What is Customer Time to Value (TTV)?
Customer Time to Value (TTV) is how long it takes a customer to realize the value they expected from your product. For SaaS startups, the value realization moment often gets referred to as the aha moment. The shorter the time frame is to reach value, the more likely you are to retain a user and avoid customer churn.
How to measure time to value in SaaS?
SaaS firms have several options for measuring Customer to Time Value based on how founder's want to define value. Here are some ideas for how to land on your definition:
- Time to Onboarding Completion: This is how long it takes for a new customer to complete the onboarding process, which includes account setup, product configuration, and training. You can track this through analytics tools and customer surveys.
- Time to First Value: This is how long it takes new customers to receive value from the product or service. Measure this by monitoring usage data or conducting customer interviews.
- Activation Rate: SaaS firms can track the percentage of customers who have activated their product or service and received value within a specified time frame. Measure this by tracking user activity and engagement data.
- Customer Success Metrics: All SaaS firms should track customer success metrics, like customer retention, churn rate, and customer satisfaction, to measure the overall effectiveness of their product or service in delivering value to customers.
What are Time-to-Value examples?
A great SaaS time-to-value example is tax preparation software. Companies like TurboTax have customers who sign up for their services throughout the calendar year, but the value of their service isn’t realized until the tax season hits in the Spring.
How do you accelerate TTV?
Here are some ways that a SaaS startup can accelerate its TTV:
- Streamline Onboarding Process: This could include providing easy-to-follow tutorials, clear instructions, and automated processes.
- Offer Free Trials and Demos: This approach allows customers to test the product or service before committing to a purchase.
- Provide Customer Success Resources: Providing resources like training materials, webinars, and support documentation, can help customers learn how to use the product or service and achieve their desired outcomes faster.
- Focus on Core Features: Focusing on core features that deliver the most value to customers can help prioritize product development efforts and accelerate Time to Value.
- Use Data and Analytics: Analyzing customer data and usage patterns can provide valuable insights into how customers use the product or service.
- Establish Success Metrics: Establishing success metrics and regularly tracking them can help SaaS startups measure progress and identify areas for improvement.
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