The MVP Advantage: Unveiling The Crucial Role Of Minimum Viable Product For Business Success

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The concept of a Minimum Viable Product (MVP) enables a business to expedite time-to-market, garner user engagement early, generate revenue faster, and improve the product based on market demands. 

Now, imagine a situation when you release a fully-featured product in the market. It will take significant time to develop, test, and deploy it. 

If certain features are not in demand currently in the market or the customers want you to change many attributes, major modifications like those will cost you immensely.  

So, instead of going through all that, you can adopt the MVP approach and deal with changes swiftly. 

In this article, we will talk about what MVP is all about and its advantages. 

So, stay tuned!

What is MVP?

A Minimum Viable Product (MVP) is a software’s initial version with only a sufficient number of features solving the main problem and fulfilling the primary goal of the product’s creation. 

MVP

The intent behind releasing an MVP is to enable the early customers to use the product and its features and take their valuable feedback. This will help the developers understand the challenges, pain points, and preferences of customers who have used the product and incorporate changes accordingly. 

As a result of this approach, a product development company can save time, money, and effort spent on reiterating the full version of the product. This also helps them get the first mover's advantage, so they can develop a high-quality product addressing customer expectations. 

MVPs are of many types:

  • Landing pages
  • Pre-orders 
  • Explainer videos 
  • Wizard of Oz
  • Concierge 

In order to create an effective MVP for your product, you must analyze the market, identify and understand customers, and check out competitors and their offerings. Next, come up with unique features that others have not to set your product apart from the competition. Now, start developing the product and launch it. Wait for feedback and reiterate. 

MVP statistics

  • 90% start-ups fail because they fail to understand how to implement the Minimum Viable Product (MVP) concept.

The benefits of MVP

Minimal viable product

Accelerates time-to-market

With MVP, you can create a product with the most essential features without spending time on complex processes or adding extra attributes. As a result, you will be capable of releasing the product quickly in the market. 

Thus, you will get the opportunity to collect customer feedback early. This will help you understand their challenges, thought processes, likes and dislikes, expected features, and so on. With powerful analytics, you can also analyze market behavior for the product.

Using these insights will help you improve the product based on feedback and add more features based on demands. You will now have the second version to launch in the market while many of your competitors might still be in the initial product phase. 

So, releasing an MVP not only accelerates your time-to-market but also gives you a competitive advantage. You are likely to get noticed first and develop a product that can meet user demands. 

Cost-efficient product development

Creating and releasing a product’s MVP with only core features is less costly than that with complete features. This is pretty straightforward. 

You will need less time, resources, and people to work in an MVP. Thus, the risks associated with it are also fewer. On the other hand, more people, tools, resources, and time are required to develop a fully-fledged product. So, if it fails to meet market demands, your efforts and resources can go in vain. 

Efficiency and cost reduction

Thus, if you want your product development process to be cost-efficient, releasing an MVP is a good approach. You can concentrate your resources and effort on developing core features and making them useful for your target audience. This will help you optimize your costs and enhance your return on investments. 

Market validation and user feedback

Before planning to create a product, you might have performed market research, like what’s the current demand for the product, features, etc. 

However, the market dynamics can change at any time with changing technology, customer preferences, and other factors. 

Not to mention there exists a significant gap between the time you have performed the market research and the product release. The assumptions with which you’ve created your product might change by the time you release the product.

Thus, it’s crucial to validate those assumptions and find out whether the product is the right fit in the market at present. 

With an MVP, you can do that quickly by collecting user feedback. It will help you understand user issues while using the product, things they appreciate, features they like to see, and so on. 

You can also make better decisions about further product development and features and how to improve the product. 

Iterative product improvement

Since customer demands, market behavior, and trends are subject to change, your product must align with those changes. 

But, if you don’t recognize this need, you might end up losing your customers or your brand can become irrelevant in the market. 

This is why you must embrace innovation and strive to continuously iterate and improve your products. It will help you meet your needs and keep delighting your customers with better products and services.

Media planner

For that to happen, you can gather user feedback after releasing a new version. You can do it through social media, quick surveys, polls, reviews, feedback forms, etc. It will give you an idea of the change users wish to see in the product. 

Next, create an effective plan to approach the changes as per the market and customer demands. You can discuss the points with your product development team to understand the scope and feasibility of the modification, costs incurred, and other details. Now, start the product iteration process and release the next version. 

Don’t stop here; this process is a continuous cycle. So, keep taking feedback and making iterations to be one step ahead of your competitors. 

Investor and stakeholder confidence

Gaining the trust of investors or key stakeholders is vital, especially for businesses that want to secure funding and keep the business running. 

To achieve their trust, you will need to show them proof that your product is worthy of their investment. 

So, before you pitch your product to an investor, release an MVP. This will give you a chance to test your assumptions and ideas by taking customer feedback. You will have metrics to improve on, which will help you enhance your outcomes. 

Now, you can pitch the investor with these outcomes, such as revenue generated, website visits, customer satisfaction rates, positive reviews, and more. In addition, you can enable them to actually use the product and experience it themselves. 

They don't have to wait longer for the results since product outcomes are before them. 

Thus, it will become easier for them to make the decision, probably in your favor. It will also increase stakeholder and investor trust and assure them that their money will be spent on a successful venture.

This way, your chances of securing funding increase.

Faster revenue generation

When you have an idea that can really make a difference in your customers’ lives, convert it into a product quickly. Now, deploy it in the market before anyone else does. 

Grow Your Yearly Revenue

The quickest way to do that without compromising on quality is by releasing an MVP. You don’t have to spend much on the production; just create the product with core features and release the product.

This will help you attract your target audience and be recognized in your industry. Since there’s no competition yet for your product, you are likely to grow and generate revenue faster

At the same time, you can collect feedback from users and plan the modification process. You can use the generated revenue to sustain future productions and modifications. This way, your product development process becomes self-sustaining. This is advantageous, especially when you don’t have the support of investors. 

Increases user trust and brand loyalty 

When you release your product in the market, even with limited features, you have the opportunity to engage early with your customers. You can create bigger hype for your product through social media and other channels. This will garner more attention and boost your engagement rates. 

At the same time, you can enable your target audience to try the product. Now, collect their feedback across different channels - social media, website, etc. Let them share their experiences, opinions, likes, dislikes, preferences, and so on. 

Customer loyalty

When you finally consider customer requests and make changes to your product accordingly, they will appreciate it. This will also give them a sense that your brand is genuinely concerned about customer experiences and value their feedback. 

As a result, your target customers will feel empowered and are likely to engage more with your product. Apart from becoming your loyal customers, they can also recommend your product to others. This will amplify your reputation in the market and return on investment. 

Conclusion

Adopting the minimum viable product (MVP) is becoming popular among entrepreneurs and businesses. It gives them the flexibility to test their ideas and figure out what’s currently in demand and what’s not. 

Thus, businesses can improve their product according to market and customer demands. Consequently, it helps them create better customer experience, boost brand loyalty, and generate higher revenue. 


Author

Boris Shiklo

The CTO at ScienceSoft since 2003, Boris has established high quality standards for software solutions and IT services. Boris ensures that ScienceSoft’s programming competencies are relevant to ever-evolving needs of businesses. Under his management, ScienceSoft has successfully started data science, big data, and IoT technology directions. Boris authored and co-authored more than 50 publications.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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