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MVP as a strategy

2021-04-27 11:13

MVP as a strategy


There are a lot of conversations, discussions, and even disagreements around the strategy of launching the first version of the product. Where to start: with the minimum viable product (MVP) or the minimum desired product (MDP)? Or immediately try to make a unique viable product (UVP)? Or is it just enough to prove the feasibility of an idea (PoC)? There are no clear answers to all these questions. Therefore, we decided to describe the philosophy that is close to us, so that when we say "MVP", we both mean the same concept

The first and most important, in our opinion, lies in the definition. MVP is not a product per se, it is a strategy, a way to launch your product, a means to achieve the perfect result. That is, it is a story about the process and the way of thinking, rather than about the goal. And now let's try to reveal this watery thought

Point 1. Vision as a foundation

When we talk about launching an MVP, we always mean business first. No one will want to buy your limited functionality from the first version, you have to sell the idea to users. Therefore, we consider the starting point of the minimum viable product strategy to be a clear statement of your business vision for the future. What is its purpose? What global problem are you trying to solve? Why should people fall in love with your idea? Write a short and concise roadmap for your product for the next couple of years and hang it in front of your eyes. Does your heart stop when you look at her? If yes, then we move on, if not-we offer more work on it

Point 2. First the users, then the product

In order not to make a product for the sake of the product, before you start developing, you need to form an idea about your users. Who are they? What do they do? How is your global problem being solved now? Draw the personas that describe the bright representatives of your target audience. And the more accurate – the better: give them a name, find a suitable photo. You have to believe in the existence of these particular personalities yourself. Of course, these will only be the first hypotheses about your users, and over time you can completely redo them.
And now the most interesting part of this point: from the drawn persons, you must choose the one/those who can become your first followers or even evangelists. These people must meet the following criteria:
  1. They have a global problem that your product will solve;
  2. They are aware of this;
  3. They are actively trying to find a solution to this problem;
  4. This problem is so critical for them that they have found some temporary indirect solution to it (or put it together in parts);
  5. They have the means to buy a solution to this problem (or the ability to find them).
To these people, you will primarily sell the vision of your product (the one that you formed in point 1). They should share your idea and believe in your ability to implement it. That's when they will tolerate the limitations of your first versions and still be willing to spread the word about your product.

It's important to remember: MVP never needs to be sold to all users.

Point 3. Finally, let's talk about the functionality

Even the most loyal potential users will not have enough airlocks to make a purchase, it is important for them that the product immediately begins to fulfill their tasks. That is, it should have enough value. This is where we need to create the minimum set of features of your product that the first followers will be willing to pay for. In an ideal world, this set of features should also reflect your unfair advantage and be only part of your ideal vision from the future. That is, you need to find an MVP somewhere between a prototype and a fully functioning product.
Try to distinguish from the global problem (formulated in point 1) a sub-problem that is quite painful for potential evangelists (from point 2) and at the same time the least difficult to solve for you. Now, just limit the MVP to the functionality necessary to solve this sub-problem (without forgetting to broadcast your vision and desire to solve the global problem in the future). This will be the maximum value of your MVP.

Explaining the MVP on cakes

Our favorite example is with a cake. Global goal: to introduce as many people as possible. If we go consistently and first bake a sponge cake on the cake, then soak it with cream, then decorate it and put a candle-we to sell it only at the third step. If we think within the framework of MVP, then first we will please the first followers and prepare small cupcakes, then a small cake, and then a huge wedding treat. With this strategy, we will be able to immediately sell our product, because at each stage it will contain all the components of our value: a sponge cake, an impregnation, a cream, and a candle. And we will come to the third step with a more serious product.

Point 4. MVP development

Now is the time to deliver this maximum value to users with minimal development costs. Here, first of all, you need to answer the question: what type of MVP is best suited to solve your chosen sub-problem? Below we will focus on a few of the most popular ones.

Flintstone's MVP or Wizard of OZ – the essence of this type is to create the appearance of a fully functioning product. Why visibility? Because in fact, some of the main functions (and maybe all of them) you can do it manually. The main thing is that your user does not know about it and gets a high-quality service.

The MVP concierge is similar to the previous version in that the service here is also provided manually. With the difference that this happens in the open and the user is aware of it. That is, you start manually serving your first customers and in the process of communicating with them, you understand how to develop the product more correctly. No development before testing hypotheses and understanding what is happening.

Prefabricated MVP (perhaps our favorite type) is another way to release a product, reducing development to almost 0. In this case, you assemble the product piece by piece from existing solutions: Google table instead of a database, a simple website on Tilda, Webflow, an application on Bubble, and so on. And then iteratively move on to a full-fledged solution (which will be written from scratch, but with an understanding of all the "why" and "why", and maybe even the first money received from the team MVP).

Another interesting approach – "Sell it before you build it" - offers you to sell not yet working features of your product. In this case, when a user tries to buy something that you have not yet produced, you suggest that they leave an email, wait for your launch, and be among the first to try your product. This is a great way to test the demand for your product's various features and build an audience of first-time followers.

You can list about 10 more types of MVP, and in a year they may become 2-3 times more, because new tools and products are actively appearing on the market, inventing their own interesting way of launching. You can follow one of the paths described above, combine them, or also come up with your own version. The main thing is to remember several important principles:

  • The MVP should contain features that are vital to solving your chosen sub-problem and to demonstrate your unfair advantage, all of which you will add in subsequent iterations based on user feedback.;
  • Removing the functionality from your product, you should try to remove the extra, additional options, the user experience should not suffer;
  • A balance between quality and quantity: in some cases, a cool UX is more important, thanks to which people will want to use your product, and in some cases, you need to quickly provide people with critical functions and win your market share;
  • Launch the product in a state where it can be improved without destroying it, you should be able to easily adapt to the needs of your users;
  • Think about the viability of the entire business as a whole and do not forget to broadcast your global idea to users.

Item 5. Feedback loop

The last no less important point, without which your launch will become meaningless – is the feedback from the user. Your global strategy when launching an MVP should be to maximize the information received from the user per unit of money spent. Have you installed analytics systems? Can you track user activity on your site? Have you allowed them to contact you and share their experiences? Have you motivated them to do this? Be sure to answer these questions before launching, and immediately after do not forget to go and talk personally with your first evangelists.

This process, a feedback loop, will give you an understanding of how and where to develop your product further (and whether to develop it at all). Just the fact that several users have paid you will not get you any closer to answering the question of how to make a million out of these few. But communication with your users can give a lot of hints.

Conclusion

Now we summarize the main thoughts. For us, MVP is primarily a way to create the perfect product. The main driving forces on this path are the following desires: to
  • test the product hypothesis;
  • minimize the man-hours spent on development;
  • minimize the funds spent;
  • deliver the product to your first followers as quickly as possible;
  • get as much information about users and the market as possible.

To go this way as effectively as possible, you need to go from the general to the particular: to
  1. Determine the global vision of your product and its core value;
  2. Identify your target audience and identify potential first-time followers and evangelists;
  3. Identify the most acute sub-problem that concerns your first users, which you can solve with minimal effort, and form the necessary set of functions to solve this sub-problem;
  4. Create the first version of your product by selecting the most suitable MVP type for your offer;
  5. Set up a feedback loop with your users.

As a result, you will enter the market with a product that: has
  • enough value – that is, people are willing to pay for it;
  • there are obvious buns in the future-people will come back to you;
  • feedback is set up – you understand how to develop it.

If your first version conveys only the key value of the product – you get the right to make a mistake that will not ruin you. The goal of creating an MVP is not to hit the bull's-eye right away but to maximize learning and not go down the wrong path. MVP always comes to one of two ends: the state of product/market fit or the realization that your product is worthless.

Don't be afraid to fail quickly and keep testing, because this is how you can find the most profitable idea of your life!

If you share our views and are considering launching your product, write to us at ineedmvp@mvplab.org let's launch cool services together!


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