Glossary / Customer Activation Rate

Customer Activation Rate

Customer activation rate refers to the percentage of customers who have successfully activated or started using a product or service after signing up or making a purchase. It is a measure of how effective a company is at onboarding and engaging its customers. The formula to calculate customer activation rate is: Customer Activation Rate = (Number of Activated Customers / Total Number of Customers) * 100 For example, if a company has 1,000 customers and 800 of them have successfully activated their accounts or started using the product, the customer activation rate would be: Customer Activation Rate = (800 / 1,000) * 100 = 80% A high customer activation rate indicates that a company is successful in getting customers to start using their product or service, which can lead to increased customer satisfaction, retention, and ultimately, revenue.