Definition
The average elapsed time between signup and a user first experiencing the product's core value.
Formula
Sum of (time of first value event - signup time) / Number of users
How to measure
Timestamp signup and the first occurrence of the defined value event per user, then average the elapsed duration across a cohort.
Why track it
Reducing time to value is one of the highest-leverage changes a team can make to lift activation and early retention simultaneously.
Example
A design tool cuts average time to value from 18 minutes to 2 minutes by pre-loading a sample project on signup.
FAQ
- What is Time to Value?
- The average elapsed time between signup and a user first experiencing the product's core value.
- How do you calculate Time to Value?
- Sum of (time of first value event - signup time) / Number of users
- Why track Time to Value?
- Reducing time to value is one of the highest-leverage changes a team can make to lift activation and early retention simultaneously.