What is Concierge MVP? When Is It The Right Approach?

Being in business, it is natural to focus on building your product or service. However, validating the idea before investing capital, time, and resources in development is a good idea. It helps you ensure that your idea will work in the market. This is precisely what the concierge MVP approach does. 

The battle to find customers and build a loyal customer base is fierce. Research by the Bureau of Labor Statistics indicates that approximately 20% of startups fail to survive their first year of operation and ultimately go out of business. 

A significant reason why it happens is that they design their initial product based on the assumption that their product prototype will solve a problem better than an existing solution in the market. Not only that, but they also assume that a visitor would care enough to invest in that particular solution. However, this is not the case. 

To be successful, startups need to find customers fast and efficiently to establish their loyal base. This is where developing an MVP or a Minimum Viable Product comes in. 

Importance of MVP in Product Development

An MVP is a basic version of the product with minimal features to describe the basic idea of the product. What it does is give beneficial insight into its advantages and shortfalls. With just basic features and functionalities, it informs the product owner whether the product will work in the market, as well as the necessary changes required to release a better version of it.  

But there are three types of MVPs that you need to understand to get started with your project. Today, we will be getting into Concierge MVP. So, without further ado, let’s get into it!

What is a Concierge MVP?

Concierge MVP is an approach that entrepreneurs use to test the concept of the product. This method enables the product owner to connect with users and understand how they interact with and respond to the product. It is a manual technique where a startup manually performs the tasks that will eventually be automated in its products or services. It is simply testing the idea of the product without actually building it. 

Just like hotel concierge services, you offer personalized services that imitate the functions of a fully developed application. By manually performing every function, you can validate whether your product can establish a strong market presence.

How does it work? 

• Determine how you will be offering a manually designed, personalized walkthrough of your product or services to potential clients.
• Provide concierge services to a select group of individuals to assess the potential of the idea. Since it is a manual approach, there are only a handful of people you can provide services to. 
• Gather their feedback through surveys to understand the changes needed for a better experience.

Let’s say you’re creating a mobile app that provides book recommendations to customers. However, instead of building this app, you manually test the idea by distributing surveys to some people to gather their preferences and history, allowing you to provide personalized book recommendations manually. 

Doing this, if the service proves fruitful and there is a demand for it in the market, you can start developing a more automated version of the idea. Not only will you know it works, but you’ll also be sure if it’s worth the investment. Plus, you’d know exactly what your audience expects from your services. 

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Concierge MVP Case Study: Food on the Table

Food on the Table is a grocery shopping service that started with Concierge MVP. It provides its users with personalized shopping lists and menus every week. It began with the founder, Manuel Rosso, personally locating coupons and creating a shopping list for customers, offering them discounted rates on their weekly grocery purchases. 

Starting with a concierge MVP helped him gain insights into what users like to eat and their shopping behavior, enabling him to create shopping lists for various stores that save his users money. Eventually, the demand was so strong that he developed an automated service to provide users with personalized services. 

When to Use Concierge MVP Approach

Where Concierge MVP can be a valuable approach for startups, it is not for everyone. There are three key points to consider before selecting an approach. 

• How complex is your product or service? Concierge MVP is particularly well-suited for projects involving complex products or services. 
• Do you have the time and resources to test the idea manually? Performing the functions manually can take more time than an automated service or tool. Ensure you have the time and resources to perform each task manually. 
• Know that other options are available! Before deciding on Concierge MVP, make sure you weigh the costs and benefits of each type of MVP or prototype for your project. 

Pros and Cons of using Concierge MVP

Pros

The concierge MVP is a great way to gain deep insight into the market and mitigate initial risks when entering the market. Here are some pros of using the Concierge MVP approach.

• The product owner needs to learn about what customers expect from the product or service. 
• Provides an idea of how well the target market will respond to the idea. 
• It provides an understanding of the features that will work and which ones will not when developing the business. 

Cons

While this approach has its benefits, it also has its cons

• It is time-consuming and meticulous as you are offering manual services. The disadvantage here is that you’d be able to provide services to a handful of people manually. 
• It can be challenging to create an online portal that offers the same level of experience as the MVP. There is a chance that the automated version of the service will provide the same experience as anticipated.  

Wrapping It Up 

Understanding what people require is the first step to starting a successful business, and testing the idea is one crucial step to ensure it will work in the market. Concierge MVP allows you to do just that. Make sure you test the water before you jump into it for the swim and suffer its consequences. Plus, understand that not all businesses require a Concierge MVP. Analyze your idea and talk to an expert to get started with your business.

Contributors

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  Tooba Nadeem

  writer