The Concept Of Pivot In Lean Start-up
One of the core concept of Lean startup is Pivot. “Pivot or Persevere” decision is made once the company gets through a Build-Measure-Learn feedback loop. A pivot is better understood as a new strategic hypothesis that will require a new MVP (minimum viable product) to test. Successful pivots put a company on a path toward growing a sustainable business.
Pivots are a permanent fact of life for any growing business. The concept of Pivot can be also leveraged in marketing world and can be used to setup, adjust and implementation a marketing strategy. We need to make hypothesis before we setup of strategy. Pivot is a good mechanism to guide you through entire process. Let's take some samples of pivot test, to say "zoom-in". We can go into our marketing strategy to see what previously is considered a single feature in one action becomes the leading strategy. Also in the pivot test on customer segment. Based on the test, company changes customer segment when it realizes that the marketing strategy building solves a real problem for real customers but that they are not the type of customers it originally planned to serve. To sum up, pivot gave us a methodology on how we change and adjust our market strategy to achieve the best fit to support our business.
I also attached the other 10 types of pivot test below for you reference: (source: Lean Start-up )
Zoom-in Pivot: What previously was considered a single feature in a product becomes the whole product.
Zoom-out Pivot: What previously was considered the whole product becomes a single feature of a much larger product.
Customer Segment Pivot: A company changes customer segment when it realizes that the product it is building solves a real problem for real customers but that they are not the type of customers it originally planned to serve.
Customer Need Pivot: A company changes product when it realizes that the target customer has a problem worth solving, but just not the one that was originally anticipated.
Platform Pivot: A changes from an application to a platform or vice versa.
Business Architecture Pivot: Switching of architectures such as from high margin, low volume (primarily B2B) to low margin, high volume (primarilyB2C)
Value Capture Pivot: A company changes the way it captures value
Engine of Growth Pivot: A company changes its growth strategy (e.g. the viral, sticky, and paid growth models) to seek faster or more profitable growth
Channel Pivot: A company changes the sales or distribution channels (e.g. from dealership sales to direct sales) when the same basic solution could be delivered through a different channel with greater effectiveness.
Technology Pivot: A company provides the same solution by using a completely different technology when the new technology can provide superior price and/or performance compared with the existing technology. Much more common in established businesses.
