How to measure the success of an MVP developed through consulting services
To truly measure MVP's success, you need to let your customers' perspective guide you. Involve users, test, involve the right people in development and testing, and create a plan for supporting a successful launch.
Do you value your customers? Certainly, you do. That is why your products and solutions focus on what your audience would need. And that is why building a minimum viable product (MVP) is a choice for many growing businesses.
MVP providers usually have a team of consultants that would understand your product requirements and plan the most feasible structure design for it. This involves a business development team, designers, and developers. Later, the quality and delivery team will enter the sphere to ensure the correct implementation of the application. But is that the point where you and the MVP development agency should part their ways?
There is one more crucial thing to do – measure the success of an MVP.
Sharing the responsibility of MVP’s success with your development partner
Most of the MVP development partners are determined to provide end-to-end solutions for their clients, including the measuring of the success of MVP, in the target market.
This approach is convenient to both the parties; clients get to understand the metrics that should be looked upon to tag it as a successful product. Whereas, the development agency gets a minimum quality bar people are expecting of the same product, thus getting better idea of the next iterations.
This is a recipe for progression.
- It ensures that everyone is on the same page from the outset and that the final product is in line with what you had envisioned.
- It can help to foster a sense of collaboration and partnership when your development partner feels invested in the success of your project.
- It also ensures accountability on both sides, prevents finger-pointing and affirms that everyone is working together to resolve any issues that arise.
To share responsibility with your development partner, it is essential to establish clear communication channels, set expectations for regular check-ins and updates on the project's progress, as well as clearly communicating your goals and expectations for the MVP.
Let’s understand the major success indicators and how MVP consulting services can prove to be a boon.
MVP consultants define metrics for the success of an MVP
Customers will use your product and tell you if it’s successful or not. It is also their feedback that will help you improve, which in turn makes them more likely to purchase from you again in future.
When measuring the success of an MVP, it's essential to track certain metrics to gain insights into customer behavior, user engagement, and overall business performance. Here are some analytics to consider while analyzing the success of your MVP:
- User Engagement Metrics
User engagement is a critical aspect of any MVP. Metrics like the number of active users, session duration, frequency of use, and retention rate can help you gauge the level of user engagement with your MVP.
It is essential to track user behavior in the early stages of the MVP and gather data on what features or functionalities they are engaging with the most. This can help you focus on improving those areas and also identify features that are not being utilized.
2. Conversion Metrics
The primary objective of an MVP is to validate your product or service concept and generate revenue. Therefore, conversion metrics such as the number of sign-ups, the number of purchases, and the conversion rate are crucial to analyze the success of your MVP.
Early stage tracking for metrics also helps in understanding the impact of changes you make to the product or service.
3. Customer Acquisition Cost (CAC)
CAC is the total cost of acquiring a new customer. It includes marketing and sales expenses like advertising, events, and salaries.
CAC is an essential metric as it helps you to understand if your MVP is generating revenue that is enough to cover the cost of acquiring new customers. If the CAC is higher than the revenue generated, it indicates that you need to adjust your marketing and sales strategy.
4. Customer Lifetime Value (CLTV)
CLTV is the total revenue generated by a customer over the duration of their relationship with your business. It's an essential metric as it helps you understand the long-term value of a customer to your business.
To calculate CLTV, you need to multiply the average purchase value by the number of purchases per year and then multiply that by the average customer lifespan.
5. Net Promoter Score (NPS):
NPS measures how likely customers are to recommend your product or service to others. It's a useful metric to track as it gives you an insight into how satisfied your customers are with your MVP.
NPS is calculated by subtracting the percentage of detractors (customers who would not recommend your product) from the percentage of promoters (customers who would recommend your product).
6. Churn Rate
Churn rate measures the number of customers who stop using your MVP over a specific period. Tracking this metrics will help you understand the reasons why customers leave your MVP. Is it due to the lack of a specific feature or functionality or poor user experience.
By analyzing the reasons for churn, you can make changes to your MVP to retain customers.
7. User Feedback
User feedback is one of the most valuable sources of information to measure the success of your MVP.
Collecting feedback from users through surveys, interviews, and feedback forms can help you understand what users think of your product, what they like, and what they don't like. This feedback can help you make improvements to your MVP and provide a better user experience.
Measuring the success of an MVP is crucial to understand how well it is meeting customer needs and generating revenue for your business. By tracking these analytics, you can gain insights into user behavior, identify areas for improvement, and make changes to your MVP to ensure its success in the long run.
“Rights” that can never go “wrong”
It is important for a consulting firm to have an active role in both development and testing, so that it can ensure that your products are being developed effectively and accurately tested before being released into the market.
Involve the right people in development and testing.
- Make sure you have the right people on your team.
- Make sure you have the right people in the right roles.
- Make sure you have the right people in the right positions.
A good consultant will be able to provide insight into what resources are needed by each department during each phase of product development; this could include:
- How many developers should we hire?
- How much money do they cost per day/week?
- What skills do they need?
- Do we need any additional software development tools such as Jira or Trello that aren't included with our existing toolset but would benefit us during testing stages because they allow us to track tasks more efficiently without having them constantly interrupting other workflows.
Create a right plan for supporting a successful launch.
Once you've successfully launched your MVP, it is time to create a plan for supporting a successful launch. Your consulting partner has experience of launching products similar to yours and has done so with success before.
Build the right product, step by step.
Building your MVP is a process, not an event. You need to make sure that you're building it as you go.
You should build your MVP in stages so that it's easy to understand and use by anyone who has just started developing their own product but doesn't have any experience with software development.
You should also try to build the simplest possible version of what could be done with your service at each stage, so if there are any problems or changes in opinion later then they can easily be addressed without having built everything from scratch.
Make sure you have right & trustworthy partners to help you along the way.
In your quest to find the consulting partner meant for you, ask yourself questions like:
- What kind of experience do they have in consulting?
- What skills do they have that could be useful in my project?
- How long have they been working with similar projects (or clients)?
MVP consulting services after the product is built to put out the product in the market, in the right manner, with right metrics, giving the right picture of its acceptance and getting the right feedback from its target audience.
Collaborate with our consultants to understand your journey towards a successful MVP launch.