‘Aha moment’ and ‘User activation‘ are often used interchangeably in SaaS. But that’s wrong because they’re two different but closely related concepts.
Here’s the TL;DR difference:
🔹The AHA moment occurs when users realize the value of your product.
🔹Activation occurs when users also experience that value.
The SaaS Aha Moment – to realize the value
The Aha moment is not one single moment during the SaaS onboarding process but a series of “Aha” moments as the user realizes value.
This is important. Every time users realize the value, they recognize that your product could solve their problem.
It starts outside the product before sign-up and continues during the onboarding process.
Outside the product? Yep, and consider this example. A user’s first engagement with your product could be through an ad, word-of-mouth, or self-identifying with your value proposition that your solution can solve their problem. At that point, they’ve realized value and signed up for a free trial or demo.
During the onboarding, users continue to have Aha moments as they realize the product’s value, customer support, and educational content. Even post-onboarding, they will experience Aha moments.
So, the Aha moment is not one distinct throw-your-hands-in-the-air and exclaim “AHA!” but rather an ongoing series of value realizations tied to the user’s entire journey with your product.
SaaS User Activation – to experience value
Realizing value is one thing, but experiencing that value during onboarding is another. This is the point of Activation.
User activation refers to when a new user successfully experiences the core value of your SaaS product for the first time. This signifies that they’ve engaged in various vital actions (or steps) to experience the value of your product, and it addresses their specific needs.
User activation is a specific, measurable event. Typically, it’s measured by tracking the time it takes a percentage of new users to complete predefined steps, demonstrating they’ve experienced value from the product.
Activation is expressed as a measurement of Time to Value (TTV). TTV is the duration it takes for a new user to experience a product’s core value for the first time after using it.
A shorter TTV generally indicates that users experience a product’s benefits quickly, which can lead to increased user satisfaction and retention. Conversely, users are more likely to churn if it takes longer to experience your product’s benefits.
The Aha Moment comes before User Activation
Think of user Activation as a concrete milestone, a measurable achievement during onboarding that signifies a user’s understanding of your product’s value because of their experience.
On the other hand, the “Aha moment ” represents a more nuanced and emotional journey of realizing your product’s value over time and deepening the user’s connection.
By creating SaaS onboarding experiences that first lead users to realize the value of your product (“Aha moment”) and then empower them to experience that value firsthand (user activation), you set the stage for long-term user engagement, retention, and ultimately, product success.