The Build-Measure-Learn (BML) loop is a key part of The Lean Startup approach, helping new businesses to grow and succeed more effectively. Using this loop, startups can quickly try out their ideas, get useful feedback from real users, and make smart decisions based on what they learn. Let’s break down the BML loop and see how it helps startups on their journey.
What is the Build-Measure-Learn Loop?
Imagine a team developing a new app for fitness enthusiasts. Instead of spending years perfecting the app’s features based on assumptions, they quickly release a basic version that allows users to track their workouts and share them with friends. After launching, they collect feedback and data on how users interact with the app. The team learns that users love the social sharing feature but find the workout tracking cumbersome. Armed with this knowledge, they refine the app to improve the tracking experience and introduce new social elements, continuously iterating based on user feedback.
This scenario illustrates the Build-Measure-Learn loop, developed by Eric Ries in his book The Lean Startup. (The Lean Startup methodology draws from lean manufacturing principles, originally pioneered by Toyota, to create efficient, iterative processes for innovation).
BML is essentially an iterative approach that involves three key phases:
- Build: The “Build” phase involves creating a Minimum Viable Product (MVP), the simplest version of a product that can be released to test specific hypotheses. The goal is to develop something quickly that allows for learning with minimal effort and resources. An MVP is not about building a perfect product; it’s about getting something out there that can be tested and improved upon based on real user feedback.
- Measure: In the “Measure” phase, startups collect data on how the MVP performs in the real world. This involves tracking user interactions and gathering feedback to understand how well the product meets customer needs. It’s essential to focus on actionable metrics—data that provides insights into customer behavior and the product’s value proposition—rather than vanity metrics, which might look good on paper but offer little real insight.
- Learn: The “Learn” phase is about analyzing the data collected to gain validated learning. This means determining whether the initial hypotheses were correct and deciding whether to pivot (make a significant change to the product or business strategy) or persevere (continue refining and improving the product). This learning process is critical for making informed decisions that drive the product’s evolution and ensure it meets market needs effectively.
The loop is designed to accelerate the startup process by ensuring that each iteration brings the product closer to what customers want, thereby increasing the chances of success while minimizing wasted time and resources.
The Reverse Planning of BML
Although the BML loop is typically described in the order of Build, Measure, and Learn, effective planning often starts in reverse. This means beginning with defining what you need to learn, then deciding how you will measure it, and finally determining what to build to obtain those measurements. This reverse planning ensures that every step is aligned with the ultimate goal of gaining validated learning.
Here’s an example to illustrate this approach:
Imagine a startup developing an app to help people improve their sleep quality. Instead of starting by building a fully-featured app based on assumptions, they begin by identifying what they need to learn: do users need help tracking their sleep patterns, or are they looking for relaxation techniques before bed?
Next, they decide on the metrics that will help them measure this: the number of users who use the sleep tracker feature versus the relaxation techniques, and how often they use each feature.
Finally, they build a simple MVP that includes both a basic sleep tracker and a few relaxation techniques. By doing this, they can quickly gather data and feedback on which feature users find more valuable and focus their development efforts accordingly.
When to Use Reverse Planning:
- Uncertain Product-Market Fit: When you are unsure if your product idea meets the needs of your target market, reverse planning helps prioritize learning and reduces the risk of building a product that no one wants.
- Limited Resources: Startups often operate with limited time and budget. Reverse planning ensures resources are allocated effectively to test critical hypotheses before full-scale development.
- Complex Products: For products with multiple features or potential use cases, reverse planning helps identify the most valuable aspects to users, allowing you to refine and focus on what matters most.
By starting with what you need to learn, defining how to measure it, and then deciding what to build, reverse planning in the BML loop helps ensure that every effort is aimed at gaining meaningful insights, ultimately leading to a more successful and user-focused product.
Common Pitfalls and How to Avoid Them
Even with a robust framework like the Build-Measure-Learn (BML) feedback loop, startups can fall into several common traps. Here are the top five pitfalls and how to avoid them:
1. Focusing on Vanity Metrics
One common pitfall is focusing on vanity metrics, such as total downloads or social media likes, which can look impressive but don’t provide actionable insights into user behavior or product value. To avoid this, startups should focus on actionable metrics like user retention rates, active users, and customer feedback, which directly inform product decisions and improvements.
2. Skipping the MVP Stage
Another issue is skipping the Minimum Viable Product (MVP) stage and going straight to building a fully-featured product based on assumptions. Always start with an MVP to test key hypotheses quickly and efficiently, allowing for early validation and course correction without wasting significant resources.
3. Insufficient User Feedback
Relying solely on internal opinions or limited user feedback can lead to a product that doesn’t meet market needs. Engage with a diverse group of users to gather comprehensive feedback by conducting usability tests, surveys, and interviews to better understand user needs and preferences.
4. Ignoring Negative Feedback
It’s easy to dismiss negative feedback as outliers or misunderstandings, but doing so can prevent valuable learning. Treat all feedback, especially negative, as opportunities to learn and improve by analyzing patterns in negative feedback to identify areas that need attention.
5. Slow Iteration Cycles
Long development cycles between iterations can delay learning and adaptation, making it harder to stay aligned with user needs. Aim for rapid iteration cycles, implementing changes quickly, measuring their impact, and learning from the results to make further improvements promptly.
By being aware of these common pitfalls and implementing strategies to avoid them, startups can better navigate the challenges of the BML feedback loop and increase their chances of building successful, user-centric products.
The Build-Measure-Learn loop is a powerful tool for startups to innovate and grow efficiently. By iterating through this loop, startups can continuously improve their products, better understand their customers, and make informed decisions that drive success. To learn more about the approach and understand how to implement it in your own business, read Eric Ries’ classic book The Lean Startup.
Read Next
Reading List – Minimum Viable Product (MVP)
What is MVP in Product Development?
Data-Driven vs. Data-Informed: Finding the Right Balance – ValShelf
Book Review: The Lean Startup by Eric Ries
References: Ries, E. (2017). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Publishing Group.
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