Quick Answer (TL;DR)
Reactivation Rate measures percentage of dormant users who become active again. The formula is Reactivated users / Dormant users x 100. Industry benchmarks: 5-10%. Track this metric when measuring re-engagement campaign success.
What Is Reactivation Rate?
Percentage of dormant users who become active again. This is one of the core metrics in the retention metrics category and is essential for any product team serious about data-driven decision making.
Reactivation Rate is a direct measure of whether your product continues to deliver value over time. Retention is the single most important category for long-term product success because it compounds: small improvements today create massive differences over months and years.
Understanding reactivation rate in context --- alongside related metrics --- gives you a more complete picture than tracking it in isolation. Use it as part of a balanced metrics dashboard.
The Formula
Reactivated users / Dormant users x 100
How to Calculate It
Suppose you measure reactivated users at 500 and dormant users at 2,000 in a given period:
Reactivation Rate = 500 / 2,000 x 100 = 25%
This tells you that one quarter of the base is converting or meeting the criteria.
Benchmarks
5-10%
Benchmarks vary significantly by industry, company stage, business model, and customer segment. Use these ranges as starting points and calibrate to your own historical data over 2-3 quarters. Your trend matters more than any absolute number --- consistent improvement is the goal.
When to Track Reactivation Rate
When measuring re-engagement campaign success. Specifically, prioritize this metric when:
You are building or reviewing your metrics dashboard and need retention indicators
Leadership or investors ask about retention performance
You suspect a change in product, pricing, or go-to-market strategy has affected this area
You are running experiments that could impact reactivation rate
You need a quantitative baseline before making a strategic decision
How to Improve
Optimize the numerator. Increase the number of users or events in reactivated users through better UX, clearer CTAs, and reduced friction in the conversion path.
Qualify the denominator. Ensure dormant users represents the right audience. Better targeting means a higher conversion rate.
Invest in proactive customer success. Do not wait for users to complain or churn. Use leading indicators (declining usage, support tickets, low NPS) to intervene early with at-risk accounts.
Continuously deliver value. Retention requires ongoing value delivery, not just an initial aha moment. Ship improvements, communicate them, and ensure users see the product evolving to meet their needs.
Run cohort analysis regularly. Compare retention curves across signup cohorts to determine whether product changes are improving or hurting long-term retention.
Common Pitfalls
Ignoring sample size. Small sample sizes produce volatile rates that do not reflect true performance. Ensure you have statistically significant data before drawing conclusions or making changes.
Looking only at aggregate retention. Blended retention hides critical differences between customer segments, cohorts, and plan tiers. Always segment your retention analysis.
Measuring without acting. Tracking this metric is only valuable if you have a process for reviewing it regularly and a playbook for responding when it moves outside acceptable ranges.
Related Metrics
Retention by Cohort --- retention segmented by signup date
Time to Churn --- average duration before a customer churns
Expansion Rate --- percentage of revenue gained from upsells/cross-sells
Contraction Rate --- percentage of revenue lost to downgrades
Product Metrics Cheat Sheet --- complete reference of 100+ metrics