If you spent a day at Accoil, you'd hear us talk about Activation and Engagement as often as we mention coffee. But what do these terms really mean? How are they different, and how do they work together?
Here's our advisor, Derek Skaletsky, on the topic:
Activation tells you how far a user or account has come on their path to first value. Engagement shows how much they use your product over time.
Let's begin with Activation (Rate)
Activation (n.) is a snapshot of how close a user or account is to that "aha" moment when they see your product's value. It also points to who might become a product-qualified lead.
Activation rate is the percentage of setup steps completed. If you need five steps to reach first value and an account completes two, its Activation rate is 40%.
When to use Activation (Rate)
Activation rate is vital in early trials. It helps you know when a trial account is ready for your sales team to follow up.
After the trial, Activation guides your customer success team. It shows which onboarding steps each account still needs.
User vs. Account Activation
You run your SaaS business at the account level.
- Accounts sign up
- Accounts adopt
- Accounts convert
- Accounts pay
- Accounts expand
- Accounts cancel
But accounts are made of users. Some steps apply to the whole account, like adding team members. Other steps apply to individual users, like setting up profiles. To see how ready an account is, you need both the account Activation rate and the users' rates.
Now, Engagement Score
Engagement score (n.) measures how much a user or account uses your product over time.
Not all actions hold the same value. Logging in is common but low-value. Creating a report is rarer and more valuable.
To build an engagement score, pick your key events, weight them by importance, and tally them up for each user and account.
When to use Engagement Score
Use engagement scores to:
- Spot accounts at risk or ready for an upsell
- Identify users who could become internal champions
- Find accounts to feature in your social proof
Trends matter. A falling score can signal trouble. A rising score shows you're on the right track.
At-a-Glance: Activation vs. Engagement
- Activation is a point-in-time measure of setup progress.
- Engagement is an over-time measure of product use intensity.
