Startup founders and various business owners choose to develop a Minimum Viable Product (MVP) to test the feasibility of their ideas. However, many get too caught up with what to develop and how to do it, neglecting the ways to assess the success of the early product versions once they’re released 📊
In essence, evaluating MVP success is integral if you want to learn and iterate the product based on facts. Such an approach is the foundation of the lean methodology, which helps you:
- understand if you’re on the right track;
- identify any gaps or opportunities that need to be addressed;
- determine the next steps.
Importantly, it is crucial to establish clear project objectives and pick out the right metrics and key performance indicators (KPIs) that truly align with the product’s purpose before you begin development. By having consise and predefined targets, goals, and metrics that are relevant and can bring real value, you get to avoid many costly mistakes and achieve better-aligned processes.
How Do you Evaluate MVP Success?
1️⃣ The first option regards qualitative sources. It implies collecting and analyzing user feedback to gain insights into whether the MVP meets user needs and expectations. Generally, such testimonials can be obtained thanks to user interviews, surveys, one-on-one calls, polls, or focus groups. The feedback may reveal areas for improvement and help teams prioritize their future development efforts.
2️⃣ What’s for numerical or quantitative sources, multiple metrics can serve as valuable indicators. In reality, the specific set will differ for each product or project. Usually, teams monitor such metrics as the customer acquisition cost, bounce rate, monthly active users, churn rate, and others. Moreover, financial metrics like ROI are very important, too.
Certainly, MVP success assessment isn’t a one-time process. You have to continuously gather data and feedback to get insights into the product’s viability and its potential for future growth. This may ensure long-term success and help you make informed decisions about how to move forward. Browse the complete guide to find a list of the must-track metrics, find tips, and instructions 👇