How did Dropbox become the MVP by using MVP : Minimum Viable Product?
Before we dive in…have you ever used Dropbox? One of the most evident feeling that came to me was “Wow…it is super easy and seamless”. It functions as literally a box that you can drop your files to store or to share. No matter what Windows or IOS operation system you are using. From all different players in market of file sharing and cloud storage, why do you think Dropbox stands out? The key of success is the implementation of MVP, which stands for Minimum Viable Product.
What is MVP?
It is a concept that encourage startup brands to provide JUST ENOUGH features to fulfill the needs of customers, then learn and develop the product according to customers’ feedback. It is all about putting the product out there to learn, not to be succeed immediately. The more you can learn from the minimum features of the product you have with the minimum effort, the better.
How did Dropbox implement the concept?
While developing their product, Dropbox published a 3 — minute demonstration video of what Dropbox can do on Hacker News, during April, 2007. After that, there were so many early technology adopters paying attention and also giving Dropbox a valuable feedback for the process of product development, especially on how they can deliver superior customer experience than other competitors. They have learnt that file synchronization was what people are struggling with and they did not even realize it. So, Dropbox decided to offer customers the solution for the problem. Aiming that once their customers experienced that Dropbox is the solution, they will never live without it.
In March 2008, Dropbox launch another demonstration video on Digg, which is a news platform with categories, such as technology, science, business, and more. Dropbox has experience the amount of attention like never before. Their beta waiting list soared from 5,000 to 75,000 in a single day. From this surprising event, Dropbox learned that knowing who they were talking to where were their audience, which at that time was the early technology adopters on Digg, and talk to the audience sincerely could drive this much attention.
Not only that, they also gained more knowledge on what is the best way to attract more customers by creating Word Of Mouth (WOM), not by using display ads or SEO. By the main reason that the customers did not know they need something like Dropbox and how big of an impact that Dropbox will facilitate their file sharing activities.
To illustrate the clearer picture, you can see the flow of Dropbox user’s journey on the left.
Dropbox came up with the strategy that would make their product go viral, by establishing a referral program with the incentive given to both sides, with the help from the results of survey and test conducting, as well as the optimization of customer behavior. Consequently, this program contributed to 60% increase in signed up users and made Dropbox see how important the analytic department is. In 2010, they have achieved 4 million registered users, from 100,000 users in 2008. This was a big success.
MVP and the changing world.
There are so many teeny tiny details on the success or Dropbox. However, I would like to emphasize on the core concept of MVP, as it enabled the company to adjust and learn from their customers. It is crucial to take into consideration that it is not twice or thrice that Dropbox learned new information and adjusted to what worked and what did not, the company is still learning and the key is CONTINUITY. They don’t just stop learning, even though they have reached the number of registered users that they have never imagined before. The concept of MVP fits to the changing world, by offering minimum product and testing it with real customers. By the fact that every technology, innovation, anything including how customers living their lives are CHANGING. Thus, keep in mind that because everything changes, you and you business need to continuously learn what is changing and do not stop.
