Unlocking Success with MVP Strategies: The Power of Concierge, Wizard of Oz, and Niche MVPs
As many are already familiar with, agility and adaptability are crucial for success in the fast-paced world of product development. Years ago, a revolutionary notion about MVP (Minimum Viable Product) was proposed by Frank Robinson. Since then, it has transformed how startups and businesses bring their ideas to life.
However, when it comes to building one, a lot of people are still confused, frustrated, and lacking the confidence to deliver an MVP that is satisfactory enough. Here are some strategies to help. But before we delve into that, do note down the core concept of MVP:
The purpose is to present your proof-of-business as fast as possible.
That is to say — an MVP shall enable you to test your idea, get insightful feedback, and iterate on your product without investing a significant amount of money upfront.
Keep that in mind, and we shall move on to the 3 MVP strategies!
1. The Concierge MVP: Simplify the Product by Replacing Automated Components with Humans
Imagine you have a groundbreaking idea for a product, but building the complete automated solution seems daunting or resource-intensive. That’s where the Concierge MVP comes into play. Instead of investing heavily in automation, you provide a manual, high-touch experience to your initial users. Essentially, you replace complex algorithms or automated processes with real human interaction.
For instance, if you’re developing a personalized travel recommendation app, you might start by having human travel experts curate and suggest itineraries to your users. This approach allows you to validate the demand and gather user preferences firsthand, all while keeping development costs low. As you learn from user interactions and preferences, you can gradually automate the process, scaling your product with confidence.
2. The Wizard of Oz MVP: Wrap a Technical Shell Around a Human Who’s Actually Powering the Back-End
In the world of MVP strategies, the Wizard of Oz MVP is akin to pulling off a magical trick. It involves presenting users with a seemingly fully automated product while having a human “wizard” operating behind the scenes. The users interact with the front-end, believing it’s entirely automated, while the product’s functionality is, in fact, powered manually.
Consider a chatbot for customer support. Instead of developing a complex AI chatbot initially, you could have customer support representatives handle the inquiries behind the scenes. Users receive quick responses and excellent service, unaware that there’s a human component involved. This strategy allows you to test the concept’s viability and refine user experience before investing in AI development.
3. The Niche MVP: Focus Geographically or by Customer Segment
In some cases, casting a wide net isn’t the most effective strategy. The Niche MVP approach involves narrowing your focus, either geographically or by customer segment, to hone in on a specific subset of your target market.
Take Airbnb, for example. When Airbnb first started, it focused on a niche market, renting air mattresses in San Francisco. By catering to a specific geographic area first, Airbnb was able to fine-tune its service, gather valuable feedback, and expand gradually. This allowed them to develop a tailored solution that addressed the unique needs of their initial customers.
In conclusion, MVP strategies like the Concierge MVP, Wizard of Oz MVP, and Niche MVP provide valuable approaches to product development. They empower startups and businesses to validate their ideas efficiently, learn from real user interactions, and make informed decisions before committing extensive resources.
