What Is First-Trade Activation and Why It Matters
Signing someone up for a trading platform is a simple thing. However, actually getting them to make their first trade is a different story. Getting users to make their first trade is referred to as first-trade activation, and it is one of the most significant factors determining retention rates for any trading product over a prolonged period.
It is critical for trading platforms, brokers, and fintechs to understand how they can help users reach this milestone in an ethical and efficient manner. A smooth pathway to a user's first trade can eliminate any barriers that exist, create confidence, and establish a basis for the user to practice good financial habits.
What Does First-Trade Activation Mean?
Photo credit: Yan Krukau on PexelsFirst-trade activation represents the point at which a new user finishes completing all the prerequisite steps necessary to perform their first live trade. At this point, a user has transformed from a curiosity-driven signup into an active trader. They will generally complete four key steps before performing their first trade:
Account Creation
When a user signs up on a platform, they will need to enter their email address or phone number for verification. While this is a basic step, it is the first impression the user has of the platform. Therefore, it is imperative that this step is clear and easy.
KYC (Know Your Customer) Completion
KYC verification assures users that their identities are confirmed. However, many users will abandon the KYC process if it is perceived as ambiguous or overly complicated. Efficient platforms enhance the KYC process by offering efficiency, guidance, and transparency during the process.
Funding the Account
Users are obligated to deposit funds into an account. Initial awareness of payment methods, minimum amounts, fees, or timelines reduces doubts about making that commitment.
First Trade Execution
Once users execute their first trade, they are likely to stick around for months or years. This provides many platforms with their primary North Star metric. A supportive, human-like workflow aids prospective users without additional pressure, ambiguity, or confusion.
First Trade Activation Predicts Long-Term Retention
Photo credit: RDNE Stock project on PexelsUsers who execute their first trade are generally more committed to remaining active on the platform, having learned the user interface, witnessed the successful execution of a trade, and achieved confidence in their trading ability. Trading even one time significantly boosts user engagement.
Driving Revenue Efficiently
Acquiring users is costly. When potential users sign up but fail to execute trades, the associated costs of marketing increase tremendously. By ensuring a well-executed process to activate more users as active customers, companies minimize the costs associated with acquiring potential customers.
Lower Support Requests
After customers become familiar with their onboarding journey, there will be less confusion regarding verification, deposits, and general navigation.
Key CRM Automations for Ethical Activation Improvement
The best trading platforms support their users by offering assistance instead of pressure. Customer support channels can do this by creating workflows in CRM that are ethical and supportive. Here is how:
Welcome Emails and Texts
These are automated emails or texts that provide relevant information regarding how to use the platform. They highlight what to expect in the coming days and where to seek assistance.
KYC Reminder Messages
These are automated messages that remind customers when they have to upload a KYC document, and information regarding acceptable formats and expected turnaround times.
Deposit Notification Messages
Automated messages that provide information to customers about deposit methods, estimated processing times, and steps to troubleshoot any problems.
First Trade Education Walkthrough
Automated walkthroughs, tip sheets, or videos that provide guidance regarding order types, risk controls, and how to trade responsibly. If managed effectively, these automations will allow for the creation of a frictionless user experience while still allowing the user to retain control of their activities on the platform.
Accessing Reliable Support for the Onboarding Process for Traders & Businesses
Photo credit: Leeloo The First on PexelsThe onboarding process is often technical. It is subject to regulation and experience. Therefore, while a lot of businesses may want to create their own onboarding process, many traders don’t know which platforms would best facilitate their activation process.
As a result, businesses and traders can now use directories that offer a curated list of reputable fintech service providers, onboarding tools, and experienced workflow specialists who focus on trading. These resources provide businesses with the opportunity to optimize activation and give traders peace of mind knowing that they have evaluated the options for safe, structured environments.
If you are interested in finding reputable trading environments with smooth onboarding, you can learn a lot from established providers; for example, those who trade with Axi can guide you on user-friendliness and streamline the ability to get ready for your first trades.
Endnote
First trade activation is an important indicator of success for traders. Building trust and confidence takes time, as does building up a base of knowledge and understanding through the use of the platform/broker you have chosen.
Providing traders with support through the processes of KYC, funding & execution of their first trades will increase their level of trust in the Platform and allow them to confidently begin trading. Traders who select a broker/platform that values the fair treatment of traders and is efficient through the onboarding process improve their trading experience.
Cover Photo by Pixabay on Pexels
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