Most startup stories begin with a “lightbulb moment.” Founders see a problem that doesn't have a good solution and ask, "How can I solve it?"
Unfortunately, this is not the right question - it is also an important reason why 90% of startups fail. According to Exploding Topics, 10% of start-ups fail to survive the first year, and 70% of companies also fail in the 2nd to 5th year. Ultimately, only 1 in 10 startups survive.
In the past 20 years of working with entrepreneurs, I have participated in the entire process of more than 20 start-ups from ideation to IPO - very few companies have succeeded. The most useful lesson I learned from this is not "why companies succeed" but "what they will be defeated by."
Most first-time entrepreneurs are not committed enough and often hurriedly cobble together an untested product based on intuition, while others are too committed and ignore market verification and testing. The product function is either too single or too bloated.
You may want to say: "Isn't this the lack of rapid learning through MVP (Minimum Viable Product, Minimum Viable Product)?"
- That's a good point, but it's also inaccurate.
The key to this question is what "V" is. In a business context, what really matters is Viable or Valuable?
First, let’s start with the story of the light bulb.
Inspiration from the light bulb
You may have learned in elementary school that "Edison invented the light bulb."
but it is not the truth.
Before Edison, many inventors, including Ebenezer Kinnersley, Humphry Davy and Joseph Swan, had invented various Various incandescent filaments. Even in the 1870s, when Edison turned to research into safe, sustainable, economical, and odor-free lighting solutions, there were already some patents on incandescent light bulbs (the main indoor lighting solution at that time was gas lamps).
As an innovator and entrepreneur, Edison decided early on that commercial realization did not have to rely on invention itself. He was more interested in "perfection," making things better or cheaper. I really like what The New Yorker said:
Edison never looked for problems that needed solutions, he looked for solutions that needed modifications.
The existing light bulb solutions at the time were not practical and the bulbs did not last long. That is, they are doable, but not particularly valuable.
This is what makes Edison stand out. Edison and his team tested 3,000 to 6,000 materials and filaments at his headquarters in Menlo Park, California, until 1879 when they discovered that carbon was the best solution. A year later, they discovered that carbonized bamboo could burn for more than 1,000 hours, and the incandescent light bulb we know today was born.
What Edison worked so hard to create was not MVP, but MVE (Minimum Valuable Experience) - the lowest value experience .
How do you make something that people desperately need accessible, affordable, and durable? This is the real "eureka moment."
ACT Framework
Before understanding how to build an MVE, there are two key points to note:
- Your story is your strategy.
- The way of expression is very important , it determines whether the user is "indifferent" to the product or "repurchases every month."
It’s all about understanding your users, what words and messages resonate with them, and what strategies, touchpoints, and triggers inspire them to take action.
In order to build MVE quickly and efficiently, I developed the " ACT Framework ". It helps to get clear direction quickly and saves a lot of wasted marketing activities. The ACT framework consists of three important parts:
- Audience Audience
- Communication
- Touchpoints
A = Audience: “Who” are you speaking to?
To know what to say, you first need to figure out who you want to communicate with.
- Who is your ideal customer?
- What do customers want/need/use when considering new solutions?
- What do they search for when looking for new solutions?
- What habits, behaviors, goals, or defining characteristics attract them to your product?
C = Communication: What do you want to say?
This is an art of "what message is conveyed in what way".
You have to use language and methods that resonate with your customers, speak to them on their terms, and convey a vision or motivation that suits their taste buds (and wallets).
T = Touchpoint: Where to share information?
After you figure out "who to talk to" and "what to say," you can think about "what to do."
Design touch points and triggering conditions that can stimulate customers to take actual action, including official website display, social media communication, email marketing, etc. Its core purpose is to identify and identify the most effective channels and strategies with the highest ROI.
This is also the most error-prone part. Sometimes you might just need a simple sign-up form, while other times you need to take a more strategic approach (like setting up a private group) or more complex (like a detailed sales funnel and immersive story).
Case application
Suppose you want to launch a new non-alcoholic beer beverage. How would you apply the ACT framework to answer the above questions?
(Take a moment and use your little brain)
Share my answer below. Don't worry, there is no standard answer to the question, thinking and analysis are the key.
A: Who is the ideal audience for alcohol-free beer?
Data like age, gender, or geographic location in traditional demographics don’t provide much useful information, since non-alcoholic beer is likely not on any label.
From a behavioral perspective, people who buy non-alcoholic beer like to drink beer, but do not like the impact of alcohol on their health, behavioral abilities and work efficiency; they are curious and open enough to try and accept new things.
C: What message do you want to convey to them?
I need to let my ideal client know that this drink offers the closest thing to a beer experience: it's hand-crafted with high-quality ingredients, and its cool packaging rivals even the most popular IPAs. Best of all, it's low in calories and doesn't create any hangover.
T: What channels are used to publish and disseminate information?
Non-alcoholic beer represents a healthy but still fun attitude towards life, so young short video platforms are a good channel. If it is offline promotion, a water bar next to the gym or a healthy restaurant that allows many people to gather for dinner is also a good choice.
The ACT framework helps understand “which experiences or touchpoints drive product attraction.”
For some, the best touch point may be a beautiful form under a trending topic on social media; for others, it may be a clever story about how a product improves the quality of life, or a Wonderful activities that can clearly communicate "how we can help you become a better version of yourself." Different brands and products will have different answers.
And "ACT + MVE" allows you to iterate quickly and get the most valuable experience. When you focus on what really matters to your prospects, you can brighten up their lives.
In my opinion, this is the only viable path to business success.
The original author is Pete Sena, and the content has been translated and organized by LigaAI.
To learn more about technical information, R&D management practices and other sharing, please pay attention to LigaAI.
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