You’re the real MVP
For centuries, smart entrepreneurs have sent out samples of their products to test the waters, collect feedback and generate a buzz. This same method can be applied to software development and the sample, in this case, it is called the MINIMUM VIABLE PRODUCT, MVP.
In Eric riles book, "The lean startup framework" a favourite for startups and product managers, An MVP is described as" a version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort". It is simply the smallest amount of a proposed product that you can build, put out there and get validated feedback from users.
The goal of an MVP is to provide immediate value, quickly, while minimizing development costs, to gather data and feedback from users that can then be applied to improve subsequent versions of the product.
Why bother?
● Feedback: It is an amazing way to verify market demand if there will be a place for your product in the market.
● UX and Usability: It is also used to test the UX and usability of the product.
● Time/Money: It saves a lot of money and time since full development isn’t done at once, and any further additions to the product are based on actual user feedback.
● Proof of idea: MVPs are a good way to test if your product provides the solution to a proposed problem and if it is a problem at all.
● Business trajectory: MVPs can help change business trajectory if need be since development is based on user feedback, constant adjustments to the initial direction or even a complete overhaul is made possible and easier.
MVPs are an excellent tool if you want to launch a product quickly, with minimal cost and good knowledge of the market demands and trends. It also helps in validating market ideas before full-scale production.
How to make an MVP.
● Comprehensive research: Answer the questions, What, Who and How.
- What is the purpose of the product?
- Who is the target market for this product?
- How does my product solve the problem?
● Identify key features of the MVP and prioritize them. The MoSCoW approach can be applied here. Identify the product’s
- Must-haves,
- Should haves
- Could haves
- Won’t haves.
● What type of MVP would suit the product best based on available resources. Some types of MVPs are :
- No product MVPs
- Product Mockup MVPs
- One feature MVPs.
● Identify metrics to measure the success of the product.
● Prepare a story map. A story map usually has four components:
- Goals - Vision statement of the product.
- Activities
- User story
- Tasks.
● Launch - At this stage, your MVP is ready for the market, just remember to track key metrics and use feedback to learn, both positive and negative.
Did it work?
After launching an MVP, some key metrics will need to be observed to determine if the MVP was a success or not. Some of them are:
● Customer Feedback: Customer feedback is one of the most important metrics for MVPs since the main objective is development according to customer design.
● Net promoter score: You can ask your customers directly to rate their experience with your product and how likely they are to recommend it to others. The net promoter score is the difference between the promoters and the detractors. The detractors being 0-6 and the promoters 9-10. A difference greater than 0 is a good sign.
● Activation: The number of sign-ups your product gets can be an indicator of growth and audience reach.
● Revenue generated: The revenue generated by the product is a good metric to measure growth. An increase in revenue could indicate further success by the product.
● Customer activation cost: This is one of the most significant but overlooked metric. It is simply the cost it takes to draw in a single customer. If you spend more money introducing a product than the revenue it generates, it is a sign of non-profitability. In this case, you can decide to make a few changes, either change the course of your idea or the business model entirely.
Summary
MVPs are important to startups and Product Managers as they help determine whether people are interested in a new product or feature that is being proposed. Picking the right kind of MVP helps mitigate risks and saves valuable resources like time and money.
