Putting the Customer back into MVPs
Over the summer months I noticed a lot of startup executives and engineers were super-stressing over the “product” component in minimum viable products (MVPs), and not emphasizing strongly enough the “silent C” in the equation: Customer.
In his seminal 2008 book The Lean Startup, Eric Ries championed the MVP concept in the technology world. An MVP is an unfinished product with a minimum feature set that validates the product concept, especially with early-adopter customers in the startup’s target market. The MVP defines the “product-market fit” based on customer requirements.
Effective MVPs necessitate multiple pre-launch product releases—often to different customers. MVPs also require that software engineers understand which features and functionality produce high quality results that appeal to customers. This is a critical measurable that startups need to attain.
Beyond the teachings of Lean Startup, current thinking dictates that MVPs form the first stage of product led growth (PLG). Through MVP and PLGs, a startup builds rapport with customers and introduces them to specific processes, both of which result in on-going learning. This sequence is all-important for the best User (yes, with a capital “U”) experience. For example, this combination could lead the startup to develop additional use cases, leading to great market acceptance and sales expansion over time.
Unfortunately, startups today are de-emphasizing the role of the customer in MVPs, and delaying or reducing putting into place PLG processes. There are many reasons for this, including:
The new batch of founders, startup CEOs, and engineering leaders doesn’t emphasize getting customer feedback, and focus instead on the product and the sales ramp-up.
A number of MVPs have morphed into paid proof-of-concept releases (POCs), or are converted into paid subscriptions due to pressure to produce ARR for VC funding.
A lot of startups try to save money by not hiring a product manager for the early-stage seed rounds; this can lead to a lack of experience, focus, and expertise, resulting in a failure to properly engage customers.
Some product managers in later stage technology companies don’t fully engage customers in PLG and product development processes.
Agile software development processes often fail to factor in customer feedback and identified requirements.
Focusing first on data quality and AI algorithm development, while customer input is given a lower priority.
The emphasis on product does not always leave room in vendor-customer meetings to capture important information about product-market positioning.
Making the necessary linkages between the MVP and PLG phases of product development, use, and upgrades, is given short shrift.
It’s harder to get customers—especially enterprise-sized—to name their requirements and test the product, first during COVID and now during the current recessionary period.
Of all the initiatives that we could undertake to bring this back to the correct place, I won’t go so far as to coin the term “CMVP,” but that’s the spirit of my argument.
The best solution for both startups and MVP/PLG sites involves outlining and implementing an MVP plan within startups, and then developing and deploying an MVP agreement with customers. Key to this internal plan is to identify and highlight the reasons for MVP with respect to customers. An MVP plan only works with customers by setting expectations early and often, identifying for customers the startup’s account manager and technical resources, and ensuring you have the right contacts on the customer side. Hiring a full-time or contracted product manager should also be a priority.
Understandably, this process requires the realignment of priorities inside startups. CEOs, CTOs, and engineering executives must re-commit to the role of the customers in the MVP and PLG process. The downstream benefits are undeniable, and undertaking this process will produce great outcomes extending to marketing, product management, QA, and other engineering roles. In the end, a serious MVP/PLG process will result in better products and happier customers.