The customer development process is closely linked with [[agile development]], emphasizing the concept of the [[minimum viable product]] (MVP). Traditionally, companies would specify the entire feature set of a product before development, which works well for established companies with a clear understanding of their customer base. However, startups often operate with uncertainty and are likely to make incorrect assumptions about customer needs. To avoid wasting time and resources, startups are encouraged to engage with potential customers early on to gather insights before fully developing a product. This approach helps ensure that the product aligns with customer needs and prevents the startup from running out of cash, a common cause of failure. Building an MVP involves creating a product with the minimum features necessary to gather feedback from potential customers. This feedback can take various forms, such as verbal input, early orders, or any valuable information that helps determine the product's development priorities. An MVP can be as simple as a wireframe or PowerPoint slide for web-based products, or a physical mockup for tangible products. As feedback is collected, additional features can be incrementally added. While some argue that visionary products like the iPhone were not developed by asking customers, the process of understanding how a new product changes a customer's daily life remains crucial. In new markets, where customers may not be able to articulate their needs for a product that doesn't yet exist, the focus shifts to understanding how the product will impact their lives. This requires engaging with potential customers to learn about their current experiences and how these might change with the introduction of the new product. Sitting in an office without customer interaction limits the ability to gain these insights. Therefore, even in new markets, understanding customer perspectives is essential for successful product development. ## Activity - Watch the video [Minimum Viable Product](https://www.youtube.com/watch?v=joNKkWPafZs) ([[Udacity - How to Build a Startup]], Lesson 4.6) Next: Back to: [[Testing Business Model Hypotheses]]