Activation Rate helps companies determine how quickly and effectively their new users are achieving perceived value. It measures the number of new users that have performed a predetermined “key action” within a set period of time, where the key action is assumed or known to deliver initial customer value.
If out of 500 new users, 100 of them perform a key task that is known to deliver proven value in the first week, the activation rate for the week is 20%.
ƒ Count(Users That Performed a Key Action) / Count(All Users)
Most SaaS companies target an activation rate of 40-60%. This industry’s average activation rate is 34%, while the median is 25%. However, these figures can vary depending on the complexity of the activation process.
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