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Metrics & Analytics

Activation Rate

The percentage of new signups who complete key actions that predict long-term retention.

Definition

Activation rate is the percentage of new users who complete your defined activation criteria within a set time window (usually 7-14 days). It measures how effectively your onboarding converts signups into engaged users. A user who has activated is significantly more likely to retain and pay than one who has not.

Why It Matters

Activation rate is one of the highest-leverage metrics in SaaS. Small improvements compound into significant revenue gains because activated users retain better, convert to paid at higher rates, and refer others more often. It sits at the critical junction between acquisition (which you paid for) and retention (which pays you back).

How It Works

Define activation criteria based on actions that predict retention. Typical examples include completing profile setup, using a core feature, inviting a teammate, or creating a project. Track the percentage of new signups who complete these actions within your measurement window. Optimize onboarding to increase this percentage.

Best Practices

  • 1Base activation criteria on data, not assumptions
  • 2Keep the criteria achievable but meaningful
  • 3Measure activation within a consistent time window (7 or 14 days)
  • 4Track activation by signup source to find quality channels
  • 5Design onboarding emails around driving activation
  • 6Segment non-activated users for re-engagement campaigns
  • 7A/B test onboarding changes to measure activation impact

Activation Tracking

Define activation criteria and track rates by segment. Sequenzy identifies non-activated users for targeted re-engagement campaigns.

Learn More

Frequently Asked Questions

There is no universal benchmark because it depends on product complexity and how you define activation. Simple consumer products might see 50-70%. Complex B2B tools might target 20-40%. Focus on improving your rate over time rather than hitting an external benchmark.

Activation rate measures reaching the value milestone. Conversion rate measures paying. They are related but distinct. High activation usually leads to high conversion, but pricing, trials, and other factors also affect conversion. Fix activation first, then optimize conversion.

Start simple with one or two criteria that strongly predict retention. You can add more nuance later. Multiple criteria (using AND logic) create a higher bar and lower activation rate but may better predict retention. Test to find the right balance.