What is MVP and its Benefits for Product Development
What do highly flourishing apps such as Spotify, Uber, and Instagram, have familiar with? They all have utilized a Minimum Viable Product (MVP) process. With this process, they tested their products’ feasibility and viability. They crafted features as per user testing data sets and their feedback to advance into mature applications in the current scenarios.
However, it is even true that with traditional product development models, 9 out of 10 startups fail as they invest funds too quickly. Also, 42 percent of startups fail with their products as there are no such market requirements.
What is the Minimum Viable Product (MVP) approach?
A Minimum Viable Product approach is the versioning of a product that comprises only the functionalities that solve a significant challenge for a straight-set of users, enabling an organization to release it to market powerfully.
What is a good MVP?
A good MVP meets the MVP approach’s goals, which is to offer swift value while lessening development costs, collecting data and feedback that can be made functional to enhance future iterations of the given product.
It should have sufficient features to attract early-adopter clients and confirm a product idea or concept early on in the precise product development cycle. As the agile methodology is developed on validating and iterating products based on user inputs, a good MVP plays a critical role across agile enablement.
The Significant Benefits of Building a Good MVP
1. Build Confidence in the Product Pitch
Today, many businesses depend on investor buy-in to have funding for a new product. The significance of receiving this buy-in is to create confidence in the product pitched and its capability to realize the looked-for outcome.
With MVP development, you can better secure this buy-in. It facilitates businesses to comprehend if their concept will work before going to investors, making the business case stable and showcase the market validity of the product. An MVP is an entirely functioning product so that businesses can demonstrate to investors a substantial product.
A successful MVP not only proves the feasibility and benefits of a product, but it also offers a tangible solution to the stakeholders realizing the return on their investments, and making the funding process simpler.
2. Test Business Ideas and Product Concepts
The most significant advantage of building an MVP is that it allows companies to test their business ideas and product concepts. By testing the concept with notable features rather than a complete product, organizations can better verify if their product concept matches with who they thought to be their customers, offering an opportunity to alter a product’s direction as per findings.
When this product is introduced, organizations will have the capacity to find active social groups to engage with the product. The organizations can utilize these insights to customize app features further to fit these users more. As a leading web and mobile app development company, we know how difficult it is to alter a feature-loaded product.
3. Substantiate Market Demands
An MVP is also helpful to attain an understanding and substantiate market demands. Most of the time, companies presume that their product enables an explicit user requirement. However, this may not be actually true as the need may not exist, or there are solutions already fulfilling this gap in the market.
Read More: 5 Steps to Build MVP Rightly for Mobile Apps
An MVP helps companies test market demands and corresponds to discover if probable users require and will use their product without having to invest more money when matched to similar current products already there in the market. Based on this feedback, companies can re-work the proposed app solution or offer more market differentiation through its currently engaged mobile app developer team.
4. Help in Creating a Monetization Strategy
Products necessitate being profitable and as multiple product monetization strategies have been proven to be doing well, settling on which plan is best can often be complicated. The best approach in this scenario is to test this proposed assumption with an MVP.
For instance, if an application monetization strategy is created for in-app purchases, companies can utilize an MVP to test these tactics and assess their users’ opinions. This scenario will indicate to the company whether this approach is result-oriented or they should take other strategies to monetize the application.
5. Save Resources & Enable Cost-Efficiency
The mature products in the market are the outcome of years of development processes, with a price tag to contest. However, as companies have built these applications iteratively over an extended period, the overall costing is spread over time, with continuous reinvestments of the earned revenues. However, as businesses start to have more users and collect more insights to enable the product’s right direction through an MVP, they can sustain and facilitate investing smartly.
How long should an MVP take to build?
After building MVPs for Healthcare, Fintech, Travel, On-Demand, eCommerce, and whatnot, and by averaging the client data, our teams have identified that an “MVP” would need around 18 weeks to develop a quality web or mobile application. However, it may vary as per project requirements and demands.
Build your own MVP in three Steps
With MVP, businesses can check-out their riskiest assumptions, minimally experiment to test their concepts, and utilize their experiments’ outcomes to enable precise development. MVP allows you to initiate smaller and iteratively develop an enhanced product. This approach facilitates you to apply user intelligence and make the best possible product-based decisions.
We’ve built a template with which you can build your own DIY MVP easily, quickly, and efficiently. This template advances your product to capitalize on ROI and move towards an utterly mature application. Download your MVP template and start building your MVP today.
If you’re looking to understand how we can help you build the most sustainable and scalable MVP for your business, talk to our MVP development strategists now.
Originally published at https://www.techtic.com on February 11, 2021.
