How Do SaaS Businesses Define an 'Activated User'?
Defining an 'Activated User' in Software as a Service (SaaS) businesses involves understanding the unique user journey for the specific application. This involves understanding the funnel from initial exposure to the product to becoming an active and engaged user of it.
In case of applications with multiple use cases and features, this specifically involves understanding the type and threshold of engagement that correlates with long-term retention.
Let's look at different stages.
☞ Initial Engagement:
The journey often begins with the first visit or sign-up, where potential users explore what the SaaS product offers. This stage is about sparking interest.
☞ Exploring Core Features:
Activation in SaaS is typically tied to users interacting with key features of the software. This might involve using a particular tool or function that is central to the application's value proposition.
For collaborations tools such as Notion or Slack, it can involve inviting a team member. For design tools such as Canva or Figma, it can be about creating the first design. For analytics tools such as Google Analytics or Mixpanel, it can be about at least one data integration or creating one dashboard.
☞ From Free Trial to First Purchase:
Many SaaS platforms offer free trials to allow users to experience the product. The transition from a free trial to the first purchase is a crucial activation point, indicating the user's commitment and perceived value in the service.
The 'Aha Moment' in SaaS:
Similar to consumer apps, the 'Aha Moment' in SaaS is when users realize the product's value. This could be when they achieve a particular goal using the software, or when a specific feature substantially eases a pain point.
Quantitatively, users past this point should have higher chances of being a long-term customer.
Takeaway:
For SaaS businesses, an 'Activated User' is not just about the first sign-up or trial. It's about the user engaging meaningfully with the software and recognizing its value to their work or business. This understanding is crucial for developing strategies to convert and retain users in the long term.