What is the activation point?

The activation point refers to a critical moment or action in a user's experience with a product, service, or system that significantly increases their engagement or commitment. This point is crucial for businesses because it is often strongly tied to increased customer retention and lifetime value.

For example, Alex Hormozi discusses customer activation points in the context of business and explains that reaching these points can expand a customer's lifetime value. In the case of companies like Netflix, the activation point might be a particular episode that, once watched, greatly increases the likelihood of a viewer watching an entire series. Similarly, for ClickFunnels, an activation point could be when a customer sets up their own domain, significantly increasing their engagement and retention 1.

Businesses often focus on designing experiences that efficiently lead customers to activation points, as these are indicators leading to sustained use of their service or product. Identifying and optimizing these activation points can transform a business's ability to retain customers for a longer period.