Activation Rate

What is Activation Rate?

Activation rate is the percentage of users who complete a key action (like onboarding, using a feature, or engaging with the product) after signing up or starting to use the product.

An Example to Understand Activation Rate

If 100 users sign up for your product and 60 of them complete a key action (e.g., set up their profile or make a first purchase), the activation rate would be 60%.

Benefits of Using Activation Rate

• Measures Onboarding Success: Helps you understand how effective your onboarding process is.
• Identifies Potential Improvements: A low activation rate may signal that users are struggling with key actions.
• Predicts Retention: A higher activation rate often leads to better user retention.

Why is Activation Rate Important for Startups and SaaS?

Activation rate is essential because it reflects how well users are adopting the product. For startups and SaaS, improving this rate means increasing the chances of user retention and overall product success.

FAQs

What’s a good activation rate?

A good rate varies by industry and product but generally falls between 30-50%. High rates may indicate strong product-market fit.

Can activation rate impact revenue?

Yes, since activated users are more likely to convert into paying customers.