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Welcome back to another edition of TheProductLed!

This week, we’re talking about activation and how product-led marketing (PLM) can play a bigger role in increasing activation rate.

Because if users aren’t activating, nothing else matters. No amount of new features, ad spend, or sales outreach can fix a leaky funnel if users never experience your product's full value.

A 10% increase in activation can drive a 2x increase in retention because users who experience value early are more likely to stick. If 20% of those activated users convert, improving activation by 10% can lead to a 2% absolute lift in conversion rates!

And while activation is often seen as a product challenge, it’s a growth problem. One that product-led marketing can help solve before users even sign up.

Here’s what we’re covering in this issue:

1. What makes up activation

2. What prevents users from converting

3. 8 PLM tactics that drive activation (with real-world examples)

Estimated time: 7 minutes

How Nylas Drove 80% Increase In Free-To-Paid Conversions

Nylas discovered a secret to boost their free-to-paid conversions by an impressive 80%.

Their secret? A shift from time-based drip onboarding campaign to product activity based onboarding sequence.

Nylas made a strategic shift from a static drip campaign in Marketo to a dynamic, event-based onboarding approach with Inflection.io. In conjunction with better targeting and streamlined processes, this change helped drive an 80% increase in free-to-paid conversions:

Learn how Inflection.io helped Nylas to drive that growth in detail in this case study.

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The Activation experience in PLG

Activation is the phase where users first experience the value of your product. It’s that pivotal moment when they decide your product is worth their time and maybe even their money. This decision point is crucial because it directly impacts your company's growth and revenue.

But that decision isn’t made all at once. It’s the result of a journey, shaped by a series of experiences that guide users toward habitual use of the product:

1. Sign Up: Users show intent. They’re curious enough to take the first step.

2. Onboarding: They explore the product and start taking key actions.

3. Set Up: They configure the product to fit their needs and make it useful.

4. Aha! Moment: The magic moment value becomes undeniable and users see how the product solves their problem for the first time.

5. Habit Moment: The user has established the habit around the core value prop.

   
   

   

Users are considered fully activated once they reach that Habit Moment. Once they form a habit around the core value, it kickstarts your engine for engagement and retention through environmental and manufactured growth loops.

The challenge? Each of these steps presents a potential drop-off point. A high activation rate is dependent on the perfect balance between clarity, speed, and smooth guidance on how to deliver value to your end users.

And while activation happens inside the product, you can influence it well before sign-up.

That’s where product-led marketing tactics come in.

How Product-Led Marketing tactics improve activation

Product-led marketing tactics are product demonstrations of how your product solves your customer’s problem through marketing surface areas.

PLM tactics shrink the gap between sign-up → setup → onboarding → Aha! Moment by giving users a head start before they ever enter the product. Think of PLM tactics as a wormhole effect against the journey end users have to take to reach their Habit Moment!

PLM improves activation by:

• Removing hesitation: If users aren’t confident, they won’t take action.

• Making the product feel familiar: The sooner users see the product in action, the easier it is to dive in once they’re inside.

• Reinforcing intent: Users don’t just need to see the product, they need to be able to make the connection that it is right for them.

• Building confidence: Even if users are interested and motivated, they can still stall if they’re unsure what to do next

• Helping users do the heavy lifting: The easier it is to get started, the closer people are to value.

PLM tactics act as a spark. They build foundational value and speed things up so by the time users enter the product, they’re already well on their way to activation.

So what does this look like in action? Let’s break down the key PLM tactics that drive activation–how they work, why they work, and real-world examples of them in play.

PLM Tactics in action

Before we get started, be sure to check out all 300+ PLM examples in my open-source database:

1. Integrations

🚧 Setting up a new tool manually sometimes requires transferring workflows, configuring APIs, or importing data. Users can fail to see the value fast enough because they get stuck on logistics instead of experiencing the product.

Integrations eliminate that set-up work, making the product functional immediately.

The easier it is to start using your product, the sooner the Aha! moment.

Vercel’s marketplace lets developers instantly connect databases, CMSs, authentication tools, and monitoring services. Instead of manually configuring APIs and environments, users can enable these integrations with just a few clicks, getting their projects live faster.

How does this tactic boost activation?

🏃‍♂️💨  Speeds up: Set-up

• Automates setup: Data, settings, and workflows are pulled in so users don’t start from scratch or configure anything manually.

•  Personalizes the setup: Instead of a generic experience, users get a tailored product environment that makes sense for them.

• Eliminates complexity: Less effort upfront means users don’t get stuck or abandon the process before they start.

• Contextualizes the experience: Users see how the product fits into their real-world workflow.

• Reduces cognitive friction: They don’t have to translate how the product applies to their needs or fits into their workflow, they see it.

2. Templates

🚧 When users land in a product and have no idea where to start, they hesitate. They second-guess. They stall. And sometimes, they never even make it to that first quick win.

Templates eliminate that hesitation. Instead of forcing users to start from scratch, templates drop them into a pre-built, fully functional setup so they can instantly see the result without needing to do the work, hit that Aha! milestone, and start customizing the template.

Webflow’s pre-built site templates provide both inspiration and a functional starting point so users can launch an expertly designed website with beginner-level skills.

Templates also reduce the frustration users feel when what they create in your product doesn’t quite match their expectations. Not because the product can’t deliver, but simply because they haven’t built up their “muscles” in your tool yet.

Miroverse gives users pre-made Miro boards designed by experienced creators, helping them jump straight into collaboration without setup work or design struggles.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Aha! moment

• Eliminates the blank slate problem: Users don’t have to waste time deciding where to start.

• Guides users toward best practices: Templates provide a roadmap to achieving their goals or act as a guardrail ensuring they find some success.

• Shows immediate potential: Users can instantly visualize how the product should look and function and validate that it meets their expectations.

• Reduces early frustration: Instead of struggling with setup, users start with a polished, functional base to help them build confidence.

3. Interactive Product Demos

🚧 You can tell users how great your product is, but until they experience it for themselves, they won’t truly believe it. And if they’re hesitant about whether it’s worth signing up for? They probably won’t.

Interactive demos solve this by showing, not telling. Instead of expecting users to imagine how the product works, these demos let them click, explore, and interact before they ever enter an email. By the time they reach a sign-up page, they’re not just interested, they’re already invested.

Navattic’s interactive product demo showcases key use cases tailored to different personas. When users sign up, they already know how the product applies to their workflow.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Sign up & onboarding

• Users see the value before committing: They aren’t signing up blindly, they’re signing up to get their hands on more so are less likely to drop off.

• Motivates users: They see exactly how the product works, so they don’t have to guess. They already have confidence and determination that it will work for them.

• Shortens the learning curve: They already have some familiarity with your product before they log in, reducing first-time confusion.

• Makes setup feel more familiar: They’ve probably already been exposed to key setup steps so when it is time to configure the product for real, it feels more intuitive.

4. Communities

🚧 Onboarding flows can only take users so far. You can guide them through setup, but that doesn’t always answer the bigger questions like “Am I using this the best way?” or “How are other people doing this?” If users second-guess themselves or get stuck, they might fail to see your product’s full potential.

A strong community gives users social proof, validation, real examples, expert advice, and battle-tested best practices so they don’t have to figure everything out alone. Seeing how others succeed builds confidence, speeds up learning, and helps users go from new to power users. Instead of just following onboarding steps, users see what’s possible, get inspired, and find value!

Figma’s community shares real-world design files, allowing new users to see professional work created in the tool, reinforcing its power and flexibility

But a strong community does more than just help new users–it keeps them coming back. It’s a place to share wins, refine workflows, connect with others, and support habit formation.

GitHub’s community is another great example—it isn’t just a forum, it’s an ecosystem where developers collaborate, contribute, and grow. From open-source projects to discussion threads and peer reviews, GitHub gives users a space to learn from each other, solve problems, and showcase their expertise. The product and community become a network that fuels engagement, learning, and career growth.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Onboarding & Aha! Moment

• Gives users fast answers:  Instead of searching for solutions, they can ask the community and move forward.

• Surfaces best practices: Users learn what works from real people, not just help docs.

• Shows social proof of value: Seeing how others use the product makes it “click” faster. People can also keep coming back to get inspired and unlock new uses for your product. The Aha! Moments keep coming! 

• Unlocks advanced use cases: Users discover features and workflows they wouldn’t have found on their own.

• Encourages continued engagement: People return to your product and your community to learn, share, and improve.

5. Product content & education

🚧 Users won’t activate if they don’t understand how the product applies to them or why they need it.

Product content bridges that gap by showing users how your product fits into their world before they even sign up through things like guides, use cases, and educational resources. This content helps users validate your product and learn how it will work for them before they sign up.

AppsFlyer’s Deep-Linking Guide doesn’t just define deep linking–it walks potential users through why it’s important, how it works, and what they can do with it. By the time someone finishes reading, they don’t just understand the concept, they’re ready to implement it inside AppsFlyer.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Sign Up & Onboarding

• Educates before signup: Guides, blogs, and case studies help users see how the product solves their problems.

• Encourages immediate action: Users enter with a clear goal in mind, which makes them more likely to take key steps inside the product.

• Clears up confusion or uncertainty early: Great product content answers big questions upfront, so users don’t hit roadblocks right away.

• Reinforces intent: By the time they sign up, they’re already convinced and ready to move forward, not just poking around.

6. Ungated Products

🚧 When we ask users to sign up, we’re often asking them to take a risk on an unproven tool.

Ungated products let users experience value first removing commitment pressure. They sign up typically after they have already experienced the Aha! Moment.

Their progress is saved so that when they do finally sign up for your product, they’re that much closer to habit formation.

Coolors.co allows designers to instantly generate, explore, and tweak color palettes without signing up, keeping them engaged and leading them toward premium features.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Sign Up & Aha! Moment

• Eliminates the “is this worth it?” hesitation: Instead of wondering if the product is valuable, they experience it. No strings attached.

• Turns curiosity into commitment: Once users see the potential, they naturally want to go deeper.

• Increases conversion rates: By the time users reach the sign-up page, they already want access, they’re not just testing the waters they’ve likely hit that Aha! Moment.

7. Sidecar Products: easy entry points

🚧 Sometimes, users don’t know they need your product yet. They’re not actively searching for a solution–they just have a small, immediate problem to solve.

Sidecar products meet them where they are. Instead of asking for commitment upfront, they deliver instant value and naturally lead users into the core product when they are ready for more.

Gusto’s Payroll Calculator lets businesses instantly calculate wages, taxes, and deductions, no sign-up required. Solving a real payroll problem upfront,it builds trust and drives a quick Aha! Moment making the transition from free tool to paid product seamless.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Aha! Moment & Habit Formation

• Creates a low-risk, high-reward experience: Users get an immediate benefit without investing much time or effort.

• Builds trust first Instead of convincing users your product is worth it, you show them through a bite-sized experience you can build upon.

• Gives them a taste of what’s possible: Leaving users eager and wanting more. Free tool → paid product is seamless when people already get so much free value.

8. Meta Experiences

🚧 Users don’t always trust marketing claims or immediately see how a product fits into their workflow. There’s often a gap between what’s promised and what’s experienced.

Meta experiences give users an “invisible” preview of the product’s power in action. Users interact with the product before they even realize they’re using it, bridging the gap between theory and reality, and letting them experience value before they sign up.

Netlify’s marketing site is hosted on Netlify. When users visit, they’re already experiencing Netlify’s performance and reliability firsthand, without realizing it. They don’t need to wonder if it’s fast, they see it in action.

How does this tactic boost activation?

🏃‍♂️💨 Speeds up: Aha! Moment

• Users get hands-on experience before committing: Instead of making them watch a demo or read docs, they interact with the product in a real-world context, so it clicks faster.

• Users don’t have to “trust” that the product works or can solve their problem: They’ve already felt it in action. It’s no longer theoretical value.

Bringing it all together

Activation isn’t just about what happens inside the product—it’s shaped by every experience leading up to it. From the first interaction with your marketing to the moment a user forms a habit, every touchpoint either pushes them forward or slows them down.

Each of these PLM tactics speed up how users move through sign-up → setup → onboarding → Aha! Moment → habit formation by removing barriers, building momentum, and driving value.

When activation improves, everything improves. Treat it like a conversion multiplier, and small optimizations start stacking, turning into higher adoption, stickier retention, and compounding growth over time!

Meme of the day #10

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