6 BENEFITS OF MINIMUM VIABLE PRODUCT APPROACH
I hope you have read our last post in which we discussed the MVP – Minimum Viable Product in detail and now today, I am eager to share with you 6 major benefits of this approach. Before I continue, let me give you a quick recap of what is MVP.
What is MVP?
MVP is the version of a product or service that can be validated by the market with the least investment. You can say it the most simplified version of a product or service that fulfills its mission and provides some value to the customer. That is the simplest definition of Minimum Viable Product.
To make MVP a success, we must not make the mistake of spending too little effort before putting our product in the market. If the value provided to users is very low or almost zero it can have a failure. Likewise, it’s a bad to spend too much time and money to devote too little. Remember that for the MVP to meet its definition, it should have minimum features that add value to the product when placed on the market.
Only you are the one who decides what the minimum characteristics of your product or service to the market can validate it. As you may have guessed, this is the sweet spot of MVP. In other words, we must meet the minimum conditions and feasibility; and it is not always easy to determine that sweet spot. If there is a minimum initial demand for its Product Viable, this means that the market has validated it. This validation leads us to improve and expand without having to have invested a lot initially, keeping the risk at an acceptable level. Take note: MVP cannot guarantee success, but it will minimize your losses if your idea is doomed to failure.
NOW THAT WE KNOW WHAT THE MVP SEE 6 BENEFITS OF USING MINIMUM VIABLE PRODUCT.
1. Produce Valid Market Studies
Customers lie in the polls. But do not think they are deliberately lying. Lying without knowing that they are lying. But how is this possible? In several studies, marketing and buyer behavior has shown that surveys about the intention of buying a product gave different results to the final results of purchase. It has surely passed you something. Send a mail to your database asking if they would be interested in your new product or service and you receive 60% positive responses. Immediately you think that this new product will be a gold mine. But sadly on launch day, you only sell a few units. What happened? Simple, just as the difference between idea and theory, there are deviations in the approach of conception and practicality. This is the reason that when the time came for the purchase, customers no longer pay so much. Many entrepreneurs simply do market research on the role and never use the MVP, so many market research to make many products fail. The best indicator of intent to purchase a product or service is the own purchase itself, and it is the only reliable tool to market an MVP to be validated.
2. Strengthen Your Focus, Your Efforts on Your Value Proposition
Imagine the possibilities of a revolutionary new product, disruptor, as it was the first iPhone. Although the iPhone made a lot of cool things never seen before on a mobile, it also made “traditional” things that made other phones. That is the market reality: Many companies do very similar things, both in their business models, as with its products. However, it is your value proposition that differentiates you from your competitors. When you are creating an MVP it compels you to really define your value proposition, forcing you to remove the “noise” of infinite features and focus on what really matters to your business.
3. Provides Shortcut to Your Customers’ Feedback
As the subtitle of the book by Dan Norris says, “Do not learn until it starts”, do not anticipate much. You may think you know very well what your customers want, but until the product is on the market all is conjecture.
By analyzing real-world data it is possible to detect how your customers use your product or service, and you will see there are ways to use that you had not anticipated. Knowing how your customers use your product can improve the final result more efficiently and in a proper manner. As your product takes a few weeks on the market you will be able to hear what your customers are saying it. Listen to their proposals and feedback. This is the best way to create a product: knowing what customers want it.
It is the advantage of using an MVP that the user feedback is available before the final product. When trying to develop a product from scratch and without feedback from the real world, you are simply creating a product that people are expected to need i.e. the pure conjecture.
4. First to Market Sometimes You Win
Maybe today you woke up with a wonderful idea with a unicorn for the markets, with something revolutionary with a passport to success…
Well, certainly not. Put your feet on the ground. How do you know that someone else is not working on your idea already?
Usually, the first hits, hits twice and has more chances to win. If your idea is innovative and solves an obvious problem, customers will rush out to buy it. And if so, why wait until tomorrow to buy? If you expect to get a product or service, start small before anyone else and do not add features until you know that the product appeals to your customers. The MVP helps you get your product to market before someone you forward.
5. Helps you Try Other Key Areas of Your Business
Sometimes a great product works inexplicably wrong. Maybe for a bad website, the poor marketing campaign for an erroneous price. But sometimes the opposite is also true: a bad product works wonderfully well in the market.
Unfortunately, some of the “gears” of your business will not be tested until they are released. For example, your sales funnel and your mailing list cannot be properly well-tried until they have the product in the real world. Beware that conjectures about the behavior of customers are worthy only when you cast your product. It is when all your business contacts with the real world allowing you to isolate your weaknesses and thus improve with each transaction you make. Remember that a successful business requires more than just a quality product.
6. Empowers Business Spirit
There really is not an accurate way of knowing which of your ideas will succeed and what will be a commercial failure. The only way to know is to launch the product and see what happens.
If every project that lances need, for example, six months to develop, more than one of the ideas you have are going to be in the pipeline, because time and funds are limited. However, if we could reduce the time to 7 days we have time, energy and funds to launch many more projects. This includes even the most outlandish and strange ideas you might have.
If you are a passionate entrepreneur having a bundle of ideas in mind, I am sure that the method of Minimum Viable Product you will love. And, of course, the more business sets you have, the closer you are to hit great success.
Follow Iron Maiden’s saying that he sang years ago: “Be quick, or be dead”
If you have any project to discuss and create its MVP, knock at us. We would love to hear your idea and if you have already created the MVP, share your experiences with us in the comments.