Minimum Viable Product (Part 2)
How can you tell if a product idea will work out? Our Minimum Viable Product (Part 2) presentation, which can be downloaded and customized to your product needs, provides guidance from the initial triage of tasks, to the development and execution of the MVP. More importantly, it includes North Star metrics that would ultimately determine if the MVP is successful.
The jobs-to-be-done framework is instrumental to understand customer pain points and guide the brainstorming process. JTBD defines and organizes customer needs given each user type's context and circumstances. The example here shows three tracks for three user types whose goals and JTBD may differ.
This is useful for products who have two or more different customer types, such as a marketplace app like Airbnb where there are hosts and travelers who both need to be serviced. The layout takes into account the evolution of a product, from initial inception, to earliest testable product and its multiple iterations, to the MVP, and finally, to a more refined product loved by the crowd.
Next up, it's time to define the scope of your MVP to avoid scope-creeping. This slide clearly defines features for the MVP launch based on user stories. The top row represents the critical user flow. This is the journey that users must take in order to get to their jobs-to-be-done. Without this user flow, there would be no functional product. The higher on the chart it is, the more important the feature is. From this list, draw the MVP line for features critical for the product to be functional. Everything below that should be saved for the future.
Traditionally product managers have used a standard product canvas as an MVP blueprint. An alternate visualization is the MVP tree, which moves beyond features to highlight the whole package of how to market an MVP.
The MVP tree typically includes the target customers to market to, the channels to use and how it will be delivered, any post-sales CRM strategy, and everything necessary for a well-planned product launch.
Concept testing report
Now, it's time to develop a plan to validate whether the MVP works or not. This concept testing report slide highlights findings based on results from interview participants you recruit to get their feedback on the initial iteration. In this example, there are three contending concepts that are used to test the waters.
Based on responses and reactions from interview participants, it seems that Concept 3 performed well, while Concept 2 wasn't so popular. Feel free to add or delete the bar graphs based on how many concepts your team is considering. On the left, summarize the insights that can be distilled from the test results and share them with stakeholders as recommendations for the next steps.
With MVPs, it's easy to make the mistake of only interpreting the test results that seem to suggest a successful launch. In order to prevent that bias, make sure to define the exact success metrics before conducting any tests.
These North Star metrics will determine the validation outcome. Even if other metrics appear promising, they shouldn't overwrite the North Star numbers. The above slide highlights the validation metrics that the product team has agreed upon ahead of time, with space at the bottom to track improvement against previous iterations.
Adoption and maturity
Product adoption curve
When it comes to the execution and development of any product, this adoption curve allows the product team to understand where exactly their product is in the market. Are we still in the early-stage market, or have we passed the chasm to the mainstream market? Is it growing upward into maturity, or declining into oblivion? Enter data you've accomplished on the left-hand column to show progress to date.
The MVP cycle follows an agile development process, characterized by rapid iteration. This slide helps plot where you are in the development process, ensuring the whole team is on the same page. Because with all the back and forth, things can get a little convoluted.
According to design thinking, start by defining a clear user need, then research, observe, and prioritize insights. After this generative phase, narrow down ideas into testable hypotheses and potential solutions. Continue to experiment and refine as new learnings enter the picture.
Customer churn analysis
After the MVP has launched, use a customer churn analysis table to groups users into cohorts and track retention. For example, on March 22nd, 113 users joined, and by the end of the first day, 98% remained. By the fifth day, approximately 20% remained.
Typically, the more time that passes, more users are lost. But up to a point, these churn rates should stabilize. Otherwise, it might be time to rethink the product and go back to the drawing board.