Your sign-ups are increasing, but your users aren’t sticking around. You’ve built a solid product, yet people sign up, explore for a day or two, then disappear.
You’re tracking everything-MAUs, session duration, conversion funnels-but when growth stalls or retention drops, these numbers don’t reveal what’s broken or what to fix.
The problem isn’t a lack of data; it’s that most metrics show last month’s results, not this week’s actions. While you’re debugging complex attribution models and arguing about CAC payback periods, users are deciding your product isn’t worth their time.
Daily confusion costs you potential advocates.
As a non-technical founder, you need just three early-stage SaaS product metrics that steer the product as you move from idea to MVP and into your first few hundred users: did new users succeed once, how quickly did they feel that success, and was it compelling enough for them to return?
Traditional finance metrics-CAC, LTV, and MRR-matter later, once retention and growth loops are established. In the earliest chapters, they’re slow to change and easy to misread.
The three MVP metrics below provide quick feedback you can act on this week.
Metric #1: Activation rate - Make the initial success clear
Think of your SaaS activation rate as proof, not progress.
A project tool hasn’t “activated” a user when they create an account; it happens when they set up a project, invite a teammate, and complete a task.
A meditation app doesn’t earn activation at sign-in; it’s when someone finishes their first session and feels calmer.
A CRM doesn’t activate users by walking them through features-it happens when they import contacts, log their first deal, and see their pipeline with real opportunities.
| Product Type | Sign-Up Action (Not Activation) | True Activation Event |
|---|---|---|
| Project Management | Create an account, confirm your email. | Set up the project, invite a teammate, and complete the first task. |
| Design Tool | Upload the first file. | Create a design and share it with a collaborator |
| Analytics Platform | Connect the data source | Build the first dashboard with real insights |
| Communication Tool | Send the first message | Team adopts it as the default communication method. |
| E-commerce Builder | Choose template | Publish store and process first order |
| Habit Tracker | Download the app. | Complete a 3-day streak of logged activities |
The “aha moment” isn’t always obvious. Slack’s activation isn’t sending your first message; it’s when your team’s communication defaults to Slack. Dropbox doesn’t activate when you upload a file; it’s when you install the desktop app and experience seamless sync across devices.
These moments often occur days or weeks after sign-up, so defining proxy activation events is crucial for early measurement.
Choosing the right activation event starts with listening for user language-”it clicked when…”-and naming the smallest, concrete action that represents that click.
Interview long-term users to pinpoint when they realized your product was genuinely useful. You’ll hear patterns, such as “When I saw all my data in one dashboard” or “When a client responded to a proposal I built in ten minutes.” These moments become your activation definition candidates.
After defining it, create a simple funnel from sign-up to activation and review it on a weekly basis. Focus on your week-over-week trend and whether changes make a meaningful impact.
Low activation usually indicates friction in onboarding or a missing connection to real data. The fastest fixes are pragmatic: seed the product with sample data so the first screen isn’t empty; offer a guided three-step checklist to steer people to success; add an importer or one-click integration so setup feels like a shortcut, not a chore.
Notion improved activation by creating template galleries-users could start with a structured workspace instead of a blank page. Calendly’s activation rate increased with calendar integration during onboarding, instead of requiring users to set it up later.
The pattern is consistent: eliminate the work between sign-up and the first meaningful outcome.
Keep the activation definition stable for a few weeks; otherwise, you’ll chase noise and won’t be able to determine which changes are effective.
Don’t define activation too ambitiously early. If most users aren’t completing your current activation event, don’t redefine it as something more challenging-figure out why they’re struggling.
Conversely, if nearly everyone “activates” but retention is poor, your definition is too shallow and needs to represent deeper value.
Metric #2: Time to first value (TTFV) - Shrink the “aha!” gap
Speed matters. The longer someone waits to feel value, the more likely they are to leave.
Time to first value (TTFV) measures the median time between “I signed up” and “I experienced the first success.” To avoid distortion from outliers, use the median instead of the average.
Then, examine the long tail with a simple distribution to identify where people tend to get stuck.
Friction in SaaS onboarding metrics isn’t always where you think. You might assume users drop off due to a confusing interface, but they’re stuck waiting for data to import or struggling with empty states.
One SaaS tool discovered that their TTFV bottleneck wasn’t due to onboarding complexity-it was that users had to enter 50+ contacts before the CRM felt useful manually.
They built a LinkedIn import feature and cut TTFV from three days to twenty minutes.
| Product Category | Target TTFV | Common Bottlenecks |
|---|---|---|
| Consumer Apps | Under 5 minutes | Empty states, account setup, unclear next steps |
| Self-Serve B2B | Same session | Data integration, team invites, configuration overload |
| Sales-Assisted B2B | Within the first call | Technical setup, admin permissions, training gaps |
| Marketplace/Network | Days to weeks | Matching supply and demand, and building critical mass |
Targets differ by product. A consumer utility should deliver value in minutes; a self-serve B2B tool in the same session or day; sales-assisted B2B may earn credit for hitting milestones quickly-connecting data, inviting collaborators, completing a first workflow.
For network-effect products, like marketplaces or social platforms, true value may take weeks to emerge, but optimize for early value moments, like successful first transactions or meaningful connections.
If your product’s true value takes time, define a credible first value proxy and compress the path to that milestone.
A project management tool can’t compress a three-month project timeline, but it can get users to their first “organized project view” in minutes.
A learning platform can’t accelerate skill mastery, but it can deliver the first “I understand this concept” moment quickly through interactive examples instead of lengthy video lectures.
The playbook for lowering TTFV is straightforward. It includes opinionated defaults instead of configuration, starter templates, inline guidance, and a friendly importer for messy CSVs.
Figma reduces TTFV by opening new users directly into a sample design file with modifiable components, allowing them to start working immediately.
Stripe’s developer experience minimizes time-to-first-API-call with pre-filled code examples and test data.
The approach is the same: show, don’t tell. Let users experience value before asking for time investment.
Metric #3: Early retention - Is it worth improving?
Early retention is crucial. For weekly products, assess Week-1 retention: of last week’s sign-ups, how many returned this week and repeated a value action?
For daily tools, stickiness ratios like DAU/WAU indicate frequent return. Define “active” in terms of genuine value action-creating, completing, or consuming with intent, not a passive open.
This is where most products reveal their true nature. You can engineer great activation rates with clever onboarding, but retention exposes whether your product solves a recurring problem.
A task app might activate users by helping them organize their first project, but if they don’t return to add new tasks or check off completed ones, the product isn’t engaging enough.
| Retention Pattern | What It Shows | Next Steps |
|---|---|---|
| High activation and low retention | The product solves a specific problem. | Find repeatable use cases or change direction. |
| Low activation and decent retention. | Onboarding challenges obscuring a good product | Fix initial experience |
| Both are declining. | Product-market fit issues | Back to customer research |
| Retention varies by user source. | Messaging/audience mismatch | Analyze acquisition channels |
When early retention sags, it’s often because activation wasn’t anchored to a repeatable value, or acquisition promised something the product doesn’t deliver.
A design tool might activate users by helping them create their first mockup, but if that mockup sits unused and they never start a second project, the activation event was too superficial.
True activation should predict repeat usage, not just initial success.
Sometimes the product works, but the habit loop is missing: no reminder to return, no “resume where you left off,” no social pull from teammates.
Duolingo doesn’t just teach languages-it builds streaks, sends push notifications at optimal times, and creates social pressure through leaderboards.
Slack succeeds because every mention, direct message, or channel activity creates a reason to return. The product becomes an integral part of users’ daily workflow, rather than a tool they remember to use.
Tighten the core repeat action path, add a simple Day-1-to-Day-7 lifecycle to nudge people back for a second success, and let collaboration do some of the heavy lifting-mentions, shared items, gentle prompts to respond.
The best retention loops are almost invisible: Notion saves your cursor position and recent pages; GitHub sends digest emails of repository activity; Calendly follows up on scheduling requests.
The pattern is consistent: remove friction for returning users and create subtle reasons for them to come back.
60-minute instrumentation
You don’t need a data team to start. First, add a lightweight analytics snippet (Google Analytics 4 with Tag Manager, Mixpanel, or PostHog).
Then, name a few events: when sign-up begins and completes, when the first-value moment occurs, and when someone performs your core repeatable action.
Finally, attach a few properties-plan, acquisition source, device type-so you can analyze the story later.
Ensure semantic clarity in your event names. Instead of generic labels like “button_click” or “page_view,” use names that describe business meaning: “project_created,” “teammate_invited,” “first_dashboard_built.”
Anyone else who encounters this data will appreciate the clarity.
| Event Type | Example Event Names | Useful Properties |
|---|---|---|
| Sign-up Flow | signup_started, email_verified, onboarding_completed | source, device, plan_selected |
| Activation | first_project_created, dashboard_published, team_invited | user_role, template_used, time_to_complete |
| Core Actions | task_completed, report_generated, file_shared | feature_used, collaboration_type, frequency |
Create three reports: a funnel from sign-up to activation, a TTFV view showing the median and the long tail, and a Week-1 retention cohort (or a daily use stickiness ratio).
Most analytics tools offer customizable templates for these views. A “sign-up to purchase” funnel won’t help if your activation occurs three steps before payment.
Test everything with a dedicated account to observe events as they arrive in real-time. If you can’t see your journey show up within seconds, neither will your users’.
Create a “test user” persona and walk through your entire flow-sign up with a fake email, go through onboarding, hit your activation moment, then return a few days later for a repeat action.
Every event should appear in your dashboard immediately. If there’s a delay or missing events, correct it before making decisions based on incomplete data.
Case studies: Three metrics in use
Here’s how three products-B2B dispute resolution, consumer productivity, and cashback rewards-apply the activation, TTFV, and retention framework.
Each faced distinct challenges: complex multi-step processes, habit formation, and immediate value delivery.
The solutions reveal patterns you can adapt for your product.
| Product | Category | Key Challenge | Primary Solution | Activation Definition (recommended) |
|---|---|---|---|---|
| PinqDR | B2B Legal Tech | Clarity of the multi-step process | Guided stepper and progress history | Case created + document requested/uploaded |
| Hyperplanner | Consumer Productivity | Daily habit development | Push notifications + organized timeline | First plan saved |
| Jamdoughnut | Consumer Cashback | Speed to first benefit | Instant cashback + 100+ brand offers | First rewarded purchase completed |
PinqDR (B2B dispute resolution) addressed clarity in multi-role processes by introducing a guided stepper that breaks dispute resolution into phases and a history page showing each user’s progress.
The stepper allows documentation to be requested directly, eliminating uncertainty about next steps.
The recommended activation definition is “case created with ≥1 document requested/uploaded”-achievable in the first session.
Track signup_completed → step_completed_* → case_created to identify drop-offs.
For TTFV, measure median minutes from sign-up to case_created and case_submitted. The stepper/history pattern reduces uncertainty.
Early retention leverages visible progress as re-entry prompts; track return_to_history within 7 days and follow-on case progression.
Hyperplanner (consumer productivity) features daily notifications to “plan for tomorrow,” a clean timeline, and mobile and Apple Watch apps for quick re-entry.
The activation definition is “first plan saved.”
It tracks signup_completed → plan_created and taps to actionable screens on return.
Target same-session install to plan_created, using daily notifications to prompt the first meaningful plan.
Monitor D1/D3/D7 returns and the push funnel (delivered → opened → plan created/edited) to validate retention cadence.
Jamdoughnut (consumer cashback) focuses on speed to value. It offers instant cashback into the JamJar wallet, promotions from 100+ brands, and push notifications.
Strong social proof includes over 98% 4-5-star Trustpilot reviews and more than 75% user recommendations.
Activation definition: “first rewarded purchase (cashback received)“-track wallet_funded → purchase_completed → cashback_received.
Target same-day install to cashback by minimizing funding and purchase steps. Use push notifications and fresh offers as return triggers.
Track Week-1 “≥2 rewarded purchases” and conversion from push to purchase.
Your 30/60/90-day plan
| Phase | Primary Focus | Key Actions | Success Metrics |
|---|---|---|---|
| Days 1-30 | Foundation & Baseline | Set up tracking, define activation, and resolve friction. | Consistent data collection and 2+ onboarding improvements delivered |
| Days 31-60 | Speed & Engagement | Compress TTFV and build retention strategies. | TTFV is trending down, and basic lifecycle emails are live. |
| Days 61-90 | Optimization & Discipline | Focus on core actions and establish a review process. | Clear retention patterns and a weekly scorecard routine |
Days 1-30: Foundation
In the first month, instrument the handful of necessary events, agree on a clear activation definition, and ship two improvements to the first mile-typically templates plus a short guided path.
Don’t overthink the activation definition-pick something concrete that represents genuine value, knowing you can refine it later. The goal is to start collecting data and establish a baseline.
Focus on the clear friction points: empty states that confuse new users and setup steps that feel like work instead of progress.
Week 1: Set up your analytics stack and define 5-7 core events. Create a funnel view and test it with your account journey.
Week 2: Interview 3-5 long-term users to validate your activation definition-does it match their “aha moment”?
Week 3: Ship your first friction fix, usually sample data or templates to eliminate empty states.
Week 4: Add a simple guided path-three clear steps to activation without overwhelming users.
Days 31-60: Speed and triggers
In the second month, run experiments to compress TTFV and add a simple Day-1-to-Day-7 lifecycle. Optimize the path to value and build the habit loop.
Test one TTFV improvement at a time-maybe a better importer one week, then default templates the next. For the lifecycle, start simple: a single email on Day 3 asking “How’s it going?” can reveal whether people are stuck or need encouragement.
Week 5: Identify your biggest TTFV bottleneck by looking at the drop-off points in your activation funnel.
Week 6: Ship one targeted improvement-if data import is slow, build a better importer; if configuration is complex, add smart defaults.
Week 7: Design and implement a basic 7-day email sequence that provides value, not just reminders.
Week 8: Add “resume where you left off” functionality so returning users don’t start from
Days 61-90: Refinement and rhythm
In the third month, double down on the repeatable action: prune distracting features, add collaboration or reminders where appropriate, and make the weekly scorecard review a necessary practice.
By now, you should see patterns in your data-which user segments retain the best activation paths, and where people drop off. Use this insight to cut distracting features and strengthen those driving repeat usage.
The weekly review becomes your product development compass, guiding feature decisions.
Week 9: Audit your product for features that don’t drive activation or retention. Hide or remove distracting elements.
Week 10: Add relevant social or collaborative elements-sharing, mentions, or team features that create reasons to return.
Week 11: Implement gentle retention mechanisms, such as progress indicators, streaks, or contextual reminders, based on usage patterns.
Week 12: Establish your weekly scorecard ritual. Same day, same time, same three metrics, always asking “what changed and why?”
How VeryCreatives can assist
Reading about metrics is one thing. Implementing them while juggling product development, user feedback, and team coordination is another challenge.
We’ve done the instrumentation dance with dozens of early-stage teams-the false starts with complicated tracking, the “why is this number jumping?”, and the analysis paralysis when every metric tells a different story.
In a focused Product Strategy workshop, we’ll define your activation event from interviews, set up essential tracking, and deliver a dashboard that answers the three key questions-then support integration into your MVP development roadmap.
Beyond the initial setup, we keep your metrics trustworthy as you scale. When you add new features, we help integrate them into your existing measurement framework.
As your team grows and new members need to understand the numbers, we provide training. When you reach critical milestones and need to evolve your definitions, we guide the transition without losing historical comparability.
This isn’t consulting theater or month-long engagements. It’s practical help for founders who want their product data to drive product decisions. Let’s discuss your situation and see if we’re a good fit.
