What is adoption rate?
Adoption rate metric is used to measure the percentage of total signups that turned into active users in any given period.
Product adoption rate metric is generally used for SaaS businesses.
How to calculate adoption rate?
To calculate the adoption rate, divide the ‘number of new active users’ by the ‘number of total new signups’ and multiply by 100.
Remember, you need to consider figures of a particular time frame, like weekly, monthly or quarterly.
Formula for calculating adoption rate
Real-life example of adoption rate
You run a micro SaaS business and 200 new users signed up for your product in a month. Out of those 200 signups, 40 users started using your product actively.
Then, your product adoption rate will be: 40/200 x 100 = 20%
What’s an average adoption rate? (benchmark)
The median product activation rate is 17%, while the top performing SaaS reached an activation rate of 65%.
The average month-over-month growth in the number of weekly active users is 4%.
You should always strive to constantly improve your product adoption rate and increase your rate upwards from where it is currently.
Ways to improve your adoption rate
- Provide a personalized onboarding: Users won't adopt your product unless they activate it, and welcome screens are a great way to do that. Segmenting your users lets you understand the needs of your users better.
- Deliver engaging walkthroughs: Interactive walkthroughs are an excellent onboarding tool for driving product adoption. The goal of walkthroughs is to engage users by making them learn by doing.
- Provide friction-less signup: No one likes to perform complex tasks. You should focus on making your signup process as seamless as possible for your new users so they don’t face any roadblocks while on their way to adopting your product. Read: The Ultimate Guide to SaaS Signup Flow UX
Also Read: Related Metrics
- Net Promoter Score
- Customer Churn Rate
- Customer Lifetime Value
- Customer Retention Rate
- Repeat Purchase Rate
- Customer Satisfaction Score (CSAT)
- Renewal Rate
- Customer Acquisition Cost
- First Contact Resolution Rate (FCR)
- Free Trial Conversion Rate
- Daily Active Users (DAU)
- Monthly Active Users (MAU)
- Average Revenue Per User
- Referral Program ROI
- Upsell Rate & Cross-sell Rate
- Viral Coefficient
- Participant Share Rate
- Invitation Conversion Rate
- Net Dollar Retention
- Sessions per User