How to Build a Minimum Viable Product (MVP): A Detailed Guide

The 5-Step Guide to Plan a Minimum Viable Product

What is a Minimum Viable Product (MVP)?

  • Value Proposition — The primary reason why a customer should buy a product.
  • Customer Segment — A specific target market that gives feedback on the value proposition.
  • Channel — The method to reach your target audience.
  • Customer Relationship — Measure the effectiveness of your product by maintaining contact with your customer base.
  • Viability testing — Product viability testing at a low cost.
  • Cost efficiency — Spending limited money on product development.
  • Rapid development — Fastest product delivery with major features.

Balancing Product Viability and Minimalism

7 Business Benefits of Minimum Viable Product

Concepts Related to the Minimum Viable Product

  1. Customer validation — The element focuses on finding the right customer base with the most potential, identifying early adopters, learning from their problems, needs, behaviors, and opinions in relation to your business.
  2. Market research — It provides you the much-needed feedback and market insights, helping you with competitor analysis, communication channel mix, and keyword research.
  3. Concept testing — You can evaluate customer acceptance of your new product before introducing it to the market.
  1. User identification and analysis — It helps you make informed decisions to understand user flow.
  2. User flow outline — Divide the flow into three parts: an entry point, steps to progress, and the final CTA.
  3. Define the user flow elements — Organize all the actions of the user flow.
  4. Refine your outline — Revisit the outline and see if it is logical.
  1. Word of Mouth — The traffic on your product tells you how it’s working.
  2. Engagement — With a good engagement rate you can measure the current and future value of the product.
  3. Percentage of Active Users — The number of downloads and launch rates also help to study the behavior of your users.
  4. Client Acquisition Cost (CAC) — Check if the costs of acquiring paying customers match your marketing efforts.
    CAC = Money spent on traction channel / # of customers acquired through the channel
  5. Client Lifetime Value (CLV) — The amount of time a user spends on your software product before uninstalling or discontinuing it.
    CLV = (Profit acquired from a user * Product usage duration) — Acquisition cost
  1. Misplaced Priorities
    If your goals are not clearly defined, you won’t be able to focus on the problem solution. It increases the chance of MVP failure.
  2. Features Overload
    An MVP is all about keeping minimum viable features. In case, you load your MVP with excess features, it can result in poor UX and may annoy your customers.
  3. Delayed Launch
    Wait for the right time to launch your MVP, otherwise, it would lose its value in the market.
  4. Lack of User Feedback
    Learn from your users’ feedback. Take note of their needs and pain points.

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Technovert

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We help companies like yours build custom, scalable applications with enhanced experience.

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