Product Adoption Rate
Also known as: Feature Adoption, Product Engagement
The degree to which customers are actively using key features and capabilities of your product relative to what's available and relevant to their use case.
Formula
Varies by context. Common: (Active users of feature / Total licensed users) × 100, or (Features actively used / Features available in plan) × 100Who Is This Metric For?
Monitor per-account adoption to identify customers who aren’t using key features and intervene.
Track adoption trends across segments to inform training priorities and playbook updates.
Identify low-adoption features to determine if they need better UX, documentation, or deprecation.
Correlate adoption rates with retention to prove the business case for adoption-focused CS motions.
Priority by Stage
Start with the basics: are customers logging in? How often? Even crude usage data is valuable.
Move beyond logins to feature-level adoption. Define what 'healthy adoption' looks like for each segment.
Adoption should be a leading indicator in your health score. Correlate adoption patterns with retention outcomes.
Benchmarks
| Segment | Good | Great | World Class |
|---|---|---|---|
| Low Complexity | 60-70% DAU/MAU | 70-80% | 80%+ |
| Moderate Complexity | 40-50% WAU/MAU | 50-65% | 65%+ |
| High Complexity | 30-40% MAU | 40-55% | 55%+ |
Common Mistakes
- Tracking logins as adoption. Logging in is not the same as deriving value
- Using one adoption metric across all segments. Enterprise adoption looks very different from SMB
- Not defining 'sticky features': the features that, when adopted, most strongly predict retention