Tuesday, 31 October 2017

The Concept of Minimum Viable Product (MVP) in Business


        The purpose of Minimum Viable Product(MVP) is to create a product that we can use to validate a small set of assumptions about a product and its role in a business. Most business experts recommend that start Small and Simple with something called MVP.  In Product development, the MVP is a product with just enough features to be considered working to means it achieves the purpose it was built for in the most basic way. MVP helps to test your product fairly at an early stage and gain feedback for future iterations.

      The important thing in creating MVP is working out who will actually use your product and figuring out what they need. Any product that is supported by stakeholders and successful in the market needs to have both user needs and business goals in mind.

     An MVP is a Marketing Exercise: Can we build something customers want? And Can we build something people will pay money for? There are several different ways the term MVP is used,
       MVP-M: Marketing product designed to test what customers want and what they will pay for
       MVP-T: Technical product builds something technologically using the proof of concept and prototype have been used here
       MVP- I: Must Have a feature that Product Must Have
       MVP-H: that's the highest paid person' s opinion on the feature list
       MVP-X: where X is the number (1,2,3..) are derivatives used by teams who are releasing enhancements to their product and growing it. 

     Product Development:  You can use these steps for launching a new product or service you offer to your client,

1. Asks for the feedback from your customers
2. Listen to his feedback actively on the new ideas then
3. Come-Up with new version with improvements suggested by your clients

Scrap the MVP if it is not successful and try for the best ideas by listening to your customer feedback.
       In building the MVP, you should consider users and their journeys. You should work on the actions that improve or simplify their lives. Also, you must explore the business case by developing the hypothesis that we can test with the MVP. This will help to understand that we are really moving forward and reaching the desired results or learning. Use this template for connecting the MVP features with the business hypothesis.
Process: When you build a product, you make many assumptions about how the design should work, what marketing strategy to employ, which architecture will work efficiently to the business and the monetization strategy to use etc., Some of our assumptions may not be correct. The only way to find and test your assumption is to put your product in front of the real users as quickly as possible. When you do this, you'll find that to go back to the drawing board over and over again.
    When you are building a product, writing a code, or coming up with a marketing plan, you should have the answer to the two questions,
       * What is the riskiest assumptions about the product  &
       * What is the small experiment that I can do to test the assumptions

       For Ex, When you decide to build a product to a restaurant owner and he would be willing to pay for a website. So, When you start building a product, Your MVP of the landing page should describe what your product will do, shows of the restaurant website you build by hand earlier and let visitors provide an email address if they are interested in hearing more when you launch. If potential users won't give you the email address, then they aren't going to give you money either. By tweaking some text and few images on landing page saves a lot of time wasted on rewriting thousands of lines of code in the full product and makes your customer hearing more.
       MVP's are designed not just to answer technical questions about the product, but also to test the fundamental business hypothesis about the viability of the market it exists in. Here are some of the testing techniques you can put to use to get reliable data from actual users and utilize it,
      1. Customer Interviews:  These interviews are meant to explore rather than a sales pitch of your product, functional or otherwise. It includes information about the problem to solve and it is continued listing down the problems you assume your product will solve.  Then, asking what the customer thinks about them as well as how they would rank each problem.
      2. Landing Pages: It is a great marketing opportunity to explain your product's feature and have them signed up. The great MVP that lets you test your product against real world market expectations. In order to be most effective, landing pages need to be able to provide the right information to your customers in the right context.
      3. A/B Tests: It is used to measure the effectiveness of your product or marketing. The analytics tool used to test how visitors react to the design decisions you make by eliminating the guesswork when it comes to improving the product. A/B testing allows to test two different versions of the page or marketing copy and let visitor interactions determine which one performs best.
     4. Explainer Video: Dropbox explainer video serves as best validation of the market before the founder has to invest in the infrastructure and development needed for his high tech product to reach a functional level in the real world. It helps the customer to know what the product is and eventually leading to why they would want to pay you for it.
    5. Digital Prototypes: Mock-ups, wireframes, and prototypes are used to demonstrate the product's functionality in a way that mimics the actual usage. The  UXPin saves time in product development to design, share and test prototypes.

Sunday, 15 October 2017

The Ultimate Guide to Value Proposition or USP for Online Businesses

         USP is the only thing your customer will ever care about your product. The value you offer is what will decide whether or not they will stay with you and continue using the service. Establishing your VP is critical if you want to start the journey from your "idea" to building a successful company.
Identifying unique and efficient value proposition begins with figuring out one exceptional value you offer that your competitors don't. There must be one precise value every product/business should excel in, even though every single value is our goal.

A Successful VP is happening only if people understand the value of your service and they believe in it. It can be defined as the tangible business value that companies get from using a product or service. It is the outcome of your offerings. So, your challenge is to figure out what your outcomes are?
It has 3 components,
     * It should be focused on business objective that someone measured it,
     * VP has the Movements. They are doing it because to increase sales, decrease costs and improves efficiency.
     * It has the metrics. The strong VP are the main reasons that someone wants to meet with you.
       Value Propositions are critical to the growth of your business. Startup Business will have to do market analysis and make sure the business model/idea is viable. At this time, you will come to know the market need, your prime prospects wants and market demand. Then, you can craft the solutions by focusing on their passion and possibility. It includes your products or service. Gather the information from testimonials, case studies to get the paying clients and customers.
        Here, you can see some companies crafted their VP so well!

The Factors to Evaluate are,
  * Market Value
  * Market Size
  * Competition Level
  * Level of hindrance to access

The small market will have less value and less hindrance to enter into the market but excessive competitions. A Unique service/product with high value made for the large market holds high level hindrance to entry, but it is made/available for the exclusive audience.

 These are some of the cliches people use to drive away from your business,

  User 1: I am not interested your story!

  User 2: Got something that will enhance my business? I will get back to you.

  User 3:Want me to try your product? I hardly have the time to try etc.,

So, Here are the best practices for building killer Value Propositions that will help you sell your services and win new clients.

    1. Once you have gone through the defining, evaluating and measuring steps, you are ready to build the value propositions, it has the framework of,
     * For (target customers)
     * Who are dissatisfied with (alternative)
     * Our Product(New Product)
     * Provides(Key Problem-Solving)
     * Unlike (Product alternative)
Use this template, to create clear and compelling VP's,
               1. Value Proposition ,
               2. Value Proposition

2. Identify Core Competencies : The competencies could be in the area of your business process, technology, market relations, people, industry positions etc. It needs to be solidly founded in your company's competencies. It should translate what is unique your business in the area of design or engineering services or manufacturing and the value to your customers. The value proposition helps you to stand out from the competition and provides a clear message for prospects about why they should engage your services.

3. Put your Value Statements in the Right Order: Identify 3 or 4 major areas in your value propositions like,
       * Areas of business you serve
       * Types of problem you solve
       * Type of firms you serve etc.,

         The customer kept describing your offering as a rich information system that got its detail of  a payment transactions. Customer's will see the long term value of the information generated would be more powerful than lower payment processing costs.

4. Include Marketing Language in your Value Propositions: Providing proof of your abilities will create another important layer of credibility. Value proposition needs to polish it, refine it, validate it and refine it again. Add the proof points to your value propositions for credible and meaningful VP. Proof points should be quantitative examples and benefits like " Our teamwork of web design services often reduces cost by 30% or more" Are you interested our services now? The industry certifications, awards, customer testimonials and anything else make your claims real and credible.

5. Audit your value every 2 years: Value evolves in competitive landscapes. Your today's unique value propositions may be the market expectations tomorrow. It is important to complete the brand audit every two years.