The Intersection of Activation Rates and Product Management Excellence

The Intersection of Activation Rates and Product Management Excellence

Introduction:

Activation rates and product management are two crucial aspects of building successful products. While activation rates measure user engagement and retention, product management involves various skills and qualities that contribute to the success of a product. In this article, we will explore the relationship between activation rates and product management excellence, highlighting the common points and actionable advice for aspiring product managers.

Activation Rates: A Predictor of Long-Term Value Delivery

Activation rate refers to the percentage of users who hit a specific milestone in the product's onboarding process. It should be highly predictive of long-term value delivery, leading to improved user retention and monetization. Ideally, users who complete the activation step should retain at a rate at least twice as better than those who don't.

Actionability: A Key Aspect of Activation Rates

An effective activation rate metric should be something growth teams can directly impact. It serves as a leading indicator of a new user's likelihood to stick around and become a paying customer. Merely completing the sign-up flow is often inadequate to show the value of a product, making it less predictive of long-term retention.

Defining Activation Milestones

Companies should carefully define their activation milestones, selecting a point in a user's lifecycle that strongly correlates with long-term retention. The milestone should be relatively early, allowing users to experience the core value of the product. For example, Facebook considers having seven friends in ten days as an activation milestone, Twitter focuses on following thirty people, and Dropbox emphasizes uploading at least one file.

Product Management Excellence: Core Competencies, EQ, and Company Fit

Becoming a great product manager requires a combination of core competencies, emotional intelligence (EQ), and company fit. PMs are not the CEOs of products; their roles vary depending on various factors. To evaluate a product management role, aspiring PMs should consider these three primary factors.

1. Core Competencies:

The best PMs possess a diverse set of core competencies. They create products with strong user adoption, exponential revenue growth, and the potential to disrupt industries. PMs must have the ability to empathize with customers, understanding their pain points, and addressing them effectively. They should be skilled at conducting user interviews, observing body language, and interpreting emotions.

2. Emotional Intelligence (EQ):

Product managers with high EQ form authentic and trustworthy connections with internal and external stakeholders. They inspire people and help them reach their full potential by understanding their motivations and needs. Self-awareness is a crucial aspect of EQ, allowing PMs to remain objective and avoid projecting personal preferences onto users.

3. Company Fit:

PMs need a deep understanding of how their organization operates. They must build social capital to influence the success of their product, securing necessary resources such as budget, staffing, and top engineering talent. In some cases, PMs may also handle pricing, marketing, support, and even sales of the product.

Actionable Advice for Aspiring Product Managers:

• 1. Focus on developing a diverse skill set that encompasses both technical and interpersonal skills. This will allow you to excel in various aspects of product management, from understanding user needs to influencing stakeholders.

• 2. Cultivate emotional intelligence by actively listening, practicing empathy, and building authentic relationships with team members, customers, and other stakeholders. EQ is a valuable asset for inspiring and motivating others.

• 3. Continuously seek opportunities to understand the inner workings of your organization and build social capital. This will help you navigate the organizational landscape and secure the necessary support for your product's success.

Conclusion:

The activation rate and product management excellence are intertwined when it comes to building successful products. Activation rates serve as a predictive metric for long-term value delivery, while exceptional product managers possess a unique blend of core competencies, emotional intelligence, and company fit. By understanding the relationship between activation rates and product management, aspiring PMs can develop actionable strategies to create products that resonate with users, drive revenue growth, and disrupt industries.