If you’re an Entrepreneur or Product Manager and ever get in a dilemma between quality and execution, the piecemeal approach always helps. This is the time when you can use the magical powers of your MVP version of the product and potentially avoid lengthy and (ultimately) unnecessary work. This also is coherent with an agile methodology where chunk-based delivery is preferred over long-term project launches.
In this blog, I’ve tried to cover all the following points in detail:
- What is an MVP?
- Why do you need an MVP?
- What is not an MVP?
- Examples of some MVP types
- Defining scope for MVP
- Defining success for MVP
- Launching an MVP
- Handling failure
WHAT IS AN MVP?
Let me take the definition of MVP from “The lean startup” by Eric Ries & it says:
“The minimum viable product is that version of a new product, which allows a team to collect the maximum amount of validated learning about customers with the least effort.”
For example: If you’ve to decide between launching a full-fledged swanky and smooth multi-screen and capability app for your apparel store which would take 1 year VS launching the basic login, product listing, and checkout screens MVP app in 3 months, and then launching upgraded versions over the next 6 months, choose latter. It will give you room for more feedback, robust design, and intuitive user flow plus no opportunity for loss of business for 1 year.
Another famous definition of MVP is given by Marty Cagan which is widely used in the product industry is stated as follows:
“The MVP is the smallest possible product that has 3 critical characteristics:
People choose to use it or buy it (Valuable);
People can figure out how to use it (Usable); and
We can deliver it when we need it with the resources available (Feasible)”.
In the above image, MVP would be the bicycle, the skateboard was just a prototype as the user experience for it is too basic and you can’t travel very far with it however after some changes in it you get to something with a real value i.e., a bicycle that you can ride and you can put stuff on, it takes you to a particular distance and so on.
So basically the MVP in the above definition is a product that has only the core features that make the product work and its purpose is to test the product demand and to see if people want it or not. Remember you need to treat it as a real product that people will use so not only do you have to research for the minimum viable product but you also need to look for the best product experience possible with the resources that you have this is also because user’s expectations change over time and what they expect in the past or what they expected before is not what they will expect now.
For example; today any social network app would be expected to have a search function, a messaging system, a liking system, and a sharing feature, but 10 years ago maybe only some of these would have been enough.
So, make sure that you are aware of the full user experience you want to provide to your users and that it works, also if there is any competition in the market it will be a little harder for you because you have to be substantially better than everyone else and will have to alter the product USP (unique selling point) accordingly.
WHY DO YOU NEED AN MVP?
So now you know what an MVP is but why would you even need it?
You can just go and build something for a while and release it hoping there’ll be customers for your product however that doesn’t help you measure, learn or even reach any of your goals, it just leaves you with the endless building path.
Customer Validation
If you want to make a product that people use you need to validate there’s an actual need for it. No one wants to build a product that no one wants to use, the MVP helps you focus on what value you bring to the customers if you manage to solve their needs and problems. It forces you to clearly define goals and functionality which will help you waste less time and money.
Test your hypothesis
The MVP allows you to test your hypothesis.
For example; you assume that college grads who live alone or with roommates in urban cities don’t have a washing machine and will use an app that lets them order and pick up delivery of washed laundry.
Now, only if you build the basic experience and let your target audience try it you’ll know if your hypothesis is right if you’re in the right direction and if it makes sense. The feedback you collect will help you assess whether the idea is worth implementing with full force or not.
Release fast and cheap
Now, when you build an MVP you need to keep it simple, extra features may only complicate the user experience and will cause a slow-release and our goal here is to focus on a fast and cheap release that will help you save resources and test quickly.
You don’t need to start with a full expensive team of developers you can start with one, it might even be yourself and you can start with a small amount of money if you are a startup founder and if your MVP turns out to be successful then you can add money, have developers and scale it a lot more.
Take advantage of changes
In addition, the MVP also lets you take advantage of changes which means if you make a large complicated product that requires time the user demand could change or a new competitor could enter the market, and by the time your product is out it won’t be relevant and you’ll have to work a lot harder to catch up, on the other hand, if you work in small batches and something changes than you can easily adapt to your product to better suit the market and any other new situation that may occur.
Reach Product Market Fit efficiently
The MVP helps reach product-market fit efficiently. It’s the holy grail which is an indicator of serious engagement where enough people are using or paying for your product and it means that you’ve managed to answer user's needs and most of them will be disappointed if they could not use it anymore.
Building a scoped MVP helps with minimizing resources, commitment, and time by using the feedback loop (refer to the above image) where you need to Build, Measure, and Learn continuously. PMs and founders should always keep in mind that it doesn’t mean that you can go and rest just that when you have reached the product-market fit or that you have just solved the problem rather you can go on and solve more.
Get resources and leadership support
It’s easy to go into the CEO's office and ask for something but if you don’t have evidence or a good reason for it there’s no reason you’ll get it. You need data and evidence for success. Now, by proving that the demand for your product is real you can use it in your favor as it is one of the strongest points you can use to validate your product’s demand which will lower the resistance to giving you what you need to succeed further.
WHAT IS NOT AN MVP?
So, now you know what an MVP is and why would you need it, It’s also very important for you to understand what is not an MVP so that you can test your hypothesis and validate your product need in the market.
An MVP is not:
- A semi-working, semi-finished prototype
- A product that looks nice but doesn’t work
- A product where the core functionality doesn’t work
- A product that works well but doesn’t give any value
SOME EXAMPLES OF MVP TYPES
There can be an end number of MVPs types depending on the direction you want to go but here I will be focusing on the main ones only and maybe you can relate them to your products:
1. User facing solution
Nowadays, Zappos is an online retailer with over $2bln in annual revenue and more than 50,000 clothing items for sale.
It was bought by Amazon for $1.2bln in 2009.
It all started in 1999, with the inability of Zappos’s founder to find a proper pair of shoes at his local mall.
Back then, it was unclear whether a customer would buy shoes online. Just like Gary Vaynerchuk and his Wine Library (probably the first US store to sell wines online), the concept was new.
Nick Swinmurn, Zappos’s founder, decided to create a basic MVP. He launched a simple website, on which he would post photos of shoes from his local mall. He didn’t buy the items at first. Instead, he waited to see if someone would order the shoes from the webpage. Only then would he head out to the store, buy the shoes, and send them to his customers.
2. Specific user segment
Tinder is an example of an MVP that was so good at the first release that it stays pretty the same up to now. The secret is its simple experience, “iconic” swipe feature, and great design that has become flatter over time.
Tinder’s founder Sean Rad said that one of the reasons for this dating app creation was his observation that no matter who you are you feel more comfortable approaching somebody if you know that they also want you to approach them. So, the specific user segment here was the people who wanted to meet new people but were too stressed to do so. Since most of the social networks connect you to the people you already knew there was also a gut for addressing meetings with strangers. Tinder’s mobile app was there to fill this gap and decrease stress since they have this opt-in system that showed you that the other party is also interested.
3. Specific problems and use cases
AirBed&Breakfast.
This was the name that Airbnb used before it became famous all around the world.
Brian Chesky and Joe Gebbia, the founders of Airbnb, lived in a loft apartment in San Francisco. They were struggling to pay their rent — which resulted in their decision to start a business.
They came up with the idea of providing accommodations for people coming to town. Brian and Joe took some pictures of their apartment, launched a simple website, and marketed it a bit toward an audience who were coming to San Francisco for a design conference — and before they knew it, they had three paying guests.
This was their MVP — and soon after that, Airbnb expanded organically.
4. Simplified functionality
As the definition puts it, the minimum viable product should focus on the core features. This is exactly what Spotify did.
Around 2008, the founders, Daniel Ek and Martin Lorentzon understood that people were tired of downloading and sorting music on their own. This was a huge market opportunity, especially considering the rise of smart devices like the iPod.
But they did know that they cannot enter the market without validating their idea. To test whether people were even remotely interested in the idea of “streaming music”, they built a lo-fi desktop app and ran closed beta testing.
The MVP with its freemium price model proved to be exactly what people wanted. Simultaneously, the startup spent time on signing even more artists and developing mobile apps. This helped them use their first-mover advantage and gain a foothold in the industry quite quickly.
DEFINING SCOPE FOR MVP
Always, remember that BUILD > DEFINE SCOPE which simply means defining the scope for your MVP requires less effort than building that MVP itself and you can do so as follows:
Problem: Identify underserved customer needs
A product cannot be built just for the sake of it. Competitive forces are ruthless, and a product without a purpose is a product dead on arrival.
Where does a product get its purpose from?
An obvious gap or need in the market. Most successful products are the ones that fulfill a necessary gap. Be it quenching curiosity (Google Search) or entertaining us (YouTube), these problems are big enough that their markets welcome new entrants even now.
Building on that example, what you want to build could have already been attempted by someone else. By finding your market equivalent, you can cut your market research short.
Also, do not forget about niches. Niches are the biggest enabling factor for any product.
A niche is essentially a market within a market. While the actual market of messaging apps is saturated with choices like WhatsApp, Facebook, Line, etc., the market for messaging apps for gamers is not — and that is what Discord monetizes.
Ultimately, you are looking for an obvious problem. When it is obvious, you would not have to spend too much time warming your target market up.
Customer Segment: Determine your target customer
Once you are done researching and narrowing down your market, it is time to narrow down your customer base.
Not everyone will be interested in your product. Your true audience, by definition, is a set of people who are interested in the type of services that you and your market segment offer them.
But, within this, there would be variations.
Take note-taking for example. What works for a student to maintain their homework and timetables — Notion — also works well for project managers.
Essentially, you would need to research and create your user personas.
Where do you begin?
The easiest way is to either host an event or go to one and talk to the people there. One-on-one conversations with your potential customers would always reveal a lot of valuable information that you wouldn’t get anywhere else.
The purpose of this exercise is also to cultivate deep empathy for the people you are about to serve.
Solution: Specify the feature set & define your value proposition
Getting to know your audience and narrowing down their pain points is quite easier than this step.
This is because those already exist, whereas, the solution needs to be created. It does not exist yet.
Sure, you might have a product idea in your hand, and you also might have market equivalents.
But both of them are quite vague, and you need to create something specific and value-packed for your audience. Also, it would be best if you had something that can give you an edge over your competitors.
Minimal UX: Decide on a level of usability the user must have
Your MVP can’t just be viable, it has to be marketable and user-friendly as well, it’s not supposed to be perfect as this is an MVP but you need to decide and draw the line between
a product that people can use VS the product that people would use
now if your MVP technically works but gives a bad user experience you’ll probably get mostly bad feedback which won’t help you reach your goals. to use the product yourself and with your team and decide what is good enough to release.
DEFINING SUCCESS FOR MVP
What is success anyway?
Based on the customer segment problem and the potential solution you identified how would you know that the target user problem has been solved?
For that, you will need to define what you consider success and eventually measure it.
Success can mean ‘x’ and you will need to define it in numbers as measuring them will help you learn and run another iteration to get an improved version of your MVP.
Outline the funnel
As there can be so many metrics how will you know what to measure?
There’s a tool that can help you in this and it’s called the funnel.
If you outline and understand the user engagement funnel you can easily identify the meaningful milestones in your product’s user journey and map them into clear steps that can link to every link to each other and prioritize them to get better insights about how when and why customers are using your product.
Choose and measure KPIs
It’s important to create or use a system that allows you to keep testing and measuring some key elements during and after the launch of your product. It means you should be able to track and measure everything about the usage of your product.
For example: how long does it takes users to onboard, how often do they use the product, which features do they use, and for what.
In addition to these, you should also focus on measuring the health of your product. For example: how fast the page loads, did the action worked or crashed your app, etc.
Now the best thing to do would be to specify some KPIs. These metrics are known as Key Performance Indicators and following them will help you collect data about your product and make better decisions to show you what impact any feature.
Try to keep your eyes on these so you can act fast and get needed support in case your product experience a tight spot. In addition, try to decide on the best frequency to measure them.
For Example: every day, every month, etc.
Things like this can affect your product strategy and the MVP's next phases. Finally, try and select actionable metrics. Don’t measure just for the sake of measuring but measure so you can look at the data and make better business decisions.
LAUNCHING AN MVP
When you launch the MVP you have to remember that it’s not a full and perfect product, it’s just a basic working valuable version of your product that you’re using to test demand. You just need to start with testing and get it out for the customers as fast as you can. Test it internally with the employees and collect data as much as possible and see how it works, you can also use A/B testing if you want users to help you pick an alternative. For example: If the button should be here or there, should it be green or yellow, etc. You can collect and make use of both quantitative as well as qualitative data to gain valuable insights from your product.
Quantitatie being mainly the kpis we spoke about earlier which are the numbers that show you what is happening & Qualitative being the actual feedback from users that shows you why things are happening the way they’re happing.
Qualitative data is also an important part of learning as it helps you get insights that sometimes are hidden from the numbers as you can easily see data of things that happen in your product but you don’t know why they are happening in a certain way only and for that you can ask from your customers to answer some questions and explain about their usage behavior, they can also give you more constructive feedback that you can use to make changes in your product which is super important.
So, as you are now ready with your first version of MVP and have decided to move further and launch it, which comes with its own set of several outcomes; maybe many people use your product which is amazing and it’s the time to think about the next steps like increasing audience, want it to address another customer segment, add more features, or maybe you just want to solve another problem.
Test -> Collect Data -> Learn
Another possible outcome could be that only few people use your product than you will need to improve using the quantitative and qualitative data to decide what needs to be changed and what is the priority for each change and why is it important.
Let’s understand this better with the help of donuts which start with a prototype of something that is round and has a hole in it. Then you move on to create an MVP for it. So, this rounding with a hole is made from the dough and it might be sweet and people like it but they told you that they they’re missing something on it as it doesn’t look very appealing so you add some icing on it and then you again went back to them to get some more feedback and then they told you, yeah that was amazing but it’s missing a touch or it’s not colorful enough and then maybe you add sprinkles on it.
HANDLING FAILURE
In case of failure, you might think it’s unlikely that your MVP will ever fail since you love your idea and you’re invested so much in it. However, evidence shows that 95% of the ideas fail to prove that they can keep a sustainable business model.
Always Remember: You still released something
In case of failure start by remembering that you still released something, a product or feature of your own in the landscape that is not easy and you can’t know in advance if people will love a product or not.
Recently a company named Qibi which was supposed to be the Netflix for phones said they were closing down. They had a lot of money and everyone thought they would use it to reach product-market fit but they didn’t succeed. So you don’t have to invest billions of dollars as they did, you can just even invest a small amount to get into the space.
You may not succeed in the first attempt but you still launched something in a hard landscape so remember you need to be proud of yourself as a lot of people don’t even get to that stage.
Love the problem, not the solution
If your solution didn’t work and most people generally don’t make it the first time but a good product manager must focus on the problem because there are always more solutions. Remembering the key problem or pain point just move to improve your solution or change it completely. Now changing it completely could mean anything from changing the product feature to changing the business model.
Pivot
A failure could also end up with a pivot that is kind of big which means you’ve realized that what you were working on is not good enough to solve the problem and you may not even like the problem anymore but since you have some well-established data, technology, and customers you can use all of them to go and solve a different problem and possibly for a different target audience.
For example: Youtube didn’t start as a successful video streaming service as it is today. When it started it was supposed to be a video-based dating service app, it intended that users could upload a short video describing their ideal partner and browse for potential matches and they even had a tagline “Tune In Hook Up” but after seeing the potential and becoming a wider and more efficient host of online videos, youtube completely pivoted and slowly turned itself into an empire which Google acquired for $1.65 billion.
Learn
In the end, the most important thing is to learn. Remember the build, measure, and learn loop from above, all you have to do is keep running it as much as possible.
As perfectly said by Reid Hoffman the founder of LinkedIn:
If you are not embarrassed by the first version of your product, you’ve launched too late.
