Lenny’s Newsletter · Subscriber post · Growth & retention · Metrics, data & experimentation

How to determine your activation metric

Including a deep dive into multi-player B2B SaaS products featuring Figma, Linear, Snyk, Airtable, Slack, Asana, and Sprig

Lenny RachitskyNov 8, 202217 min♥ 135
SourceLenny’s Newsletter
KindSubscriber post
PublishedNov 8, 2022
Readers♥ 135
Originallennysnewsletter.com ↗
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A follow-up on activation metrics explaining a three-step method: brainstorm candidate moments from usage data, test them with regression against retention, then run experiments to confirm causality. It adds real reader examples and tactical advice from B2B SaaS leaders on defining team-level activation for multi-player products.

Subscriber post — summary only

01Key takeaways

  • Brainstorm candidate 'aha' moments from product usage data before choosing an activation metric.
  • Use regression analysis to find which moments correlate with long-term retention.
  • Run experiments to confirm the metric is causal for retention, not merely correlated.
  • In multi-player B2B products, pair a user-level action metric with a workspace-level metric and track both.
  • Some teams, like Linear, argue against formal activation metrics if they don't improve the product long term.
“A good activation metric is causal for your retention, not just correlative.”Lenny Rachitsky · Lenny’s Newsletter

02Frameworks mentioned

Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.