When it comes to offering and new product, some of the objectives include building a client base, a reputation and generating revenue sooner rather than later. One way to do this is by offering a minimum viable product or MVP. According to Eric Ries, an MVP is “…a version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.” This is also considered a lean startup tactic. In order to successfully execute an MVP, you should first start by studying the principles around the lean startup methodology. Continue reading to learn more about the benefits of producing an MVP.
Define your core value proposition
With an MVP, you get to clearly define your value proposition with a more specific focus. This means you have to focus on exactly what type of value you want to provide to your target market. From that point, you can set goals, in addition to determining what needs to be produced in order to test your value proposition. Moreover, you get to spend your time and money more wisely. In essence, you focus on the essential features necessary to capture your consumers’ attention, while in avoiding other features that may or may not add value to the consumer perception of your product. In the long run, this means less money is spent in development, and the need to remove something from your product is minimised.
Decrease the need for redesign
Since the minimal viable product is a more basic offering, you don’t have to worry about redesigning or reworking extra features. At the same time, additional features may complicate the user experience for your early adopters. This is important because, for the most part, early adopters purchase new products to help them solve a specific problem. They are not really concerned with any extensive features.
When you come through with good research and design, you decrease the risk of building unnecessary features. On the other hand, when you take the approach of extensive development, you are basing your product on hopes and assumptions that it will be well received. Yet, if you build just enough to validate your initial hypothesis, the necessary work or rework amount needed will be minimal. Moreover, your subsequent releases can become incremental and much more responsive towards consumer demand.
Build relationships much more quickly
What’s important to note is that you should aim your MVP towards early adopters. As a result, you can build customer relationships much sooner than anticipated. The benefit of working with and towards the needs of early adopters is that they may provide feedback on what they would like to see. This feedback helps you test your hypothesis with regard to whether or not you had a good idea in the first place. It can also help you create a much more user-friendly and intuitive product.
There is also the benefit of early adopters enjoying sharing some of their finds. This means that if they like your product, they may possibly blog about it or share their positive experiences via their social media networks. There is nothing like free marketing from early adopters.
Potential to raise funds
Think of all of the successful crowdfunding campaigns released within the past five years. This is where you can really take advantage of an MVP. You might call this option “sell it before you build it.” Moreover, you can launch your idea on platforms such as Kickstarter, IndieGoGo or RocketHub. By taking this route, you can validate whether or not customers are interested in your idea and raise money at the same time. What’s most critical is to embrace your early adopters and remain consistently in contact. Also, success is dependent upon having a strong consumer focus and a value that is easy to demonstrate.
Overall, creating an MVP means that you don’t have to deal with the headache of overbuilding before releasing. You get to test your hypothesis, follow a lean startup methodology and build upon your early feedback. Tell us about your release challenges. Have you ever made assumptions that ended up rejected? Please share your comments with us below.