Time to Value

Andrew Marks
Andrew Marks Member Posts: 54
Second Anniversary 5 Comments Office Hours Host 2022 5 Likes
edited July 2022 in Metrics & Analytics

Hey everyone! Finally able to get back into the site. For some reason, I couldn't log in.

I'm looking for some perspectives and/or data points on time to the first value. Of course, the clock starts ticking as soon as the prospect becomes a customer, and time to first value is going to vary based on your solution but has anyone come across any hard data, surveys, or other articles on what an ideal TTV target should be? I've heard 90-days bandied around as a good starting point for customers to either achieve value, or "recognize" that they are headed in the right direction to achieve value?

Andrew

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  • Anita Toth
    Anita Toth Member Posts: 244
    Third Anniversary 100 Comments Photogenic
    edited July 2022

    Hey @Andrew Marks

    Great question! I was speaking with someone about this yesterday.

    The purpose of TTV is to overcome the part of the buyer's journey called 'buyer's remorse'.

    A customer's emotional peak is when they sign. After that, there's a down trough where they question whether they made the right decision.

    The faster you can get to the first value, the faster you can bring them out of the down slump and back toward feeling good about their purchase. (see the image below. even though it's about investors, it's the same process as with customers)

    I know for Facebook, their TTV was 7 friends in 3 days. If they could get someone to add 7 friends in the first 3 days, the person would likely stay.

    I wrote a bit more about TTV and overcoming buyer's remorse on LinkedIn yesterday.

    https://www.linkedin.com/posts/anitamtoth_markets-investments-stockmarket-activity-6957717697413402625-xPPy?utm_source=linkedin_share&utm_medium=member_desktop_web



    image.png


  • Andrew Marks
    Andrew Marks Member Posts: 54
    Second Anniversary 5 Comments Office Hours Host 2022 5 Likes

    Thanks @Anita Toth. I clearly understand what TTV is and the importance of achieving fast TTV to avoid buyers remorse. What I am looking for are some statistics or articles that anyone may have seen regarding the increase of risk of churn the longer TTV takes to achieve.

    I thought I saw somewhere that there was a correlation between risk of churn and TTV greater than 90-days but I cant find anything searching on Google.

  • Jeffrey Kushmerek
    Jeffrey Kushmerek Member Posts: 93
    Third Anniversary 10 Comments Photogenic 5 Insightfuls

    Andrew,

    I haven't seen a specific report- perhaps I need to commission one as it would be useful. The one report, althought not "exactly" what you are looking for that I use is this:

    https://www.profitwell.com/recur/all/implementation-fee-benchmarks

  • Ed Powers
    Ed Powers Member Posts: 164
    Third Anniversary 100 Comments 25 Insightfuls 25 Likes
    edited June 30

    Hey @Andrew Marks--

    Working with my consulting clients, I've found instances when TTV mattered and (surprisingly) when it didn't. Therefore, what's "ideal" in one case may not be in another, and people need to find their own answers.

    I recommend using logistic regression for logo or product churn as the presumed dependent variable (y) and time as the independent variable (t). Not only will the model show if time is indeed a factor, but you'll get the equation that allows you to predict the probability of churn for any given t. If expansion or contraction is the presumed dependent variable, then you can use simple linear regression instead.

  • timCX2022
    timCX2022 Member Posts: 3
    Photogenic First Comment
    I view time to value and time to first value as being different. Time to first value is a step along the way to value and the ultimate outcome. Achieving first value quickly in a matter of weeks is typically where I would start when strategizing the overall experience. What can we do to create a shared win quickly? This win reinforces their buying decision, reinforces how we can achieve together and this helps you identify the gaps the customer may have that will have to be addressed at some point. 

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