Product metrics. Part 8- Activation Metrics

 

Activation Metrics

1. Time to First Value (TTFV)

Definition: Time taken for a new user to experience the core value of the product.

Examples:

  • CRM Tool: TTFV = 2 days (time to first automated lead capture).
  • Fitness App: User logs first workout within 1 hour of signup.
  • Investment Platform: First stock purchase completed within 6 minutes.

2. User Onboarding Completion Rate

Definition: % of users who complete onboarding steps.
Formula:
Onboarding Completion = (Users Completed / Users Started) × 100

Examples:

  • SaaS Dashboard: 800 of 1,000 complete onboarding →
    = 80%
  • E-learning Platform: 3,000 of 5,000 users complete profile setup → 60%.
  • Mental Health App: 2,000 of 2,500 new users complete first self-assessment → 80%.

3. Activation Rate

Definition: % of users who reach a predefined “aha” moment.
Formula:
Activation Rate = (Activated Users / Total Signups) × 100

Examples:

  • Newsletter Tool: 500 of 2,000 users send first campaign →
    = 25%
  • Design App: 700 of 1,500 new users create a design → 46.6%.
  • Online Tutoring App: 400 of 1,000 new users book a first session → 40%.

4. Signup to First Key Action Time

Definition: Avg. time from signup to a key action (e.g. purchase, upload, booking).

Examples:

  • Travel App: Avg. 10 minutes from signup to first booking.
  • Photo Editing App: 5 mins to first photo upload.
  • Personal Finance App: 1 day to connect first bank account.

5. First Week Retention Rate (Day 1, Day 7)

Definition: % of users still active after 1 day or 7 days.
Formula:
Retention Rate = (Active Users on Day X / Total New Users) × 100

Examples:

  • SaaS Tool: Day 1 = 60%, Day 7 = 30%.
  • Gaming App: Day 1 = 45%, Day 7 = 20%.
  • Language Learning: Day 1 = 55%, Day 7 = 35%.

6. Number of Steps to Activation

Definition: Average number of actions a user must take before being considered activated.

Examples:

  • Graphic Design Tool: Upload logo + add text + export file = 3 steps.
  • Health App: Log weight + set goal + complete first workout = 3 steps.
  • Loan App: Sign up + verify ID + check first loan offer = 3 steps.

7. Drop-off Rate During Onboarding

Definition: % of users who abandon during onboarding.
Formula:
Drop-off Rate = 100 - Onboarding Completion Rate

Examples:

  • CRM Setup: 1,000 users start, 600 finish →
    = 40% drop-off
  • Telemedicine App: 1,200 started, 900 finished → 25% drop-off.
  • Marketplace App: 800 signups, 500 listings created → 37.5% drop-off.


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