SaaS Time to Value (TTV) Calculator

Think of Time to Value (TTV) as the journey from signing up to seeing your SaaS software’s ‘aha’ moment. The quicker that moment comes, the happier your users will be.

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    Strategic Value Insight

    Understanding the time to value (TTV) ratio as it applies to your product can help you make better product and onboarding decisions.

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    Operational Impact

    Lowering the TTV increases user satisfaction and reduces the need for support.

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    Growth Opportunities

    Increasing the TTV can enhance retention and encourage referrals, ultimately aiding business growth.

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SaaS Time to Value (TTV)

0 days
Time to Value (TTV) measures the time it takes from when a customer starts using your product until they achieve their first expected value. A shorter TTV indicates a more efficient onboarding and value delivery process.

How to Calculate SaaS Time to Value (TTV)

Follow these steps to calculate your SaaS Time to Value(TTV): 

  1. Identify the Date/Time of Customer Onboarding/Start. This is when the customer’s access to your software begins, not just when they sign the contract. You can typically find this in your customer relationship management (CRM) system or onboarding records. For example, a small startup might onboard a customer on ‘2023-03-15 10:00 AM’, while a larger company may have onboarded a client on ‘2023-07-20 02:30 PM’.
  2. Determine the Date/Time of Achieving Defined Value. This is when the customer achieves their initial desired outcome or the core value from using your SaaS. This can be found by monitoring user behavior or feedback. For instance, a smaller SaaS might see a user achieving value on ‘2023-03-22 11:00 AM’ and a larger SaaS might find a user achieving value on ‘2023-08-10 04:45 PM’.
  3. Subtract the Date/Time of Customer Onboarding/Start from the Date/Time of Achieving Defined Value. Calculate the difference between these two timestamps to get the TTV. For example, for the small startup example: ‘2023-03-22 11:00 AM’ – ‘2023-03-15 10:00 AM’ = 7 days and 1 hour. For the larger company: ‘2023-08-10 04:45 PM’ – ‘2023-07-20 02:30 PM’ = 21 days and 2 hours 15 minutes.
  4. Express the result in days, hours, or minutes. TTV is usually represented in days, but for very fast onboarding processes, hours or even minutes may be more appropriate. For the examples, the small startup TTV is 7 days and 1 hour, and the larger company TTV is 21 days 2 hours 15 minutes.

SaaS TTV = (Date/Time of Achieving Defined Value) – (Date/Time of Customer Onboarding/Start)

Understanding SaaS Time to Value (TTV)

Ioana Grigorescu

Dezembro 17, 2024

What is Time to Value (TTV)?

In the world of Software as a Service (SaaS), Time To Value(TTV) is the duration beginning with user registration and continuing through onboarding until the user experiences their first significant benefit from the software.

A shorter TTV means that users can quickly perceive the usefulness of a product, which in turn enhances user satisfaction and retention rates.

  • Accelerates product adoption by quickly showcasing value, reducing churn and boosting long-term revenue.

  • Drives purchase decisions by demonstrating a rapid return on investment compared to competitors.

  • Optimizes onboarding by using TTV data to improve customer experience and reduce support costs.

Practical Examples of SaaS Time to Value (TTV)

  • Example 1: A CRM software enables a sales team to close their first deal in just 15 days, with only 2 days required for implementation. This rapid result showcases the tool’s effectiveness in achieving quick value.
  • Example 2: A project management tool allows a new team to be fully operational in 7 days and complete their first project within an additional 3 days of setup. The total TTV for this tool is 10 days, showcasing a swift start to productivity.
  • Example 3: An analytics software delivers valuable insights only 2 days after integration, resulting in a TTV of 3 days. This illustrates the software’s ability to quickly process and present data effectively.
Time Period New Users Onboarded Avg. Time to First Value (Days) TTV Change (Days) TTV Change (%) Trend Analysis
Month 1 150 14 – – Initial period. Baseline TTV is 14 days.
Month 2 180 12 -2 -14.29% TTV improved by 2 days. Onboarding process streamlined.
Month 3 220 10 -2 -16.67% TTV continues to improve. Focus on faster initial value delivery.

TTV = (20 days – 6 days) = 14 days

TTV = (18 days – 6 days) = 12 days

TTV = (16 days – 6 days) = 10 days

Different Ways to Calculate Time to Value (TTV)

  • Standard TTV: Measures the time it takes for a new user to achieve the core benefits of the SaaS product. Helpful for identifying issues in the onboarding process.
  • Expanded TTV: Focuses on the period when the user begins utilizing additional product features that provide greater value. Useful for understanding feature diffusion.
  • Outcome-Specific TTV: Assesses the time it takes for a user to attain a specific outcome with the SaaS product, demonstrating results and ROI.
  • Ongoing TTV: Gauges how long it takes for users to become accustomed to regularly using the SaaS product. This metric aids in understanding user engagement and retention.

How to Improve Your SaaS Time to Value (TTV)

  • Simplify User Onboarding: Make the process straightforward for new users to understand and use your main features quickly to enhance their early experience.
  • Focus on Key Activities: Highlight essential activities that directly contribute to achieving the main goals, and direct users promptly to these actions.
  • Personalize the Experience: Tailor the onboarding process to each user’s role, goals, and requirements for a more relevant and engaging introduction to your service.
  • Stage Feature Introduction: Begin with core functionalities and introduce additional features gradually, ensuring users aren’t overwhelmed.
  • Provide Proactive Support: Use tutorials, tooltips, and proactive guidance to help users through common issues and accelerate their learning curve.
  • Gather User Feedback: Regularly collect and analyze user feedback to understand their needs and improve the onboarding process accordingly.
  • Conduct A/B Testing: Test different onboarding approaches to find the most effective method and continuously refine your strategy.

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