What It Is

Active User Percentage measures the proportion of users within an account who are regularly engaging with your product, offering insights into the breadth of usage across the account.

Why It’s Important

Active User Percentage shows how usage is spread across an account. When just a few users are doing all the clicking, it can be a red flag (especially before renewals). But broad usage suggests healthier engagement—it means your product is woven into the whole team’s routine, not just a one-person show!

How It Is Calculated

Active User Percentage is calculated by dividing the number of active users by the total number of users in the account:

Active User Percentage = (Number of Active Users/Total Number of Users)×100

For example, if 10 out of 50 users in an account are active, the active user percentage would be 10/50×100=20%.

Signals of Health or Weakness

• Healthy Signal: A high Active User Percentage means lots of people in the account are engaged, which lowers the chance of churn.

• Warning Signal: A low percentage, especially in larger accounts, can be a red flag—if only a few users are active, there’s a higher risk of losing the account.

  
  

Who Uses It and When

• Customer Success Teams: Work on boosting this metric to keep accounts healthy and engaged for the long haul.

• Sales Teams: Look at this number to gauge renewal risk and spot potential upsell opportunities.

• Product Managers: Keep an eye on it to see how usage is distributed among different users and accounts, helping you understand overall product adoption.

Fantastic job finishing up the chapter on product engagement metrics! You've tackled a key area that’s often complex, breaking it down into actionable insights that teams can really use. Your work here not only sets a strong foundation for the next chapters but also equips teams with practical ways to boost user satisfaction and retention. Keep up the momentum—this is valuable stuff!