App Activation Rate is a metric showing the percentage of users taking necessary actions post-download to start using an app.
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App Activation Rate in ecommerce specifically measures the proportion of users who, after installing a mobile application, have performed a specific set of actions mandating them as "activated" users. Activation is a critical step in the customer lifecycle as it is the transition point from a download to a potential active user. Essentially, it denotes the users who move beyond mere installation to explore the functionalities of the app.
App Activation Rate = (Number of activated users / Number of app downloads) * 100%
Let's assume a retailer's mobile app was downloaded 1,000 times in a month. Out of these, 500 users performed the required actions (like registration or first purchase) to be considered activated. So, the monthly App Activation Rate would be (500 / 1,000) * 100% = 50%.
App Activation Rate is a crucial indicator of the initial success of your mobile app. A high activation rate shows that your app's value proposition aligns well with user expectations, and thus more users are getting engaged. On the other hand, a low rate alerts you to address potential issues that might be preventing users from using your app post-installation.
App Activation rate can be impacted by various factors such as quality of the app's user interface, effectiveness of the onboarding process, relevance of app's functionality to the user, technical issues like bugs or errors, app’s loading speed, and user motivation.
Improvement strategies might include streamlining the onboarding process, offering incentives for the completion of activation steps, enhancing app usability, and providing specific instructions or features to guide downloads toward activation.
App Activation Rate is directly correlated to other essential ecommerce metrics like customer lifetime value (CLV), user engagement, and retention rate. An increase in App Activation Rate signifies more active users, potentially leading to higher user engagement, improved retention, and consequently, a higher CLV.