While prioritizing features, one of the most important things is to create a balance between the needs of customers and the business. It is very important to understand the impact of the features in question.
In case all the features belong to either business or customers’ needs, then the prioritizing can be easily done. We can just look at the business impact or the importance of the feature from customer’s perspective. This can be gauged in multiple ways. Some of the ways are mentioned below –
- Revenue impacted by the feature
- PnL impacted
- Customers retention impact
- Customers acquisition impact
This will completely depend on the stage your firm is in and the priority of the firm. For example, this week you may decide to improve your sign-up and onboarding process to increase your activation rate. So you decide to run a 1/2 day usability test that your team observes. It’s painfully clear that you need to make the process less confusing and instill a sense of trust in your product before asking for personal information. A quick brainstorm and you have 3 things you can do this week that you think will have a positive impact on the product.
But in most cases, the features will span across business and customers’ needs. In these cases its very important to understand the goal of your product. E.g. my goal is to increase the number of customers on Flipkart. If I have 2 features – 1. Reviews for better understanding of product for customers vs 2. Giving better visibility to customers in case their orders are cancelled, my priority will be first. The reason being reviews will help customers choose the products and buy them easily. This will have a bigger impact on the number of customers coming on Flipkart. The other feature will be impacting customer retention more and hence, might not be a priority right now.