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KPI · Subscriptions and SaaS

Activation rate: formula and example.

Activation rate is the number of new accounts that reach a predefined activation moment within a set period, divided by all new accounts, as a percentage. The activation moment is the first time a customer experiences your product's core value, such as sharing a first report or setting up an integration. Activation is an early signal for conversion and churn.

Activation rate formula

New accounts that activate within the period ÷ all new accounts × 100%

Worked example

In September, 180 businesses sign up for Acme's subscription service. Of these, 117 reach the activation moment within seven days: sending their first invoice through the service. Activation rate is 117 ÷ 180 × 100% = 65%.

Fictitious figures for Acme Groothandel, a sample wholesaler.

How to read this KPI

A higher activation rate means more new customers experience your product's value quickly, which usually leads to higher trial conversion and lower churn. Compare it by acquisition channel and onboarding version to see what works. The result depends entirely on how you define the activation moment; choose one that demonstrably links to retention and keep it fixed.

Pitfalls with activation rate

  • Choosing an activation moment that is easy to hit, such as logging in, but says nothing about retention.
  • Not using a fixed time window, so older cohorts have had more time and score higher.
  • Including test accounts, staff accounts or duplicate sign-ups.

SQL & DAX

Calculating activation rate in SQL and DAX

Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.

SQL · PostgreSQL
SELECT date_trunc('month', COALESCE(trial_started_at, started_at)) AS signup_month,
       COUNT(*) AS signups,
       COUNT(*) FILTER (WHERE activated_at <= COALESCE(trial_started_at, started_at) + interval '7 days') AS activated,
       ROUND(100.0 * COUNT(*) FILTER (WHERE activated_at <= COALESCE(trial_started_at, started_at) + interval '7 days')
             / NULLIF(COUNT(*), 0), 1) AS activation_pct
FROM subscriptions
WHERE COALESCE(trial_started_at, started_at) < current_date - interval '7 days'
GROUP BY 1
ORDER BY 1;
DAX · Power BI
Activation Rate =
DIVIDE(
    COUNTROWS(
        FILTER(
            Subscriptions,
            NOT ISBLANK(Subscriptions[activated_at])
                && Subscriptions[activated_at] <= COALESCE(Subscriptions[trial_started_at], Subscriptions[started_at]) + 7
        )
    ),
    COUNTROWS(Subscriptions)
)

In ENABLE

Tracking this KPI in ENABLE

Plain-language questions

Ask for activation rate per month, customer or product in the SQL Explorer with AI. The AI writes the SQL, you see the query and run it yourself; the AI only receives metadata.

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In your Power BI dashboard

Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.

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Custom dashboards (pilot)

Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.

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Monthly targets

With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.

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FAQ

Frequently asked questions

How do you calculate activation rate?

Divide the number of new accounts that reach the activation moment within a fixed window, such as seven days, by the total number of new accounts in the same period. With 300 sign-ups and 150 activations, the rate is 50%. Define the activation moment in advance.

How do you define your product's activation moment?

Look for the action that separates customers who stay from those who leave, such as a first report, an integration or inviting a colleague. Compare retention between users who did and did not take that action. Pick an action that happens early, so you can steer towards it during onboarding.

What is the difference between activation and trial conversion?

Activation measures whether a new user has experienced the product's core value; trial conversion measures whether they started paying. Activation usually comes first and predicts conversion. Tracking both shows whether a problem lies in the product and onboarding, or in pricing and the buying process.

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