What is a Minimum Viable Product?
Frank Robinson coined this term but Eric Ries, the man behind the Lean Startup methodology popularized it. Ries elaborates that an MVP is the version of a new product that allows the team to collect maximum customer knowledge with little effort.
After completing the basic version of a product, we can make it available to users to check their reactions. We don’t add tons of features and functionalities to impress customers. Instead, we create a single feature, test, and use the results to determine the next steps.
Types of Minimum Viable Products
Here are the main ways to use the concept.
- Software Prototypes
- Product Designs
- Demo Videos
- Landing Pages
Examples of Minimum Viable Products
Before e-commerce, there was no concept of e-commerce; Nick Swinmurn came up with a revolutionary idea: consumers would love to buy shoes online without ever trying them on.
But he wanted to test his hypothesis. So, he went to the local shoe store, clicked photos of their stock, and posted them online. Once he received an order, he would go to the store, buy the same shoes, and ship them on. This approach is sometimes known as ‘Flintstoning’ and is an excellent example of a ‘Minimum Viable Product.’ In 2009, Amazon bought Nick’s Zappos business for $1.2 billion.
If you want to know about the top 6 best e-commerce platforms in 2023, don’t forget to check out this post.
Some other popular examples include:
What Makes the Minimum Viable Product So Crucial?
Some businesses make a critical error when developing and scaling a new product. They build a finished product, hoping that customers will find it appealing. However, many lean startups use the MVP technique for making new products. They create a product through small and incremental steps. That allows them to assess customer feedback at every stage.
However, with an MVP, you can manage to:
- Establish a connection with your potential customers. You can receive constructive criticism on what needs to be changed or adjusted. The result is a better product with a large consumer base.
- Make fewer remakes. Businesses can create the initial iteration of the product and test it with users. In the end, they will need to make fewer additions or updates.
- Reduce costs. MVP allows you to determine the customer appeal of your product more quickly. When you become aware of this information early on, you will spend less money on something that you know will not generate considerable profits.
- Accelerates the launch of your business. Building an MVP accelerates the launch of your business, and you get better opportunities to reduce the number of remakes. Hence, you can launch a product or a new business quickly.
- Guarantee product evolution. Another way an MVP benefits a business is that it helps add more functionalities and features to a product. With time, you can add new, relevant parts to your customers.
Let’s recap why entrepreneurs, companies, and businesses choose MVPs before launching their businesses.
- Launch a product or a business in a new market
- Dedicate a large development budget for testing a product hypothesis.
- Companies understand what their customers want or look for in their products.
If you have an excellent idea for creating your MVP for your next mobile or web application but don’t have the resources, the safest bet is to choose a reliable software development company in California, USA
Benefits of MVP Development
Now that you know the purpose of developing a Minimum Viable Product, here are the top benefits of MVP development.
Startups Need MVP
According to statistics, 28% of startups fail because of financial constraints. Startups are enormous fans of MVP because it helps validate the product through early end-user feedback. It allows new businesses to finalize a product by adding new and necessary features.
Sometimes, an idea that we have in our mind seems perfect. However, when we implement it, this idea can fail for various reasons, such as a competitive market or a weak value proposition. By using the MVP technique, businesses can get enough user feedback while saving money, time, and human resources.
Testing UX and Usability
When it comes to mobile app development, an MVP can be a great tool. Building a mobile application that encourages sustained consumer engagement is a challenging task. According to Localytics, 21% of users stop using an app after just one use, and only 32% of users continue to use it after 90 days.
An MVP gives enough information to test the product’s potential for app engagement. App developers and businesses can collect more data and knowledge about how users interact with their products to improve the mobile experience.
As companies begin collecting more helpful information and more valuable data to inform the way of the product from the MVP, they can start to invest more effectively.
Evaluate Market Demand
An MVP helps companies to evaluate market demand for a product they are developing. MVPs can help businesses become aware of what is trending in the market and what will not go well with your target audience.
How to Create an MVP
Now that you know the reasons why an MVP is so important, let’s come to the development part. As an app development company, we understand how an MVP can help startups, entrepreneurs, and businesses build a rough version of their app. Launching it as an MVP can help them identify the strengths and weaknesses of their applications.
But how does it all start?
Let’s find out.
It is crucial to break down the MVP creation process into several parts to get a good result. Outline the team goals and assign different tasks to your team members. However, make sure your team understands the general principles of product creation.
This stage involves defining the basic principles of MVP creation. Holding a general meeting with your staff will allow you to map out the MVP development process. Discuss the vision of the MVP and outline the steps that will go into its creation. This meeting will help you build a rough draft of the following issues:
How do you spend the minimum resources?
MVP creation should require minimum resources. You should spend a lot of time, effort, and money. Figure out how to spend less, but test out your business idea. Discuss issues and select the features you want to include in the MVP. That will allow your team to use only the required resources.
How to ensure user interaction?
A crucial goal of developing an MVP is testing hypotheses. Your team must assess the demand for a product. Response from your initial serves as a guide to test your hypotheses. Figure out the best ways to interact with your target audience. You can choose from surveys, reviews, and direct interviews.
How do you make your initial sales?
The first product sales will give you the funds to keep developing your MVP. This stage will also demonstrate whether there is a demand for the product or app you want to launch in the market. Consider setting up a fundraising campaign if you are an entrepreneur or a startup. For example, crowdsourcing platforms like Kickstarter are excellent places to start your entrepreneurial journey.
How do you promote your MVP?
Develop your advertising campaign and choose the channels you want to utilize for distribution. The primary tool for this is Google Adwords. Create official pages on your audience’s social media network—for example, Instagram, Facebook, or LinkedIn. Launch your marketing campaign and select the social media platforms that will deliver the best results.
How do you make a landing page that sells?
This landing page introduces a product and sells its features and benefits. You must describe the development and highlight its features and customer benefits. Give users the option to choose between the paid and free versions of the product on this page.
This stage entails designing an MVP for your target audience.
Aspiring startups generally believe their product will benefit a large customer base. However, it’s only a myth. Instead, new businesses should focus on a specific audience. Concentrating on a particular audience is the best way to get the most out of your products.
So once you define your target audience in stage one, this stage requires you to create a user persona for a potential buyer of your product. Describe the age, gender, and social status of your buyers. You must research their routines, needs, income, and even the technology they use for communicating.
Don’t rush. This stage requires a significant investment of your time, money, and resources. Designing and developing becomes easier when you know who you plan to sell a product or app to.
Creating an original product or app from scratch is risky. That’s why observing your competitors can give you some ideas. That doesn’t mean you copy your competitor. It only means that you should stay updated and relevant. That can also be the starting point to determine whether another company has already launched your product.
Once you identify competitors, here are some things to do:
- Compile as much information as you can about your competitors. When analyzing your top three rivals, consider the history of development, their products, and their unique value proposition
- Evaluate where your competitors currently stand in the market. Figure out their sales volumes and strategies to know how they achieved this position in the market. That way, you will learn how successful they are and what you can do to beat the competition.
- Study how your competitors market themselves in the market. Please find the information they publish on their official websites, brochures, and annual reports. That will give you an idea of how well they present themselves in front of their clients.
Designing a usable and simple-to-use application is crucial. Test your product to see if it offers a positive user experience. If the users experience any issues while using the app, you will get to know what you can do to rectify these issues.
Building a customer journey map when developing the minimum viable product re-centers the focus. It will guide you about what you should do regarding design, content, and user interface. Remember to modify the user journey map after getting the initial feedback from your clients.
Defining the MVP’s functionality is a crucial step we covered in the previous stages. This step sets the foundation for creating the smallest usable product version, a wireframe.
Now, the time comes when you know the features you should initially add to an app. Define which essential functions need to be implemented and what features you can add later to your MVP. Discussing these functionalities with your team before implementation should be your priority. Discussions will resolve conflicts when team members want to add different features to an MVP.
Now, you have a great idea, and you have defined the tasks and goals of the app. Now is the time to develop and test the MVP to get an accurate picture.
In two steps, you can easily test your MVP. Let your team use the MVP for a few days after it is finished. Give the initial users access to the product if everything is in order and give them 7 to 14 days to test it.
After that, collect statistical feedback and research behavioral analytics. You will learn which features to enhance, which features to eliminate, and which features to add. Testing the product will assist you in creating the best initial release for the market to ensure the success of your product or application.
Choosing the Right Agency to Build You MVP Products – Your Comprehensive Guide to Hiring the Best Team for Your Project
Hiring an Agency to Build Your Products
Now you know how to build a Minimum Viable Product that is immediately valuable. The MVP will add outstanding value both for your users and the company. But you need to invest your time, money, and resources into the MVP development process.
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