Competitive SME Digital Transformation Strategy: Focusing on Lovable Products
Businesses in Singapore are all familiar that Digital Transformation is a critical necessity to reach, engage, and retain customers. In an ever evolving market where every business has a digital presence, what does it take to stay competitive?
This is something we ask ourselves at Skubbs everyday, and one key approach is developing products that not only have useful core functions, but also focus on becoming a product that users love → also known as Minimal Lovable Products (MLPs). Unlike Minimal Viable Products (MVPs), which aim to get the job done with minimal frills, MLPs go a step further by focusing on user experiences, creating products that users genuinely love. Both MVPs and MLPs has their pros and cons depending on business needs,. Here’s a quick overview:
| MVP | MLP | |
|---|---|---|
| Definition | Focuses on core functions to test a product idea. | Focuses on core functions with end-user experience in mind. Design additional features that ensure users stay more engaged and satisfied when using the product. |
| Development Process |
Focus on being quick to market. Lower costs |
Focus on designing UI. Investment on user experience |
| Customer Retention |
Engagement and retention are not the main focus. MVPs are suitable for testing product viability and assessing demand. | Designed with user engagement and enhancing customer satisfaction in mind. Customer retention is part of the MLP creation journey. |
| Scalability | Potentially require major updates to scale. | Easier to scale with incremental features added based on feedback. |
| Long Term Value | Potentially higher costs over time due to necessary improvements. | Better long term value, with initial focus on customer retention and scalability. |
Okay, you get the differentiation. And perhaps all your business might need is an MVP to start, and that’s okay too, we can work with that. Or, by now, you might have an inkling that you need something more than that. You need an MLP.
Still, you’re wondering…
How do Minimum Lovable Products make SMEs more competitive?
- Enhanced Customer Engagement and Retention:
Competing for eyeballs and customer attention is the current reality of every business. By focusing on creating an emotional connection with users, an MLP fosters brand loyalty from the start so SMEs can immediately boost customer engagement and retention. Customers happy with their experience are more likely to continue using the product and recommend it, leading to organic growth and a loyal customer base.
Reflective Question: Think about your favorite product or service. What makes you keep coming back to it? Can you create a similar experience for your customers? - Market Differentiation:
Developing a product designed with unique value propositions helps SMEs stand out in crowded markets. Superior user experience can make a big difference in customer engagement and satisfaction. This can be the difference in retaining and attracting customers who are looking beyond functionality but also an intuitive and value added experience when using your product regularly.
Reflective Question: How can your product stand out from the competition? What unique features can make it more lovable to your customers? - Better Long Term Value + Scalability:
MLPs may have higher initial development costs compared to MVPs, but an initial focus on user experience and retention can lead to fewer major revisions and lower long-term costs. Starting with an MLP allows SMEs to scale up efficiently, adding new features based on actual user demand and feedback. This strategic investment can result in a more stable and reliable product that continues to meet user needs without constant overhauls.
Reflective Question: Would you prefer to invest a bit more now to create a product that delights users and requires fewer fixes later, or save upfront and spend more on revisions? - Increase Brand Loyalty:
In a world where people are dependent on digital products, the ones that offer good and intuitive experiences on top of basic functions keep people returning to it. Creating a product that users love can turn customers into brand advocates. This word-of-mouth promotion is invaluable for SMEs with limited marketing budgets. By focusing on MLPs, SMEs can build strong brand loyalty, convert customers into fans and benefit from organic promotion.
Reflective Question: How can you design your product to not only meet needs but also create advocates among your users?
Given these competitive edge, SMEs can launch products that resonate with customers, ensuring competitiveness and long-term success. This also means that investing in a MLP can result in a significant boost in sales and business growth. As the digital landscape continues to evolve, adopting the MLP approach will be pivotal for SMEs looking to stay ahead of the curve.
Contact Skubbs for a consultation! Afterall, building lovable products is what we do!