Activation Rate

What Is Activation Rate? The product activation rate is the number of users who do something specific to extract value out of your product. But how can the users of your product get value out of it? Well, that depends on your product. For example, think of users who follow a certain number of accounts in a social selling app. In this case, the number of followed accounts per user would be an activation metric. You may also think of the product activation rate as an indicator of how well your marketing strategy is doing. Or how successful your SaaS (software as a service) product is. The Importance of Activation Following user acquisition, product activation is the most important concern you should have when running your SaaS business. Most importantly, if you succeed at getting users to "activate", you'll keep them for longer, ultimately lowering net churn. On top of that, you'll end up having more money to spend on advertising to acquire more users. It's a beautiful cycle!

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