An MVP is proven to be a useful and efficient tool for your business, allowing you to test your product in the fastest and most cost-efficient way possible.
This does not mean that creating your MVP is easy; on the contrary, it requires a lot of strategic thinking and planning.
So, do you know what an MVP really is, and how important it is for your business?
Take this quiz to find out!
Creating an MVP entails developing a minimal product with the least amount of effort and a bare-bones budget, to help your company assess whether there would be demand for your finalized product and to validate the idea itself.
Creating an MVP motivates startup teams, as it requires them to do the least amount of work possible on the product but get useful feedback that will help them in many ways.
Firstly, it helps them avoid wasting time working on a product efficiently and then realizing… no one really wants the product.
Other benefits include:
1- Helping you onboard potential investors
2- Making it easier to test business concepts and models
3- Helping you develop a monetization strategy
4- Improving your business’ cost efficiency.
So, the main goal of an MVP is to collect knowledge and validate assumptions in your business model.
Watch the full video to learn more about MVP and it’s benefits and dive into the full lesson on our Hub to get the whole process propely executed.
Before officially launching your business, you need to test your idea and assumptions. To do that, you need to assess what your target audience needs and what resonates with them. The fastest and most efficient way to do that is through your MVP, which is a: Minimum Viable Product.
The MVP is the process of developing a minimal product with the least amount of effort and time, and with a minimal budget.
It helps them optimize their time instead of working on a product extendedly only to later see it fail.
1- Know your objective or problem statement in order to define your product’s purpose
2- Ideation Information: User personas, user stories, and epics.
3- Analysis: Assumptions, constraints, and success metrics
An MVP must contain enough features to be able to attract customers and allow you to validate your product idea early on in your product development phase.
These features are to be used by early adopters who can then provide feedback for future product development.
Feature Prioritisation helps in determining first priorities, planning a roadmap, defining boundaries, and differentiating between wants and needs.
1- Your landing page: The kind of data you get out of a landing page can be a gold mine of insights for you.
2- Customer interviews: When you are interviewing your customers, learn to ask open-ended questions.
3- Crowdsourcing campaigns: Crowdsourcing campaigns are majorly leveraged to raise funds for bringing a product idea to life.
4- Ad campaigns: This enables you to position your MVP to the specific sections of the audience that you want to reach out to by targeting specific people in different ways.
5- Wizard of Oz MVP: You are creating the illusion of a fully functional product, but behind the scenes, you are the one servicing your customers manually and measuring its success.
You need to take some necessary steps before developing an MVP:
Firstly, define your problem,
Secondly, identify your target audience,
and thirdly, create your set of minimum features.
Your User. By aligning your product around your user’s problem, you will be able to define and build your MVP more clearly.
3 main elements to focus on:
1- Know your objective or problem statement
2- Your ideation information
3- Your analysis
The User’s perspective is crucial, and the MVP helps you experience what the user is experiencing, from accessing the platform to the final process, such as making a purchase.
1- Identify the User: This could be one category of customers, but sometimes it can be multiple.
2- Identify the Actions: These are the actions that the user needs to take in order to reach the story ending - the Goal of their journey.
3- Identify the Story Endings: You should always know what that ending should be, and it should be clear and precise so that it’s easier to achieve.
In this video, we will look at examples of what a user journey would look like, and the importance of feature prioritization in your MVP building process.
Once the MVP is launched, you need to collect initial feedback from the ‘early adopters’ as they test the product concept.
1- Receive the customer’s feedback: Collecting the customer’s views and opinions helps you to improve your product’s usability and user journey.
2- Understand the customer’s willingness to pay: If you observe that some users are choosing the payment option on your landing page, this means that some people are willing to pay for your product.
3- Test the monetization options: Discover what makes your product sustainable and profitable, as well as how much it would cost to do so.
1- Word of Mouth
4- Better Client Appraisals based on feedback
5- Percentage of active users
6- Client Acquisition cost (CAC)
7- Number of paying users
8- Client Lifetime Value (CLV)
9- Churn Rate
Watch the video to look deeper into the different strategies to measure your MVP’s success.
You have created your MVP, mapped out your User Flow, and defined your success metrics.
Your Product-Market fit, a type of product that is used for customer creation. This is achieved once you have found a repeatable, scalable model that drives demand.
Growth and scaling. Here you will be fine-tuning the engine of your business by developing, marketing, and selling your product, as well as building your team and operations.
Building an MVP is crucial when building your business and product. It saves you time, effort, and money while giving you the best results for validating your product.
Watch this video and dive deep into our full course to learn everything you need to know on building a successful MVP.
You have now learned the definition of a Minimum Viable Product and its significance when starting your business. But are you ready to launch your MVP?
Find out in this quiz!