Definition
Time-to-First-Value measures how quickly a new user goes from creating an account to experiencing the core value of your product. Shorter TTFV correlates strongly with higher activation and retention rates. This metric is critical for evaluating onboarding efficiency — every unnecessary step, confusing UI element, or setup requirement that increases TTFV reduces the likelihood that a user will stick around.
How to measure
Calculate the time delta between `user_signed_up` and first `activation_event` timestamps. Report median and P90 (90th percentile) values — the median shows typical experience while P90 reveals worst-case friction. Segment by user type and signup channel.
Industry benchmarks
Best-in-class products achieve TTFV under 5 minutes. SaaS tools with required setup typically range 15–60 minutes. If TTFV exceeds 24 hours, most users will never activate. Each 50% reduction in TTFV typically improves activation by 10–20%.