TTM, or time to market, is the period of time it takes for a new product to be developed, tested, and brought to market for customers to purchase. When measuring time to market, you must account for the time between the start of the development process and when the product is ready for sale.
Time to market is a crucial metric directly impacting a company’s success. The faster a product can be brought to market, the more likely a company will gain a competitive advantage, maximize its profits, and increase customer satisfaction. The average time to market varies depending on the industry. However, according to a Mckinsey & Company study, if you are late to the market by just six months, it reduces earnings by 33% compared to a “right on time” scenario.
There are many benefits to a reduced time to market. They include:
Competitive Advantage
Bringing a product to market quickly and efficiently gives businesses a competitive edge. It establishes a company as a market leader and helps to grow a loyal customer base. In addition, being the first to meet a customer’s need or solve a problem allows companies to capture a larger market share than those released later.
Increased Revenue
Lowering your time to market and getting products available quickly allows businesses to start generating sales sooner. Generating sales more promptly improves cash flow, which is essential to funding operations, keeping bills paid, and the future development of products.
Cost Savings
Bringing products to market is the most expensive part of the product life cycle. Shortening the time to market helps reduce the overall cost of product development as it lessens the amount of time and resources required. Faster time to market also minimizes the risk of over-shooting your budget and improves the project’s ROI (return on investment).
Customer Satisfaction
Even loyal customers are less likely to wait around if other companies release similar products more quickly. Shortening the time to market improves customer satisfaction by promptly meeting their needs and expectations before the competition. Having a quick time to market leads to brand loyalty and increases the likelihood of positive word-of-mouth marketing, which is essential to drive sales.
Increase Shareholder Value
Businesses that decrease their time to market can end up with an increased shareholder value. Investors often show more interest in companies that can demonstrate rapid growth and innovation than those that are slower to meet deadlines.
Improve your time to market today!
Time to market is a critical factor in product development because it significantly impacts the success of a product launch and the overall profitability of a business. Decreasing time to market will give companies a competitive advantage, help them reduce costs, increase revenue, improve customer satisfaction, and increase the likelihood of additional shareholder investments in the future.
If you want to learn more about how to increase your company’s success, check out TCGen’s ways to reduce time to market for more in-depth information and excellent tools to help your business succeed.
