Why Time-to-Value (TTV) is the North Star for SaaS Growth
- Fahad Shah
- 6 days ago
- 5 min read
SaaS companies often chase metrics like MRR, CAC, or NPS. But in Product-Led Growth (PLG), the most powerful leading indicator isn’t a financial number — it’s Time-to-Value (TTV).
TTV is the clock that starts ticking the moment a user signs up. The longer it takes them to experience meaningful value, the higher your churn risk. The faster they get there, the faster your growth compounds.
This metric sits at the intersection of user experience, psychology, and revenue. Let’s unpack why TTV matters, how it ties into neuroscience, and what practical steps you can take to reduce it.
What is Time-to-Value (TTV)?
Time-to-Value (TTV) is the time it takes a new user to reach their “aha moment” — the point where they first experience the core benefit of your product.
For example:
Slack: Sending the first message.
Notion: Creating a workspace and adding a page.
Canva: Designing and exporting the first graphic.
Every day that passes before this moment is an opportunity for drop-off.
Why TTV Is a True “North Star”
TTV influences every other growth metric downstream:
Activation: Faster TTV = more users experience value before they churn.
Retention: Users who hit value quickly are 2–3x more likely to form habits.
Revenue: The quicker users succeed, the faster they convert to paid plans or expand their usage.
In short, TTV isn’t just a metric — it’s the pulse of your PLG engine.
The Neuroscience of Speed and Reward
Humans are wired for instant feedback and reward loops. When users see progress early, their brains release dopamine — reinforcing the behavior and increasing engagement.
1. The Cue-Action-Reward Loop
Every product interaction triggers a small psychological loop:
Cue: The user’s goal (e.g., “I want to create a design”).
Action: They interact with your product (e.g., open Canva).
Reward: The outcome (e.g., a finished design).
If the time between cue and reward is too long or confusing, the loop breaks. The user’s motivation drops.
2. Cognitive Load and Drop-Off
Every extra form, step, or decision increases cognitive load. Users subconsciously calculate whether the reward is worth the effort. When TTV is short, the brain experiences positive reinforcement faster.
That’s why SaaS products that guide users to value within minutes — not days — dominate activation rates.
3. The “Effort-Reward Tradeoff”
According to behavioral economics, people are willing to invest effort only if the perceived reward arrives soon enough. Reducing TTV tightens this loop, making users feel “I’m progressing fast,” which increases commitment and retention.
In PLG, speed creates belief.
Measuring Time-to-Value
There are two main approaches to measuring TTV:
1. Initial TTV
The time between signup and the first aha moment.
Example: A new user signs up for Mixpanel and creates their first dashboard within 30 minutes → Initial TTV = 30 mins.
2. Expanded TTV
The time between signup and achieving full value or desired outcome.
Example: A user sets up multiple data projects, invites teammates, and exports reports → Expanded TTV = 3 days.
For PLG, Initial TTV is the primary focus. It directly influences activation.
Why Shorter TTV = Stronger Growth
1. Faster Activation
The sooner users reach value, the less likely they are to churn during onboarding. A 2023 Userpilot report found that companies with TTV under 1 day have 60% higher activation rates.
2. Higher Retention
Users who experience value quickly are more likely to return. The “dopamine feedback loop” strengthens the habit.
3. Lower Support Burden
When users understand the product quickly, support tickets drop — freeing your CS team to focus on expansion.
4. Stronger PQL Signals
A short TTV increases the volume and accuracy of Product Qualified Leads. Users who reach value faster show clearer buying intent.
In other words: shorter TTV creates more PQLs, faster sales cycles, and stickier retention.
3 Practical Tactics to Reduce TTV
1. Streamline First-Time Onboarding
The first session decides everything. Map the journey from signup → aha moment and cut friction ruthlessly.
Playbook tips:
Remove or postpone non-essential steps (like billing or integrations).
Replace long tours with contextual tooltips and progress bars.
Personalize onboarding based on user intent (e.g., use-case survey).
At ProdWing, we call this the Straight-Line Onboarding principle — get users to value in the shortest possible path.
2. Use Behavioral Nudges to Reinforce Momentum
After activation, users need reinforcement to form habits. Use subtle cues that reward progress and guide next actions.
Examples:
Progress indicators (“You’re 80% done setting up your workspace”).
Success modals (“Nice work! You just completed your first project”).
Timely emails (“You’re one step away from unlocking full value”).
These micro-rewards create habit loops — small dopamine hits that sustain engagement.
Behavioral design researcher Nir Eyal calls this “variable reward design” — give users small wins early and often to strengthen retention.
3. Automate Success Signals
Most SaaS products already collect usage data. Use it to close the loop faster.
Tactics:
Identify when a user reaches the aha event (e.g., sends first invite).
Trigger in-app messages or emails that celebrate it.
Auto-route power users (high activity + feature use) as PQLs to sales.
Example:A team hits 80% of the free plan’s limit → Trigger an upsell nudge:“Your team is growing fast. Upgrade now to keep the momentum.”
Automation turns data into motivation — shortening perceived and actual TTV.
The Hidden Cost of Long TTV
A long TTV quietly kills growth.
Trial users churn before seeing value.
Marketing ROI drops because acquisition costs increase without activation.
Product credibility erodes as users associate your tool with complexity, not clarity.
Every extra minute of friction adds to your product’s “cognitive tax.” Over time, that tax compounds into churn, lost referrals, and slower sales cycles.
The cure isn’t more features or flashy onboarding. It’s alignment around one question:“How fast can we get users to value?”
Reducing TTV Is a Company-Wide Discipline
Shortening TTV isn’t just a Product or UX initiative. It unites the entire PLG motion.
Marketing sets realistic expectations in messaging.
Product designs flows that drive early success.
Customer Success celebrates quick wins and guides users past friction.
Sales focuses on accounts already showing value signals.
When all teams rally around TTV, you stop chasing metrics in isolation and start compounding momentum.
Final Word
Time-to-Value is more than a usability metric — it’s the foundation of SaaS growth.
When users experience success faster, everything else follows: activation, retention, expansion, and advocacy. It’s how products start to “sell themselves.”
Shorter TTV doesn’t just make your funnel more efficient. It makes your users feel rewarded — and in PLG, emotion drives retention more than any feature ever will.
Free your product. Free your growth.
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