Definition
Feature activation is when a customer successfully uses a key feature for the first time. It is often a leading indicator for adoption and retention.
Example
A user connects a data source and generates their first report within 7 days.
How to use it
- Define activation per feature with clear eligibility and time windows.
- Validate that activation predicts retention using cohort analysis.
- Track activation depth (first use) and repeat usage (habit formation).
- Instrument activation events consistently across platforms and devices.
- Pair activation rate with time-to-activation to spot friction.
Common mistakes
- Using one generic activation event for very different features.
- Counting low-intent actions as activation.
- Skipping activation measurement for advanced features that drive expansion.
- Changing activation definitions without re-baselining cohorts.
- Optimizing activation without checking downstream retention impact.
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 "Feature Activation" 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.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Cohort analysis playbook: retention curves, LTV forecasting, and payback) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Sales Capacity Calculator (with Ramp): Estimate period bookings capacity from team size, quota per rep, expected attainment, and ramped vs ramping mix.
- OTE & Commission Rate Calculator: Compute on-target earnings (OTE), commission rate, and compensation split from base salary, variable pay, and quota.
- Sales Funnel Targets Calculator: Translate a revenue target into required wins, opportunities, SQLs, MQLs, and leads using funnel conversion rates.
- Activation Rate Calculator: Compute activation rate: what % of new signups reach your activation event (and what you need to hit a target).
- Trial-to-paid Conversion Calculator: Compute trial-to-paid conversion rate and estimate required conversions to hit a target.
Guides
- Cohort analysis playbook: retention curves, LTV forecasting, and payback: A practical cohort analysis workflow: build retention curves, forecast LTV, and translate retention quality into payback and growth decisions.