
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
In the competitive landscape of SaaS businesses, acquiring new customers represents only half the battle. The often-overlooked counterpart is reactivating dormant users—those who have stopped engaging with your product but haven't formally churned. This resurrection of dormant users can significantly impact your bottom line, often at a fraction of new customer acquisition costs.
According to research from Harvard Business Review, acquiring a new customer can cost 5 to 25 times more than retaining an existing one. While this statistic typically applies to retention, the same principle extends to resurrection—reactivating users who already know your product requires less resource investment than educating completely new prospects.
Forrester Research indicates that increasing customer retention rates by just 5% can increase profits by 25% to 95%. By measuring and optimizing your resurrection rate, you tap into this same financial efficiency.
The resurrection rate measures the percentage of dormant users who return to active usage within a specific timeframe. Before calculating this metric, you must establish clear definitions:
The basic formula for calculating resurrection rate is:
Resurrection Rate = (Number of Resurrected Users / Total Dormant Users) × 100
For example, if you had 1,000 dormant users at the start of the quarter, and 150 of them returned to active usage, your resurrection rate would be 15%.
To accurately calculate your resurrection rate, follow these steps:
Resurrection analysis requires defining two key timeframes:
For example, you might define users inactive for 90+ days as dormant, then measure resurrections over the following quarter.
Not all dormant users are equal. Consider segmenting by:
According to Mixpanel's industry benchmarks, recently dormant users typically resurrect at 3-5x the rate of users dormant for 6+ months.
Implement proper event tracking to capture when dormant users return. This typically involves:
Beyond the basic resurrection rate, consider these advanced metrics:
Resurrection Retention Rate = (Resurrected Users Still Active After 30 Days / Total Resurrected Users) × 100
This measures how "sticky" your resurrection efforts are. According to data from Amplitude, successful resurrections typically show a 60%+ 30-day retention rate.
Resurrection ROI = (Revenue from Resurrected Users - Cost of Resurrection Campaigns) / Cost of Resurrection Campaigns
This helps quantify the business value of your resurrection efforts compared to acquisition campaigns.
Track resurrection rates by cohort (when users originally signed up) to identify patterns. According to research by Profitwell, users who initially engaged deeply with your product and then became dormant are 2-3x more likely to successfully resurrect.
With your measurement framework in place, implement targeted strategies:
Netflix, for example, achieves an estimated 33% resurrection rate through personalized recommendations and "we've added shows you might like" messaging to dormant subscribers, according to analysis from Second Measure.
Avoid these common mistakes:
Calculating and optimizing resurrection rate represents a significant opportunity for SaaS businesses. With user acquisition costs continuing to rise, the ability to reactivate dormant users provides a cost-effective growth lever.
By implementing proper measurement frameworks and targeted resurrection campaigns, you can unlock substantial value from users who are already familiar with your product. Remember that successful resurrections aren't just about bringing users back—they're about ensuring those users find renewed value in your product.
For maximum impact, make resurrection rate a standard component of your metrics dashboard and review it alongside acquisition and retention metrics. The most successful SaaS businesses recognize that a comprehensive growth strategy must address all three dimensions: acquisition, retention, and resurrection.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.