Feeling Unsure of Your Startup App Idea? Start With MVP Development!
Digital transformation is a crucial stage for a business. Whether website, software or mobile app development, digitalisation requires a great deal of investment and patience. However, the emerging trend of MVP development is helping businesses opt for a safer approach with low risk.
Not aware of the trend? Worry not! This blog will educate you completely about MVP development in the digital transformation and IT industry.
What is MVP Development?
MVP development is a term coined by a renowned business entrepreneur named Frank Robinson during the early 2000s.
However, Robinson coined the term, and another visionary startup entrepreneur named Eric Ries started blogging about Lean Startup Methodologies.
Followed by writing a book titled “The Lean Startup”, explaining why startups fail and how the MVP product development approach can help. From then on, MVP software development began to gain popularity.
Frank Robinson defined MVP as – “The simplest version of a product that can be released to early adopters for the purpose of learning.”
However, Eric Ries defined MVP in a more elaborate way, explaining, “MVP is the version of a product that allows a team to collect the maximum amount of validated learning about customers with the least effort.”
So, in simple words, an MVP product in the IT industry, be it a software, a mobile app, a desktop app, or a website, is the bare minimum product. An MVP comes with just enough ‘features and functions’. Nothing more or nothing less. The 3 Core elements of the MVP development process–
Experiment
When a business is in its initial stages of experimentation, an MVP product can help the business mitigate risk and improve its product and services with real feedback from the target audience.
Airbnb is a perfect example of MVP product development. Started as a single-page website that used to rent mattresses and breakfast, today Airbnb is the lifeline of hardcore travellers.
Bare Minimum
The heart and soul of the MVP development approach is to create the bare minimum. A product that must provide only the required amount of services. Instagram is another real case example of an MVP.
Instagram started its journey as a basic photo-sharing app called Burbn. The MVP focused on photo-sharing, but gradually it scaled up and rebranded as Instagram in the year 2010.
Real Testing & Feedback
The journey from Burbn to Instagram was purely based on testing a digital product in real-world scenarios. The business studied user data and, based on their feedback, created Instagram.
However, this approach was time-consuming, but in the end, it helped the business mitigate risk and play it safe.
MVP Development Vs. Full-Product Development: What’s The Difference
However, it must already be clear from the discussion above how MVP is different from the full product. Still, let’s dive a little deeper with a summary-
| Product Elements | MVP | Full Product |
| Purpose | Test and validate a business idea. | To incorporate a business idea. |
| Feature List | Limited to only the bare minimum features that make a business model work. | A robust feature list that aims to deliver a full value proposition to the end users. |
| Functionality | Limited functions only. Example: Burbn (predecessor of Instagram, limited to photo sharing) | Highly dynamic functions, fully developed. Example: Instagram (current version) |
| UI/UX Design | Basic UI/UX DesignNothing FancyMinimalistic Design | Highly superior UI/UXCan be fancy Top-notch design |
| Animations | Preferably, no animationsSimple design | Can include dynamic animations |
| Development Approach | Iterative and Spiral approach of development. | Usually agile methodologies |
| Time to Market | Faster time to the marketLaunchable in 3-4 Months | The timeline depends on project complexities. Can take 3-18 months or even more. |
| Product File Size | MVPs must be light apps.The download & installation size must be small. | File size depends upon product features & functionsDownload size can be heavier |
| Level of Risk | Low level of risk involved | Medium to High Level of Risk |
| Real-Life Feedback | MVPs highly depend on real-life feedback from the real target audience.Based on audience feedback, a business improves, updates, and even sometimes changes the product altogether. | The scope of real-life feedback is very little in the case of a full-fledged product.A full-fledged product can incorporate real-life feedback, but at a much higher cost. |
Why is MVP Development Beneficial in the Beginning?
If a business is in its initial phase of digitalisation, or is trying to launch a new demand in the market, MVP equals less risk.
Rather than putting all your money and efforts into a full-fledged product, it is best to test a smaller (but enough) version in real-world scenarios.
MVP development can save from high risk. To sum up, the benefits of MVP app development include-
Risk Mitigation
As discussed above, a minimum viable product development comes with less market risk. Suppose, even if the product idea fails, there is a smaller amount of time and effort being wasted.
And why opine that the idea will fail? Always think positively, and if your MVP is failing to impress the target audience, figure out what is not working. Work on what’s not working. Improve and win!
Lower Financial Burden
An MVP website, software or mobile app is hardly 10-30% of the full-fledged product. Eventually, the cost of development resonates with the product version. As a result, you stake a lesser amount of money.
With the passing time, as your product grows along with the revenues, you can invest in further development. This way, you can optimise your budget in a smarter way.
Feedback Straight from End Users
User data is crucial for any business. A product is absolutely futile if it does not satisfy the users. The end users must like the product in every way.
Be it the UI/UX, features, functions, or the problem a product is trying to solve, or the value the product is trying to deliver! Whatever the user needs, a product must deliver for its success.
In case of MVP app development, you have enough opportunity to gather feedback straight from the end users. Accordingly, you may improve, update, and even alter the product as per user preference.
Faster Time to Market
Rather than waiting for years to launch your business idea in the market, you can dramatically bring down the time to market. An MVP does not mean that you cannot launch your full product.
Rather, you can avoid ‘extra’ and ‘advanced-level’ features and functions. Launching the product with just ‘sufficient’ features to execute your business idea is what the MVP development process requires.
Say, for example, launching a simple web or mobile app for dating with ‘only necessary feature’ like-
| Product | MVP Version | Full Version |
| Dating App | LoginMinimalistic Profile creation with-Name2-3 PhotosDate of BirthLanguageSex Preference andLocationAI-driven match-making based on locations and preferencesIn-app chatting | Login Detailed Profile Creation with-NameSexPhoto AlbumLanguages KnownReligionPreferencesLocationLocation PreferencesOrientationSelf TraitsPreferred TraitsHobbiesAI-driven match-making with an insightful quiz In-app callingIn-app chatting And whatnot! |
Super Smooth App Performance
Since MVP apps have limited functionalities and animations, they are lighter for a device. A mobile app, website, or software which is lightweight to download and install is easier to optimise.
Also, lightweight applications have faster load times and thus they offer super smooth performance. Thus, MVP products elevate the user experience with top-notch performance.
Low Maintenance Cost
Even the maintenance of a lightweight software application is light on the pockets. So, overall, with an MVP app, you kill two birds with one stone.
At one hand, you streamline the cost, on the other hand, you get an opportunity to improve and update the product based on user feedback.
KPIs That Indicate It’s Time To Scale Up the MVP
Remember, your job does not end with the launch of the MVP. Rather, it begins after the launch. You need to monitor the progress and gather feedback from the users.
So, How to know that its time to scale up the MVP? The following Key Performance Indicators (KPIs) can show a clear picture:
#1 No. of Downloads (or Visitors in Case of Web)
The number of app downloads for MVP apps and the number of visitors (or the traffic) for an MVP website are clear metrics that indicate a product is doing well. So, if over time, you see a steady growth in this metric, start planning to scale up.
#2 Engagement
User sessions and time spent on the product show how engaging a product is for the users. Check the average time spent on your MVP app or website. If the number is good, it indicates, your product is doing well as it is engaging the users.
#3 Retention & Daily Active Users
However, engagement and high numbers only on day 1 are not worth consideration. Not even a 7-day tracking is enough. At least give your product a month, and preferably a quarter. See how consistent the users are and check the retention rate by tracking daily active users.
#4 Conversion Rates
Certainly, every mobile app or website tends to ‘sell something’. It might be a product or a service. So, track the conversion and monitor if the number of buyers or subscribers to your products and services is growing. If the growth is steady, it’s time to scale up.
Excluding, social media apps like Instagram and video sharing apps like YouTube, offer free content to the users and in return, they ‘advertise’ products and services. This way, they ‘sell’ other products and services.
Conversion, for social media apps, is not to acquire consumers for advertised products. Rather, engagement and retention are their core KPI.
#5 Churn Rate
Churn rate plays the most vital role in understanding if the product is doing well and whether to scale up. By churn rate, we mean the number of users who stop using your product after a specific period of time.
Higher churn rates indicate that the product is failing to deliver enough value for the customers (however, it is solving some problem for them). Therefore, the churn rate must be much lower.
Remember that the churn rate must not exceed 5-7%. If the churn rate exceeds 10%, consider it a moderate risk; if it exceeds 15%, consider it a high risk.
#6 Feature Adoption Rate
Even an MVP product has a couple of features and functions. Track the engagement of users with all the features and filter what is doing great and what is doing the worst.
Gradually, as you launch new features, check adoption rates for each of them. Adoption rate will make the picture clear for you whether to keep particular features or update with something new.
#7 And Of Course, the Revenues!
Last but not least, of course, the ‘revenue’ is the ultimate KPI that every business measures. If your MVP is generating revenue as expected, then certainly you’re doing well. If not, try better marketing strategies, or, based on user feedback, improve the product.
But How To Measure All These KPIs?
Certainly, no one can go to the doorstep of every user and ask for data. So, here data analytics and in-app survey tools come into the picture. You can utilise the following tools for KPI measurement and direct user feedback collection-
#1 Firebase (By Google)
- Best for an MVP app development case, Google Firebase is an analytical tool that helps you measure-
- App Downloads
- Feature Adoption
- Session Duration
- App Crash Reports
- Firebase can give a broad picture of your overall app’s performance and people’s enthusiasm towards your app.
#2 Mixpanel
- If you are having a Web app along with a mobile app, then Mixpanel is a better solution. It will help you measure-
- Engagement
- Feature Adoption
- Conversions and also
- Churn Rate
#3 Google Analytics 4 (GA4)
- If your MVP is only a web app, then GA4 is the best solution for you. It will help you monitor-
- Website Traffic (number of visitors)
- Traffic sources & location
- Average time spent on the site
- Conversion Rates
- For a basic MVP web app, GA4 is just enough.
#3 Hotjar
- Numbers are cool, but direct customer feedback is pure gold for the MVP product owners.
- Utilise Hotjar to collect user feedback.
- Hotjar allows you to hold in-app surveys and feedback polls
Utilising the tools above, you can monitor the progress of your MVP like a pro. During the MVP phase, analytics is more important than product development. So, analytics is something you can’t skip.
Ready for Your First MVP? Let’s Begin!
Feeling ready to start your digital business with an MVP website or app? Let’s begin today by sharing your app or website ideation with us. Ezulix is a decade-old custom software development business providing tailored and on-demand software solutions to businesses. We have already delivered 500+ unique mobile apps and websites to startups, SMEs, and global brands.
MVP development services are our USP and we craft highly scalable MVPs on your demand. Next could be you! Enliven your imagination and encash your digital dream at low risk and moderate investment with MVP development. Our team will guide you to its best.
