Annual Recurring Revenue

Detailed Description

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.

How To Calculate

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.

Related Metrics

True Trials
Sales Qualified Leads
Customer Acquisition Cost