The journey from a Minimum Viable Product (MVP) to a Minimum Marketable Product (MMP) is a critical phase to startups that demands strategic insights and careful planning. In a recent session at the WeStart pre-incubation program, I had the privilege of gaining insights from Ms. Nikkitha Shanker, Co-founder of Shoppre.com on the critical journey of a startup from Minimum Viable Product to a Minimum Marketable Product. Let’s explore the key takeaways and lessons from this enlightening discussion.
Never Underestimate the Power of an MVP
The Build-Measure-Learn methodology lies at the heart of an effective MVP strategy. Ms. Shanker emphasized that an MVP is not just a product; it’s a learning process which is problem oriented, not product oriented. The core purpose is to test hypotheses about a product and its market, engage with real customers using the most streamlined version possible and continue to improve.
MVP Process in Action
Have a Hypothesis:
- Clearly define your users, the problem you’re solving, and the market opportunity.
- Rather than focusing on building a product, start by creating a hypothesis about your potential customers and their needs.
- Define what should be the facilities we have to offer or build for solving the customers’ problems. Fix these things in 2–3 days.
- Now you can approach a consultancy and build a user interface or required facility for the customer. Take a maximum of 2 months only for doing this.
- Repeat the same process in the Admin side to build the support system for the business and also in Operation side to identify how to operate the process of connecting customers and admin
Launch Quickly:
- Speed is of the essence. Quickly bring your MVP to market to start collecting valuable feedback.
Get Initial Customers:
- Identify the initial set of customers who align with your hypothesis.
- Launch with a limited feature set, and gather feedback from these early adopters.
Talk to Customers & Get Feedback:
- Actively engage with your customers to understand their needs and pain points.
- Iterate and improve the product based on the feedback received.
Examples: AirBEd & Breakfast
An illustrative example is the early version of Airbnb’s website — a one-page platform lacking payments and map views, designed specifically for conferences. This minimalistic approach allowed them to test their hypothesis and evolve based on user feedback.
Who is Your Customer & Where to Find Them?
Ms. Shanker emphasized the importance of understanding your customer and where to find them. Let’s delve into the steps involved:
Define Your Customer:
- Identify your target audience. In the case of Shoppre.com, NRIs with a specific spending capacity became the focus.
- Narrow down the age group, income bracket, and other relevant factors.
Focus on Localized Markets:
- Penetrate and scale in one market before expanding to others.
- Run marketing campaigns with hypotheses and validate through segmentation.
Never Be Afraid to Talk About Your Business Ideas & Take Feedback
Ms. Shanker stressed the significance of openly discussing your business ideas and being receptive to feedback. It’s through constructive criticism that startups refine their concepts and strategies.
Milestone: Launch and Get First 100 Customers
A significant milestone in the MVP phase is achieving the first 100 customers. It’s not just about numbers; it’s about validating your hypothesis and ensuring that the product meets market demands. The number of the first set of customers of course varies business to business.
Unit Economics: Gross Margin Should Be Positive
Before transitioning from MVP to MMP, it’s crucial to have positive gross margins. This ensures that your business is financially sustainable and can support future growth.
When to Go from MVP to MMP?
The decision to transition from MVP to MMP is driven by the achievement of key milestones, positive unit economics, and a solid understanding of your target market. It marks the evolution from a learning-focused approach to a market-focused strategy.
While an MVP is the initial version of a product focused on validating hypotheses and learning from user feedback, an MMP is an evolved version that is not only functional but also ready for a wider market audience, with additional features, improved user experience, and a solid business foundation.
Ms. Nikkitha Shanker’s insights, coupled with the real-world example of Shoppre.com, provide a roadmap for startups navigating the phase of transition from MVP to MMP. As you enter into your own journey, remember the power of a well-crafted MVP and the strategic shift needed to take your product to market successfully.
Attaching the deck shared by Nikkitha: Link