What Is A Minimum Viable Product?
A minimum viable product (MVP) is the simplest, most basic version of a product you can create to sell to your target market. Eric Ries first introduced this concept in his book The Lean Startup, explaining how it allows SaaS startups to gather information about their customers easily and quickly. Basically, you gather customer feedback with minimal upfront investment. However, developing an MVP is easier said than done. You have to strike the right balance between product simplicity and usefulness. In other words, your MVP must be simple enough to avoid overspending but comprehensive enough to provide benefits to customers. If you’re wondering how to build an MVP, you should take inspiration from some of the most triumphant minimum viable product examples that have made history.
Usually, once companies receive feedback and insights regarding their product, they move quickly to adopt changes and adapt to market needs. It’s one of the best growth hacking strategies that mitigate investment risks. You don’t have to spend millions to build an MVP. You just have to provide a free version of your product and convince people to start using it. This is how tech software like Dropbox and Spotify began their journey and later became the giants they are today.
Let’s dive deep and see how you can jumpstart your MVP development for your startup successfully.
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The Benefits Of Creating A Minimum Viable Product
Building an MVP for startups that have a hard time winning over investors or don’t want to go through this path seems like the best option. It’s a low-risk growth strategy for SaaS that provides you with valuable feedback, which you can use to refine your full-scale product. The first benefit is that an MVP solution helps you validate your hypotheses. For example, does your learning platform offer the upscale user experience you strived for? If not, user feedback will help you improve. Additionally, a successful minimum viable product makes it easier to secure investors, as you can showcase real data and examples of your product’s usability and functionality. Therefore, you make it easy for venture capitalists and investors to visualize the potential of your software.
The MVP product development process helps you understand whether your solution is a good market fit. For example, you may build an HR tool aimed at HR managers measuring the engagement of employees. Your tool may be great at allowing users to create and send surveys to workforces but not measuring employee Net Promoter Score (eNPS). This omission may be critical to your success and something to improve.
How To Build An Effective MVP
1. Know Customer Pain Points
Before you start creating your MVP product, it’s crucial you analyze your target audience’s pain points and challenges. You may not know exactly who your ideal buyer persona is at this point, as this is something most businesses identify during the marketing process. However, you know who you want to target. So, send out surveys, arrange one-on-one interviews, and create focus groups to understand your audience’s struggles. For example, you may have a minimum viable product for an LMS and discover that many people are not satisfied with the automation features of existing platforms. This piece of information tells you to focus on AI and evolve your product’s automation features. Maybe this aspect can be your main selling point when your final product is ready.
2. Analyze Your Competition
The eLearning landscape is more competitive than ever, with an abundance of online courses, authoring tools, and LMS software being available. This is where a market intelligence report comes into play, letting you know who your key competitors and target buyers are. Therefore, your MVP ideas can be more effective and beneficial. You should ask yourself a series of questions like what your target buyers still need, which product feature will make a difference, and how much buyers are willing to pay for extra features. These questions help you realize how you stack up compared to your competition.
An SEO competitor analysis is also necessary for an MVP in business. This is not something you’ll need right away, but mostly when you start promoting your full-scale product. It provides you with the keywords and other SEO tactics your competition uses to rank highly in SERPs and attract organic traffic.
If your SEO suffers, you may ask us to perform an SEO audit on your website and see how you can improve your strategy.
3. Test Your MVP
Before releasing your minimum viable product, you should test its features and overall usability and functionality. Find a few members of your team who can test everything, including your landing page, one-page app, or an SMS line. This means that you have to choose people who know how to optimize a landing page for lead generation. Your team should focus on the functionality of your page and whether it solves the core issues your target audience faces. For instance, if you’re saying that your minimum viable product example focuses heavily on blended learning but fails to integrate webinars, it’s something you should fix. Keep testing your solution to find holes to fix.
4. Track Your Goals And KPIs
eLearning marketing can’t succeed unless you set your KPIs and measure them frequently. The same goes when you build a minimum viable product before going full-scale. What are your goals, and which KPIs will you measure along the way to identify success rates? Keep measuring your analytics to draw accurate conclusions so you can proceed to make changes and additions that will be truly beneficial. This step is part of a detailed MVP project plan. Nothing in business works if you aren’t prepared. Gather the most crucial data and build a simple and concise plan. Don’t make it bulky, as you want to focus on a few key aspects.
The Two Types Of MVP
If you want to know how to build an MVP, you should first understand the two categories and the purposes they serve. Let’s check out their features and help you decide which one to pick.
1. Low-Fidelity
A low-fidelity MVP in tech is an easy and cheap solution. This analogy will help you understand what it’s about. Let’s say you have an architectural firm, and you want to submit a building design for a competition. Instead of spending hours upon hours to create an online drawing with 3D features and lifelike features, you decide to create a model by using cheap paper materials to visualize your idea. Now let’s apply this analogy to the software world. Instead of setting up an entire website, you create a landing page or one-page app. These are more than enough to offer you some user feedback.
In this case, you arrange interviews with potential customers who are using your minimum viable product. You don’t have to prepare a script. Simply ask questions about what they liked and didn’t like about the product and whether it actually solved any pain points. Don’t forget to ask how they feel about your pricing options.
You can’t sell anything in the digital world unless you create a landing page for every product. The links to landing pages are usually included in digital ads, social media posts, emails, and blog posts. The more feedback you receive, the more of the best landing page optimization practices you discover.
Before we can even start talking about SaaS lead generation, you should focus on understanding your audience’s needs and challenges. Going on online forums and engaging with people is a great way to figure out what they need. Or you can simply read past conversations and initiate new ones by asking relevant questions.
No matter how much you search, you won’t find a successful software sales marketing plan that doesn’t enforce a blog. While most companies use blogs to educate their audience and convince them to buy their product, you can utilize them to build an MVP. Share posts and information and try to engage people so they leave comments. Obviously, you’ll need a Search Engine Optimization specialist to improve your blog’s online visibility.
We can’t be the first ones to tell you about the immense benefits of video marketing. We have quite a few minimum viable product examples that implemented short explainer videos to discuss their benefits. Videos are usually more engaging than text and static images, and that’s why the marketing world loves them so much. A carefully crafted video can generate more interest than a blog post of 1000 words.
If you’re thinking of running a market validation survey, a promotional campaign is the best way to boost reply rates. But what is this survey? It helps you understand the demand for your MVP solution within your target market. Promoting such a survey on Facebook, LinkedIn, and Google can help you reach the right audience and get valuable insights.
2. High-Fidelity
High-fidelity types of minimum viable products are more advanced and expensive to create. Instead of building a simple landing page or one-page app, you add more pages, focusing on functionality and user experience. Maybe you add drop-down menus, chatbots, and other upgraded features. As you can imagine, such MVP products take a lot more time and money to create. However, they may be more accurate in representing your solution’s features and benefits. As a result, customer feedback is more detailed and on point.
Prototypes, wireframes, and mock-ups that focus on your product’s benefits are easy to use. You don’t have to invest in high-end design elements and front-end development. You simply focus on your product’s functionality and usability, making it easy to notice mishaps and problematic features. Therefore, you can solve and improve them before you start working on SaaS B2B marketing.
To succeed with this high-fidelity tactic, you should first invest in a low-fidelity method: explainer videos. Asking people for their money is never an easy thing, as you must provide them with good reasoning. Explainer videos offer value by focusing on your product’s benefits. It’s your main selling point that convinces people not only to be donors but also to become loyal followers. So, once your full-scale product is ready, you are guaranteed to get more customers.
This minimum viable product example is named as such because it creates the illusion of a fully functional product. On the frontend, your software looks 100% ready to do everything it promises. But, on the backend, you rely on people to perform all tasks manually. It’s a great way to create a prototype that convinces customers without having to make a hefty monetary investment.
The Concierge is very similar to the Wizard Of Oz, as you still have people doing all tasks manually. However, in this instance, clients are aware of that, as they have a human resource working with them closely. This means that exceptional selling skills are required to close deals and guide customers. This MVP type is particularly useful when you are not sure who your target buyers are and how your product helps them overcome challenges.
If you’re wondering how to build a Piecemeal MVP, you should know that it’s the middle ground between Wizard Of Oz and Concierge. Using existing tools and technologies, you create and deliver a functioning product. Of course, these tools don’t always integrate well, so you may need more human resources to handle things on the backend. As a result, you save the time and money you would have spent if you created a completely new MVP example.
10 Successful Minimum Viable Product Examples To Inspire You
1. Spotify
Back in 2006, music streaming services didn’t have a particularly good reputation. Most of them failed to create high-quality libraries, had high prices, and didn’t ensure stable streaming. This is where Spotify decided to develop an MVP. Initially, Spotify was just a landing page with a few hard-coded songs and basic functionality. The goal wasn’t to create a rich music library but to ensure stable and fast playback to convince labels and artists that their app was better than other similar ones. Spotify was tested by beta users and funded by on-page ad revenue. The first thing its creators learned was that stable, instant streaming wasn’t only possible but highly desired. To accelerate business growth, they used their minimum viable product’s feedback to polish the app and add more functionalities.
2. Amazon
In 1994, Jeff Bezos built Amazon from his garage as an online bookstore at a time when people didn’t trust internet purchases. But Bezos had a vision as he had read a report predicting that the annual growth of eCommerce would rise by 2,300% in the coming years. So, he decided to start his SaaS sales strategy by developing an MVP.
How did he build his MVP? He created a simple website, where he tried selling 20 different products, later cutting them down to 5. It was books he decided to focus on since there was a high demand for them worldwide, there was great variety, and the prices were reasonable. He would buy the books from distributors and sell them at a lower price. The basic webpage’s minimal viable product was a huge success, and people started asking for more products, including electronics, clothing, and shoes. This humble beginning was what made Amazon the enterprise it is today.
3. Uber
We know Uber as an app that you open when you need a ride, but the company didn’t start this way. The founders, Garret Camp and Travis Kalanick, initially built a startup MVP, which was an iPhone-only SMS service in San Francisco and New York. At first, it was called UberCab, and people would send their addresses via text, and a registered car would pick them up. Once it gained more popularity, the founders decided to build an app called simply Uber. Based on their users’ feedback, they kept improving the functionality and adding new features.
They even partnered with Google Maps to provide accurate navigation to their drivers and users. Live tracking, splitting the fares, and cost estimates were wonderful additions, too. Initially, UberCab targeted luxury car and limo drivers to join their project. Later on, almost anyone could register and get a chance to become an Uber driver.
4. Groupon
How did Groupon build an MVP that turned into the staple it is today? Prior to Groupon’s birth, its founder, Andrew Mason, built The Point. One of the things people could do there was buy coupons in bulk. When he created Groupon, it was a simple WordPress website where he sold t-shirts. If you wanted a different size and color from the default, you had to send an email. After creating a large email database with new leads, Groupon started sending people various coupons in PDF format.
At first, they would spend hours emailing each customer to send coupons. The engagement was massive, and it was obvious that the company needed to upgrade and build its backend. Along with a solid voucher system, Groupon evolved into the service we know today. So, Mason didn’t back down when The Point didn’t succeed but instead focused on taking its best feature and merging it with Groupon.
5. Dropbox
This is one of the most famous minimum viable product examples. Back in 2007, two MIT students wanted to build a cloud-based file-syncing service. But building the service and crafting a SaaS marketing strategy would be extremely costly and time-consuming, so they decided to create an MVP, which was nothing more than a simple four-minute video demo. Yes, you heard that right. Everything started with a video explaining how the product would work and what benefits and features it would provide to users. This MVP idea was so victorious that it gathered 70,000 signups for its waitlist. The feedback gathered from the early adopters was what helped its founders build the service as we know it today. Even Steve Jobs offered to buy Dropbox in its early stages. The service remains extremely successful to this day.
6. Airbnb
Back in 2008, Brian Chesky, Nathan Blecharczyk, and Joe Gebbia had trouble paying for their apartment in San Francisco. So, they decided to rent the top floor to visitors. How did they build an MVP? They simply created a website featuring images of the house to attract targeted leads. Soon, they had three guests. At first, Airbnb allowed house owners to provide something as simple as an inflatable mattress in their living room. Affordability was the core of the business, with small fees and prices. Simplicity was what made this MVP solution successful. The founders put up an ad promoting their top-floor airbeds, including breakfast.
Today, Airbnb isn’t only a place for people to rent an extra bed in their houses but an entire business for people owning multiple properties, although affordability doesn’t seem to be the main focus anymore.
7. Duolingo
The language-learning app is currently one of the most popular apps, with millions of people using it daily. Initially, the company allowed its first users to use the app for free, which is undoubtedly one of the best demand generation practices. Not only did this minimum viable product help them secure $3.3 million in funding, but it also gathered 500K emails in their waitlist. At first, the app taught only vocabulary and incorporated gamified features to keep learners engaged. The goal was for people to learn to translate content, which the app would sell to companies that couldn’t do their own translations. Once the full-scale app was released, a myriad of new features were added. They went from 6 to 40 languages and added subscription tiers that allow learners to elevate their learning.
8. Zappos
Zappos is a triumphant example of how to build an MVP for an online shoe marketplace. Its founder, Nick Swinburn, wanted to check whether there were people online who would purchase shoes without trying them on first. However, he didn’t have any inventory at hand. This already sounds a lot like dropshipping, but it’s even simpler. The domain shoesite.com would feature pictures of shoes from local stores. Whenever someone would purchase a pair, Swinburn would buy it from the store and send it to the customer.
Obviously, this plan wasn’t scalable or profitable, as Swinburn would buy the shoes at the same price he was selling them. Yet, his MVP development process was enough proof that his business idea was more than viable. In fact, it was so successful that in 2009 Amazon bought the company for $1.2 billion. Zappos built an effective market penetration strategy and expanded its product line, including clothing, accessories, and many more.
9. Etsy
Etsy’s example might help you understand how to build the right MVP and not fall into a common pitfall. Which is that? Trying to cater to a broad audience without having a specific niche. When Etsy started, eBay was already a popular marketplace for people to sell their stuff. However, the brand focused on those creating handmade crafts and vintage items, who were disappointed by eBay’s high fees. Etsy started as a simple yet fully functioning multi-vendor marketplace featuring multiple categories and allowing users to upload many pictures. Their online marketing strategy focused on the main pain point: pricing. They started charging sellers for posting a listing with a fee as low as 20 cents for four months. Then, they could renew the listing for the same amount.
10. X (Previously Twitter)
Twitter is one of the least known minimum viable product examples, as the tech giant started out as an MVP business. Jack Dorsey, Noah Glass, Biz Stone, and Evan Williams founded Odeo back in 2006, which was a podcasting tool. However, during that same time, iTunes was gaining traction, which meant Odeo couldn’t go much further. During the Odeo days, employees used twttr, an internal messaging tool, to communicate by sending short SMS messages to one another, including a special code, which everyone would receive. After six months of testing twttr internally, the founders released the full-scale app to the masses.
Bonus: Netflix
Do you want to read about another great example? Even Netflix began as a business MVP. They started shipping DVDs and CDs to people to check whether they would arrive in good condition. Once they passed that test, they built a website where anyone could rent their favorite movies without having to go to the store. It was in 2007 when they stopped sending DVDs and allowed users to stream movies online.
How To Create An MVP For Your eLearning Business
There are so many eLearning platforms out there, making it difficult for newcomers to stand out without having to increase their eLearning marketing budget significantly. Your first step toward MVP product development is to check the market to identify holes and pain points existing products fail to address. The second and most important step is to craft an irresistible user experience that engages audiences. But how do you even do that? Features like search bars, recommendation engines, dashboards, course pages, reviews, and notifications make your webpage alluring and easy to use. For example, Coursera and Udemy send recommendations to users based on past courses and notifications reminding them to finish their lessons.
Once you’ve pinpointed your main focus, you should conduct a usability audit to check whether all features are working properly. Also, don’t skip the quality assurance (QA) and debugging processes. Only after you’ve fixed everything can you come up with eLearning marketing solutions to promote your minimum viable product to relevant audiences. To gather valuable feedback, you don’t have to wait until people send you their comments. You may ask for it using quizzes and various tests. Questionnaires are usually preferable to long reviews that take time to write.
Create Your MVP For HR Software
Knowing how to build an MVP that will grab the attention of HR tech buyers is essential in today’s congested landscape. First, you should understand your audience’s pain points and why similar software fails to meet the expectations. What features can you add to stand out from the crowd? Build a competent team comprised of project managers, designers, and developers who can bring your vision to life. Once you have everyone needed on board, you should build a project roadmap. Include which features your team must initially add and which ones should be left for later. Make sure everyone meets deadlines. Before launching your MVP solution to the world, you have to find a decent number of beta users who will test your product.
Based on the feedback you receive, your team must be quick and agile to make improvements. For example, if you’re marketing payroll and your time tracking feature has major flaws, you must fix them before launching. Once your product is ready, put it out and keep talking about its benefits. Analyze your MVP product’s performance, including user engagement, to understand which features are popular and which ones are useless. Keep improving your service based on continuous feedback so you can reach a version that appears to be minimally flawed.
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Key Takeaway
By now, you should have a pretty good understanding of how to build an effective MVP that addresses your audience’s main pain points and identifies whether an idea is feasible. But that’s not all. Like all the minimum viable product examples we mentioned earlier, you have the opportunity to test the waters with an idea without spending too much money or time. What type of MVP should you utilize, though? If you want to keep things simple and quick, you can go for landing pages, customer interviews, forums, or SaaS content marketing like blog posts. If, however, you have a more complex solution, you should better choose The Wizard Of Oz, Concierge, or Piecemeal MVPs.
Developing an MVP is a wonderful option if you want to find out if you are a good market fit and if there are high-quality business leads in that market. Of course, you have to create a product that is unique and offers something unavailable right now.
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