Many software businesses face users who sign up, never reach key milestones, then wander away to a rival.
But then, there’s a way out with optimized user activation!
Ben Winter from Appcues found that a 25% increase in activation resulted in a 34.3% lift in the monthly retention rate after a year.
Take a look at this table on average activation by different types of SaaS products:
These figures show that user engagement varies across verticals. Therefore, consider how you can strengthen activation.
Let’s dive into exploring activation strategies to protect your revenue stream and keep users engaged, preventing them from drifting away.
What is SaaS user activation (+ what drives it)
User activation describes the point at which a person experiences real benefits from your SaaS product.
Yes! That wow effect is called the “Aha moment” when using the software.
Activation occurs when you complete a key action, solve a pressing task, or see enough value to keep coming back. Treat this as your software’s milestones, which will get you to the stage where you can only arrive after resolving any existing issues within the software.
Here, you’d need your QA teams to leverage a bug tracking system to identify and resolve critical issues efficiently.
Once you’ve completed this, you’ll be sure to provide a glitch-free user experience that simplifies activation while further enhancing the UX.
As you set out for SaaS user activation, the following metrics must be in your sight.
A. Activation metric
A chosen action that signals a user is active is measured by whether they have completed that milestone, such as building a first project.
Example: Setting up the first board in a project managemetn tool.
B. Time to Value (TTV)
It’s a metric that considers the time the user spends before the product delivers a meaningful win (or, say, an “Aha” moment).
TTV is tracked by the period from sign-up to the first usage of a crucial feature.
Example: A CRM measuring how soon a lead is added.
C. Onboarding experience
While this is not a metric you could quantify directly, it is still possible to gauge how many users followed the guided steps and for how long they followed those.
Example: Check whether the users can complete all tutorials within a set timeframe.
D. Educational content
Offer users tips, guides, or training materials and measure their engagement with that content.
Example: A short blog post or self-help guide that helps users master a core feature.
E. Customer segmentation
Group users by industry, role, goal, etc.
You can also use any of the following segmentation methods to create distinct groups.
Based on each segment, you’ll have to gauge their engagement and check how each segment responds to different parts of software usage.
Example: Tools adoption and usage between marketers vs. finance users.
F. Behavioral Analytics
Once users start to use the product, track the actions they take when using it. You’ll measure the same with the help of usage events or time spent on features. If there’s any deviation to standard, anticipated user actions, then try launching a behavior email for your SaaS product.
Example: Identifying a spike after launching a new dashboard, try sending an email to engage the user further.
With these metrics in sight and constant ramifications based on users’ interaction and engagement with the tool, you can set your product up for higher retention.
SaaS user activation strategies
You’ll need to thoughtfully set up the user activation strategies to engage the subscribers right from day one. Usually, it will cover everything from first impressions to ongoing nudges to promote a more profound use.
Yes, we are speaking of retaining users and having them keep coming back for more.
Below, we’re mentioning five different strategies aimed at negating onboarding and activation hurdles so that you set the stage for long-term loyalty.
Let’s unpack!
1. Streamline user onboarding
A smooth start can turn a curious visitor into a loyal user. A clunky onboarding would mean users leaving the product even before identifying its actual value.
Again, you can’t be sure of a successful onboarding without running a thorough QA process to catch glitches ahead of time. As we mentioned, a solid bug-tracking system is the key to preventing user frustrations right after sign-up.
For starters, break down setup tasks. If you have ten items for a new user to tackle, group them into logical sections. That helps them focus on immediate wins.
An example here can be a marketing analytics platform that can group actions into “Connect Data Sources,” “Build Your First Report,” and “Share Insights with Colleagues.”
At Encharge, we provide users with a small task to import contacts.
When the content is broken into bite-sized goals broken down, you’ll, at least, not overwhelm users.
A smoother onboarding will need you to take these steps.
Setting up an interactive product tour or walkthrough
Provide users with an in-app guided tour that guides them through essential features.
For example, we provide a short video guide to our new users. It’s an embedded video that users can play to learn how to navigate the product.
This way, new users will have a hands-on introduction instead of being forced to read a long manual.
Prepare a checklist highlighting key actions
Put up a simple list of tasks inside the product that guides users step by step.
For example, there can be;
“Add your first teammate” > “Create a new project” > “Send your first invoice”
Each item can be checked off in progress indicators as they finish it while showing the remaining time or steps.
When users see how close they are to completing each step, they’re more likely to push forward.
Self-service resources
Blend in some tutorial videos, FAQs, and short knowledge base articles so that users can opt-in to learn independently.
We at Encharge have a dedicated knowledge base like this. You can do the same and also use video uploads on YouTube that can be redirected from the product.
A Zendesk report suggests that 91% of SaaS users would prefer to use a knowledge base if it helps them meet their demands. A knowledge base is a great way to save time for both sides while addressing user concerns 24/7.
2. Personalize user experiences
SaaS buyers favor products that make them feel as if it was made for them.
Therefore, personalization can help them reach milestones faster as the product adapts to their unique roles or situations.
Studies by Userpilot indicate that personalized user experience can turn 80% of customers into loyal users.
How can you do this?
First, you’ll need to collect the correct information as soon as a user signs up. Ask them brief questions about their role, industry, or main objectives.
This is how you get their first impression. It’s also a way to understand what their primary purpose is for using your software.
A marketing lead might see more tips on campaign tracking, while an HR professional might see suggestions on organizing talent data. This way, you’ll have customized onboarding steps for people in a way that fits their world.
Again, you’ll have to make way for behavior-based personalization by analyzing how users interact with different features.
If they spend most of their time in analytics, you could display tips about advanced reporting or show recommended videos on data visualization.
You can have personalized onboarding, sending users down paths that make more sense for their roles. This will speed up activation and reduce confusion and questions for your support team.
Here, you’d have the following action items to perform.
User segmentation on sign-up
Collect the basic user information and group your user base. Some will be startups looking for a quick fix, while others will be mid-sized businesses needing advanced features and so on.
After completing the sign-up, direct them to slightly different onboarding flows. This segmentation ensures everyone sees only the steps that matter.
Applying conditional logic in onboarding flows
If a user chooses “Finance” as their primary focus, show them how to generate expense reports first.
If they choose “Sales,” highlight the lead generation steps. Each path can skip sections that don’t apply.
This way, you can eliminate confusion with an intent to boost the chance of early success with activation.
Use of dynamic email sequences with tailored activation tips
Email remains a top channel for follow-ups.
If someone identifies as a project manager, your welcome emails might include best practices for resource scheduling.
Now, if they are a part of the product team, you could spotlight user testing or feature planning.
It is small touches like these that help build trust and show you’re committed to their progress.
3. Optimize time-to-value
Users may lose interest if your product fails to communicate its actual benefits early on. This is why the time to value (TTV) matters so much: It shows how fast a user experiences a genuine win from your product.
Surveys suggest around 3% to 7% of monthly churn.
So, you’d aim to reduce this at least during their first month of use. However, this can happen if users don’t achieve any tangible results within that first month.
A shorter TTV suggests that you’re basically answering a critical question right away: “How does this product help me?” Some users come for smoother reporting; others might want an automated scheduling feature.
First, have your dedicated product development team remove barriers at sign-up. A lengthy registration or a request for too many details can stall momentum.
So, let them explore quickly, even if that means collecting extra information later.
Templates and default setups can be used to shrink TTV. Instead of leaving users to build everything from scratch, you can offer ready-made configurations that address everyday needs.
For instance, if you offer payroll management, consider including a sample pay cycle template for companies with fewer than 20 employees. This way, users can see results immediately and make tweaks on the fly rather than starting with a blank slate.
Optimizing time to value will need you basically act in the below areas:
Avoid unnecessary steps or friction during sign-up
Begin with trimming your forms because an endless list of fields may annoy users.
The best is to keep it to essentials — maybe just an email and password.
Next, let them jump into the product to see basic features so as to prevent early drop-offs caused by complicated gates.
Provide templates, presets, or default configurations
It’s fair for users to give up on the product early on, especially if they’re on a free trial.
So, load your product with a library of one-click templates. If you’re running a design tool, then provide a few ready sample layouts.
For the analytics suite, provide standard dashboards that display core KPIs so that users feel like they made progress in seconds.
Highlighting the product’s core feature upfront
Don’t hide your best feature behind multiple menus. Instead, place it at the forefront of the user dashboard so new subscribers can see why your product is exceptional.
If your main selling point is real-time collaboration, display it as soon as they log in. This is where you can give them the “aha” moment, so there you have the difference between a user who stays and one who quietly leaves.
4. Use of behavioral triggers
Behavioral triggers let you react to what users do (or don’t do) inside your product. With custom AI solutions, you can set up smarter, automated triggers that adapt to user behavior in real time. They are targeted nudges that encourage people to complete key steps.
A report by Whatfix suggests that 800 out of 2,000 users interacted with an in-app pop-up, directing them to a walkthrough of the feature under analysis, resulting in an exposure rate of 40% for your feature.
The idea is simple: if a user is halfway through onboarding but stops for a week, that’s a signal. Send a reminder email that picks up exactly where they left off. Now, when a user explores your analytics dashboard but never creates a report, it’s time to pop up an in-app message inviting them to try the quick-report feature.
Manage the timing. If the nudge emails arrive just as the user is pondering their next move, the impact will be greater.
But don’t overload them with emails; otherwise, it may look spammy. For this, you need to set conditions to trigger fire at meaningful intervals.
For example, if the user has not logged in for 7 days, send an email. Or, if a set of users did visit feature A four times but hasn’t tried feature B, then pop up a tip.
Below are three ways to put this strategy into action:
Automated in-app messages triggered by inactivity or milestone completions
In-app messages may pop up if a user is idle or hits a particular milestone.
For example, “Looks like you haven’t been back since adding your first project. Need help scaling up?”
Such small prompts may remind them your product has more to offer.
Reminder emails nudging users to complete onboarding steps
If someone checks only one item off their onboarding list and never returns, then it is best to send them an automated email and reignite their interest. For this, send a direct link in the email so that they pick up from where they left off by recapturing their attention.
Push notifications highlighting underused features
Your users on mobile? Do you have access to their phone numbers or mobile apps? If so, share push notifications to pull them back in.
If the system experiences that the users haven’t tried a key function, then send a short nudge on their phone like “Want to try our new timesheet feature? It’s just one tap away.”
5. Improve with feedback
Finally, you need to hear back from users.
Sure, you think you’ve nailed the onboarding process and have a strong activation plan in place.
But is it really working just as you intended?
You’ll need feedback on broken steps, unclear guidance, or missing elements. This feedback can come through many channels, such as email, surveys, user testing, or social media remarks.
You’ll then work to tweak your product or onboarding tutorial based on user feedback so that you increase activation without much friction.
Also, if you roll out updates or minor changes in response to their comments, they’re more likely to stick with you.
Below are some major actions you’d take for the feedback.
Post-onboarding surveys to identify pain points
Once the user has completed the initial setup, prompt them with a short survey. For example, “How was your first experience?” or “Did you achieve your primary goal?”
Fewer, to-the-point questions are perfect.
Make sure these questions focus on the high-impact friction points or highlights.
Churn analysis of user behavior to identify activation bottlenecks
You can see the accounts that went inactive and check if they dropped off at a particular step in the onboarding sequence.
Now, was it because that user failed to activate a core feature? Or were there other reasons as well?
Analyze patterns that tell you where to focus your efforts to identify communication misalignment during the onboarding or activation phase.
A/B test of onboarding flows and activation messaging
At last, get the split test done to take the guesswork out of changes. You can have two versions of your welcome email — one with a video thumbnail and one with a bullet-point list. Then, check which group completes onboarding at a higher rate.
This way, you can leverage data to understand and reduce customer churn in B2B SaaS. It also ensures that you don’t just roll out random tweaks without proof that they work.
Wrapping Up
That’s it!
User activation can create a solid groundwork for long-term success in B2B SaaS. The above strategies should work for starters, but you’ll have to work on the last one — the feedback constantly.
This will only refine the other four methods, ensuring that SaaS activations remain above par.
The ultimate goal should be to prioritize activation in a way that can turn users into brand advocates. This is when your product will remain indispensable in a fast-growing, highly competitive SaaS market.
