What is time to value (TTV)?

Written by Madalena Rugeroni, founder of Mazo · Updated 15 September 2026

Time to value (TTV) is how long it takes a new customer to get their first real value from a product, measured from sign-up or contract signature to the moment they first achieve the outcome they came for. The shorter it is, the more new users activate, convert from a trial and stay.

How to measure time to value

TTV = median of (time of first value event − time of sign-up), for users who reached it

Report alongside: % of sign-ups who never reached first value

Use the median: a few users who return weeks later distort an average. And report the "never" group separately — a fast median that only 40% of users reach is not a fast product.

Worked example

Five fictional trial users of a reporting tool reach their first shared report after 6 minutes, 12 minutes, 25 minutes, 2 days — and one never does.

Median TTV of the four who got there: (12 + 25) ÷ 2 = 18.5 minutes.
20% never reached value.

The user who took two days had to wait for a data import. Making the import optional and starting with sample data is a bigger win than polishing the report builder.

Time to value in self-serve vs sales-led

In self-serve products, TTV runs from sign-up and should be measured in minutes. In sales-led products, it runs from signature to the first business outcome — and implementation that takes more than a couple of weeks is itself one of the signals that a product needs a sales-led motion.

Why it matters from €0 to €1M ARR

Pre-revenue and first users: time the first session yourself, with real prospects, and write down every step before value.
Around €10k MRR: instrument the first value event and track median TTV per weekly cohort. Lenny Rachitsky calls time to value the metric most correlated with early conversion.
€50k+ MRR: segment it. Larger customers often need a different path — and that's where a human touch can pay for itself.

Mazo's rule of thumb: aim for first value in the first session — time to value in minutes, not days — and ask for the upgrade at the moment the user experiences value, not when a trial timer runs out.

Common time to value mistakes

Measuring to "setup complete". Setup is a cost the user pays before value.
Using the average. Outliers hide the typical experience.
Extending the trial instead of shortening TTV. Ramli John's point: a 14-day trial where value lands on day one beats a 30-day trial where it never lands.
Front-loading settings, integrations and invites. They can wait until after first value.

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FAQ

What is the difference between time to value and activation?

Time to value measures how long it takes to reach first value. Activation rate measures how many users reach a defined value milestone within a set window. Shortening time to value usually raises activation.

How do you reduce time to value?

Map every step between sign-up and first value, remove or postpone anything that is not essential, use templates or sample data so users see results before setup is finished, and nudge users who stall.

Does a longer free trial improve conversion?

Rarely. Conversion depends more on whether users reach value during the trial than on its length. Fix time to value first, and ask for the upgrade when value is experienced.

Who wrote this

Madalena Rugeroni built Mazo. She's an ex-Googler, a startup advisor and investor, and runs a portfolio of internet companies. Before that, as Head of Growth at Amplemarket, she scaled a B2B SaaS to $10M ARR. LinkedIn

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Further reading. Operators and books referenced: Ramli John (Product-Led Onboarding), Lenny Rachitsky. These are published methodologies credited to their authors; Mazo is not affiliated with or endorsed by them.