Time to Value (TtV) is a metric that measures the amount of time it takes for a customer to receive value from a product or service. It is used to measure the effectiveness of a company’s onboarding process and to identify areas where the process could be improved. Time to Value is important because the faster a customer receives value, the more likely they are to continue using the product or service, and the more likely they are to recommend it to others.
The formula for Time to Value is:
Time to Value = (Date of First Value Received – Date of Purchase)
It is calculated by subtracting the date of first value received by the customer from the date of purchase. The resulting number represents the number of days it took for the customer to receive value from the product or service.
For example, if a customer purchased a product on January 1st and received value from it on January 7th, the Time to Value would be 6 days.
It’s important to track Time to Value over time, and to compare it against industry benchmarks and historical data, to identify areas where the onboarding process could be improved. It’s also important to track Time to Value by different segments, such as demographic, geographic, or behavior groups, in order to identify where the problem is and take action to improve the Time to Value.
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