MVP: How to launch a successful product with minimal costs and maximum benefit
Today, startups and technology giants actively use the MVP (Minimum Viable Product) approach to test hypotheses and ideas more quickly and cost-effectively and bring real value to their users. This method creates a product skeleton that includes only the core features needed to attract the first users and get feedback. MVP is the key to creating a product that easily adapts to the market and needs, minimizing costs. In this article, let’s understand what MVP is, who was the first to use it in business, why MVP is so relevant today, and how to implement it effectively.
What is MVP?
An MVP is an early product version that includes the minimum necessary features to test key hypotheses and get user feedback. MVP helps to make sure that the product is actually in demand before significant resources are spent on its full development. At the heart of the MVP concept is the idea — build, test, improve.
This strategy is especially popular in conditions of high uncertainty, such as in technology startups, where it is important to quickly adapt to market changes and understand the real need for the product. MVP helps not only to save resources but also to quickly find out whether the product responds to user requests.
History of MVP creation: who first came up with the idea to use it?
The idea of MVP became popular thanks to the concept of Lean Startup, proposed by Eric Rice. However, the term“MVP” was first introduced by Frank Robinson. Eric Rice introduced the concept in his book The Lean Startup, in which he described an approach to building a product through rapid iterations, learning from real data, and minimizing costs.
Companies like Dropbox and Zappos can be considered pioneers in using MVPs . Dropbox, for example, didn’t immediately create a full-fledged file-sharing service. They released a simple demo video to test product interest and get users’ early feedback. This allowed the company to gather a significant number of pre-orders and clarify which features were really important to customers. On the other hand, Zappos started by selling shoes online, using a simple website and product photos from real stores to see if people were willing to buy shoes online.
Why is MVP important nowadays?
Today, in a highly competitive and rapidly evolving technology environment, MVP has become not just a useful tool but vital. It helps companies adapt to the market, avoid spending on unnecessary features, and offer users something that truly has value.
Here are a few reasons why MVP is so in demand:
- Speed of Adaptation: MVP allows you to quickly go to market and adapt your product based on data about real user needs.
- Resource savings: MVP reduces development costs by avoiding spending on functionality that may not be needed or that users may not be interested in.
- Risk mitigation: MVP helps to test hypotheses and get feedback before major investments are made in the product.
- Market validation: An MVP allows you to test demand and interest in the product without creating a full version, which helps you better understand the market and target audience.
- Authenticity and Engagement: Since MVP focuses on feedback from real users, it fosters a deeper understanding of customer needs and helps build trusted relationships.
How much does it really cost to create an MVP?
While an MVP may seem simple and inexpensive to implement, this is a misconception. At first glance, an MVP may seem “free,” but in reality, creating an MVP requires a lot of effort on the part of marketers, product managers, and developers. The very idea of an MVP is based on saving resources, but for an MVP to be effective, you need to conceptualize it properly, invest time and resources in engaging your audience, and collect feedback.
According to Statista, companies spend about 25% of their marketing budget on MVP development and its testing on the market. This is due to the need to:
- Creating a creative concept that will attract users even in the early stages.
- Finding and supporting the first users ready to interact with the MVP and leave valuable feedback.
- Analyzing and managing the data that comes from the first users.
In addition, marketers work on engaging audiences, preparing campaigns to gather feedback, and monitoring user experience. It’s these efforts that make MVPs a valuable resource for continued growth.
We divide MVP into three components: M, V and P
M — Minimum.
“Quickly seize your competitive advantage.”
This stage involves creating a product with minimal but essential features that solve a key user problem. The key here is to highlight the product’s most valuable benefit and offer it to the audience in a simplified form. When developing an MVP, it is important not to overload the product with secondary features so that you can focus on the core value.
V — Viable.
“Creating and maintaining viability.”
This component of the MVP is responsible for ensuring that the product is functional and reliable. A viable MVP is not just an idea but a working product that can be used and actually solves a user’s problem. At this stage, the product must demonstrate real value and be ready to be used by real users.
P — Product
“Testing and Market Launch”
In this stage, the MVP is tested on real users. Getting feedback and conducting tests helps identify the product’s weaknesses and improve it before a full-fledged launch. During the testing phase, marketers and developers collect data on how users interact with the product, what features they like, and what features need improvement.
A checklist for creating a successful MVP
To make an MVP successful, adhere to the following guidelines:
- Identify key hypotheses: Focus on the most important assumptions about the product and its value to the user.
- Develop a unique concept: Come up with an idea that will inspire users to try out your product.
- Focus on core features: Include only those features that solve the user’s main problem.
- Release and test quickly: The faster you get feedback, the faster you can improve the product.
- Use analytics: Regularly track how users interact with and improve the product based on the data.
- Keep in constant contact with users: Listen to what they have to say and make changes based on their feedback.
Conclusion
MVP is not just a method of product creation but a powerful strategy that allows a company to adapt faster to changing market conditions and create in-demand products at minimal cost. MVP helps to understand what users really need and focus efforts on it, avoiding unnecessary spending on unnecessary features. With the right approach, MVP allows you to gain a competitive advantage, create a viable product, and build a foundation for long-term success.
Written by Alina Palii, marketing expert, ALPA Marketing
