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Retention
intermediate📖 6 min read

Time to Value

Also known as: TTVTime-to-ValueTime to First ValueActivation TimeAha Moment Delay

TTV = Median Time from Signup to First Value Event

💡The Concept

Time to Value (TTV) measures how long it takes a new user to experience the core benefit of your product — their 'aha moment.' Slack's TTV is minutes: send one message, get an instant reply. Enterprise software TTV can stretch to 90+ days, during which 40-60% of users abandon. Research by Totango shows that products achieving TTV under 5 minutes retain 2.5x more users in month 1 than those with TTV over 1 hour.

⚠️The Trap

The trap is confusing 'account created' with 'value received.' Most analytics dashboards track signups, not activations. A SaaS tool might report 10,000 new users this month while only 2,000 ever completed setup. Those 8,000 incomplete setups aren't lost leads — they're users who experienced zero value and will never return. Measuring signups instead of TTV hides an 80% failure rate.

🎯The Action

Map your activation steps: what specific action proves a user 'got it'? For Calendly, it's booking your first meeting. For Figma, it's designing your first frame. Measure TTV as median time from signup to that action. Target: under 10 minutes for self-serve products, under 7 days for B2B tools. Reduce TTV by removing every setup step that doesn't directly lead to the aha moment — Dropbox cut onboarding from 14 steps to 4 and saw a 60% increase in activation.

Pro Tips

#1

Track TTV by acquisition channel — organic signups typically have 30-40% shorter TTV than paid users because they already understand the product.

#2

Run a 'five-second value' test: can a new user describe what your product does within 5 seconds of landing? If not, your TTV starts with confusion, not progress.

#3

Offer a 'sample workspace' or pre-loaded demo so users experience value before they invest time in setup. Notion's templates reduce TTV from hours to minutes.

🚫Common Myths

Myth: “TTV only matters for consumer products

Reality: Enterprise products with long TTV lose 40-60% of trial users before they ever see value. Salesforce solved this by offering pre-configured industry templates that reduce TTV from weeks to days.

Myth: “More features reduce TTV by giving users more to explore

Reality: More features increase TTV by adding decision paralysis. Canva's 1-click templates are faster to value than Adobe's comprehensive toolkit — that's why Canva grew from 0 to 100M users in 8 years.

📈Industry Benchmarks

Time to Value

Self-serve SaaS / PLG products

Elite

< 5 minutes

Good

5-15 minutes

Average

15-60 minutes

Needs Work

1-24 hours

Critical

> 24 hours

Source: Pendo 2024 Product Benchmarks Report

Activation Rate

B2B SaaS free trial / freemium

Elite

> 60%

Good

40-60%

Average

25-40%

Needs Work

15-25%

Critical

< 15%

Source: OpenView 2024 PLG Benchmarks

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