Vareto Finance Glossary

Time to Value (TTV)


Time to value, or TTV, is a critical metric that estimates the time taken for a company's new customers to derive value from the product or service. Any new users would expect to get 'on-time' value delivery from a product/service they are paying for. In SaaS businesses, TTV can be the real difference between the company and its competitors. A business must deliver value on time to retain its customers to competitors.


TTV can differ across industries, services offered, and customers. In the sales process, businesses must keep a close watch on customer priorities. Some of the important TTV metrics to track are:a. Time to basic valueb. Long time to valuec. Time to exceed valued. Immediate time to valuee. Short time to value

Why it matters

Customers of SaaS companies generally prefer to derive value at a faster rate. When customers buy a product or service for the first time, they expect it to deliver results quickly and offer benefits as fast as possible. With a short TTV, customers can enjoy faster ROI. This could mean higher chances of the customers staying with the business. A long TTV may result in customers looking elsewhere for faster results. Every SaaS business must aim to establish a strong reputation for the fast delivery of solutions. A business that has a reputation for a long TTV may lose out on customers.