The Time Value of Shipping: Maximizing Customer Value and Expectations

The Time Value of Shipping: Maximizing Customer Value and Expectations

In the fast-paced world of product management, one core principle stands out: Shipping is a Feature. This principle emphasizes the importance of not waiting for the perfect product before launching it to customers. Instead, product managers should focus on delivering value to customers as soon as possible, recognizing that their use of the product is what truly matters.

To understand this principle better, let's dive into the concept of the time value of shipping. Just like the time value of money, which states that a dollar today is worth more than a dollar tomorrow, the time value of shipping suggests that delivering customer value now is worth more than delivering value later.

When you choose to delay shipping, you need to account for inflation in user expectations. Over time, customers' expectations of a product tend to rise, and if you fail to meet those expectations, they might turn to a substitute product. This is why it's crucial to build enough value over time to afford the "basketball" – the point at which your product meets or exceeds users' expectations.

The trajectories of customer expectations and value curves reveal a stark contrast. While customer expectations grow exponentially over time, the value curve plateaus. This disparity in growth rates highlights the importance of timely shipping. The longer customers have to wait for their problems to be solved, the more likely they are to seek alternative solutions.

Moreover, the scope of a minimum viable product (MVP) tends to expand the longer it takes to ship. Initially, there may be a single point in time, known as the "tangent," where you can ship and satisfy users. However, as time goes on, the gap between customer expectations and the available product widens. This gap, often referred to as the "gap of doom," is what prompts many companies to pivot their product strategy.

While the concept of MVP advocates for early shipping, the time value of shipping challenges this notion. It suggests that holding off on a launch, even when the product meets expectations, can sometimes be the optimal decision. This is particularly true when considering the diminishing returns of network effects after the initial marketing push. The best products not only satisfy customer needs but also leverage the power of virality and user delight to reap long-term rewards.

Now that we understand the importance of the time value of shipping, let's explore three actionable pieces of advice to maximize customer value and expectations:

1. Embrace iterative development: Instead of waiting for a perfect product, adopt an iterative approach. Ship early versions of your product to gather feedback from customers and continuously improve based on their needs. This allows you to deliver value sooner while staying responsive to changing expectations.

2. Prioritize customer satisfaction: Always strive to exceed customer expectations. Monitor feedback closely and make adjustments to your product roadmap accordingly. By consistently delighting your users, you can create a loyal customer base and harness the power of positive word-of-mouth.

3. Leverage the power of timing: While early shipping is generally recommended, consider the timing of your product launch strategically. Evaluate the market landscape, assess customer expectations, and identify the optimal moment to make a splash. Timing your launch effectively can amplify your product's impact and increase its chances of going viral.

In conclusion, the time value of shipping emphasizes the importance of delivering customer value promptly. By recognizing the exponential growth of customer expectations and the plateauing of the value curve, product managers can make informed decisions about when and how to ship their products. By embracing iterative development, prioritizing customer satisfaction, and leveraging timing strategically, you can maximize customer value and expectations, leading to long-term success in the competitive world of product management.