A new user logs in for the first time, eagerly anticipating the solution that promises to simplify their work. Yet, as they navigate through the onboarding process and begin using key features, frustration mounts, the expected ‘aha moment’ doesn’t arrive, and they find themselves questioning the value of the time invested.

Meanwhile, everything looks healthy. Teams can point to activation rates, charts, and dashboards. Users completed onboarding. They created their first item. They used a key feature. And yet, the product still fails to resonate.

Users may log in once, follow the steps, and then disengage. Sometimes they continue using the product, but outcomes do not improve, and behaviour does not change. Adoption remains a challenge. This is especially frustrating for teams who believe the hard work is complete: the product is built, onboarding is refined, and metrics indicate users are “activated.”

Why, then, does it still seem that users do not fully understand the product?

In most cases, activation has been reduced to a trackable event when, in reality, it is a much more nuanced concept. Activation is not a metric. It’s a moment.

The Quiet Lie We Tell Ourselves About Activation

A common misconception is: “If a user completes onboarding and uses the product, they’re activated.” This definition is convenient, measurable, and easily incorporated into dashboards and reports, creating an impression of progress.

However, this approach confuses activity with genuine engagement.

A user can complete every step you put in front of them and still walk away unconvinced. They can click the “right” buttons without ever feeling that the product is worth the effort. They can do what you asked, without believing it will help.

In product terms, this is not activation but compliance. A successful product cannot be built on compliance alone.

Why This Misunderstanding Keeps Happening (Even in Great Teams)

Teams often misunderstand activation, not out of carelessness, but because industry practices encourage it. Analytics tools prioritise measurable actions, funnels reward sequenced behaviors, and stakeholders seek certainty, which numbers provide.

So activation becomes the first measurable behaviour in the journey:

  • first login
  • first action
  • first workflow
  • first “key event.”

That makes reporting easier. But it also encourages a dangerous assumption: “That action means the user understands the value.” To challenge this assumption and gain deeper insights, teams can conduct a quick experiment. For instance, interviewing five recent users who dropped off after initial sign-up can reveal patterns and misconceptions in user experience. This tangible step can convert insight into motion by highlighting areas where value communication can be improved.

Beyond interviews, teams can also employ other low-effort experiments to uncover value gaps. User surveys can be a valuable tool for gathering direct feedback on which aspects of the product are missing or need improvement. Additionally, session replays allow teams to observe user interactions with the product and identify moments of confusion or disengagement. These methods, together with A/B testing of different onboarding strategies, create a comprehensive approach to understanding user needs and improving product activation.

In practice, early usage is a poor substitute for genuine belief. This is why significant drop-offs often occur after initial use. Many SaaS teams report that 40–60% of sign-ups do not return after their first experience.

This is not a typical onboarding failure; it is a failure to demonstrate value.

Onboarding Explains How. Activation Answers Why.

This distinction is critical: onboarding teaches users how the product works, while activation demonstrates its value.

Onboarding is “Here’s how it works.”

Activation is “Here’s why this matters to you.”

While onboarding and activation may overlap, they are not the same. Confusing the two often leads to challenges. A user may complete onboarding and still feel:

  • “I don’t see how this helps me.”
  • “This feels like another tool I need to maintain.”
  • “This is more effort than it’s worth.”

Equally, a user can be activated before onboarding finishes. Sometimes it happens in one sharp moment: the first time they see a task become simpler, a risk become smaller, or progress become visible. The first time the product proves it understands their world.

Activation Is the First Moment a User Believes

True activation occurs when a user reaches a personal conclusion:

“This solves something real for me.”

“This fits how I work.”

“This is worth returning to.”

This belief may not be apparent or even conscious, but once established, it leads to natural behavioral change. It’s like flipping a switch: as soon as the user sees genuine value, they start forming a habit loop. First, they experience a cue that shows how the product solves their specific problem. For example, imagine a project management tool that sends notifications (cue) whenever deadlines are approaching. This prompts them to routinely check tasks (a routine action), using features that enhance their organisational skills. With repeated use, they receive a reward, such as completing projects more efficiently or receiving positive feedback from their team. Reinforced by these positive outcomes, the initial belief deepens, evolving into a stronger dedication to the product.

Without this belief, subsequent engagement is difficult. Retention becomes unstable, optimisation efforts lose effectiveness, and feature development becomes guesswork due to an unestablished foundation.

This is why so many teams feel like they’re shipping more, but getting less. They keep adding things to “increase engagement”, but engagement doesn’t appear. Instead, products get heavier and more complex, especially in enterprise environments where tools already compete with dozens of other systems and processes.

There’s a brutal stat that captures the cost of this dynamic: Pendo’s feature adoption research found that 80% of features in the average software product are rarely or never used.

That isn’t just a waste. It’s a signal. It suggests the product never earned the right to expand, because the core value wasn’t clear enough for most users to go beyond the basics.

The Enterprise Trap: Usage Can Be Forced, Belief Can’t

Consumer products have an advantage: users choose them if they are effective and leave if they are not.

Enterprise products operate differently. Users may be required to log in, teams can be trained, and adoption can be mandated. Metrics may appear positive, yet genuine belief may still be absent.

As a result, enterprise retention metrics can be misleading, often reflecting obligation rather than genuine conviction. Users remain because the organisation does, not due to product loyalty.

And when enterprise products fail, they rarely fail loudly. They fail quietly:

  • People revert to spreadsheets.
  • Workflows are split across tools.
  • Users do the minimum necessary.
  • Support tickets rise
  • Roadmaps bloat
  • Stakeholders lose confidence

Activation is significant in enterprise settings. It is not only about whether users can operate the product, but whether they trust it to make their work easier, more transparent, or safer. Trust-building is crucial for ensuring users feel confident in the product’s value. For enterprise teams, implementing tailored onboarding that addresses specific user needs can be an effective strategy. Additionally, maintaining transparency through clear communication and reporting can help build trust with users. Trust cannot be achieved through superficial means; it comes from consistent, meaningful engagement.

The Question Most Teams Avoid Asking

If activation isn’t onboarding completion…

And it isn’t early clicks…

And it isn’t a neat funnel milestone…

This leads to a more challenging, yet valuable, question:

When does our product first prove its value in a way the user actually recognises?

The answer is not when the user completes requested actions, but when they believe the product is worth their investment.

Activation is the first moment when the product’s value becomes undeniable. Without this moment, products stagnate rather than grow.