MVPs can be basic and need not be perfect. They’re built fast and to test hypotheses. However, even MVPs require prior market analysis. Read on to find out why.
One of the main reasons why many innovations fail to please customers is, “The market doesn’t need their innovations”. All new ideas start with some assumptions. These assumptions guide the makers and give them the confidence to proceed. Though the makers should believe in themselves, they should assess market conditions and how fast they change, and build their assumptions based on their assessments.
MVPs are for testing several hypotheses, like a new business idea, a new technology, a new architectural pattern, or a new but simpler product. Quite often these hypotheses are risky and are tested as a part of MVP. Like any new idea, product innovations are inherently risky. Hence, it is important to do a market analysis to develop a reasonably sound hypothesis, and test and refine the product as per the MVP’s acceptance and feedback from customers.
Market analysis is especially important when the product should overcome strong competition. But if the MVP pertains to a totally new idea of a product or functionality that doesn’t exist in the market yet, what should the market analysis include? Well, the analysis, I think, should include how the product or features impact the lives of customers. If you’re sure of a positive impact, you can have a fairly successful MVP. And with an assuring MVP, you can pave the way for the success of subsequent versions.
Market analysis for an MVP shouldn’t take years. Since an MVP itself should be built fast, the market analysis too should be conducted fast.
Here are 5 ways market analysis helps your MVP succeed.
- MVPs test several hypotheses and translate market analysis into validated learning. This knowledge is essential to strategize for subsequent versions of the product.
- An MVPs success depends on the feedback from early users. But some struggle to find early users. If no one’s willing to use the product, it indicates that the makers haven’t built the product for customers or the market. Market analysis helps them reach the first users.
- Some skip research to cut down prices. But it is a terrible mistake. Market research is essential for any product, including an MVP. A preliminary market analysis saves the makers from deep losses.
- Markets analysis connects end users to your product. These users are closely associated with the progress of the product. If they’re satisfied with the product, they promote it and contribute to the product’s success. Market analysis helps you estimate and assess the value generated by your product.
- Market Analysis helps you make better product decisions. It helps makers understand stakeholders and competitors better. Finally, the analysis tells you what metrics can be used to measure the MVP’s success.
You don’t need to spend a fortune or years to complete the market analysis. MVPs should be built fast and need not be perfect, the same applies to the market analysis that precedes MVP engineering. Some believe that an MVP should be built in-house and shouldn’t be offshored. Such assumptions are wrong and may delay the release of MVP. A strategic collaboration with a technical expert can complement your domain knowledge and help you build an MVP in the fastest way possible.
coMakeIT has been helping numerous companies across the globe and in diverse domains translate their ideas into profitable and successful software products. Do you want to start with an MVP and build a successful product?