When a new customer invests in a product or service, they are putting their trust in you as a company to fulfill a need. From a consumer’s choice to bank with a certain institution to a company’s choice to purchase software from a SaaS company, most new company-client relationships begin with a level of anticipation and excitement. The problem for many companies is that they fail to capitalize on that excitement by turning anticipation into success early in the process.
Understanding why the first 90 days of your onboarding process are so critical and finding ways to shorten the time-to-value for your clients, is a key step in turning new clients into loyal customers for the long term. Fail to do so, and chances are your clients will be looking for other alternatives sooner than later.
What is Time-to-Value?
Every company has a limited amount of time from the point that a customer or client decides to do business with you (whether that’s purchasing a product or service) in which they expect to see a return on that investment. This is your customer’s “time-to-value” or TTV. The timeline can vary based on what types of products and services you sell, but for most companies, it should be as short as possible.
Measuring TTV is an important metric in the onboarding process. Having an idea of how long that takes your average customer can help you put onboarding processes and procedures in place to shorten it as much as possible.
The 90-Day Threshold
When a new customer comes on board, the most important thing is having a simple, smooth process to help them maximize the products or services you offer. It’s not the customer’s job to try and figure out how your product can benefit them, it’s your job to show them how it meets their needs.
In general, if you do not accomplish this in the first 90 days from the time your customer joins your company, there is a high chance they will be gone soon. If you signed a contract, they may wait out the length of the contract before they bolt (although if their experience is bad enough they may think it’s worthwhile to pay the price for terminating the contract early). In the absence of a contract, most will be gone by the 90-day mark if they haven’t seen the value that you promised.
Part of the reason for this is loyalty—in those first 90 days, a customer is excited about the prospect of working with you, but they have not yet developed any loyalty to your brand. In
Part 2 of this blog, we’ll examine how to shorten TTV by making it easy for your customers to succeed.
If you’re ready to make the most of your first 90 days with better onboarding, schedule a demo to see how GuideCX is changing the way businesses develop loyalty and reduce TTV.