Coming up with a product can be a daunting task for a company. It involves a lot of different kinds of research, resources, and investment. Therefore, before adding additional features companies test the product with real consumers in the early stage. This is the idea behind designing a Minimum Viable Product (MVP).
A Minimum Viable Product (MVP) is an earlier version of the product with good and essential features to collect real-time feedback from the target customer. The idea behind developing MVP is to test the product in the real world before several iterations are done to come up with enhanced features of the product.
Early stages of the product
The term MVP was first introduced by Frank Ro in 2001. The term was popularized by Steve Blank and Eric Ries. The concept of MVP was introduced to understand the target audience or early adopters’ sentiments about the product based on market research.
This will helps teams to develop and polish the product based on the target audience’s requirements so that the final product is a success in terms of Return on Investment (ROI) and in satisfying the customer’s needs.
What is the difference between MVP and Prototype
This digital transformation domain encompasses the modification of business process elements to accomplish new goals. The majority of organizations engage in a process transformation when they need a radical update.
Since undergoing such an alteration would modernize and remodel a business’s processes, better integrate primary systems, integrate new technology, and save money.
What are the benefits of an MVP
Companies such as Airbnb, Groupon, and many others have first released MVP to test the market before developing a full-fledged product. The benefits of designing an MVP are –
#1 – TimeSaving:
By gaining early customer feedback, companies are able to weigh the pros and cons of the product before developing the product. An MVP gives them an idea if the concept is viable or not.
#2 – Money Saving:
This is a single most important benefit of an MVP. Developing a product requires a lot of investment. A company is able to understand and gauge if the product has a future at an early stage through an MVP, thereby, saving a lot of money at a later stage. This is particularly helpful for start-ups when there is an investment crunch.
#3 – Understanding the Target Audience:
A company can understand its target customer’s requirements via an MV3.
How to market an MVP
Trying to market and generate leads of an MVP without a strategic marketing plan is asking for disaster. The marketing strategy for an MVP is not the same as marketing a product. It is important to understand the objective of an MVP. The approach to marketing an MVP using the traditional method will not yield results and is a waste of resources.
Things to keep in mind
- An MVP is not an incomplete product – It is a product with just enough features as opposed to the missing features
- An MVP is optimized for quick improvements and iterations – A company should have all the resources allocated to push and develop the features seamlessly in the direction of customer feedback and requirements.
Strategy to promote an MVP in the market
To promote an MVP it is important to incorporate the four core elements in your marketing plan. However, for an MVP the marketing mix varies slightly.
Value Proposition – You should include the Unique Sale Point (USP) that describes your product’s core differentiators.
MVP Price – Unlike the traditional method where the product is priced to cover the development cost, the price of an MVP must be value-based. This will not only increase the potential revenue but will also clarify customers’ value perception at the same time.
MVP marketing channels – It is important to run campaigns on different social media channels. These campaigns must be constantly assessed and altered until the results are optimized and the customer acquisition reaches the target levels. Identify the target audience and market segment and reach out to them methodically and strategically.
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