Time to Value
TTV is how long it takes for a new customer to start getting benefits from a product. For SaaS (Software as a Service) companies, it’s super important because if customers don’t see value quickly, they might stop using the product. In contrast, in the past, when people bought software licenses, they were okay with waiting a while to see results. However, with SaaS, customers expect quick results, or they might leave. So, companies must ensure customers see the value of their product fast, especially during the onboarding period.
Why Time to Value is important?
Nowadays, customers want products that solve their problems. If you can’t clearly show how your product helps them, selling it will be hard. For tech solutions, businesses pick providers they trust. However, they also desire swift outcomes – they want to know how rapidly a product will resolve their issue and deliver benefits. The quicker a product helps, the better the relationship between the business and the customer. That’s what we mean by Time to Value (TTV).
TTV Meaning for Customer Experience
Customers want to see quick returns on their investment, especially with technology. Usually, achieving fast results is crucial for planning and assessing infrastructure. It also helps customers keep their customers happy. To succeed, a brand needs to align its products/services with customer goals and ensure a speedy and successful customer experience. Time to Value (TTV) is both a goal and a measure of success. It involves everyone in the company working together to deliver value quickly and consistently, measuring how long it takes. Surely, a faster TTV shows that the team is dedicated to improving products and services and acting on customer feedback promptly.
Examples of Time to Value
We can explore the meaning of TTv with some examples.
1. Time to Basic Value
Time to Basic Value (TTBV) is the shortest metric to measure. So, it’s the time it takes for a customer to feel like they’ve made the right choice by using a product or service, even if they haven’t fully utilized it yet. Sometimes, customers can experience basic value even before buying something, like during a free trial or when trying a sample product.
2. Time to Exceed Value
This metric measures how long it takes for a product or service to go beyond what a customer expects and persuade them to continue doing business with you. Furthermore, it often happens when a basic plan no longer meets their needs, and they upgrade to get more features. Focusing on exceeding value quickly increases how long customers stay with you and reduces the chance they’ll try other brands.
3. Time to Value Long
For certain products and services, like SaaS solutions, it might take a while for customers to see the total value. It could take weeks or months to integrate everything across their business. So, if your product has a longer Time to Value (TTV), it’s crucial to keep showing the customer small wins along the way. Highlighting these incremental gains will motivate them to stick with you as they move towards total value.
Read About: B2B Saas Marketing – A Pathway to Conquer Your Business Objectives
Achieve Faster Time to Value
To reduce your Time to Value (TTV), you first need to identify your good moment.” This is when customers realize the initial value of your product. For example, for Dropbox, it’s when customers add a file to their shared folder, and for Facebook, it’s when users connect with 10 friends in the first week after signing up. Once you know this moment, make it easy for customers to reach it by removing obstacles in the onboarding process. For instance, Airbnb lets users browse without signing in because finding a great place to stay is what grabs their attention.
Have a look at the most valuable TTV tools.
Onboarding Guides:
It can take different forms, such as in-product tutorials, documents, or a series of emails. These instructions give instructions on how to get started and what to do first. The goal is to help users navigate any challenges they might face as they start using the product.
Customer Success Manager:
For products that require extensive setup, a more hands-on approach can be helpful. Hence, this means giving customers personalized help to get started. Customer Success Managers can assist with setup, provide customized training, and be the first point of contact for any questions or issues.
Product Usability:
It’s important for the journey towards realizing value in your product to be smooth and easy. If instructions are confusing, buttons are not clearly labelled, or settings are hard to find, customers might give up before reaching the “Aha!” moment. Testing with users and looking at how people use the product can help find areas where even small improvements in the user experience can make a big difference in Time to Value (TTV).
Now, have a look at the Time to Value characteristics below.
- Customer-Centric: TTV centres on the customer’s viewpoint, tracking their journey to attain value from the product or service. It measures how swiftly customers realize benefits, which is crucial for customer satisfaction and retention. Usually, analyzing TTV helps businesses tailor experiences and streamline processes to meet customer needs efficiently.
- Metric for Success: TTV is vital for businesses, showcasing the speed of value delivery to customers. It serves as a crucial performance indicator, reflecting efficiency in meeting customer needs promptly. Analyzing TTV guides businesses in optimizing processes for faster value realization.
- Variable Duration: TTV duration varies based on product complexity, onboarding methods, and customer requirements. It can range from quick for more straightforward products to longer for more intricate ones. So, understanding these factors helps tailor strategies to optimize time to value.
- KPI: TTV is a key performance indicator for assessing onboarding efficiency, product usability, and customer satisfaction levels. It measures how swiftly customers perceive value, reflecting the effectiveness of business processes. Hence, analyzing TTV guides improvements in onboarding and product design to enhance the overall customer experience.
- Continuous Improvement: Businesses strive to decrease TTV by continuously refining onboarding, improving product usability, and enhancing customer support. This involves ongoing efforts to streamline processes and optimize the customer experience. So, by focusing on these areas, businesses aim to expedite the delivery of value to customers.
- Critical for Retention: Shorter TTV boosts customer retention and loyalty by swiftly demonstrating product or service value. Customers are more likely to stay when they promptly recognize the benefits offered. So, accelerating TTV enhances overall satisfaction and strengthens long-term relationships with customers.
FAQ’s
What is Time to Value (TTV)?
Time to Value (TTV) refers to the duration it takes for a new customer to begin experiencing the benefits of a product or service after acquisition.
Why is TTV important for businesses, especially for SaaS companies?
TTV is crucial for businesses, notably for Software as a Service (SaaS) companies, as it determines how quickly customers perceive value. If customers don’t see value promptly, they might discontinue using the product or service.
What are some examples of TTV metrics?
TTV metrics include Time to Basic Value (TTBV), Time to Exceed Value, and Time to Value Long. These metrics measure different aspects of the customer’s journey to realizing value from a product or service.
How can businesses achieve faster Time to Value?
Businesses can reduce TTV by identifying customers’ “Aha!” moments, streamlining onboarding processes, enhancing product usability, and providing personalized customer support.
What tools can businesses use to improve TTV?
Furthermore, tools such as onboarding guides, customer success managers, and usability testing can help businesses optimize the customer journey and accelerate TTV.
What are the key characteristics of Time to Value (TTV)?
Key characteristics of TTV include being customer-centric, serving as a metric for success, having variable duration, being a key performance indicator (KPI), requiring continuous improvement efforts, and being critical for customer retention.
