In the final part of our series, we investigate the importance of ensuring your customer gains value from their subscription early on in their relationship with your product.
Building block 4: Time-to-value (TTV)
On-boarding subscribers is critical. Time-to- Value (TTV) is the amount of time it takes
a new customer to realise value from your product, from date of on-boarding. This is the key metric to stabilise a subscription before moving into longer-term value initiatives. For an enterprise subscription, this means creating and measuring value for multiple customers.
Use the following questions as a basic diagnostic to help figure out your gaps. The more you answer ‘Yes’, the better your position. Think about your next step to take to close the gap on subscription excellence.
1. Do you know what action each target customer should take to experience value (and how often)?
2. Do you have an on-boarding process for important customer cohorts?
3. Do you record and measure the customers’ desired outcomes and experiences?
4. Is your product team engaging with your customers at strategically planned intervals?
5. Does the customer sponsor attend your review meetings?
TTV is one of the most overlooked metrics but it could be the difference between you and your competitors.”Profitwell
When subscriptions are optimised, both the business and customer will be substantially better off. To achieve high performance, companies must transition to being a customer-centred business, by continually growing key subscription capabilities.
The cost of acquiring long-term customers is a fraction of the profits that can be achieved from customer lifetime value. But the building blocks of a successful subscription business need to be in place to realise the return on investment.
If you’d like to find out how Substribe can help you implement any of these strategies, please do get in touch now.
In case you missed any of the series, you can access previous posts here:
How to optimise your subscription business for customer success and value
Building block 1: Purposeful organisation
Building block 2: Customer obsession
Building block 3: Value-based pricing
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