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, 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.

Customer Activation Points

Alex discusses the importance of identifying customer activation points in businesses, using examples from Netflix and ClickFunnels. He explains how reaching these points can significantly increase customer retention and lifetime value, emphasizing the need to focus on leading indicators rather than lagging indicators.

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