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
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.
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