Annual Recurring Revenue

Detailed Description

Time to Value (TTV) quantifies the time elapsed from when users choose your product to when they first experience its tangible benefits. It typically signifies the completion of the setup process and the successful initial use of the product. It is a crucial metric for businesses in the technology and software industries.

How To Calculate

It is calculated by measuring the time it takes for a user to choose a product and seal the deal. Let’s say a user signs up for a productivity application on January 1, and the company completes the setup by January 10. The Time to Value (TTV) would be measured as the duration between the sign-up date and the day the user completes the setup process and experiences the product’s value, which is ten days.


ƒ Count(Duration Between Product Selection Date and Initial Value Realization Date)


There is no universal benchmark for Time to Value (TTV). It can be industry-specific and depends on the nature of the product or service. However, in general, a shorter TTV is often considered advantageous.

Related Metrics

Net Revenue Retention Rate
Net Promotor Score
Customer Effort Score


TTV is crucial as it directly impacts user satisfaction, retention, and overall product success. A shorter TTV enhances user experience by ensuring users quickly and efficiently achieve value from the product.

Factors such as the complexity of the product or service, the efficiency of the onboarding process, and the nature of user interactions can influence TTV.

While benchmarks vary across industries, a shorter TTV is considered advantageous. Standards may range from immediate value realization for specific applications to a few days or weeks for more complex products.