The Time Value of Shipping: Why Delivering Customer Value Now is Crucial

The Time Value of Shipping: Why Delivering Customer Value Now is Crucial

Shipping is a Feature that product managers live by. It emphasizes the importance of not waiting for a perfect product, but rather learning when and how to ship an imperfect one. After all, what truly matters is the customer's use of the product. This is where the concept of the Time Value of Shipping comes into play.

In simple terms, the Time Value of Shipping suggests that delivering customer value now is worth more than delivering it later. Just like the time value of money, where a dollar today is worth more than a dollar tomorrow, customer value also depreciates over time. As customer expectations rise with inflation, your product needs to continuously evolve to meet those expectations.

Imagine buying a basketball. The price you pay for it is equivalent to your users' expectations of your product at any given point in time. As a product manager, your goal is to build enough value over time to afford that basketball. However, if you choose to delay delivering value, you must consider the inflation in user expectations. Your eventual product would need to be significantly better to compensate for the delay.

The difference between the trajectories of customer expectation and value curves is apparent. Customer expectations grow exponentially over time, while the value curve plateaus. This is because the longer customers have to wait for their problem to be solved, the more likely they are to switch to a substitute product.

The longer it takes to ship, the scope of your minimum viable product (MVP) also expands. Initially, there may be only one opportune moment to ship and satisfy users. This "gap of doom" often leads to product pivots, as companies realize they can't keep up with the rapid pace of their industry and need to adjust their strategy to meet more attainable customer expectations.

Contrary to the popular belief of shipping an MVP as soon as possible, the time value of shipping suggests that there are instances where holding off on a launch, even when it meets expectations, can be the optimal choice. This may seem counterintuitive, but it is important to consider the network effects that accompany launches. After the initial marketing push, the returns diminish, and it may be more beneficial to delay the launch and leverage the potential virality and delight that comes from a fully polished product.

To apply the principles of the Time Value of Shipping effectively, here are three actionable pieces of advice:

1. Continuously assess customer expectations: Stay in tune with your target audience and their evolving needs. Regularly gather feedback and make necessary adjustments to your roadmap to ensure you are meeting their expectations.

2. Prioritize speed and agility: Identify the critical points in the development process where shipping is essential. Embrace an iterative approach that allows for quick releases and continuous improvement, rather than aiming for perfection before shipping.

3. Leverage the power of timing: While it's important to ship value promptly, don't overlook the potential benefits of strategic timing. Consider the network effects and the impact a well-timed launch can have on user adoption and virality.

In conclusion, the Time Value of Shipping emphasizes the significance of delivering customer value promptly. By understanding the dynamics between customer expectations and the value your product provides, you can make informed decisions about when to ship and how to maximize the impact. Remember, the best products not only satisfy customer needs but also capitalize on the rewards that come with delighting users and fostering virality.