The Complete Product Onboarding Glossary: 75+ Terms Every Product Manager Should Know

June 13, 2025

If you're a product manager trying to improve user activation and retention, you need to speak the language. This glossary covers the key terms in product onboarding, digital adoption, and product-led growth.

A

Activation

The moment when a user completes key actions that indicate they've found value in your product. Activation is typically measured as a percentage of new users who complete specific setup steps or core actions within a defined timeframe. A healthy activation rate ranges from 40-60%.

Activation Event

A specific action or series of actions that, when completed by a user, signals they have experienced the core value of the product. Different products have different activation events—for Slack, it's sending 2,000 messages; for Facebook, it was adding 7 friends in 10 days.

Aha Moment

The instant when a user first realizes the value of your product and understands how it can improve their work or life. The aha moment is the spark before the engine roars to life—it's an emotional realization that typically precedes activation.

Annual Contract Value (ACV)

The average annual revenue generated per customer contract. In the context of onboarding tools, ACV ranges from under $1K for SMB products to $100K+ for enterprise digital adoption platforms.

A/B Testing (in Onboarding)

The practice of creating two versions of an onboarding flow and showing each to different user segments to determine which performs better in terms of activation, completion, or retention metrics.

B

Beacon

A subtle visual indicator (usually a pulsing dot or small icon) placed on UI elements to draw user attention to features or actions. Beacons are often used in progressive disclosure strategies.

Behavioral Trigger

An action or pattern of user behavior that automatically initiates an onboarding element, such as a tooltip or modal. For example, a user hovering over a feature for more than 3 seconds might trigger a help tooltip.

Bounce Rate (Onboarding)

The percentage of users who leave during the onboarding process without completing it. High bounce rates indicate friction or confusion in the onboarding flow.

C

Checklist

An onboarding UI pattern that displays a list of tasks for users to complete, typically with visual progress indicators. Onboarding checklists help users understand what steps remain and provide a sense of accomplishment as items are completed.

Churn

When customers stop using or paying for a product. Poor onboarding is a leading cause of early churn, with 40-60% of free trial users using a product once and never returning.

Cohort Analysis

A method of analyzing user behavior by grouping users based on shared characteristics or when they signed up. Cohort analysis helps identify whether onboarding improvements affect specific user groups differently.

Completion Rate

The percentage of users who finish the entire onboarding flow or complete all checklist items. Three-step tours have a 72% completion rate, while seven-step tours only achieve 16%.

Contextual Help

Assistance provided to users within the context of where they are in the product, rather than requiring them to leave and search documentation. Examples include tooltips, inline hints, and contextual modals.

Conversion Rate

The percentage of users who take a desired action, such as converting from free trial to paid subscription. The industry benchmark for free trial conversion is around 25%.

D

DAP (Digital Adoption Platform)

A software layer that sits on top of other applications to guide users through processes, provide training, and measure adoption. Enterprise DAPs like WalkMe and Whatfix typically cost $50K-$100K+ annually.

DAU/MAU Ratio (Stickiness)

The ratio of Daily Active Users to Monthly Active Users, indicating how frequently users engage with a product. Higher ratios indicate stickier products with better habitual usage.

Day 1/7/30 Retention

Metrics tracking what percentage of users return to the product on day 1, day 7, and day 30 after signup. These benchmarks help measure onboarding effectiveness over time.

Drip Campaign (Onboarding)

A series of automated emails sent to new users over time to guide them through the product and encourage activation. 84% of companies use email campaigns as part of their onboarding automation.

E

Empty State (Zero State)

The view users see when they first access a feature with no data or content. Well-designed empty states guide users on how to get started rather than showing blank screens.

Engagement Score

A composite metric measuring how actively users interact with a product, often considering factors like feature usage, session frequency, and actions completed.

F

Feature Adoption Rate

The percentage of users who use a specific feature after being exposed to it. Low feature adoption rates may indicate poor discoverability or unclear value proposition.

First-Run Experience (FRE)

The user's very first interaction with a product, from signup through initial activation. A well-designed FRE significantly impacts long-term retention.

First-Time User Experience (FTUE)

Similar to FRE, this encompasses everything a new user experiences during their initial sessions with the product, including onboarding flows, tutorials, and first-use guidance.

Flow

A sequence of connected onboarding elements (such as tooltips, modals, and actions) that guide users through a specific process or feature set.

Freemium

A business model offering a free tier with limited features and paid tiers with additional capabilities. Freemium accounts convert at 12%—140% higher than free trial conversion rates.

Friction

Any obstacle, confusion, or difficulty that slows down or prevents users from completing desired actions. Reducing friction in onboarding is critical for improving activation rates.

G

Guided Tour

See: Product Tour

Guidance Layer

A software overlay that provides contextual help and guidance on top of existing application interfaces without modifying the underlying application.

H

High-Touch Onboarding

An onboarding approach that involves significant human interaction, such as dedicated customer success managers, training calls, or implementation services. Common for enterprise products.

Hotspot

A visual indicator (often a pulsing circle or beacon) placed on specific UI elements to draw attention to features or prompt user action.

I

In-App Guidance

Help and direction provided to users while they are actively using the product, including tooltips, product tours, checklists, and contextual help.

In-App Messaging

Communications delivered to users within the product interface, such as announcements, feature highlights, or personalized messages.

In-App Survey

A survey presented to users within the product interface to collect feedback, measure satisfaction (NPS, CSAT, CES), or understand user needs.

Interactive Walkthrough

A step-by-step guide that requires users to actually perform actions (not just read instructions) as they learn features. More effective than passive tours.

K

Key Action

A specific user action that correlates strongly with activation or retention. Identifying key actions is essential for designing effective onboarding flows.

L

Launcher

A persistent UI element (often in the corner of the screen) that provides quick access to onboarding resources, help content, or checklists.

Low-Touch Onboarding

An onboarding approach that relies primarily on self-serve resources like in-app guidance, documentation, and automated emails with minimal human interaction.

M

MAU (Monthly Active Users)

The number of unique users who engage with a product within a month. Many onboarding tools price based on MAU counts.

A popup window that appears over the main interface, requiring user attention before they can continue. Modals are commonly used for welcome messages, announcements, or important onboarding steps.

Multi-Step Tour

A product tour consisting of several sequential steps that guide users through features or processes. Shorter tours (3 steps) have significantly higher completion rates than longer ones (7+ steps).

N

Net Promoter Score (NPS)

A customer loyalty metric measuring the likelihood of users recommending your product on a scale of 0-10. Often collected via in-app surveys during or after onboarding.

Net Revenue Retention (NRR)

A metric measuring revenue retained from existing customers over time, including expansions, contractions, and churn. Strong onboarding contributes to higher NRR.

No-Code

Software that allows users to build or customize features without writing code. Most modern onboarding tools offer no-code builders for creating tours and flows.

Nudge

A subtle prompt or suggestion designed to guide user behavior without being intrusive. Nudges can include tooltips, beacons, or gentle reminders.

O

Onboarding

The process of introducing new users to a product and guiding them toward activation. Effective onboarding reduces time-to-value and improves retention.

Onboarding Checklist

See: Checklist

Onboarding Flow

The sequence of steps, screens, and interactions a user experiences from signup through activation.

Opt-In Trial

A free trial that does not require credit card information upfront. Lower barrier to entry but typically lower conversion rates than opt-out trials.

Opt-Out Trial

A free trial requiring credit card information upfront, with automatic conversion to paid unless cancelled. Can achieve 50%+ conversion rates.

P

Personalization

Tailoring the onboarding experience based on user characteristics, such as role, company size, use case, or behavior. Personalized onboarding significantly improves activation rates.

PLG (Product-Led Growth)

A go-to-market strategy where the product itself drives customer acquisition, conversion, and expansion. PLG companies achieve 1.5-2x higher conversion rates than sales-led approaches.

PQL (Product Qualified Lead)

A user who has demonstrated intent to buy through meaningful product engagement, rather than just expressing interest. Only 24% of product-led companies use PQLs, representing a significant opportunity.

Product Tour

A guided walkthrough that introduces users to key features and functionality, typically using tooltips, highlights, and sequential steps. Also called guided tour or interactive tour.

Progress Indicator

A visual element showing users how far they've progressed through onboarding, often displayed as a progress bar, step counter, or checklist completion percentage.

Progressive Disclosure

A design strategy that sequences information and features, revealing complexity gradually as users become more proficient rather than overwhelming them initially.

Progressive Onboarding

An onboarding approach that introduces features and complexity over time as users demonstrate readiness, rather than front-loading all information.

Q

Quick Win

An early success or achievement designed into the onboarding flow to build user confidence and momentum. Quick wins help users feel productive quickly.

R

Resource Center

An in-app help hub that consolidates onboarding resources, documentation, tutorials, and support options in one accessible location.

Retention

The percentage of users who continue using a product over time. Onboarding quality directly impacts early retention metrics (Day 1, Day 7, Day 30).

S

Segment/Segmentation

The practice of dividing users into groups based on shared characteristics (such as role, company size, use case, or behavior) to deliver more relevant onboarding experiences.

Self-Serve Onboarding

An onboarding approach where users complete the process independently using in-app guidance, documentation, and automated resources without requiring human assistance.

Session Recording

A recording of a user's session showing exactly how they interact with the product. Session recordings help identify onboarding friction and confusion points.

Setup Wizard

A step-by-step interface guiding users through initial product configuration, typically collecting necessary information and preferences before the main product experience.

Slideout

A UI element that slides in from the edge of the screen to present information or options without completely obscuring the main interface.

Spotlight

A technique that dims the surrounding interface while highlighting a specific element, drawing user focus to important features or actions.

Stickiness

A measure of how habitually users engage with a product, typically calculated as the DAU/MAU ratio. Sticky products have high user engagement and better retention.

T

Time to First Value (TTFV)

See: Time to Value (TTV)

Time to Value (TTV)

The amount of time it takes for a new user to experience meaningful value from a product. Reducing TTV is a primary goal of effective onboarding.

A small popup that appears when users hover over or click on an element, providing contextual information or guidance. Tooltips are fundamental UI patterns in product onboarding.

Trial Conversion Rate

The percentage of free trial users who convert to paid customers. The industry benchmark is approximately 25%.

Trigger

A condition or event that initiates an onboarding element, such as user action (clicking a button), time-based events (7 days after signup), or behavioral patterns (first visit to a feature).

U

User Activation

See: Activation

User Adoption

The broader process of users integrating a product into their regular workflows and habits, extending beyond initial activation to ongoing engagement.

User Journey

The complete path a user takes from first awareness through becoming an active, paying customer. Onboarding is a critical phase within the user journey.

User Onboarding

See: Onboarding

User Segmentation

See: Segmentation

V

Value Realization

The moment when users actually experience the promised value of a product, not just understand it intellectually. Value realization is essential for retention.

W

Walkthrough

See: Interactive Walkthrough or Product Tour

A popup that greets new users upon their first login, typically introducing the product, setting expectations, or initiating the onboarding flow.

A small, interactive UI component that provides specific functionality, such as a help widget, checklist widget, or announcement widget.

Z

Zero State

See: Empty State

Key Metrics Quick Reference

Metric	Definition	Benchmark
Activation Rate	% of users completing key actions	37.5% average
Trial Conversion	% of trial users who pay	25% benchmark
Day 7 Retention	% of users returning after 7 days	Varies by product
Completion Rate (3-step)	% completing 3-step tour	72%
Completion Rate (7-step)	% completing 7-step tour	16%
Freemium Conversion	% of free users who upgrade	12%
PQL Conversion	% of PQLs who convert	25%

Wrapping Up

Knowing these terms is the first step toward building onboarding that actually works. Keep this glossary handy as you implement your strategy so your team stays aligned on language and metrics.

The product onboarding landscape keeps evolving. AI-powered personalization, better analytics, and no-code tools are making sophisticated onboarding accessible to teams of all sizes. Stay current with these concepts to build experiences that drive activation, cut churn, and fuel product-led growth.

Frequently Asked Questions

What is user activation in product onboarding?

Activation is the moment when a user completes key actions that indicate they have found value in your product. It is measured as a percentage of new users who complete specific setup steps or core actions within a defined timeframe, with healthy rates ranging from 40-60%.

What is the difference between the aha moment and activation?

The aha moment is the instant when a user first realizes the value of your product emotionally. Activation is when they complete specific actions proving they have experienced that value. The aha moment typically precedes activation and is the spark that drives users toward it.

What is a digital adoption platform (DAP)?

A digital adoption platform is a software layer that sits on top of other applications to guide users through processes, provide training, and measure adoption. Enterprise DAPs like WalkMe and Whatfix typically cost $50K-$100K+ annually.

What is the optimal length for an onboarding product tour?

Shorter product tours perform significantly better, with three-step tours achieving 72% completion rates compared to only 16% for seven-step tours. Focus on guiding users to their first value quickly rather than showing every feature.

What is time to value (TTV) in SaaS onboarding?

Time to value is the amount of time it takes for a new user to experience meaningful value from a product. Reducing TTV is a primary goal of effective onboarding because faster value realization leads to higher activation and retention rates.