Project management tool Asana does a fantastic job of using onboarding emails to engage new users. Onboarding guides can be delivered in a number of ways-within your app using tools like Appcues, via support documentation, or through a series of behavioral emails. Now, let's look at some strategies for reducing your product's TTV through different channels. Behavioral emails, in-app user onboarding, customer success managers, usability testing, and personalization can all help generate excitement and momentum while gently guiding users towards their aha moment. It's crucial that you to help customers reach that point as quickly and efficiently as possible. Image courtesy of Dan Wolchonok 5 strategies for reducing time to value Dan Wolchonok, Head of Product and Analytics at Reforge, explained in his talk at Price Intelligently's 2015 SaaSFest conference that a 15% improvement in user retention in the first week compounded into nearly twice the number of retained users after 10 weeks. And those benefits end up compounding over time. The faster users realize how your product can help them improve their lives, the less likely they are to churn. Reaching that aha moment or activation event is often what separates users who stick with your product from those who end up churning. But a switch flips once customers realize the value of your service. If they've already paid for your product, that's time and money spent on little visible return. People have limited patience and if they don't reach that aha moment quickly, they're likely to feel that their time is being wasted. The longer your time to value, the more customer turnover you'll see. Reducing time to value helps prevent churn The aha moment comes when a user files their first hassle-free expense report, a task which requires several steps to complete. Signing up for expense management software doesn't provide value. Take a product like Expensify, for example. Your customers might need to invite colleagues to collaborate, or import their customer data, or finish your onboarding sequence before they start to realize how the product can benefit them. Access to the product alone doesn't provide the desired benefit-some further action is required. Most SaaS products fall into this category. The tool provides immediate value for users and serves as a powerful lead generation tool for HubSpot. Simply plug in the URL of your website to receive a score for your site across categories like social media, SEO, and lead generation. Another example of immediate TTV is HubSpot's Website Grader. Your aha moment is realized the moment you stay dry. The time to value is immediate-you see the value of no longer getting soaked straight away. Say it's raining and you duck into a nearby store to buy an umbrella. Time to value depends on the kind of product or service you're offering, but it generally falls into one of 2 groups: 1. Sometimes the benefit comes after a bit of effort, like a happier version of our flat-pack furniture story. For some products, the benefit comes immediately-like the umbrella you buy when it's raining. And people who subscribe to an analytics tool like Amplitude aren't buying pretty graphs or reports-they're buying a way to understand how customers use their product. For example, bed shoppers aren't really buying laminate finish or a memory-foam mattress-they're buying a good night's sleep. Whether you're selling software as a service or flat-pack furniture, every customer buys your product to receive a specific benefit. It's this delay-known as time to value or TTV-that makes churn such a common problem among SaaS companies. SaaS customers must also wait to experience the value of their new purchase. SaaS products are a bit like flat-pack furniture that needs to be assembled before the buyer can experience value. In this scenario, you bought a bed-but you certainly aren't getting a comfy night's sleep. But what if you didn't have the instructions? And what if the manufacturer threw in a few extra parts you don't actually need? And what if that was standard practice and the company always sold beds with random pieces and no instructions? You'd probably give up and spend the night on the couch, maybe staying up late to research alternative companies, and leave a scathing review of your experience online. Editor's note: This article was orginally published in 2019 and has been updated with fresh content and insights.Įver tried to assemble a flat-pack bed? It's not too difficult, as long as you have all the right parts and can follow the instructions.
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