How to recognize if a new product or service will be in demand?

Create a test version – MVP, and improve the product based on real feedback from the target audience.

According to statistics, 9 out of 10 startups, i.e., 90% out of 100 fail (startupgenome.com).

One of the main reasons given by CB Insights portal is a lack of consumer demand for the product or service offered by the startup.

To avoid such a mistake, Frank Robinson, one of the founders of SyncDev’s consulting services company, developed the concept of MVP – a minimally viable product.

So, MVP development is the creation of a basic, minimally viable version of the future product with the necessary set of functions that allows you to study demands, check hypotheses of marketologists, set up feedback with users, and implement the received data during the development of a product with demanded functionality.

MVP targets

The main goal of a minimally viable product is to attract potential customers, get feedback from those interested in the product audience, understand the demand and positioning of the product, review consumer preferences and improve the basic version.

Advantages of MVP for the developer:

• Minimum testing costs
• Quick response and information from the target audience
• Generation and implementation of the ideas that improve the product
• Optimization and reducing the time used for creating a full version without unnecessary features
• Ability to test the main features of the product at an early stage
• Business model customization
• Gathering of information and data about potential customers
• Reducing the risks of unclaimed product start-up
• To attract the investors if the testing is successful 

MVP types

While creating MVP product owners are guided by several concepts, depending on the product source data and tasks. For example, a product may have only one test parameter or «stitch» of several functions, where the finished parts are eventually combined into one interface.

The main attitudes and principles of creating MVP:

• Concierge. This type of MVP is created for products that involve initial manual order processing. In this way, demand is assessed, and the experience of communication with potential clients is gained.
• Pre–Order. It is created for services such as crowdfunding platforms that attract funds to create a financially expensive product. It can provide data to analyze demand, and user interest in a future product, and additionally attract loyal buyers at the product development stage.
• Wizard of Oz. This MVP method also involves manual data processing, but it is disguised as an automatic program operation. This allows you to test the product demand hypothesis before you invest in its automation.
• Landing Page. Creation of a website with detailed descriptions of the possibilities and advantages of the future product. MVP websites always contain a call to action by which interested users subscribe to news or access a demo of the product. The main objective is to study the demand and collect user data.
• Foreign Product. The idea of the approach is in testing other people’s ideas and popular products in your niche by identification of their own advantages.

What has to be considered during MVP development

There is no common instruction for MVP development, as it all depends on the type of product, needs, and financial, and resource capabilities of the company. But there are some basic principles of creating a Minimum Viable Product that will help structure the work.

Preparation and implementation of MVP:

• Identification of demanded tasks that the product will solve
• Analysis of competitors, their advantages and weaknesses
• Making up the portrait of a narrow target audience
• SWOT analysis to identify growth points, risks, and competitive advantages
• Development of coherent steps of user’s behavior when they are using the product, determination of the prior functions
• Determining the optimal method of creation (Lern, Scrum, Kanban, XP)
• Start alpha and beta testing of MVP (for a small group of real users)
• Gathering the information from customers, making changes, improving and refining the product

Main mistakes of the MVP creating 

First of all, it is necessary to find the optimal balance between the cost of development and the final quality of the tested product. If the demo version is not done properly, potential customers will not be able to fully evaluate the product. At the same time, the basic principle of creating MVP – is the implementation of the product in a short time with the lowest possible funding.

How to avoid mistakes:

• Try to keep a balance between functionality, usability, and MVP design
• Don’t overfill the test version with too many features
• Always focus on customers’ feedback
• Do not raise user expectations with ideas you do not plan to introduce
• Implement basic models to respond quickly to customer needs

Do you need MVP development for your project? Do you want to put on the market a really popular product? Contact our specialists and we will help you to know the target audience’s needs and develop MVP in a short time.