Definition: Time To First Value?

I’ve been noticing a significant number of references to Time To First Value (TTFV) as an important metric for Customer Success teams. But when I dig deeper, asking for specific examples of what actual value is being tracked or what time period is being measured, the responses are fuzzy. Some mention starting the clock when the initial contract is signed, others don’t begin until the implementation/onboarding formally initiates. The value point is also variable: some are satisfied using the completion of onboarding, activation of licenses, and/or actual logons as proof of value’s beginning. Others want to go deeper to the accomplishment of a specific job or task by the customer, perhaps even to get the customer’s agreement that they have indeed realized specific value from their use of the technology. The definition of Time To First Value matters because there is a very substantial difference between a feel-good metric for the CS team and a solid customer retention indicator that can be used to predict continuing revenue.

When does the clock start ticking?

I suggest that the clock should start by agreement between the vendor and the customer, and that this is an excellent conversation to have, to discuss the clock and what will constitute first value. Do you start when the contract is signed? When onboarding begins? When training is completed? Or when the majority of users start logging into the system to begin work and to develop skills and habits? How about defining a competency level for key skills and abilities that would indicate the establishment of habitual behaviors? The discussion should naturally extend to the creation of an individual Success Plan for the customer that goes well beyond the first value to describe the productivity and profitability results to be delivered afterward.

What exactly is the First Value?

I got some examples from ChatGPT about defining first value. They included: For a CRM product, the first opportunity created and tracked. For a Support case management system, the first live customer interaction handled through to resolution. A marketing system’s first value might be the first campaign designed and delivered. To qualify, the specific job/task has to be observable, measurable, and tied to a customer outcome. Working out a monetary amount to be assigned to the job/task with the customer would be an excellent exercise.

Note that you may well need multiple specific jobs/tasks to be included in the definition of First Value, especially where you have multiple user personas involved with the product.

Who Owns Time to First Value?

The initial definition process will need to involve Sales, Product, ProServe/Onboarding, and Customer Success — and definitely requires considerable domain expertise. Once a working definition has been established as a foundation, then the customers need to be brought in to get their agreement. After that, the tracking and reporting should belong to Customer Success.

Reactions?

I’d really like to find a company and CS exec who is really good at the TTFV challenge to interview for a Case Study. If that’s you, please reach out to me here or via the Customer Success Forum on LinkedIn. Here’s the link to the discussion there if you want to join in the conversation.