Kill Your KPIs. Use This Approach Instead.

🌈 Abstract

The article discusses the evolution from the Minimum Viable Product (MVP) concept to the Minimum Valuable Experience (MVE) in the context of entrepreneurship and business innovation. It highlights the importance of focusing on creating an indispensable customer experience rather than just a functional product.

🙋 Q&A

[01] The Shift from MVP to MVE

1. What is the key difference between MVP and MVE?

• The article argues that the focus should shift from the Minimum Viable Product (MVP) to the Minimum Valuable Experience (MVE).
• MVP was about creating a product that works with the minimum features, while MVE is about creating an experience that people find indispensable, beyond just the product itself.
• The key is to focus on creating a valuable experience for the customer, not just a functional product.

2. What are the benefits of the MVE approach?

• With the advent of AI, the speed and affordability of getting to a viable product has increased, making the "V" in MVP easier to achieve.
• The hard part is making that "V" stand for "valuable" to the customer, which is the focus of the MVE approach.
• MVE is about creating an experience that integrates into and enhances the customer's life, not just offering a functional product.

3. What is the key ingredient in the MVE "special sauce"?

• The key ingredient in the MVE "special sauce" is the people - both those creating the experience and those enjoying it.
• The article emphasizes the importance of being relentless in pursuing ever-evolving and improving the user experience.

[02] Redefining KPIs

1. How does the article suggest redefining KPIs?

• The article argues that traditional KPIs (Key Performance Indicators) focused on dry, generic metrics like sales, leads, and clicks are often a waste of time.
• Instead, the article proposes redefining KPIs as tools to Keep People Interested, Informed, Involved, and Inspired.
• This human-centered approach to KPIs aims to measure engagement, education, participation, and emotional impact, rather than just business performance.

2. What are some of the KPIs suggested in the article?

• Customer Lifetime Value (CLV) to measure customer satisfaction, loyalty, and enthusiasm
• Net Promoter Score (NPS) to gauge customer loyalty and advocacy
• Customer Churn Rate (CCR) to measure customer retention
• Employee Satisfaction to track employee happiness and its impact on customer experience
• Innovation Rate to measure the culture of continuous improvement and adaptability

3. What is the "North Star Metric" (NSM) and how is it important?

• The North Star Metric (NSM) is the key KPI that everything else ladders up to, reflecting the core value being provided to customers.
• The article provides examples of NSMs for iconic customer-focused brands, such as Amazon's Prime membership, Netflix's hours of content watched, and Spotify's monthly active users.
• The NSM should focus on the "I's" (Interest, Informed, Involved, Inspired) and how Invested the customer is in the brand, to drive the shift from MVP to MVE.