re defining activation in this playbook and why this matters for measuring new user growth.Īccording to Tanner McGrath, Head of Analytics at Amplitude, and formerly PM of Growth Engineering at Postmates, real growth is about driving scalable and repeatable business outcomes. Finally, we round out the chapter by sharing a case study on how Blue Apron used Amplitude and A/B testing software Optimizely to better activate their new users. Then, we share a step-by-step guide on how to quantitatively measure growth in the different phases of activation. In this chapter, we will discuss the three phases of activation in detail and explain why new user activation doesn’t just stop at the aha moment, but continues up something called the ladder of engagement. In the best case scenario, you’ll find that increasing activation rate improves new user retention, and contributes to the real growth of your business. The process of getting new users to the aha moment, and then to the point where you get business value back from them is called activation.Īctivation matters because users who find value and invest within your product early on will likely stick around longer. In Chapter 1, we defined the moment when a user first derives value from your product as the aha moment. No matter which game you’re playing-attention, transaction, or productivity-engaging new users is all about offering them a small but unforgettable taste of your product’s value early, so that they come back for the second time, then the third, fourth, and more. It doesn’t matter if your product is great otherwise a poor first-time experience could mean you’ve lost them forever. If you’re great at acquiring new users but unsuccessful at showing them value, you can expect that new user retention curve to dip straight to zero. Bracket retention analysis: measured percentage of users returning on Day 0, Days 1-7, 8-14, 15-30, 31-60, 61-90.* *This graph shows average retention for the first 90 days of use on mobile apps – both Android and iOS. Remember when we mentioned that the average app loses almost their entire user base within a month? Turns out that in a bracket retention analysis we did of 500 million Android and iOS mobile devices, we found that 66% of new users abandon apps within the first week of install. Whether you’re at a job interview or on a coffee date, first impressions matter-and the same goes for your product. At the end of this chapter, we also share a special case study on how Blue Apron uses product analytics and experimentation to better activate their new users. ![]() ![]() In this chapter on new user activation we’ll begin to put those models into practice. Now you have two mental frameworks in your pocket: The Three Games of Engagement as a way to think about what value your product offers users and vice versa and the Engagement Loop as a way to describe the actions and triggers an engaged customer experiences.
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