If your SaaS product does not deliver value instantly, your users will leave faster than a bad date. That is not an exaggeration, it is a fact backed by numbers: 55% of users spend less than 15 seconds on a new website before deciding if they will stay or leave. Now imagine how little patience they have for a slow, complicated software onboarding process.
When you buy something, you expect it to work as soon as possible. If you take a painkiller, you expect relief fast. Nobody wants to wait forever to get value from something they just paid for. Software is no different. People want to get value from it immediately. That “immediately” part? That’s what time to first utility (TTFU) is all about.
What is time to first utility (TTFU)?
Time to First Utility (TTFU) is the time it takes from when a user discovers your software to when they experience their first real moment of value, also known as the “aha” moment. The shorter this time is, the more likely users are to stay. The longer it takes, the more likely they are to leave. It is one of the most critical factors in user retention, especially in SaaS, where first impressions can make or break adoption.
Customers don’t give a damn about your “standards”
When a user first interacts with software, they are making a quick decision. Does this work for me or not? If they hit a roadblock before even getting a taste of what the software can do, they will leave. It does not matter how great the software is if the first experience is a mess.
This is where many African SaaS companies are getting it wrong. We build fantastic products, but we also put up barriers that slow users down. Regulation, KYC requirements, licensing restrictions. All these things are important, but they should not be the first thing a user experiences.
You think users care about why your onboarding is complex? No one is sitting around thinking, “Oh wow, this company must have valid reasons for making sign up so difficult.” They just leave. People expect to try your software immediately. That’s why products like remove.bg kill it. You upload an image, and boom, background removed. No drama. No fucking around. Just instant gratification. That’s what we need to replicate in African SaaS.
At Lendsqr, we know this struggle well. Lending is a regulated business. You cannot just let people in without verifying them. But at the same time, we realized that if we make people jump through too many hoops before they even see what the software can do, they will never come back.
Too bad that many have run away, but I’m getting y’all back!
African founders are getting TTFU wrong
One thing is clear: Africa’s SaaS market is on the right trajectory, and it is projected to hit $10 billion, with startups springing up across Lagos, Nairobi, Cape Town, and Cairo. The talent is there, the demand is growing, and the innovation is undeniable. Yet, we have a serious problem, too many hoops before users get to experience value.
And here’s the hard truth: users don’t care. They’re not going to sit around and wait. They’re not going to fight through layers of friction just to see if your software is worth it. They’ll leave.
In Africa, where internet costs are high and digital trust is still fragile, users are even less patient. If they struggle to access your product in the first few minutes, they’re more likely to churn permanently.
And it’s not because the software is bad. In fact, a lot of African SaaS products are brilliant. The issue is the barriers we throw in front of users before they can even experience the value. Too much KYC upfront is a major culprit. Yes, regulations matter, but if a user has to submit their ID, utility bill, and a small goat (okay, maybe not that far) before they can even try your software, they’ll bounce.
Onboarding is another headache. If it takes days for someone to get access or approval, they’re already gone. Then there’s the problem of integrations. Too many SaaS products exist in isolation, forcing users to manually transfer data between platforms, which is frustrating and inefficient. And let’s not forget pricing. If users have to email support just to figure out how much they need to pay, they’ll move on to something simpler. Every extra step is a chance for them to leave, and they do.
The solution is simple: reduce friction, deliver value faster, and make it ridiculously easy for users to get started.
My experience with TTFU at Lendsqr
I’ll be the first to admit that we’ve made this mistake at Lendsqr, and it cost us. When we first started, we assumed that anyone who wanted to use our platform would be willing to go through the necessary regulatory steps first. After all, lending is a regulated business, right? You need a license, you need KYC, you need a payment provider, you need this, you need that.
But here’s the thing, when people first discover a product, they don’t care about any of that. They just want to see it work. And instead of giving them that quick win, we were hitting them with roadblocks: Sign up? Great. Now, go get a payment provider. Want to test out the system? Sorry, you need a lending license. Oh, you’re from Zambia? Oops, no SMS provider for your country.
It was a disaster. We spent time, resources, and money bringing people in, only to have them leave disappointed. We were failing on a fundamental level. We had to rethink everything. And here’s what we did:
First, we ditched SMS authentication in favor of WhatsApp. SMS requires setting up providers for each country. WhatsApp works everywhere. Problem solved.
Second, we stopped blocking users from signing up just because there was no payment provider in their country. If there is no payment provider, fine. Let them proceed and figure it out later. At least they get to see how the platform works.
Third, we started pre-integrating with key providers upfront in our priority markets. This means when lenders from those countries sign up, they don’t immediately hit a wall.
We also relegated some requirements to come in later. For example, Nigerian lenders no longer have to provide their bank account and BVN upfront. That only matters when money actually needs to move. Why make them do it before they even see what the platform can do?
And to simplify setup, we built a golden path. Instead of overwhelming users with a million settings, we set smart defaults so they can issue their first loan without configuring every little detail.
The result? Less friction, faster time to first utility, and a much better chance of turning new signups into active lenders.
The one minute rule we must all follow
If you’re building a SaaS product in Africa, you need to ask yourself one question: how fast can a user see value? If the answer is anything more than a minute, you have work to do. Because if you don’t fix it, your users will find a competitor who has.
Sometimes, that competitor is them “doing nothing” or some low key manual process. Who cares who the competitor is if the customers dump your ass? Either way, you lose.
At Lendsqr, we’re making sure that users can get their first taste of value in under a minute. We’re not all the way there yet, but we know that if we don’t nail this, we don’t stand a chance. And neither do you.
So, if you’re building SaaS in Africa, do yourself a favor, cut the friction, make it work instantly, and watch your business take off.
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