A minimum viable product (MVP) is a product with just enough features to be usable by early customers, who can then provide feedback for future product development. This approach is particularly common in the software-as-a-service (SaaS) industry, where products are delivered via the internet and can be updated and improved on a regular basis.
The concept of MVP was popularized by entrepreneur and author Eric Ries in his book “The Lean Startup.” According to Ries, the goal of an MVP is to test a product hypothesis with real users as quickly and inexpensively as possible. This allows companies to gather valuable feedback and make informed decisions about which features to add or remove, without wasting time and resources on features that may not be necessary or desirable.
One of the key benefits of using an MVP approach for a SaaS product is that it allows companies to quickly validate their assumptions about the market and their target customers. By releasing a basic version of the product and gathering feedback from early adopters, companies can gain a better understanding of what customers want and need, and adjust their product accordingly. This can help them avoid the costly mistake of building a product that doesn’t meet the needs of the market.
Another benefit of MVP is that it allows companies to test the feasibility of their business model. By releasing a basic version of the product and charging customers for it, companies can determine whether there is a viable market for their product and whether their pricing model is sustainable. This can help them avoid the costly mistake of building a product that doesn’t generate enough revenue to support the business.
In addition to these benefits, MVP also has the potential to generate buzz and build anticipation for the full version of the product. By releasing a basic version of the product and generating interest among early adopters, companies can create a sense of excitement and anticipation for the full version of the product, which can help drive adoption and sales.