Forget KPIs. Use This Approach Instead.

Achieving viability in MVP has become much faster and more accessible. The hard part is making this MVP meaningful... for your customer.

Moreover, it's not just about the product. Your product is likely not the only one in its category that can solve your customers' problems. Your advantage lies in creating an experience that stands out: faster, more enjoyable, less painful, and more satisfying.

That's why we, as entrepreneurs, must shift our focus from the Minimum Viable Product (MVP) to the Minimum Valuable Experience (MVE). It's not just about creating something that works; it’s about creating an experience that people find indispensable.

In this article, I will explain why this evolution requires a deeper understanding of KPIs—not just as Key Performance Indicators, but as tools for maintaining interest, informing, engaging, and inspiring people.

My name is Nikolay Markov, and I am the founder of Neuro Plume, an agency specializing in the development and implementation of AI-based solutions. Our team of experts creates innovative products that help companies automate processes and increase their efficiency.

A Classic MVE Case Study: Airbnb

Before diving into KPIs, let’s clarify what MVE is.

MVE (Minimum Valuable Experience) is about creating an indispensable experience for your audience. Again, it’s not just about the product itself but also how it integrates into the lives of your desired customers and enhances it.

To illustrate this concept, let’s return to the early days of Airbnb, from 2008 to 2010. At that time, online vacation rental platforms were not new—VRBO and HomeAway.com had been around for more than a decade.

Airbnb offered something both different and better. They created unique and valuable experiences beyond just giving people a place to sleep, which perfectly illustrates the essence of a true MVE:

1. Origin Story: The idea for Airbnb arose when two co-founders, Brian Chesky and Joe Gebbia, struggled to pay rent for their San Francisco apartment. They decided to rent out air mattresses in their living room to participants of a design conference. They didn’t just offer a place to sleep; they provided breakfast and even acted as local guides, creating a personalized and memorable experience for their guests.

- Secret Ingredient of MVE: The personal touch and focus on hospitality became an integral part of their brand.

2. The “Photoshoot” Initiative: Early on, Chesky and Gebbia realized that listings on their platform were unattractive because hosts used low-quality photos. Knowing that good visuals were crucial for attracting guests, they rented a camera and went around New York City taking professional photos of the listed properties themselves.

- Secret Ingredient of MVE: More attractive listings increased trust—a key component of the platform’s success.

3. The “1,000 True Fans” Strategy: Instead of trying to attract everyone from the start, Airbnb focused on building a loyal base of early adopters, whom they called “1,000 True Fans.” The founders personally interacted with these initial users, gathering feedback and adjusting the platform according to their needs and suggestions.

- Secret Ingredient of MVE: This strategy laid a strong foundation for growth, ensuring that the core experience was flawless.

4. Personalized Customer Service: In the early stages, Airbnb’s founders took customer service very seriously. Chesky and Gebbia often responded to customer inquiries and issues themselves, providing personalized support to ensure a positive experience for both hosts and guests. They also created a “handbook” for hosts with tips on how to create a great experience for their guests.

- Secret Ingredient of MVE: This level of personalized attention ensured that users felt valued and cared for, which was crucial for building trust at a time when staying in a stranger’s home was still new and carried certain risks.

5. Creating Airbnb Experiences: Although this came a bit later (in 2016), it was a continuation of their focus on the user experience. Airbnb expanded beyond accommodations by offering “Experiences,” where locals could offer unique activities for guests, further enhancing the stay.

- Secret Ingredient of MVE: This move demonstrated Airbnb’s commitment to enhancing the overall travel experience, ensuring that guests could have unforgettable and valuable interactions beyond just staying somewhere.

Notice the key element in the secret ingredient of MVE? It’s always about people—those who create the experience and those who enjoy it. You must be relentless in your pursuit of continually developing and improving your users’ experience. And this brings us to the importance of KPIs.

Put People First in Your KPIs

Traditionally, KPIs (Key Performance Indicators) have been used to measure business success through metrics such as sales, leads, and clicks. In my view, this is often just a waste of time when you’re tracking metrics for the sake of tracking.

Vanity metrics don’t help; they just give you empty bragging rights. It reminds me of an Instagram influencer with 2 million followers who couldn’t sell even 36 T-shirts.

The two main reasons for startup failures are creating what you think people want without testing it in practice, and ignoring customer feedback.

Forget KPIs. Use This Approach Instead.

Today, businesses need a more human-centric approach to KPIs. Instead of dry, generic metrics, consider KPIs as tools to keep people interested, informed, engaged, and inspired. Here’s how you can do it:

1. Keep People Interested

- Interest goes beyond simple clicks. Measure how long people stay engaged with your content. Do they read your articles to the end? Do they watch your videos in full? Do they actively engage with your interactive content? Tools like Google Analytics can help track engagement metrics such as session duration and pages per session.

2. Inform People

- Beyond counting shares and likes, assess how well your content educates your audience. Are they learning something new? Are you providing valuable information that keeps them coming back for more knowledge? Track feedback and knowledge gained through surveys, quizzes, and follow-up content that tests their retention.

3. Engage People

- Engagement is not just a metric; it’s participation. Measure involvement in discussions, comments, and community activity. Are people participating in your forums or social media pages? Are they attending webinars or live Q&A sessions? Use tools like social media analytics to gauge community activity and participation levels.

4. Inspire People

- Assess the emotional impact of your content. Do people feel motivated, touched, or inspired by what you share? Sentiment analysis tools can help measure this by evaluating the emotional tone of user comments and feedback.

Core Human-Centered KPIs

To truly measure the effectiveness of delivering a Minimum Viable Experience (MVE) to your customer, you need to track key performance indicators (KPIs) in the long term. Here are a few of my favorites:

- Customer Lifetime Value (CLV) – The total value of a customer over their entire relationship

CLV uses a simple survey to assess customer satisfaction, loyalty, and enthusiasm and measures the total revenue a customer can be expected to generate over their relationship with your business. A high CLV indicates that you have a strong customer base—your brand is good at acquiring and retaining customers. This helps shift the focus from immediate profit to long-term profitability, emphasizing the importance of building long-term relationships.

- Net Promoter Score (NPS)

NPS gives you insight into the likelihood that your customers will recommend your business to others. It goes beyond customer satisfaction to explore customer loyalty and advocacy. A high NPS indicates that your customers are not just satisfied, but are also brand enthusiasts.

- Customer Churn Rate (CCR) – Customer attrition rate

This is a simple formula that measures how well you retain your customers. (It’s the number of lost customers divided by the total number of customers over a specific period, multiplied by 100.) A monthly CCR audit gives you a pretty clear idea of how well you’re doing at inspiring, informing, engaging, and involving people—or not.

- Employee Satisfaction

Creating a positive brand impression starts at home because happy employees are more productive and provide better customer service. You can measure employee satisfaction through surveys and other feedback mechanisms. Moreover, high employee satisfaction contributes to lower turnover and a more motivated workforce, which positively impacts the overall customer experience.

- Rate of Innovation

- Innovation is as important for MVE as it is for MVP. The rate of innovation tracks the number of new ideas generated, developed, and implemented in your business. A high rate of innovation indicates a culture of continuous improvement and adaptability, which is key to staying relevant and meeting customers’ ever-changing needs.

Follow Your “North Star”

Among all the KPIs, there is one main indicator known as the North Star Metric (NSM) that all other metrics boil down to. This metric should reflect the core value you provide to your customers.

How to Find the “North Star” for Your Brand: Examples and Inspiration

Want your brand to truly shine?

🔑 The key to success is the North Star Metric (NSM)—the main indicator that reflects the value you create for your customers.

Here are some examples of NSMs at well-known brands that put the customer first:

- Airbnb: Number of room bookings—after all, the main goal is for people to find the perfect place to stay.

- Amazon: Number of purchases per month—meeting shoppers’ needs is what drives Amazon!

- Facebook: Number of monthly active users (MAU)—building a strong and vibrant online community.

- Medium: Total reading time—immersion in a world of interesting content.

- Netflix: Number of hours watched—entertainment and leisure available to everyone.

- Shopify: Revenue per merchant—helping entrepreneurs grow their businesses.

- Spotify: Total listening time—music for every occasion.

- Uber: Number of rides—quick and reliable transportation.

- Zoom: Number of meetings held per week—convenient communication over distances.

What do these NSMs have in common? They all focus on customer value.

And there's one more important point: the level of customer engagement with your brand.

This is what will help you move from MVP (Minimum Viable Product) to MVE (Minimum Viable Experience) and rethink KPIs from dry metrics to human-centered indicators.

Remember: it’s not enough to just be viable, you need to be valuable. In a competitive environment, creating a minimum valuable experience is the key to success!