What is Minimum Viable Product (MVP) & its Merits?

What is Minimum Viable Product?

There are different viewpoints on the minimum viable product (MVP) since it can take different forms from one industry to another, and it encompasses minimum marketable product (MMP) and Minimum desirable product (MDP).

The two key words: ‘Minimum’ and ‘Viable’ can also be interpreted in different ways in developing a product, however, a minimum viable product (MVP) is simply a usable and useful product with minimal features.

MVP is a test product, service, or business model that requires less time, resources, and budget to develop; useful and marketable to target customers, and offered to customers to collect feedback on the product to gain insight into the market, and to improve the product.

Massive positive feedback or/and a little negative feedback from the early-adopter customers can be used to improve or develop the product.

What is the Goal of Developing MVP?

MVP is a tool used to tailor the development of a product or service to the consumers without wasting much time, resources, and a huge budget on formulating and testing different ideas.

It was coined by Frank Robinson in 2021, and this method is used to launch, promote products, and garner responses from users.

The main goal of MVP is to be able to develop product bit by bit based on market feedback from time to time, thus, increasing the chance of developing valuable products with minimal resources since resources are best used toward the demand for product improvement.

What are the Advantages of Minimum Viable Products?

There are different benefits of developing minimum viable products since you’re able to gain better insights into innovations, customer expectations, market environment, and others.

• Marketability

MVP helps to understand whether there’s a market for a particular product/service or not.

It also helps to understand competition, and if other products are already satisfying the needs of the customers.

From there, you can modify your product to suit customers better or change and develop a different product entirely.

MVP is also cost-efficient since you can reinvest your small profit in improving the product, and marketing to more potential customers.

• Early feedback from real users

Minimum viable product development is a great option for collecting valuable feedback from your customers.

This valuable feedback helps you in making profitable decisions. Also, you can make improvements with the help of valuable feedback.

You would be able to review and adjust your product development and marketing strategies.

Also, since you’re developing your product based on customer feedback, you’d be able to gain and retain customers better.

• Understand market trend

With the impacts of technology, iOT, AI, and others, market needs are fast changing. Therefore, MVP can help to get fast feedback on the latest trends in the market so you can adapt your product accordingly.

• You can launch your product easily and quickly

With the help of MVP, you can not only attract the target customers but people who are looking for new technologies can also be connected.

Therefore, it would be beneficial for you to gain an edge over your competitors. Thus, you will get the chance to enter the market more easily and quickly and can get the benefits of the prevailing situations.

• Production cost management

Talking about software development, for example, there comes heavy investment, and it also takes a long time to develop.

However, MVP is a more convenient option and helps in saving money in different ways.

Also, you can earn profits just from the beginning. Thus with minimum viable products, you will be able to save lots of time and money and invest in further development.

• Risk management

Instead of investing huge capital, and lots of time, and resources in a product that may not be well accepted in the market, MVP is a way to test the waters and manage risks and loss.

With MVP, you can easily avoid unnecessary costs and waste of resources on the development of a product that would not be appreciated by target customers.

• You can easily attract Investors and loyal customers

Developing MVP helps to attract business partners and third-party funds as you communicate the market demand and benefits of your products better.

Investors can be able to review your business idea, offer suggestions, and help in funding your product development.

Also, you would be able to build an early relationships between your business and customers. Early users of your products are more likely to broadcast your products and become loyal customers.