The Time Value of Shipping: Incorporating Customer Expectations and Building Value Over Time

The Time Value of Shipping: Incorporating Customer Expectations and Building Value Over Time

Shipping is a Feature is a core principle for product managers. It emphasizes the importance of shipping an imperfect product to customers because what truly matters is their use and feedback. The Time Value of Shipping is a framework that allows us to apply this principle effectively.

The concept of the time value of money states that a dollar today is worth more than a dollar tomorrow due to inflation. Similarly, delivering customer value now is worth more than delivering it later. This is because as time passes, customer expectations rise, and if you choose to delay shipping, your eventual product needs to be significantly better to compensate for these increased expectations.

The trajectories of customer expectation and value curves illustrate this difference clearly. While customer expectation growth accelerates exponentially over time, the value curve plateaus. The longer a customer has to wait for a solution, the more likely they are to switch to a substitute product. This highlights the importance of shipping as early as possible to meet customer needs and prevent them from seeking alternatives.

Furthermore, the scope of a minimum viable product (MVP) expands the longer it takes to ship. In some cases, there may only be one point in time where you can ship and satisfy users before their expectations outpace the value you're providing. This "gap of doom" often leads to product pivots as companies realize they cannot keep up with industry innovation and must pivot to meet more attainable customer expectations.

However, it is important to note that shipping an MVP at the first intersection of the curves is not always the optimal choice. The time value of shipping suggests that sometimes holding off on a launch, even when it meets expectations, can be the best decision. This is particularly true when considering the network effects that come with launches. After the initial marketing push, the returns from virality diminish, so it may be more strategic to delay the launch and maximize the impact of these network effects.

Incorporating insights from "The voices of Twitter users," we can see how user feedback and invention shape the evolution of a product. Twitter users invented the syntax of "@username" to reply to specific individuals or messages, which later became an integral part of the platform. This highlights the importance of listening to user feedback and incorporating their ideas into product development.

Additionally, Twitter's application-programming interface (API) allowed programmers to write software that interacts with the platform. By giving people easier ways to share information, more positive outcomes occur. This demonstrates the value of providing users with tools and features that enhance their experience and enable them to share moments of their lives in real-time.

In conclusion, the Time Value of Shipping reminds us of the importance of delivering customer value as early as possible. By understanding the exponential growth of customer expectations and the plateauing of value, product managers can make informed decisions about when to ship an MVP. Additionally, incorporating user feedback and ideas, as seen in the case of Twitter, allows for the evolution and improvement of a product. To apply these principles effectively, here are three actionable pieces of advice:

1. Continuously gather and analyze user feedback: Regularly engage with your customers to understand their evolving needs and expectations. This feedback will help you shape your product and make informed decisions about when to ship.

2. Prioritize features that enhance user experience: Identify and develop features that make it easier for users to share information and connect with others. This will increase engagement and satisfaction, leading to a more successful product launch.

3. Consider the timing of your product launch strategically: Evaluate the potential network effects and diminishing returns of launches. Sometimes, it may be beneficial to delay a launch to maximize the impact of virality and ensure a higher level of customer satisfaction.

By following these actionable advice and understanding the time value of shipping, product managers can navigate the complexities of product development and deliver successful solutions that meet customer expectations.