FP&A Approved: Profit and Loss (P&L) Statement Template
Learn more ->
Time to value (TTV) is a key indicator of how long it takes new clients to recognize the value of a product or service. In other words, it is the amount of time needed for a customer to derive value from their purchase. This metric is used to determine whether a product or service is worth buying.
The faster a solution solves a customer’s problem, the better the overall customer experience and the more profit a company can make. A healthy TTV metric indicates good business growth and efficient operational processes.
Over time, business leaders seek to strive towards reducing TTV for their customers because it helps improve customer satisfaction and increase revenue.
Customer loyalty is built over time. If a company wants to keep its customers happy, it must give them something worth having. Which is done by delivering value.
Value is what makes a product or service work. And once people know how much value a business is providing, they will stick around. In fact, they will spread the word about it, resulting in word-of-mouth marketing.
The challenge is that few businesses actually assess value. Most just pay attention to price, although value isn’t measured in dollars.
Instead, value must be created over time, and therefore it should be measured in terms of time since exceeding customer expectations is the best way for customer success managers to see the benefits of building a lasting customer relationship.
TTV can change depending on many factors, such as the customer, industry, services offered, and even the type of product being sold. Because of that, business managers must understand how each factor affects TTV to effectively manage it.
Here are some common types of TTV:
Several approaches may be used to reduce time to value. But one thing is certain: businesses must pay attention to their metrics and customer satisfaction surveys, particularly how long it takes to complete tasks and if customers are satisfied with the experience.
If a customer success team discovers that certain aspects of their product take too much time to use, a business may want to explore making modifications to improve the overall experience.
Furthermore, organizations should prioritize delivering exceptional customer service, from tutorials and guides to excellent support staff. This encompasses everything from assisting clients with account setup to troubleshooting and providing feedback. Finally, it is critical to ensure that consumers have all of the resources they require, such as training materials, documentation, and even a forum where they can ask questions throughout their customer journey.