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DEFINE the Problem or Opportunity

MVS - Minimum Viable Segment

Beware: Don't Overlook Your MVS

Demandware case study & video

MVS compared to a beachhead

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DEFINE for whom?

Many entrepreneurs become too focused on the “product” part of product-market fit. They become consumed with their Minimum Viable Product (MVP) and forget about the “market” part. So while the MVP is critical, it’s missing its partner in crime: the

Minimum Viable Segment (MVS)⁠

What is a Minimum Viable Segment?

Minimum Viable Segment is about focusing on a market segment of potential customers with the same needs to which you can align. The MVS framework focuses on identifying the smallest, most homogenous segment of customers with the same problems. Defining and focusing on your MVS is vital because, without it, potential users who have divergent needs will quickly pull your MVP in many different directions.

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This, in turn, will bloat—not minimize—your product requirements and drain your limited startup resources. In lean startup terms, by definition it will cause your Minimum Viable Product to not be minimal at all. And you won’t just feel that drain in product development. It’ll come back to haunt you in any go-to-market (GTM) activities and then again in customer service and support, potentially paralyzing your business model.

By contrast if you define and apply a Minimum Viable Segment (MVS), your Minimum Viable Product (MVP) will indeed stay minimal and enable you to maximize the use of your scarce startup resources. Simply put MVS+MVP = Maximum startup effectiveness!

Find the Same, Similar, or Very Closely Related Needs

Focus on finding a set of customers who have the same or as similar a need, pain, or problem as possible to those of the other customers in your MVS.

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To be explicit about this, it is the same needs you are looking to fulfill—not features you want to build. What’s the difference? For starters, customers don’t think in terms of features. They think in terms of pain and need. And while a feature might address their initial need, it’s not likely to stay on course with their needs as they evolve if they’re different from other customers.

The importance of MVS cannot be understated, so to understand it fully, read on here

Beware: Don't Overlook Your MVS⁠

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First steps to defining and finding who your target MVS customers may be:

The more specific you can be about your prospective customer, the better your value proposition will resonate with them.

Here are some example questions to help you define your target customer:

Demographics:

Are they individuals, small businesses, enterprises, etc.?

Who are they in terms of age, gender, location, or income level?

Behavior:

What are their daily habits, routines or work patterns?

Are they tech-savvy, budget-conscious, health-conscious, climate aware, etc.?

Psychographics:

What are their interests, motivations, or values?

What drives them to make decisions or purchases?

Challenges:

Once you’ve got a profile of who they are, it’s time to then hone in on what needs they have and begin grouping them into an MVS of people with the same or similar needs. Get out and ask them:

What challenges do they face in their life?

What specific problems do they wrestle with ? (That your product will eventually solve)

if possible get them to prioritize them, seeking the most painful ones that are Unavoidable, Urgent, Unworkable, and Underserved. See the

4U⁠

framework⁠

How do these problems affect their daily life or work?

What are the consequences of not solving them? (Time, money, stagnation etc)

Simple Example

Demographics: "Busy working parents aged 30-45 living in urban areas, with a household income of $60,000 or more."

Behavior: "They are frequently on the go, value convenience, and often rely on technology to simplify their lives."

Psychographics: "They value health and wellness but often sacrifice it for convenience."

Challenges: "They struggle to find time to manage their finances due to their busy schedules."

This is a simple starting point for then investigating further what needs they may have that might be unmet.

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