Startup Glossary

Wizard of OZ MVP

A customer validation technique, one of high-fidelity types of MVPs, whereby the product team builds an illusion of a product but with key functionality carried out by a human (or 3rd party service), in order to validate it with real customers at low-cost and high velocity. Use it for testing a specific solution hypothesis by simulating the user experience of the actual intended product as accurately as possible, but accept that the customers will be faced with a slight time delay since a human cannot react as fast as a computer.
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Value proposition

A value proposition tells your customers why they should do business with you rather than your competitors, and makes the benefits of your products or services crystal clear from the outset. It is the intermediary between your customer and your product and is a way of explaining why your customers should care for the product that you’re building and what makes this product relevant to them today. So, value proposition doesn’t exist without understanding your customer segment. It is fundamentally a statement about satisfying a customer need - and not just about a “good” product idea. 
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