# Newsletter Week 27: Why Onboarding Determines Everything
This week, we're focusing on a critical topic for every digital product: user onboarding.
The Power of First Impressions
First impressions aren't just important – they often determine success or failure. The statistics speak for themselves: Up to 40-60% of users never open apps again after the first day, and even among remaining users, many struggle with confusing product experiences.
The good news: Excellent onboarding isn't coincidental, but rather a system that can be systematically developed.
Activation as a Key Metric
Our analysis centered on the pirate metrics with special focus on "A" for Activation. We've learned that the proportion of new users who become activated regular customers is crucial for sustainable growth. Just as cafés rely on regular customers, digital products depend on returning, activated users.
The activation metric consists of:
Core action: The feature that conveys your product's value
Frequency: How often and within what timeframe the action must be performed
Identifying the Core Action
A product may have 1000 features, but only one determines whether users stay or leave. We've shown how important it is to identify the right core action – one that not only contributes to activation but also has a strong correlation with long-term user retention.
Cohort analysis is a proven tool for this: Which feature is used by as many users as possible long after registration?
Benchmarks for Activation Rate
Finally, we took a look at industry benchmarks:
SaaS (General): Average ~37.5%
B2B SaaS: Top performers achieve 47% or more
B2C SaaS: Typically between 25-34%
Special sectors like Healthcare (~23.8%) or E-Commerce (5-15%) show industry-specific characteristics
A low activation rate is a warning sign: It indicates wasted acquisition budget, inadequate onboarding, or lack of product-market fit.
Conclusion
The journey from signup to activated user significantly determines the long-term success of your product. By defining the right metrics, identifying your core action, and continuously optimizing onboarding, you can not only activate more users but also generate sustainable growth.
We hope these insights help you take your user onboarding to the next level!
Do you have questions or comments about this newsletter? Feel free to share your thoughts in the comments or reply directly to this email.
Best regards
Alexandros Shomper