Cost of delay (CoD) is a metric measuring the financial impact of completing a project sooner rather than later.
Think of it as the money you could lose by delaying the launch of a product or feature.
Understanding CoD can help you see how your decisions might impact your bottom line.
In this article, we'll discuss three expensive costs of delay you might not have considered.
Three Unexpected Costs
In the software development world, the saying "time is money" rings especially true. Each day that your software isn’t on the market is a day that it’s not generating revenue.
When it comes to late software projects, some obvious costs of delay stand out from others — mainly lost revenue and extended labor costs. However, many costs of delay may not be immediately apparent but can nevertheless have a significant impact on your project's outcome.
Marketing Costs
Imagine spending tons of resources on marketing campaigns only to find certain advertised features aren’t ready. Delays in feature delivery disrupt marketing timelines and can lead to wasted resources and missed opportunities.
Customer Dissatisfaction
The end consumer being less than satisfied with your final product can lead to a loss of trust and quickly damage your business's reputation. This can have long-term consequences for customer loyalty and brand perception. Customers might request refunds or decide not to renew contracts because they feel let down or believe they can’t trust your brand anymore.
Lost Stakeholder Confidence
Delays can strain relationships with stakeholders such as investors, clients, suppliers, and regulatory bodies. Trust and confidence rapidly erode if deadlines are repeatedly missed, leading to rocky relationships and potential loss of support or funding.
Bottom Line
How do you minimize the costs of delay and the impact it has on your project? Effective project planning, continuous communication, risk management, agile development practices, a focus on quality, and efficient resource allocation are all key.
Learn more about how to implement best practices into your project launches and how to maximize customer retention with a crew of professionals. Book a demo with Howdy and build a reliable development team that can implement strategies effectively.