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Stable6 min read

Product Health Metrics

Separate vanity usage from signals that predict retention and expansion.

Metrics in this guide

Each card defines one metric — what it measures, how to calculate it, and a typical benchmark.

  • Activation

    Activation rate

    Validation

    Share of new users who reach a defined “aha” or value action.

    Formula
    Users completing activation event ÷ new signups
    Typical benchmark
    Define activation per product; 25–40%+ is strong for PLG trials.
  • TTV

    Time to value

    Validation

    Median time from signup to first meaningful outcome.

    Formula
    Median hours/days to activation event
    Typical benchmark
    Shorter TTV correlates with higher retention in most B2B SaaS.
  • Retention

    Cohort retention

    Validation

    Share of a signup cohort still active after N days or weeks.

    Formula
    Active users in cohort at week N ÷ cohort size
    Typical benchmark
    Look for flattening curve; compare W4/W8/W12 by segment.
  • DAU/MAU

    DAU / MAU ratio

    Execution

    Daily active users divided by monthly active users — stickiness.

    Formula
    DAU ÷ MAU
    Typical benchmark
    Consumer 20%+ strong; B2B workflow tools vary widely by role.
  • Adoption

    Feature adoption depth

    Execution

    Share of active users using features that predict retention.

    Formula
    Users of predictive feature ÷ WAU or MAU
    Typical benchmark
    Identify 2–3 “retention features” from cohort analysis.

Product health metrics measure whether users reach value and stay: activation rate, time-to-value (TTV), cohort retention (D1/D7/D30/W4), DAU/MAU, and feature adoption depth.

Related techniques

Sources & further reading

  • Chen, A. (2021). The Cold Start Problem. Harper Business.