Let me ask you something: when you're running a startup, what keeps you up at night? 🌙
Is it the constant pressure to ship new features for your mobile app? The looming threat of competitors outpacing you? Or the ever-present challenge of stretching your software development budget to its limits?
Well, what if I told you that one of the most critical decisions you'll make as a founder – choosing between an EVP and an MVP – could help you sleep a little easier? 😴
Now, before you start Googling "what the heck is an EVP," let me break it down for you. An exceptional viable product (EVP) is all about coming out of the gate with a mobile app that absolutely nails it in terms of features, design, and user experience.
On the other hand, a minimum viable product (MVP) is a stripped-down version of your app that you release quickly to start gathering feedback and validating your hypotheses.
Choosing between an EVP and an MVP is a high-stakes decision that can have a profound impact on your startup's trajectory. It influences everything from your development timeline and budget to your ability to iterate based on user feedback.
And let's be real, when you're running a startup, you can't afford to get this decision wrong. Your reputation, your runway, and your sanity are all on the line.
In this post, we'll dive into the pros and cons of EVP vs MVP, share real-world examples of startups that have navigated this choice successfully (and not so successfully), and arm you with the insights you need to make the right call for your venture.
So grab a coffee (or something stronger), and let's figure out how to build the mobile app of your dreams without losing your mind (or your shirt) in the process. 🚀
Defining MVP and EVP for Startups
Understanding the Minimum Viable Product Concept
The concept of the minimum viable product, popularized by Eric Ries in his book "The Lean Startup," is all about creating a basic version of your product with just enough features to satisfy early customers and gather valuable feedback.
The goal of an MVP is to test your core hypothesis and validate demand for your product with minimal investment of time and resources. By starting small and iterating based on user feedback, you can reduce risk and avoid wasting effort on features that customers don't actually want or need.
Exploring the Exceptional Viable Product Concept
In contrast, an exceptional viable product (EVP) is all about creating a truly standout offering that goes above and beyond what's currently available in the market. The focus is on delivering superior value and an unparalleled customer experience from day one.
With an EVP, you're not just aiming to satisfy customers - you're striving to delight them and create a loyal fan base that will evangelize your brand. This requires a deep understanding of your target audience and a relentless focus on innovation and quality.
Key Differences Between MVP and EVP
Approach to Product Development
One of the main differences between MVP and EVP lies in the approach to product development. With an MVP, the emphasis is on speed and agility - getting a basic version of your product out the door quickly so you can start gathering feedback and iterating.
This often means starting with a stripped-down feature set and a no-frills user experience. The goal is to validate your core value proposition as quickly and cheaply as possible, even if the initial version of your product is a bit rough around the edges.
In contrast, an EVP requires a more meticulous and deliberate approach. The focus is on creating a polished and feature-rich product that truly stands out in the market. This often means investing more time and resources upfront in research, design, and development.
Target Market Focus
Another key difference between MVP and EVP is the focus on the target market. With an MVP, the goal is often to appeal to early adopters and innovators - the small segment of the market that's most eager to try new things and provide feedback.
These customers are often more forgiving of rough edges and missing features, as long as the core value proposition is compelling. They're also more likely to provide detailed feedback and suggestions for improvement.
With an EVP, the focus is on appealing to a broader swath of the market from the outset. The goal is to create a product that not only appeals to early adopters, but also has mainstream appeal and can drive widespread adoption.
This requires a deep understanding of the needs and preferences of your target customers, as well as a focus on creating a seamless and intuitive user experience that meets or exceeds expectations.
Metrics for Success
Finally, the metrics for success differ between MVP and EVP approaches. With an MVP, the primary goal is often to validate demand and gather feedback - metrics like user engagement, retention, and qualitative feedback are key.
The focus is on learning and iterating quickly, rather than hitting specific revenue or growth targets right out of the gate. Success is measured by how quickly you can improve the product based on user insights.
With an EVP, the bar for success is higher from the start. Metrics like customer satisfaction, net promoter score, and market share are critical, as the goal is to create a product that truly delights customers and stands out in a competitive landscape.
Revenue and growth targets are also often more aggressive with an EVP, as the upfront investment is higher and the expectation is to capture a significant share of the market.
Advantages of Utilizing an MVP for Startups
Benefits of Rapid Testing
One of the biggest advantages of an MVP approach is the ability to rapidly test and validate your assumptions about the market. By getting a basic version of your product in front of users quickly, you can start gathering real-world data and feedback that can inform your product roadmap.
This rapid feedback loop is especially valuable in the early stages of a startup, when you're still trying to find product-market fit and identify your most promising growth opportunities. By iterating quickly based on user insights, you can hone in on the features and functionality that matter most to your target audience.
Cost-Effectiveness in Early Stages
Another key advantage of an MVP is cost-effectiveness. By focusing on a stripped-down feature set and a basic user experience, you can minimize your upfront investment and reduce your risk exposure.
This is particularly important for early-stage startups that may have limited funding and resources. By keeping costs low and validating demand quickly, you can extend your runway and give yourself more time to refine your product and business model.
Learning Through User Interaction
Perhaps the most valuable aspect of an MVP approach is the opportunity to learn through direct user interaction. By putting your product in the hands of real users and observing how they engage with it, you can gain invaluable insights into their needs, preferences, and pain points.
This direct feedback can help you identify areas for improvement and prioritize the features and functionality that will have the biggest impact on user satisfaction and retention. It can also help you uncover new use cases and market opportunities that you may not have considered before.
Advantages of Implementing an EVP Strategy
Higher Customer Satisfaction Levels
One of the biggest advantages of an EVP approach is the potential for higher customer satisfaction right out of the gate. By focusing on creating a truly exceptional product that goes above and beyond customer expectations, you can create a loyal fan base that will evangelize your brand.
This is especially valuable in crowded and competitive markets, where standing out from the crowd is essential for success. By delivering a superior user experience and unique value proposition, you can differentiate yourself and capture a larger share of the market.
Stronger Market Positioning
Another advantage of an EVP is the ability to establish a stronger market position from the start. By launching with a polished and feature-rich product, you can position yourself as a leader in your space and command a premium price point.
This can be especially valuable for startups targeting enterprise customers or high-end consumers who are willing to pay more for quality and reliability. By establishing yourself as a premium brand from day one, you can create a powerful competitive advantage that can be difficult for rivals to match.
Enhanced Brand Loyalty
Finally, an EVP approach can lead to enhanced brand loyalty and advocacy over time. By consistently delivering exceptional value and experiences to customers, you can create a deep emotional connection that goes beyond mere satisfaction.
This kind of loyalty can be incredibly valuable for startups, as it can lead to higher retention rates, more word-of-mouth referrals, and a more stable revenue stream over time. By investing in an EVP from the start, you can lay the foundation for long-term success and growth.
Steps to Develop an MVP for Your Startup
Identifying Core Features
The first step in developing an MVP is to identify the core features and functionality that are essential for validating your product hypothesis. This means focusing on the "must-haves" rather than the "nice-to-haves" - the features that are absolutely critical for delivering value to your target customers.
To identify these core features, start by defining your target audience and understanding their most pressing needs and pain points. Then, brainstorm potential solutions and prioritize the features that will have the biggest impact on addressing those needs.
Creating a Prototype for User Testing
Once you've identified your core features, the next step is to create a basic prototype that you can use for user testing. This could be as simple as a clickable wireframe or a basic functional prototype that simulates the core user experience.
The goal at this stage is not to create a fully polished product, but rather to create something that's good enough to elicit meaningful feedback from users. Focus on creating a simple and intuitive user interface that allows users to easily accomplish key tasks and provide feedback.
Gathering User Feedback for Refinements
With your prototype in hand, it's time to start gathering user feedback and refining your product based on their insights. This means putting your prototype in front of real users and observing how they interact with it, as well as soliciting their direct feedback and suggestions for improvement.
Pay close attention to both quantitative data (such as user engagement metrics) and qualitative feedback (such as user comments and suggestions). Use this feedback to identify areas for improvement and prioritize the changes that will have the biggest impact on user satisfaction and retention.
Steps to Build an EVP for Your Startup
Crafting a Unique Value Proposition
The foundation of an exceptional viable product is a unique and compelling value proposition. This means identifying the key ways in which your product stands out from the competition and delivers superior value to your target customers.
To craft a strong value proposition, start by deeply understanding your target market and the alternatives currently available to them. Look for gaps or shortcomings in existing solutions that your product can address in a unique and compelling way.
Then, articulate your value proposition in clear and concise language that speaks directly to the needs and desires of your target customers. Highlight the key benefits and differentiators that make your product the best choice for them.
Identifying Target Demographics
To create an EVP that truly resonates with your target market, you need to have a deep understanding of their demographics, psychographics, and behaviors. This means going beyond basic demographic data to understand their values, motivations, and pain points.
One way to gain this insight is through market research and customer interviews. Talk to potential customers in your target market to understand their needs, preferences, and decision-making criteria. Look for patterns and commonalities that can inform your product design and marketing strategy.
You can also use tools like customer personas and empathy maps to create detailed profiles of your ideal customers. These tools can help you visualize your target audience and create a product that speaks directly to their needs and desires.
Designing a Compelling Offering
With a clear value proposition and target audience in mind, it's time to start designing your exceptional viable product. This means creating a product that not only meets customer needs, but exceeds their expectations in every way possible.
To do this, focus on creating a seamless and intuitive user experience that makes it easy for customers to accomplish their goals. Use design thinking principles to create a product that is both functional and delightful to use.
At the same time, don't neglect the importance of aesthetics and brand identity. Create a visual language and design system that reflects your brand values and resonates with your target audience. Use high-quality materials and finishes to convey a sense of premium quality and attention to detail.
Case Studies: MVP vs EVP in Real-World Startups
Successful MVP Implementation Examples
There are numerous examples of startups that have successfully used an MVP approach to validate demand and iterate quickly. One famous example is Dropbox, which started with a simple video demonstrating the core functionality of its file syncing service.
By gathering feedback from early users and iterating quickly, Dropbox was able to refine its product and build a loyal user base that helped fuel its growth. Today, Dropbox is a publicly traded company with over 600 million users worldwide.
Another example is Airbnb, which started as a simple website allowing users to rent out air mattresses in their homes. By starting small and focusing on a core use case, Airbnb was able to validate demand and gather feedback that helped inform its product roadmap.
Effective EVP Strategies in Action
On the flip side, there are also examples of startups that have successfully used an EVP approach to differentiate themselves in the market. One notable example is Apple, which has long been known for its focus on design and user experience.
By creating products that are not only functional but also beautiful and intuitive to use, Apple has built a loyal fan base that is willing to pay a premium for its products. This focus on exceptional design has helped Apple become one of the most valuable companies in the world.
Another example is Tesla, which has disrupted the automotive industry with its focus on electric vehicles and cutting-edge technology. By creating cars that are not only environmentally friendly but also high-performance and luxurious, Tesla has attracted a devoted following of customers who are passionate about its mission.
Lessons Learned From Real-World Applications
Looking at these real-world examples, there are a few key lessons that startups can learn about the MVP vs EVP debate. First, the right approach depends on the specific context and goals of your startup. An MVP may be the right choice if your primary goal is to validate demand and gather feedback quickly, while an EVP may be better suited for startups looking to establish a premium brand and differentiate themselves in the market.
Second, the key to success with either approach is a deep understanding of your target customers and their needs. Whether you're creating an MVP or an EVP, your product needs to solve a real problem and deliver genuine value to users.
Finally, it's important to remember that the MVP vs EVP debate is not binary - there is a spectrum of approaches in between these two extremes. The key is to find the right balance for your startup based on your specific goals, resources, and market context.
Selecting the Best Option: MVP or EVP for Your Startup
Evaluating Business Goals and Objectives
So, how do you decide whether an MVP or EVP approach is right for your startup? The first step is to clearly define your business goals and objectives. What are you trying to achieve with your product launch, and what metrics will you use to measure success?
If your primary goal is to validate demand and gather feedback quickly, an MVP may be the best choice. This approach allows you to test your assumptions and iterate quickly based on user feedback, without investing too much time or resources upfront.
On the other hand, if your goal is to establish a premium brand and capture a significant share of the market, an EVP may be a better fit. This approach requires a more significant upfront investment, but can help you differentiate yourself and command a higher price point in the market
Assessing Available Resources
Another key factor to consider is your available resources - both in terms of time and budget. An MVP approach can be more cost-effective and faster to launch, as it focuses on delivering a basic product with core functionality.
An EVP, on the other hand, requires a more significant investment of time and resources to create a fully featured and polished product. This approach may be more challenging for startups with limited funding or a short runway.
Considering Market Trends and Customer Preferences
Considering market trends and customer preferences is crucial when selecting between MVP and EVP strategies. Startups must analyze current industry dynamics, user expectations, and competitive landscapes to determine which approach aligns best with market demands. By conducting thorough market research and gathering customer insights, companies can identify whether a basic product with core features (MVP) or a more comprehensive solution (EVP) will resonate better with their target audience. This analysis helps startups make informed decisions about their product development strategy, ensuring they meet user needs effectively while maximizing their potential for success in the market.
By the way, we are Realistack, a product design and MVP development studio that exclusively works with tech startups.
If you want to launch your startup and need help with developing your MVP, don’t hesitate to reach out.
