Understand what MVP (Minimum Viable Product) is and how to apply this methodology in your business – WAU
New ideas for ventures emerge all the time. They may work, but they may not work. That is why MVP’s, or Minimum Viable Product, are created, which are nothing more than test versions of a project. Want to know more about it? Then check it out!
If you have never heard of Minimum Viable Product, know that MVP is among the most used methodologies worldwide when it comes to new product development.
Not by chance, it avoids wasting time and money on projects that will not bring the results expected by companies – especially for startups.
Next, we will detail the importance of this method, step by step to create an MVP and the errors that must be avoided in this process. Follow us and learn to use the methodology in your projects!
What does MVP stand for?
The acronym MVP stands for Minimum Viable Product, or, translated into London, Minimum Viable Product.
Anyone working with product development knows that several ideas can come up on a daily basis, but not all of them are really interesting. Sometimes, we think that something can be extremely useful, have great sales and be successful, but the reality turns out to be quite different from that, even with the marketing and advertising efforts involved.
The problem with these projects that are not going forward is the investment and time allocated for their development. But then, how do you know what a good product really is and what should be prioritized? Creating a model!
The idea behind MVP is develop a trial version of your project, with minimal financial investment and time, but capable of delivering the same values as the finished product. In this way, the idea can be tested and, if approved, the entire structure necessary for development is applied.
Startups use the concept of MVP a lot, since they have little investment and a central idea of novelty in the market. Those in charge need to be quick in the development and implementation of the project, effectively, raising funds and allocating them to the right points.
However, don’t think that only small companies use this concept. Small, medium or large, any organization must use the Minimum Viable Product to optimize its resources.
SWOT Analysis or F.O.F.A Matrix: understand the concept and how to put it into practice
Why is MVP so important to the success of your product?
MVP is, conceptually, a smart way to test the success of an idea before investing financial resources or time itself.
If we think about it, there are several products launched by major brands that demanded a high investment, but did not have the expected success.
In a listing, we remember Colgate’s food products, well known for toothpaste. The brand invested in the creation of foods, such as frozen lasagna, to diversify its product mix, but the results were not at all attractive.
Did they test the product on the market before investing? If they didn’t, they should have done it! Facebook itself, today, the largest of social networks, was once an MVP. The platform was tested by Mark Zuckerberg with his colleagues at Harvard University.
MVP is not just about defining whether or not that product is a successful bet. Creating a prototype and testing the acceptance of the market, you can gather valuable feedback.
It is interesting to use the strategy to formulate the best product. The final project can be quite different from that initial test, based on the public’s response. The important thing is that, even as an MVP, your product maintains the central value proposition.
That is, why is that item valuable and necessary to someone? What are the problems it solves? What are the market differentials compared to other options that already exist? It doesn’t matter if an item is an MVP or not – these values must be maintained for the test to be truly efficient.
What is the step by step to create an MVP?
Now that you know what a Minimum Viable Product is, let’s show you some steps for creating one efficiently. Follow!
1. Define the value proposition
We mentioned in the previous topic that the main point of MVP is the value proposition. So, the first step is precisely to define it.
Your MVP should answer some questions, such as:
- why does the public need my product or service?
- What solutions does this product or service offer?
- How will the public use this product or service?
- Why is the public going to choose my product and not from other competitors already on the market?
- What really adds value to my product or service?
These questions help in the creation phase of the MVP so that this model represents the core values of the finished product and, thus, the test is efficient and realistic.
2. Choose the right audience
The test audience (or persona) for the MVP is very important. It must have the same characteristics as the target audience of the company, otherwise the results may be different than expected.
3. Determine the test time
Another important point is the test time that the product or service will have. Allocating too short a time may not generate enough responses, just as extending too much can hamper market launch.
4. Test the market response with the product
The fourth step of the MVP methodology is the test, in fact, with the public. This test is very important because it deals with the approval or not of your solution on the market.
If this step is not taken, a lot of investment can be allocated to product development and, later, when it is launched on the market, sales can be disappointing, with a great loss.
So, in this testing phase, there are two steps to follow: alpha and beta:
- in the alpha phase, you tests your MVP with a smaller, controlled audience. You choose the people who will take the test;
- already in the beta phase, users of the product or service are more general and simulate the normal target audience.
It is very common to see companies with products or services presented in the beta phase. When this happens, the solution becomes explicit that it is still in that phase and may undergo changes until it reaches the final stage.
In these two tests, the main thing that must be understood by the company is the receptivity by the public, the success of the value proposal and the improvements that must be made immediately.
5. Interpret the feedbacks received
The fifth step is the interpretation of your MVP. Now, you must collect feedback from users and interpret this data, assessing whether the product or service is really ready to be launched, what modifications are needed or if that idea is not interesting.
You must be very careful with the feedback, filtering what is interesting to evaluate with what doesn’t make much sense with your business, in addition, of course, to know that, through that solution, you seek profitability.
6. Apply changes to the product or service
The last step is to design the information gathered in the tests on the final product. You can repeat the MVP if there are too many changes, but just don’t let this process take too long, to the point of wasting the right time to market.
What mistakes cannot be made in creating the Minimum Viable Product?
In the previous topic, you saw what the steps are to create the MVP. Now, we will see what should not be done during this process.
Work with a very large audience
In the alpha and beta phases, the audience cannot be too large, otherwise, several problems may arise.
For example, in the alpha phase, the product may not yet be fully developed and, if the audience is too large, you can lose control of it and people will have a bad impression of the solution, impacting the sales result when it is launched.
Also, remember that that product or service is an idea yet to be implemented in the market. So, it is important to keep that as a certain secret so that another company doesn’t collect the information and develop before you.
Extend test time too much
Another error that should be avoided is to extend the test time too much. This period should be used to assess audience feedback, find the necessary changes and get your product ready.
If this time goes on too long, you may lose the timing of the solution or hand it over to other entrepreneurs. In the planning phase of the MVP, it is interesting to define the test execution time.
Do not consider feedbacks
The last error is related to not considering users’ responses. Unfortunately, many people create products or services for themselves, without thinking about what the public really needs and wants. Remember that the characteristics of the target audience must be considered when creating the solution and this is what you will test in MVP.
In this post, we saw what an MVP is, its importance for the success in the development of products and services, best practices and mistakes that should be avoided. It is very important that the MVP creation step by step is followed to have good results and prevent a good idea from being wasted.
Finally, keep in mind that an MVP is not “a cheaper version of a product”, but a test to assess whether the value proposition and the entire format of the solution are suitable for the public and the market.
Now that you know everything about MVP, how about knowing another concept that involves product performance, CVP? Stay a little longer with us, and understand here what the Life Cycle of a Product is and why it is so decisive in the dispute for customers!