How to improve user activation / retention with user research?

1. How to determine the effectiveness of various new user activation mechanics?
2. What is user activation and retention?

How to determine the effectiveness of various new user activation mechanics?

To measure user activation: 1) define which actions different personas should perform to get activated; 2) divide customers into segments; 3) calculate the user activation rate by using a formula: the number of users who performed the necessary actions, divided by the total number of new users.

What is user activation and retention?

Activation—the % of users who achieve success. Revenue—the average contract value (or ACV) that a user pays per month. Retention—the % of users who stick with your product, month after month. Referral—the % of current users who refer new users.