Minimum viable product ( MVP)- why does it matter so much?
What exactly is an MVP and why should you as a founder or a product person be concerned about it?
What is an MVP?
There are many definitions of MVP but the one that is the most accurate is by Eric Ries, “ that version of the product that allows you to collect maximum amount of validated learning with the minimum amount of effort”
The key is that the learning should be validated- which means there has to be some quantifiable data to support your learning.
Another key is that the effort has to be minimum which means that we should not spend too much time trying to perfect the MVP.
It is this delicate balance that defines the MVP- maximum learning and minimum effort. Have too much effort and you have wasted more time than you should have. Have too little learning and your results may not be accurate or reliable.
Why do we need MVP?
We need MVP as nobody, I repeat nobody can say with 100% confidence that their product will always succeed beforehand. Hence, we should always look to experiment and then pick the best working ideas.
Since, we have to work with many different experiments, hence the effort has to be minimum in each.
Does P stand for product or prototype?
Another debate is does P in MVP stand for a Product or Prototype? My take is it could be anything. Anything which allows you to get maximum learning.
What are various types of MVP?
There are many types of MVP.
- Landing page
Here, we make a landing page and then test the idea with either just gauging the customer demand for an idea or collecting customer leads.
2. Wizard of Oz
Here, we have a web/ app front but replicate the back end work with human effort. It is reverse automation , in a sense. Zappos is a good example where the founder bought shoes from the retailers and fulfilled them manually once he received orders
3. Concierge MVP
Here also there is human fulfillment but the customers are aware about it. Example, the first Airbnb listing by the founders.
4. Explainer video
Dropbox is a good example. Makes people aware about the features of your product and what problem it is solving for users.
MVP vs MLP- which one is better for you?
There is another term, MLP- Minimum Lovable product. It is that version of the product which is loved and adored by the users. Hence, it is a more refined version of the product than MVP.
Airbnb’s initial product was a simple product that allowed you to book accommodation- an MVP. Over time, they added more features to it to make it an MLP.
Hence, our first version of the product should almost certainly not be MLP- if that is the case we have spent too much time in development. Some enterprise products or products that need to be installed may be an exception. Eg- CRM, Windows OS, Office etc.
MVPs are great, but it is the fine balance on what to build which matters the most.
