When is MVP necessary? What points must be considered before creating it? What is the essence? Check the guide!
MVP: important information briefly
In this article, we will talk about what an MVP is and why you need it. We will explain what the common mistakes are, how to launch an MVP and more.
So, the MVP is the “minimum viable product.” It is used to launch the beta version of a product, attract first customers and get comments, reviews, and opinions from them. The MVP helps you understand if your product is of interest to your audience.
It is common for companies to devote years of work before being convinced that a hypothesis is false. A carefully designed product, on which a lot of time and money has been spent, may not be useful to anyone. Research conducted by CB Insights shows that in 42% of cases, the reason for the failure of a startup is the lack of market demand. The MVP makes it possible to ensure that the product is in demand or to abandon an idea at the right time. MVP development for startups is a must nowadays!
The main principle of the MVP is to validate a product concept without having to develop the entire product. You then observe the reactions and refine the solution considering consumer preferences.
How does the MVP help with the launch of a new product?
You save. Yes, you have to spend money for the MVP to be operational. But what if the service you want to promote is outside the market? Or if the competition is such that you must invest a large development budget before making a profit?
If your product is requested, you will continue to invest in the development of a viable minimum version of the product and get feedback to help you improve the finished product. Here are the two benefits we consider most important.
- You understand if the public needs your product. For example, you have decided to create a website for financial management. In the beta version, you plan functions for calculating expenses, income, mortgage interest, and also accounting management. Not all users will understand what this last function is for, and if someone starts the site with this section, he will be lost and leave. Thanks to MVP feedback, you will understand that this function is excessive, and your application will become simpler.
- You get prospects. Talk about creating a new concept and invite people to test it. Some will become your customers and help make the product known.
Common mistakes in MVP creation
Let’s take a look at some of the most common mistakes people make.
- Poor definition of the target audience. The expression “our product is intended for a wide audience” is a misconception. Creating an MVP for a wide audience is a mistake. A large amount of information and too many different user reviews make it difficult to find a functional product model; you must define your audience and understand its needs.
- The lack of a promotion plan and strategy is the key to failure. Let’s say you launched an MVP; what should you do next? You must read the testers’ reviews, refine the product, publish new versions and search for promotional platforms. If you validate an MVP and wait for the influx of customers, nothing will work, and you will waste your money.
- The MVP does not solve the user’s problem. For example, a person needs a financial assistant with loan rate calculations and reminders, and your service only allows you to track income and expenses. The customer’s problem is not solved – the customer leaves.
- Lack of work on the feedback. If you do not listen to your customers’ opinions, they will leave.
- The complex functionality of the new product will scare the user. A person only cares about your product once he sees the benefits for himself.
Unfortunately, this is not a complete list of errors that one can make, even during the development of the MVP. The only way to avoid them is to ask for the help of professionals.
Check-list: how to launch an MVP
Now let’s see how to prepare an MVP yourself.
- Determine the type of MVP that suits you.
- Formulate the objective of the product. If you want to create a financial assistance website, develop a financial management program. If you want to launch an online cinema, create a movie selection algorithm, download a large library, etc.
- Perform a SWOT analysis. It is a strategic planning technique. Its essence lies in the analysis of the factors affecting the object studied.
- Create a customer journey map. To do this, test the future product yourself. If your team does not understand the features, the user will certainly not understand those. Therefore, make the interface and all interactions intuitive. The simplest will be the best.
- Define the features. For each user journey point, list a set of useful features.
- Define your target audience. To do this, ask yourself: “Who needs my product? This will help create a portrait of the customer: age, gender, and leisure.
- Attract your first customers with ads. Use a free and paid promotion. Free: publish articles on social networks, forums, and blogs. Paid: contextual and targeted advertising.
- Analyze the comments. Read customer reviews. Create a table of negative reviews and add useful comments to it. Comments will help correct the product’s weak points and enter the market with a really useful service.
As brilliant as the idea of a company is, it is not the main thing. It is difficult to judge success based on assumptions. An MVP allows you to test whether your concept will interest potential consumers. In the end, the MVP prevents the financing of projects doomed to failure, helps to choose priority developments, and makes it possible to gather a potential customer base in advance.