Activation
Activation rate
Why the percentage of users who reach value matters more than total signups.
What is it?
Activation rate is the percentage of new accounts that complete a specific milestone associated with realising value. It is the bridge between acquisition and retention: a user who does not activate is unlikely to convert, and an account that never activates is almost certain to churn.
How to calculate?
Divide the number of new accounts that reach your defined activation event within a set window by the total number of new accounts in the same period. The window matters as much as the event — activation measured in seven days tells a different story than activation measured in ninety.
Decisions to be made
Your definition determines whether the metric is actionable.
- Which event genuinely signals that a user has felt value?
- What time window is long enough to be fair but short enough to be useful?
- Do you measure at the account level or the individual-user level?