Product metrics. Part 2- activation metrics

 


Activation Metrics

1. Time to Value (TTV)

Definition: Time taken for a new user to realize the core value of a product.
Formula (conceptual):
TTV = Date of First Value Realized - Date of Signup

Examples:

  • SaaS (Project Management Tool): User signs up on March 1st, creates their first project on March 3rd →
    TTV = 2 days
  • Fintech (UPI App): Signup to first successful transaction = 1 hour.
  • Healthcare App: Patient registers and books their first teleconsult in 2 days.

2. Onboarding Completion Rate

Definition: % of users who finish onboarding steps (e.g., profile setup, tutorials).
Formula:
Onboarding Completion Rate = (Completed Onboarding / Total Signups) × 100

Examples:

  • Fitness App: 4,000 of 5,000 users completed onboarding →
    = (4000 / 5000) × 100 = 80%
  • Digital Bank: 3,200 of 4,000 new users verified KYC.
  • E-learning Platform: 60% of new users complete course intro and dashboard tour.

3. User Activation Rate

Definition: % of users who take a meaningful first action (e.g., upload a file, create a post).
Formula:
User Activation Rate = (Activated Users / Total Signups) × 100

Examples:

  • SaaS CRM: 2,000 of 5,000 users add a contact in first week →
    = (2000 / 5000) × 100 = 40%
  • Online Store: 1,500 of 3,000 signups make first wishlist.
  • Telehealth Platform: 1,200 of 2,000 book first consultation.

4. Trial-to-Paid Conversion Rate

Definition: % of free trial users who convert to paying customers.
Formula:
Trial-to-Paid Conversion Rate = (Paid Customers / Trial Users) × 100

Examples:

  • SaaS: 800 paid out of 4,000 trials →
    = (800 / 4000) × 100 = 20%
  • Online Fitness Subscription: 150 out of 1,000 free trials convert.
  • Music Streaming App: 5% of 10,000 free trials become paid users.

5. First-time User Conversion Rate

Definition: % of users who take a key conversion action on their first visit/session.
Formula:
First-time Conversion Rate = (Conversions on First Visit / First-time Visitors) × 100

Examples:

  • E-commerce: 300 purchases from 5,000 first-time visitors →
    = (300 / 5000) × 100 = 6%
  • Edtech: 120 course signups from 2,000 new users.
  • Insurance Platform: 40 quote requests from 500 new users.

6. Product Qualified Leads (PQL)

Definition: Leads who’ve experienced value and are ready for sales.
Criteria: Varies by product (e.g., finished onboarding, used key features).

Examples:

  • SaaS Email Platform: Users who sent 3+ campaigns = PQLs.
  • Healthcare SaaS: Doctors who upload 5+ patient files in trial.
  • Accounting App: Business users who complete 1 month of expense tracking.

7. Product Qualified Accounts (PQA)

Definition: Companies (not individuals) whose teams have shown product engagement, qualifying them for a sales push.

Examples:

  • B2B SaaS: An HR firm with 5+ active users uploading resumes.
  • Team Collaboration Tool: A company with 10+ messages sent within first week.
  • Enterprise CRM: Organization where 3 users invited others and created multiple deals.


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