GM% vs TTV
GM% (Gross Margin Percentage) and TTV (Time To Value) both come up in business conversations and get confused. Here's the plain-English difference, side by side, so you can use each one with confidence.
The key difference: GM% refers to gross margin percentage, while TTV refers to time to value — they describe different things even when they show up in the same sentence.
GM% — Gross Margin Percentage
Revenue minus cost of goods sold, expressed as a percentage of revenue. GM% is the ceiling on every other margin in the business — if it is broken, no amount of operating discipline saves you.
TTV — Time To Value
How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
When to use GM%
Reach for "GM%" when the conversation is specifically about gross margin percentage. Revenue minus cost of goods sold, expressed as a percentage of revenue. GM% is the ceiling on every other margin in the business — if it is broken, no amount of operating discipline saves you.
When to use TTV
Reach for "TTV" when the conversation is specifically about time to value. How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
FAQs
What is the difference between GM% and TTV?
GM% stands for Gross Margin Percentage — Revenue minus cost of goods sold, expressed as a percentage of revenue. GM% is the ceiling on every other margin in the business — if it is broken, no amount of operating discipline saves you. TTV stands for Time To Value — How long it takes a new customer to experience the outcome they bought. Shorter TTV is the single strongest predictor of retention, expansion, and referral.
Are GM% and TTV the same thing?
No. They're often used in the same conversation because they're related, but they describe different concepts. GM% = Gross Margin Percentage. TTV = Time To Value.
When should I use GM% vs TTV?
Use GM% when you're specifically referring to gross margin percentage. Use TTV when the topic is time to value.