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Defining Your "Value Event": A Framework for PMs

The hardest part of setting up Tivalio (or any TTV measurement) isn't the code. It is the philosophy. You stare at your analytics schema—a dropdown of 500 events like button_clicked, page_view, form_submit—and you have to answer the existential question:

"Which one of these is Value?"

If you pick too early (e.g., Signup), you measure vanity. If you pick too late (e.g., Renewal), you measure retention, not activation.

Here is a 3-Step Framework to nail the definition.

1. The "Result" Test (Noun vs. Verb)

Look at the event name. Does it describe an Action the user took, or a Result the system delivered?

  • Button Clicked: Action. The user moved their finger. This guarantees nothing. The server might have returned a 500 error.
  • Form Submitted: Action. The user typed.
  • Report Generated: Result. The system did work and delivered an asset.
  • Message Received: Result. The loop was closed.

Rule: Value is a noun. It is something the user gets, not something they do.

2. The "Willingness to Pay" Test

Ask yourself: "If this event was the ONLY thing the user did today, would they feel happy about paying their subscription fee?"

  • User adds a Credit Card? No. Paying is painful.
  • User invites a teammate? Maybe. It's social potential, but not value yet.
  • User sees an Insight Chart showing they saved $500? YES.

The Value Event is the digital fulfillment of your marketing promise. If your landing page says "Get leads fast," your Value Event must be Lead Acquired.

3. The "Habit" Proxy

Great Value Events are often the precursors to retention. They are the start of a habit loop.

For a Project Management tool:

  • Option A: Project Created.
  • Option B: Task Completed.

Project Created happens once. It's setup. Task Completed happens 10,000 times. It's work.

If you optimize for Project Created, you might encourage users to make empty projects. If you optimize for Task Completed, you encourage users to actually work. Always pick the recurring event over the setup event.

Common Examples by Vertical

| Vertical | Bad Event (Action) | Good Event (Result) | | :--- | :--- | :--- | | E-commerce | Add to Cart | Order Placed | | SaaS Analytics | Integration Connected | Insight Viewed | | Media/Content | Video Started | Video Watched > 30s | | Communication | Message Sent | Reply Received (Two-way value) |

The "Value Group" Strategy

What if you have multiple products? Or what if "Value" is a gradient? You shouldn't limit yourself to one event.

Tivalio uses Value Groups:

  • Core Activation: The absolute minimum (e.g., First Message).
  • Deep Activation: The power usage (e.g., Integration Installed).

Start with one. Nail your North Star. Then expand. But never lie to yourself about what "Value" means.

Measure what blocks users.

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