SaaS focused on Sales?
Must have 3 Activation metrics to monitor:
WHAT is Activation metrics?
Activation metrics measure how effectively your brand engages its users after first interaction. This determines whether users are reaching key milestones that indicate they're finding value. Monitored milestones can be: completing a tutorial; using a feature multiple times like completing a key feature; achievements; frequency of usage within a sensitive time-frame. By tracking activation, businesses can improve user onboarding and retention.
Activation metrics is monitored for specific indicators that quantify user engagement and value realization at critical points in the user journey, often defined as "activation events." Effective analysis of activation metrics enables development teams to iterate on user experience, optimize onboarding processes, and ultimately drive higher retention rates by aligning product capabilities with user needs.
WHY monitor Activation metrics?
Monitoring activation metrics is essential because they show how well users are engaging with your brand after they first start using it. By understanding these metrics, businesses can identify if users are struggling to find value or complete important tasks. This insight helps improve the onboarding process, leading to better user retention and satisfaction.
Monitoring activation metrics is CRITICAL for identifying potential friction points in the user journey. These metrics provide actionable insights into user behavior, allowing development teams to assess the effectiveness of feature adoption. By analyzing activation trends, businesses should refine SaaS development, enhance user experiences, and increase overall retention, ultimately driving sustainable growth.
Advantages to monitor & report Activation metrics:
Monitoring and recurrently reporting activation metrics has several advantages. Recurrent monitoring with automatic reporting offers key strategic advantages by ITSELF.
First, it helps businesses understand how users interact with their product, allowing them to spot issues early on. It enables data-driven decision-making by providing actionable insights into user engagement and onboarding effectiveness.
Second, it provides insights for improving user onboarding, making it easier for new users to find value. Continuous tracking allows teams to identify trends, measure the impact of changes, and optimize user pathways in real-time.
Lastly, by sharing these reports, teams can stay aligned and focused on enhancing user experience, leading to better retention and growth. Additionally, sharing these metrics fosters cross-functional collaboration, aligning product, marketing, and support efforts towards enhancing user activation and retention strategies, ultimately driving sustainable growth and product-market fit.
SaaS focused on Sales? Start monitoring your Activation metrics today!
SaaS focused on Sales?
Must have 3 Activation metrics to monitor:
#1 - Time to First Sale
Time to First Sale for a SaaS application focused on Sales, measures the duration it takes for a user to make their first sale after signing up for your application.
Why track Time to First Sale? Monitoring Time to First Sale is crucial to understand how quickly users can leverage your platform to achieve tangible outcomes. A long time to first sale indicates onboarding challenges or difficulties in understanding the sales process within your application.
How to calculate Time to First Sale? Your domain's Time to First Sale can be calculated by measuring the time from when a user signs up to when they close their first sale. Then average this time across all new users.
How to improve Time to First Sale? To reduce Time to First Sale, streamline the onboarding process. Provide tailored, HUMAN assisted training sessions. Offer resources such as guides and best practices that help users quickly grasp the sales tools available.
SaaS focused on Sales? Start monitoring Time to First Sale metrics today!
#2 - User Engagement Rate with Sales Features
User Engagement Rate with Sales Features for a SaaS application focused on Sales, measures the frequency with which your users engage with you app's key sales features (creating proposals, tracking leads).
Why track User Engagement Rate with Sales Features? Monitoring your User Engagement Rate with Sales Features provides insights into your sales goals. High engagement with sales features indicates that your users find the tools valuable and are actively working towards generating more sales. Low engagement suggests, that your users are struggling to utilize the features effectively or do not understand their importance.
How to calculate User Engagement Rate with Sales Features? Calculate your User Engagement Rate with Sales Features by counting the number of times users interact with key sales features within a specific time frame. Then divide that with the total number of active users, during the same period.
How to improve User Engagement Rate with Sales Features? To boost User Engagement Rate with Sales Features, provide in-app guidance. Host webinars and training sessions on how to best use sales features. Send out regular updates highlighting feature benefits and success stories.
SaaS focused on Sales? Start monitoring User Engagement Rate with Sales Features metrics today!
#3 - Lead Conversion Rate
Lead Conversion Rate for a SaaS application focused on Sales, measures the percentage of leads that your users convert into paying customers within a given time-frame.
Why track Lead Conversion Rate? Monitoring your Lead Conversion Rate provides insight into the effectiveness of the sales process and the quality of leads generated through the application. A low conversion rate indicates issues with lead quality, sales tactics, language barrier or sales agent experience.
How to calculate Lead Conversion Rate? Monitoring your Lead Conversion Rate can be achieved by dividing the number of leads converted into paying customers with the total number of leads generated. Then multiply by 100, to get your percentage.
How to improve Lead Conversion Rate? To increase Lead Conversion Rate, offer training on effective sales techniques. Provide tools for better lead management. Analyze user feedback to identify and eliminate any barriers to conversion.
SaaS focused on Sales? Start monitoring Lead Conversion Rate metrics today!