Tivalio
Setup is Not Value: The Most Common Mistake in TTV Measurement
The most dangerous lie in analytics is the one that looks like success.
We see this pattern constantly. A team integrates a tool like Amplitude or Mixpanel. They define their "Activation Event." They check their dashboard. "Wow! Our Time To Value is 4 minutes! We are crushing it!"
Then they look at retention, and it's flatlining. Users are leaving in droves. Why?
Because they confused "Setup" with "Value".
The "Hall of Shame" of Value Events
Product Managers love to measure activity. But activity is not utility. Here are some common events that teams think are value events, but are actually just setup costs:
- ❌
Profile Completed(The user gave you personal data). - ❌
Integration Connected(The user gave you API keys). - ❌
Project Created(The user typed a name). - ❌
Team Member Invited(The user risked their social capital). - ❌
Credit Card Added(The user risked their money).
Strictly speaking, these are Donations from the user to you. The user gave. The user did work. The user took a risk. They haven't received anything yet.
Value is Received, Not Given
To correctly measure TTV, your end-point event must represent the moment the system gives back. It must be the moment the user gets a "Return on Investment" (ROI) for their effort.
| Setup Event (The Cost) | Value Event (The Payoff) |
| :--- | :--- |
| Search Filters Saved | Search Results Viewed (Information found) |
| Campaign Created | Campaign Response Received (Business generated) |
| Data Imported | Insight Chart Generated (Knowledge gained) |
| File Uploaded | File Shared/Processed (Task completed) |
The "Value Gap"
The time between "Setup Complete" and "Value Received" is what we call the Value Gap.
This gap is the silent killer of SaaS.
Imagine a user connects their Shopify store to your analytics tool (Integration Connected).
- Your Dashboard: "Activated!"
- Reality: The sync takes 2 hours. The user stares at a "Syncing..." screen. They get bored. They leave. The sync fails silently in the background.
The user never saw a single chart. They received zero value. But to your PM, they are a "Success Story" because they finished setup.
How to Audit Your Metrics
Go look at your "Activation" or "Value" event in Tivalio (or whatever tool you use). Ask this brutal question:
"If a user did this action and then immediately the server crashed, would they be happy they signed up?"
- If they just "Completed Profile," the answer is NO. They just wasted time typing.
- If they "Downloaded the Report," the answer is YES. They have the PDF on their hard drive.
Conclusion
If you move your goalpost from "Setup" to "True Value," your TTV metric will look worse. It might jump from 4 minutes to 4 hours.
Good. You want an accurate ugly number, not a pretty fake one. You cannot improve what you are lying to yourself about. Measure the finish line, not the starting blocks.