Growing your product activation rate to increase revenue

Activation success rate is one of the most important digital product indicators that helps measure the goal of revenue generation and the impact of the digital product to the brand.

This blog focuses on growing your product activation rate. With overall Digital Growth, you can create a series of experiments to remove all obstacles to activating new customers. To learn more about Digital Growth, check this Article: Digital Growth, a new approach to digital product development.

Activation concept

Many people get confused with the differences between activation rate metrics and active product users. While they are related, they are calculated differently and may require different types of actions to improve them, respectively.

Digital Growth: Growing your product activation rate to increase revenue

Digital Growth: Growing your product activation rate to increase revenue

Onboarding – from acquisition to activation

When the Marketing area, the Growth hacking area, or even specialized companies bring the customer into the product, that is when the onboarding process begins. 

Onboarding starts when a customer accesses the product. For example, in the case of an application, when they download the product from a mobile store and access its first screen, to the moment they can access product features. Some products have activations that take more than one step, when the user makes a more simplified registration and then must complete the activation to use more specific features. It all depends on the strategy used when creating the product.

The big challenge during this long process is to encourage the customer not to back out. Whenever a client come to us with an application, given our experience application development, one of the main reasons for complaints is about customers who can neither finalize their registration nor log into the application. Then we begin to study all the data to find the reasons for such problems during the process.


In Practice

When analyzing store reviews of 5 applications from different segments, from April to June 2020, we identified 5 main reasons for common complaints. 

Digital Growth: Growing your product activation rate to increase revenue

The second most common of those complaints, 23.53%, was related to activation. Of that number, 94.25% of Androids users and 97.29% of IOS users rated the store 1 or 2, making the app store’s general rate dramatically fall, which harms the company’s image and discourages potential customers when they access the application.

Discovering these problems and the biggest offenders enables us to see a number of opportunities and experiments that will lead us to finding a solution. 

Recently, in a study at the activation funnel of one of the applications we developed, we discovered a big problem in one of the steps. A change in flow resulted in a 43% to 86% increase in the activation rate. A small action was able to double the activation rate, and there was no visibility of the problem before the study was carried out.

Digital Growth: Growing your product activation rate to increase reven

The most important part of this process is measuring the activation rate to know if the experiments we are performing are working. There’s a common saying: Your worst mistake is not knowing where your mistakes are at, or what you did right. Consequently, it is essential to take a clinical look at the data and then make decisions that will help customers find the product so interesting that they become active users.

Digital Growth: Growing your Product Revenue and Savings

And what is the relationship between revenue and savings with the activation success rate?

The answer is simple: how much your product may be losing when we don’t look at the whole process carefully. 

As we know, an active user is the one that generates revenue, which is important for your company. It can even mean savings when we think about how much you lower the operating cost. Everything depends on the purpose of that product. 

Making your product attractive and discovering the behavior that leads a customer to do something within it is a matter of survival in today’s market. It is a job that must be thoroughly analyzed. With analysis, we can discover the moment when the customer is prone to take action and start at that point, making the flow easier for the customer, not only in the onboarding process but throughout the product.

To generate revenue/savings, it is essential to remove all obstacles for the customer so that product engagement is constant. The general idea is not to let that opportunity of increasing your company’s revenue slide simply because what happens during activation with the digital product is not yet crystal clear.

This is one of the approaches we work on in Digital Growth: focusing on growing the activation indicator and number of active customers. We use data to drive the strategies we will create to further expand the company’s customer base.


By: Ana Cristine Veneziani – Head of Growth Product

Aligned. Agile. Accelerated.