Definition
Activation rate measures what % of new users reach a meaningful 'aha' moment after signup (an early predictor of retention).
Formula
Activation rate = activated users / new signups
Example
If 1,200 of 5,000 signups reached activation, activation rate = 1,200 / 5,000 = 24%.
Common mistakes
- Using vanity actions as activation (not linked to retention).
- Comparing activation across products without aligning definitions.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Activation Rate" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Activation Rate Calculator) to sanity-check assumptions.
- Read the related guide (e.g., Activation rate: definition, formula, and how to improve activation) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Activation Rate Calculator: Compute activation rate: what % of new signups reach your activation event (and what you need to hit a target).
- Two-stage Retention Curve Calculator: Model a retention curve with different churn rates for early months vs steady-state, and estimate expected value over time.
- Feature Adoption Rate Calculator: Compute feature adoption: what % of active users used a specific feature in a time window.
Guides
- Activation rate: definition, formula, and how to improve activation: Activation rate explained: how to define activation, the activation rate formula, and practical ways to improve activation without vanity metrics.
- PLG metrics hub: activation, trial conversion, stickiness, and adoption: A practical hub for product-led growth metrics: activation rate, trial-to-paid, DAU/MAU and WAU/MAU stickiness, feature adoption, and PQL-to-paid conversion.
- Feature adoption rate: definition, how to measure adoption, and pitfalls: Feature adoption explained: how to define adoption events, choose the right denominator, and use adoption to improve activation and retention.
- Two-stage churn: modeling early drop-off vs steady-state retention: A practical guide to two-stage churn models: why early churn matters, how to model it, and how to connect retention improvements to LTV.