The Time Value of Shipping: Delivering Customer Value Now

The Time Value of Shipping: Delivering Customer Value Now

Shipping is a Feature is a core principle for product managers. It emphasizes the importance of not waiting for a perfect product, but rather learning how and when to ship an imperfect one, because ultimately, customer use of the product is what really matters. This principle is further supported by the concept of the Time Value of Shipping, which provides a framework to apply this principle effectively.

To understand the Time Value of Shipping, let's first draw a parallel with the time value of money. One dollar today is worth more than one dollar tomorrow due to inflation. As prices rise over time, the purchasing power of a dollar decreases. Similarly, in the context of shipping, delivering customer value now is worth more than delivering value later. If you choose to delay delivering value, you need to account for the inflation in user expectations, and your eventual product needs to be significantly better to compensate.

When we look at the trajectories of customer expectations and value curves, we can clearly see the differences. Customer expectation growth accelerates over time because the longer a customer has to wait for their problem to be solved, the more likely they are to switch to a substitute product. On the other hand, the value curve plateaus as the initial excitement and novelty of the product wear off.

One important aspect to consider is the scope of a minimum viable product (MVP), which tends to grow the longer it takes to ship. This growth in scope is driven by the need to meet evolving customer expectations. However, there may come a point where the gap between customer expectations and the value the product offers becomes too significant. This is what we refer to as the "gap of doom," which often leads companies to pivot their product strategy to align with more attainable customer expectations in a different market.

Contrary to the popular belief in shipping an MVP as soon as possible, the time value of shipping suggests that sometimes it may be optimal to hold off on a launch, even when it meets expectations. This is because launches come with network effects, which have diminishing returns after the initial marketing push. By strategically timing the launch, you can maximize the impact of these network effects and ensure sustained growth.

In conclusion, the Time Value of Shipping highlights the importance of delivering customer value promptly. Waiting too long to ship can result in a widening gap between customer expectations and the value your product offers. To make the most of this principle, here are three actionable pieces of advice:

1. Continuously assess customer expectations: Stay in tune with your target audience's evolving needs and preferences. Regularly gather feedback and make adjustments to ensure your product remains aligned with their expectations.

2. Strategically plan your launches: Consider the potential network effects and timing of your product launch. Don't rush to ship at the first intersection of customer expectations and value curves. Instead, evaluate the optimal moment to maximize the impact and sustain growth.

3. Focus on delighting users: Building a product that not only satisfies customer needs but also delights users can lead to the rewards of virality. Encourage positive word-of-mouth and create an experience that compels users to share their enthusiasm with others.

By understanding and applying the Time Value of Shipping, product managers can navigate the complexities of product development and ensure that they deliver value to their customers when it matters most.