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MVP Lab
18 June, 2024 • 4 minutes

How Corporations Can Use MVP and Customer Development (CustDev)

The Lean Customer Development approach is easy to apply in startups because small companies have a significant advantage — flexibility. Using the insights gained from CustDev, startups can quickly formulate and test new hypotheses until they find a product formula that the market demands.

But what about corporations? Can they leverage the benefits of the Lean approach? Large companies usually lack the ability to swiftly implement new features; every change in the product must be approved across the management hierarchy. Additionally, releasing an MVP can be risky for the company’s reputation, as users might think the company’s quality has declined.

In this article, we’ll address the main objections corporations have against the MVP approach and share tips on conducting CustDev when developing a product under a well-known brand.

How Corporations Can Use MVP and Customer Development (CustDev)

The Lean Customer Development approach is easy to apply in startups because small companies have a significant advantage — flexibility. Using the insights gained from CustDev, startups can quickly formulate and test new hypotheses until they find a product formula that the market demands.

But what about corporations? Can they leverage the benefits of the Lean approach? Large companies usually lack the ability to swiftly implement new features; every change in the product must be approved across the management hierarchy. Additionally, releasing an MVP can be risky for the company’s reputation, as users might think the company’s quality has declined.

In this article, we’ll address the main objections corporations have against the MVP approach and share tips on conducting CustDev when developing a product under a well-known brand.

Corporations' Objections to MVP

While developing an MVP might seem natural for a startup, for a corporation, it can seem impossible. There are several objections against the MVP approach. Let’s address them:

Our clients are used to high quality. An MVP instead of a finished product will disappoint them and damage our reputation.
An MVP doesn't mean a low-quality product. You can create an MVP with excellent design and thoroughly tested user scenarios. An MVP, like a finished product, provides value to users, albeit a smaller one. Once you’re sure of its value, you can develop the full version. Otherwise, you’ll be glad you didn’t spend the entire budget.

Our clients use different operating systems. We need to develop the application for all platforms immediately.
Start by developing for one platform, such as iOS. Once the hypothesis is confirmed, you can develop versions for other platforms. Testing functionality on a single OS is standard practice, even for giants like Facebook.

Millions of users use our product. We must ensure it can handle such a load.
Developing high-load systems is a challenging engineering task that takes a lot of time. Yes, it’s essential to consider this in your service architecture, but only after the idea is validated. Developing a high-load system from the start risks wasting significant money and time.

Users need all the features immediately.
This isn’t true. In many cases, people buy services for one or two features they need. You can prioritize functionality based on usage frequency and criticality. Implement the necessary features for the primary user scenario in the MVP and add others as the project develops.

Corporations' Objections to MVP

While developing an MVP might seem natural for a startup, for a corporation, it can seem impossible. There are several objections against the MVP approach. Let’s address them:

Our clients are used to high quality. An MVP instead of a finished product will disappoint them and damage our reputation.
An MVP doesn't mean a low-quality product. You can create an MVP with excellent design and thoroughly tested user scenarios. An MVP, like a finished product, provides value to users, albeit a smaller one. Once you’re sure of its value, you can develop the full version. Otherwise, you’ll be glad you didn’t spend the entire budget.

Our clients use different operating systems. We need to develop the application for all platforms immediately.
Start by developing for one platform, such as iOS. Once the hypothesis is confirmed, you can develop versions for other platforms. Testing functionality on a single OS is standard practice, even for giants like Facebook.

Millions of users use our product. We must ensure it can handle such a load.
Developing high-load systems is a challenging engineering task that takes a lot of time. Yes, it’s essential to consider this in your service architecture, but only after the idea is validated. Developing a high-load system from the start risks wasting significant money and time.

Users need all the features immediately.
This isn’t true. In many cases, people buy services for one or two features they need. You can prioritize functionality based on usage frequency and criticality. Implement the necessary features for the primary user scenario in the MVP and add others as the project develops.

How Can Corporations Conduct Customer Development Interviews?

Overall, CustDev for startups and corporations is similar. The main difference is that it’s more challenging to implement this practice in a larger company.

When conducting CustDev for a corporation, the brand's reputation and existing user base can complicate things. Let’s break down different scenarios:

CustDev for an Existing Product
The goal of this research is to see how users currently interact with the product. Visit the user at their office or home. If that’s not possible, connect via Zoom but ask them to keep the camera on so you can observe their emotions, which can be more informative than words.

During CustDev, try to answer the following questions:

  • How often do clients use the product?
  • How do they use it?
  • Which features do they not use at all?
  • What do users do after using the product?
  • How is the product integrated into the user’s business processes or lifestyle?

CustDev for a Complex Product
If your service has only a few usage scenarios, asking users to work with it while you observe is not difficult. But what if the product is professional software requiring special training, and most users don’t use all the tools?

In this case, during CustDev, you can demonstrate the service yourself and ask respondents to comment and ask questions. Let them correct you when they use the service differently from how you show. By the end of such research, you’ll understand why some features aren’t used and what is valuable to users.

Testing MVPs with Respondents
When testing an MVP, corporations might find that respondents perceive the MVP as a new version of the product. Therefore, during interviews, emphasize that the tested feature is a prototype. You’re not showcasing new features but conducting research.

To ensure objective testing, the respondent should understand:

  • They don’t need to use the product correctly.
  • You’re asking questions out of research interest, and there are no right answers.
  • They can openly discuss what they don’t like about the product.

Not Mentioning the Company Name
In many cases, simply saying “this is just a prototype” isn’t enough. A well-known brand can heavily skew perception. For example, anything new from Apple is valued higher by consumers than similar products from other manufacturers. To remove brand influence, create the MVP on a no-code platform with a fictional brand or draw prototypes in Balsamiq.

CustDev for Top Management
If your product is intended for executives, it might be challenging to get them for CustDev as they have little time.

However, there are people who also use the service indirectly, such as executive assistants or junior managers. You can interview them instead.

This approach can apply to other niches as well. Often, decision-makers purchase the product, while others use it.


Our Inspiration:
Cindy Alvarez. Lean Customer Development: Building Products Your Customers Will Buy
Eric Ries. The Lean Startup

How Can Corporations Conduct Customer Development Interviews?

Overall, CustDev for startups and corporations is similar. The main difference is that it’s more challenging to implement this practice in a larger company.

When conducting CustDev for a corporation, the brand's reputation and existing user base can complicate things. Let’s break down different scenarios:

CustDev for an Existing Product
The goal of this research is to see how users currently interact with the product. Visit the user at their office or home. If that’s not possible, connect via Zoom but ask them to keep the camera on so you can observe their emotions, which can be more informative than words.

During CustDev, try to answer the following questions:

  • How often do clients use the product?
  • How do they use it?
  • Which features do they not use at all?
  • What do users do after using the product?
  • How is the product integrated into the user’s business processes or lifestyle?

CustDev for a Complex Product
If your service has only a few usage scenarios, asking users to work with it while you observe is not difficult. But what if the product is professional software requiring special training, and most users don’t use all the tools?

In this case, during CustDev, you can demonstrate the service yourself and ask respondents to comment and ask questions. Let them correct you when they use the service differently from how you show. By the end of such research, you’ll understand why some features aren’t used and what is valuable to users.

Testing MVPs with Respondents
When testing an MVP, corporations might find that respondents perceive the MVP as a new version of the product. Therefore, during interviews, emphasize that the tested feature is a prototype. You’re not showcasing new features but conducting research.

To ensure objective testing, the respondent should understand:

  • They don’t need to use the product correctly.
  • You’re asking questions out of research interest, and there are no right answers.
  • They can openly discuss what they don’t like about the product.

Not Mentioning the Company Name
In many cases, simply saying “this is just a prototype” isn’t enough. A well-known brand can heavily skew perception. For example, anything new from Apple is valued higher by consumers than similar products from other manufacturers. To remove brand influence, create the MVP on a no-code platform with a fictional brand or draw prototypes in Balsamiq.

CustDev for Top Management
If your product is intended for executives, it might be challenging to get them for CustDev as they have little time.

However, there are people who also use the service indirectly, such as executive assistants or junior managers. You can interview them instead.

This approach can apply to other niches as well. Often, decision-makers purchase the product, while others use it.


Our Inspiration:
Cindy Alvarez. Lean Customer Development: Building Products Your Customers Will Buy
Eric Ries. The Lean Startup
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