In this scenario, you have an idea for a product. You deploy a product with minimal development and manufacturing costs. Some early adopters and a select group of test customers will then provide you with feedback. You use this feedback to help adjust and further develop the product. In the illustration, there is a scooter. What can we learn from the feedback related to this change to the product?
- The customers accepted the basic idea (i.e. a means of transportation with wheels).
- Some of them felt unsafe on the skateboard.
- Some had difficulty with steering and braking.
- By adding a basic handlebar with a handbrake, you improve the safety, comfort and stability of your product.
In the subsequent development stages, you improve your product’s design. Customers can travel faster and with less effort on a bicycle than on a skateboard, since they pedal and transfer this energy to the wheels via the gears. The motorcycle is even faster and more comfortable, as the riders themselves no longer have to use any of their own energy to accelerate. A new feature is added to increase comfort: the seat.
The feedback loop supports the basic idea that "customers want to travel quickly and safely”. This is why you improve the product’s propulsion in every new version. The vehicle’s speed does not rely on how many wheels it has. The motorcycle satisfies the basic idea–it is fast and comfortable. The smiley underneath it represents satisfied users. Thanks to your test customers, you have identified additional unique selling points. After all, anyone who wants to impress the market as a company needs to deliver more than just a working product.
In the illustration, the last image you see is a car. The green car (in the illustration showing the incorrect approach) meets customer needs for speed and safety. It also offers enough space to seat several people. The pink car (in the illustration for the correct approach) meets the same criteria.
Not all differences could be represented in the illustration: Your customers wanted more speed. That means you have to make sure to have an aerodynamic design and install a turbocharger. Your feedback shows that your customers want more space and increased safety, but they do not want to lose out on the feeling of freedom that they get when on a motorcycle. So, you stabilize the vehicle by giving it four wheels. Additionally, a car provides more space for passengers or luggage than a motorcycle. Customers can leave the top down to enjoy the summer weather. Since a product’s esthetics and individual design is important to your regular customers, you launch a product with a selection of several different finishes and high-quality fittings. The result:
- Test customers have developed a relationship with the brand.
- Customer feedback provides data which you can use to develop new ideas for the product.
- The insight gained from this data can help you decide whether to keep or discard a basic idea.
- People want something new but not so different from what they know that it seems strange.
- Therefore, making many small changes throughout the development process increases customers’ willingness to embrace innovations in the subsequent iterations.
- The Minimum Viable Product requires fewer resources. Making smaller changes is less financially risky. Customers are more likely to accept gradual increases in price than large spikes.