Acquisition & Conversion

Activation Rate

Activation rate measures the percentage of new users who complete key actions that indicate they've experienced product value.

Key Takeaways
  • Activation rate is the percentage of signups who reach a defined activation milestone—the moment when users experience meaningful value from your product.
  • Common Mistakes:
  • Defining activation too early (e.g., just logging in) or too late (e.g., becoming a power user).
  • Not having a clear, measurable activation milestone.
  • Comparing activation across different user segments without accounting for different value moments.
  • Ignoring the time dimension—how quickly users activate matters.
  • Focusing only on activation rate without optimizing time-to-activation.
  • Not revisiting activation definition as product evolves.

Definition

Activation rate is the percentage of signups who reach a defined activation milestone—the moment when users experience meaningful value from your product.

High activation (>40%)

Clear value proposition and smooth onboarding experience.

Medium activation (20-40%)

Room for onboarding improvements.

Low activation (<20%)

Significant friction preventing users from experiencing value.

Formula

Activation Rate (%) = Activated Users / Total New Signups × 100

Variables

Activated Users

Users who completed the activation milestone (e.g., first report created, invite sent).

Total New Signups

All users who created accounts in the period.

Examples

Weekly activation rate

MetricCount
New signups this week200
Users who created first dashboard85
  1. 1Activation rate = 85 / 200 × 100
  2. 2Activation rate = 42.5%
Activation rate = 42.5%

Track in Daymark

Data Sources

CSVgoogle sheetspostgreSQL

Required Fields

User events and timestamps
  • user_id
  • signup_date
  • activation_event
  • activation_date

Sample Questions

  • What is the current activation rate?
  • Show activation rate trend over the last 3 months
  • Calculate time to activation for new users
  • What percentage of users activate within 24 hours? 7 days?
  • Compare activation rates by signup source
  • Which activation steps have the highest drop-off?
  • Show activation rate by user persona

Dashboard Template

1. line
Activation rate trend

Weekly activation percentage

2. histogram
Time to activation

How long until users activate

3. funnel
Activation funnel

Onboarding step completion

4. bar
Activation by cohort

Compare signup week cohorts

Common Mistakes

  • Defining activation too early (e.g., just logging in) or too late (e.g., becoming a power user).
  • Not having a clear, measurable activation milestone.
  • Comparing activation across different user segments without accounting for different value moments.
  • Ignoring the time dimension—how quickly users activate matters.
  • Focusing only on activation rate without optimizing time-to-activation.
  • Not revisiting activation definition as product evolves.

FAQ

Q: How do I define my activation milestone?

Choose the earliest moment when users experience real value—first report run, first invite sent, first task completed, etc.

Q: What's a good activation rate?

40-60% is strong for most products. Below 30% suggests onboarding issues.

Q: Should activation happen in the first session?

Ideally yes, but some products need multiple sessions. Track both first-session and 7-day activation.

Start Tracking Activation Rate