How to Develop Your Product By Iterative Cycle of “Build-Measure-Learn”?
What happens after defining your target customer — Part II
Have you ever wondered how successful startups bring innovative products to life? The last blog discussed, creating a solution for your validated problem. This blog post dives into a core concept — the Build-Measure-Learn cycle — used by many startups to validate ideas, develop products, and achieve success.
Why the Traditional Approach Often Fails?
The traditional product development approach often involves lengthy development cycles, with features built based on assumptions. Unfortunately, the final product may not resonate with the target audience.
The Modern Startup Approach: Build-Measure-Learn
The Build-Measure-Learn cycle, championed by Eric Ries in The Lean Startup, offers a more agile and data-driven alternative. Here’s a breakdown of the three key steps:
- Build a Minimum Viable Product (MVP) An MVP is a basic version of your product with just enough features to demonstrate value to potential customers. Think of it as a first draft — simple and focused on core functionalities.
- Measure the MVP Once your MVP is built, it’s time to get it in front of potential customers. Collect feedback through various methods including user testing and interviews. This feedback will guide the next steps.
- Learn and Iterate Analyze the data and feedback from the MVP testing. Use these insights to improve your product. This may involve adding new features, removing unnecessary ones, or even pivoting your entire concept based on what you learn.
Real-world Example: The Wizard of Oz MVP
Imagine a company that wants to launch an online shoe store (Zappos anyone?). Instead of building a complex website and supply chain upfront, they might start with a “Wizard of Oz” MVP. This MVP could be a simple storefront where customers can place orders. However, behind the scenes, a person might fulfill the orders manually by purchasing the shoes from a physical store.
This approach allows the company to validate the core concept (online shoe shopping) without a large upfront investment. If customer feedback is positive, they can then invest in building a complete e-commerce platform and supply chain.
Building a Better MVP: Minimum Lovable Product?
The concept of a “Minimum Lovable Product” (MLP) is gaining traction, especially in competitive landscapes. An MLP goes beyond just core functionality and aims to create a product that users love and want to come back to.
Setting Priorities for Your Startup
As a startup founder, your time is valuable. Here are two key areas to focus on:
- Talking to Customers: Gather real-world feedback through user interviews and testing.
- Building and Refining Your Product: Use the feedback to iterate and improve your product based on customer needs.
Creating Customer Habits
Many successful products create new user habits. Nir Eyal’s “Hook Model” explains how this works. The model outlines a cycle that encourages users to take action and come back for more.
For example, a social media app might use a notification sound to trigger an action (checking the app), followed by a reward (seeing a friend’s post) and variable rewards (new content) to keep users engaged.
Building habits can be essential for various products, from social media to sustainable clothing options.
Key Insights from Entrepreneurs
- Elias Aalto (Wolt): Validate early. Focus on core functionalities and address a validated need. Don’t be afraid of using “smoke and mirrors” to create a great user experience initially to get user feedback and traction. You can address technical debt later as you scale.
- Jesse Tran (Rens Original): Be flexible and iterate on your ideas. Don’t be afraid to pivot as you learn more. In hardware startups, focus on creating high-quality prototypes to avoid damaging your brand reputation. Build strong relationships with manufacturing partners and understand the industry.
Conclusion
The Build-Measure-Learn cycle is a powerful framework for startups to develop products that customers love. By focusing on building a Minimum Viable Product, gathering user feedback, and iterating based on data, startups can increase their chances of success.
Curious About What's Next? Then Stay tuned for the next blog on Reaching Customer, which I’ll publish on April 9, 2024.
PS: Have you used the Build-Measure-Learn cycle in your projects? Share your experiences or questions about developing and launching new products in the comments below!
This is Nibesh Khadka. Thank you for reading. This blog was originally published in The Startup Blueprint.
Disclaimer: This post condenses the chapter “The Build-Measure-Learn Cycle”, of the free course “Starting UP” offered by MinnaLearn. Consider enrolling to the course.
