How to Increase MRR Activating Users: Mastering Time-to-Aha
Transform Free Trials into Loyal Customers
Ever wondered why some products captivate users instantly, while others leave them puzzled?
The secret often lies in the Time-to-Aha—the duration it takes for a user to experience a product's core value. Some call this “Time to Value”, or TTV for those of you at parties who want to bore someone.
It might be boring at parties, but … wait for it … research indicates that SaaS companies optimizing this metric can significantly boost conversion rates.
Let’s get to what it is, why it matters, and how to reduce it so you can increase your trial-to-conversion rate…
What is Time-to-Aha?
Time-to-Aha measures the interval from a user's initial interaction to the moment they first realize the product's core value—the Aha! moment.
This is when users understand why they need your product and how it benefits them.
Examples from Successful SaaS Companies:
Calendly: Users can create and share their first calendar link within minutes, showcasing the platform's scheduling efficiency. Time to aha is supposedly < 3 minutes.
Loom: Enables users to record and share their first video swiftly, highlighting seamless communication. Target is < 2 minutes.
Notion: Allows users to create and share a page promptly, demonstrating its collaborative capabilities. Ideally this happens in less than 4 minutes.
These companies have streamlined their onboarding processes to ensure users quickly experience the product's value, often within minutes.
Why Time-to-Aha Matters
A shorter Time-to-Aha correlates with higher conversion rates and improved user retention.
According to OpenView's 2022 Product Benchmarks Report, product-led growth (PLG) companies that focus on delivering value quickly are more likely to achieve rapid and efficient growth.
That’s you, right?
You want to achieve rapid and efficient growth. I’m sure of it. It’s why you’re still here, reading this.
Keep going to get the dirty details in bullet point format.
How to Measure Time-to-Aha
1. Define Your Aha Moment:
Identify the first meaningful outcome users achieve.
Determine when they first experience your core value proposition.
Pinpoint actions that correlate with long-term retention.
2. Track Key Metrics:
Time from signup to the first core action that gives the user their meaningful outcome.
Track the percentage of users reaching the Aha moment.
Track the drop-off points in the activation journey.
Track the user paths leading to the fastest activation.
3. Segment Your Data:
By user type or plan.
By acquisition channel.
By onboarding path taken.
By feature first used.
Tools to Assist:
PostHog: For event tracking and user paths.
Mixpanel: For funnel analysis.
Amplitude: For cohort analysis.
Strategies to Reduce Time-to-Aha
Yea, I’m still doing bullet points so you can get, ahem, the point, quickly.
Try any or all of these to reduce your time-to-aha.
1. Streamline Registration:
Eliminate unnecessary form fields.
Offer social sign-in options.
Pre-fill obvious values.
Defer non-critical setup steps (according to the user getting the value)
2. Optimize Onboarding:
Create guided paths for users.
Use intelligent defaults to reduce decision fatigue.
Show progress indicators to keep users motivated.
Celebrate small wins (and the Aha! moment) to encourage continued use.
3. Reduce Technical Friction:
Provide one-click integrations.
Offer sample data for users to experiment with.
Auto-configure common settings.
Include concise video tutorials (send these as emails or put in the onboarding spots where people might usually get hung up)
Advanced Optimization Techniques
To further refine your Time-to-Aha, consider implementing advanced optimization techniques.
Start with progressive disclosure by introducing only the essential features initially, then gradually revealing more advanced options as users grow comfortable. Doing things like this with step-by-step guidance helps users make progress without feeling overwhelmed.
Another option is to leverage smart defaults to simplify choices and speed up decision-making.
Pre-select common options, offer templates tailored to typical use cases, and suggest recommended settings based on user behavior to create a seamless onboarding experience.
Finally, incorporate success triggers to motivate and engage users.
We all like that dopamine hit we get when someone confetti plays the first time. Surprise and delight them.
Automate congratulatory messages when milestones are achieved, award badges to recognize progress, and set progress milestones to encourage continuous use.
And if you really want to go the extra mile to build trust and inspire confidence, integrate social proof elements such as testimonials or user success stories throughout the journey.
Warning Signs to Watch For:
> 50% of users never reaching the Aha moment.
Support tickets about basic setup issues. Every one of these is a to-do item to fix something that’s unclear.
Frequent trial extension requests. I mean, maybe you have an audience who just likes to ask for free stuff and deals all the time, but it also might mean they’re just not quite getting it and you have some work still to do.
High bounce rates on critical setup pages.
Final Thoughts
Reducing Time-to-Aha is a game-changer for improving conversions and customer retention.
Start by understanding your user's journey, removing friction points, and iterating based on data.
Remember: Every minute shaved off Time-to-Aha is another user more likely to convert.
Now, go create those Aha! moments for your users.
Next Steps…
If you're generating consistent revenue but haven't scaled your marketing spend, you might be leaving money on the table too.
Want help figuring out your scaling potential?
I'll help you identify which marketing initiatives you should scale, help your marketing lead understand the models, and give them a system to scale up too.
If you're a $1-5M/year founder who needs help getting to the next level, get in touch today.