What is SaaS Time to Value (TTV)?

Time to Value, or SaaS TTV, is the amount of time it takes for a customer to initially see the anticipated benefit of a SaaS product. Because it has a significant impact on customer happiness and retention, it is a crucial metric. Early perceived value can correlate with customer retention. Hence, a shorter TTV is typically linked to increased user retention and lower churn rates. Although this can vary greatly between industries and product types, the average TTV for SaaS enterprises is approximately one day, twelve hours, and twenty-three minutes. 

Effective Time-to-value (TTV) measurement is essential for SaaS companies to comprehend customer onboarding procedures and pinpoint areas needing development. A combination of integrated analytics and specialized third-party solutions can do this. The time it takes for a client to have their first “aha” moment, the time until a customer surpasses their expected value (TTEV), and the general satisfaction with the rate at which desired results are attained are important indicators to gauge TTV. 

Targeting distinct consumer categories and improving the onboarding procedure to maximize TTV for diverse customer profiles are made possible by segmentation features found in specialized analytics platforms.

Here is an explanation of how to calculate SaaS TTV (Time to Value) and the important components involved, even though there isn’t a single, universally applicable formula:

Key Steps to Calculate TTV

• Define “Value”

• “Value” is unique to your product and what your customers expect.
• Examples include finishing a crucial activity, reaching a particular goal, merging with another tool, or having an “aha” moment.

• Determine the Start Point:

What time does the clock begin to tick? Typical choices consist of:

• The time of purchase or registration
• The onboarding process begins
• The initial login

• Find the End Point:

• The customer reaches the “value” you specified at this point.
• It could entail monitoring user behavior, reaching milestones, or even conducting consumer surveys. 

• Measure the duration 

• Determine how much time has passed between the beginning and ending locations. That is your TTV. 

Voorbeeld: 

Suppose you have a SaaS tool for project management. You define “value” as when a user adds team members and successfully completes their first project.

• Start Point: The user creates an account.
• End Point: The user adds at least one team member and establishes a project.
• Measurement: You keep track of how long it takes to complete these tasks after signing up.

A SaaS product’s optimal Time to Value (TTV) can vary greatly based on a number of variables, such as the complexity of the product, the customer’s current systems, and the necessary onboarding and training procedure.

TTV is typically longer for products that need a lot of user onboarding, training, or complex system transfers, but it can be shorter for products like CRM & Sales tools with simple onboarding procedures. 

For example, compared to a more straightforward project management tool, enterprise resource planning (ERP) software usually has a lengthier TTV due to its complex setup and integration needs. Therefore, when choosing the optimal TTV, it’s critical to consider the unique features of your SaaS product and customer. 

Because of the intricacy of the customer experience, the necessity of efficient onboarding and training, and the need to match procedures with client objectives and specifications, measuring and monitoring SaaS TTV can be difficult. 

Transitioning to self-service onboarding and product-led growth models for complex solutions can potentially lead to increased complexities and challenges, requiring careful consideration and planning. 

A comprehensive review of systems and data transfers should prioritize the impact on TTV and minimize potential detrimental effects on Klantbehoud. 

Enhancing SaaS TTV necessitates a multidimensional strategy that incorporates multiple tactics. Simplifying the user journey and lowering friction requires optimizing the onboarding step. 

Ensuring straightforward navigation and streamlining the user interface is essential for enabling users to rapidly understand the value offered. Businesses may show measurable outcomes and encourage ongoing involvement by providing instant value upon signup. The increase in TTV could be partially due to investments in detailed customer education programs and the optimization of demand generation channels.