License Utilization #
License utilization measures how well customers are using the activation slots their license allows. Low utilization may indicate unused licenses that are renewal risks.
Utilization Rate Defined #
Utilization Rate = Total Used Activations / Total Available Activation Slots x 100
Example: If you have 1,000 active licenses each allowing 5 activations, the total available slots is 5,000. If customers have used 3,500 activations, the utilization rate is 70%.
What Utilization Rates Tell You #
| Rate | Interpretation |
|---|---|
| Below 25% | Customers are barely using their licenses. High churn risk. |
| 25% to 60% | Normal usage for most businesses |
| 60% to 90% | Healthy engagement |
| Above 90% | Customers may need upgrades to higher activation tiers |
Utilization by Product #
The Utilization by Product table breaks down utilization rates per product, helping you identify which products have the least engaged customers.
Utilization and Churn Risk #
Low utilization is one of the five factors in DMSI Analytics’ churn risk scoring. Customers who have not used their activation slots in 30 days receive a higher churn risk score. See Churn Risk Scoring.