What Does It Mean?
Time to value, or TTV, is the amount of time it takes for a new customer to receive a desired outcome through your product.
A Customer Satisfaction / NPS Dashboard
Why Does it Matter?
In today's world, an optimised TTV is imperative. Simply put, customers expect to see quick results on their investments. After attracting users, you have a limited amount of time to engage them and prove your value before they will churn. Time to Value is the amount of time it takes your product to demonstrate it’s worth.
How Do You Measure the KPI’s?
To understand your TTV, you first have to understand what it is that your customers value. Your product may have several different features, and aligning with your customers around the most important aspects of your service is a key to creating stickiness.
Time to value is highly variable depending on your product, industry, and clientele - so, tracking different kinds of TTV is important to wholly understanding the metric.
Time to Basic Value
Time to basic value is the amount of time it takes for your customer to start seeing any amount of value from your product. Time to basic value may come before a customer has spent any money, for example; many products offer a limited version of their product for free where customers can immediately start to get utility.
Time to Exceed Value
Time to exceed value is the amount of time it takes for your product to surpass your customer’s expectations. This is a very important moment in retaining customers, it is when customers understand there is higher value that they want, and can gain through your product. An example is customers upgrading to a paid version of a product in order to access more features.
Long Time to Value
Long time to value describes value that is realized after a customer has been using a product for some time. The full value of a product might not be realized until time has passed and the product has become increasingly relied on. Take as an example a photo storage service, where the value of the product increases to the user as they add more and more photos over time.
What Data Sources Would You Use to Measure the KPI?
Increasingly, businesses are turning to product analytics tools to aggregate data around the customer journey and help to illuminate customer experience.
Give me an example…
Let’s pretend you have recently downloaded a free app that streams music. You are able to listen to music immediately from the moment you sign up; instantly you are in music bliss, and the time to basic value here was less than a minute.
After about a week of using the app, you get a pop up notification letting you know that if you upgrade to a paid version, you can connect with friends who use the app, and see all of the awesome music they listen to. You are excited, you upgrade, and the time to exceed value in this case was one week.
Over the course of a year, you create 100 playlists. You can’t imagine living without your perfect playlists, this is value that has been realized over time, and is an example of long time to value.
What Benchmarks/Indicators Should I Use?
Bottom line - the shorter your TTV, the better.
While TTV may differ across industries, and different kinds of TTV may be more important for your product - for any product, finding a way to demonstrate value to your customers cannot happen soon, or often, enough.
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