What is feature prioritization?
Feature prioritization is the process of deciding which features should be worked on first in product development, forming a crucial part of the overall product roadmap. It could include adding new features, improving existing ones, or fixing problems. The goal is to focus on the features that will provide the most value and align with business goals.
To prioritize features, companies consider factors like what users need, what the business wants, how possible it is to build, and how many resources are available. They use different methods like scoring models, feedback from users, and market research to help make the decision.
There are many ways to prioritize features. Some examples include RICE, which looks at reach, impact, confidence, and effort, or Weighted Scoring, which compares the benefits and costs of each feature. Other methods are ICE (impact, confidence, ease), Story Mapping, Kano Model, Effort Matrix, Moscow Method, and Eisenhower Matrix.
The process usually involves working with teams like product management, marketing, and engineering to make the best choices.
Why is feature prioritization important?
Feature prioritization is important because it helps businesses focus on the most valuable features, making the best use of time and resources. Research shows that large IT projects tend to deliver 56% less value than expected, which makes prioritization even more important to avoid wasting effort.
When companies prioritize the right features, they can better meet customer needs and drive digital innovation, leading to stronger business outcomes. Gartner suggests that product managers can deliver valuable solutions by making decisions based on what will fulfil customer needs most efficiently and effectively. Such an approach leads to strong feature prioritization, as the process will naturally involve gathering data on customer pain points and desires.
Prioritization processes give teams a clear framework to evaluate factors like cost, time, and value, helping to speed up decision-making and manage project scope. By building the right feature at the right time, businesses can stay competitive and achieve better results.
What are the goals of feature prioritization?
Feature prioritization is important for making sure businesses place their focus in the right place.
The main goals are to align with business objectives, maximize customer satisfaction, and use resources efficiently.
Now, let’s take a closer look at each of these goals in more detail.
Aligning with business goals
- Ensures features support the company’s main objectives.
- Focuses efforts on what will drive long-term success.
- Helps establish clear performance tracking methods through KPIs.
- Guides product strategy to keep everyone on the same page.
Maximizing customer satisfaction
- Prioritizes features that solve customer problems.
- Improves user experience by focusing on what matters most.
- Increases customer loyalty and keeps them coming back.
- Encourages faster improvements based on user feedback.
Efficient use of resources
- Makes sure time and money are spent on high-value features.
- Helps teams avoid wasting resources on less important features.
- Speeds up development by focusing on what’s most important.
- Reduces risk by making data-driven decisions.
Who is involved in feature prioritization?
Feature prioritization involves working with different groups inside and outside the company. Each group helps make sure the right features are chosen based on business needs, technical abilities, and customer feedback. Here’s an overview:
Internal stakeholders
- Product managers: Lead the prioritization process, making sure features align with business goals.
- Developers/engineers: Give advice on what can be built and how complex the features might be.
- Designers: Focus on making features easy to use and improving the overall experience.
- Marketing teams: Share customer insights and trends to help pick features that customers want.
- Sales teams: Offer feedback from customers about which features could help drive sales.
- Customer support teams: Provide feedback from users, showing where new features could solve problems.
External stakeholders
- Customers: Share feedback on which features would be most useful or valuable.
- Partners: Provide requirements for features that need to work with other systems.
- Suppliers/third-party vendors: Influence prioritization by providing technology or parts needed for features.
- Investors: Help decide which features will support growth and keep the business competitive.
What is required for feature prioritization success?
Achieving feature prioritization success requires focusing on key areas: customer needs, collaboration and alignment with business goals.
Let’s look in more detail about the requirements for an effective process.
Focus on customer needs and value
Always put customer needs first. Gather feedback through surveys, reviews, and direct conversations to understand their problems and desires. Solve customer pain points by selecting features that address their needs. Choose features that will improve the user experience and bring the most value to customers. Make sure the features you prioritize will make customers’ lives easier or more enjoyable.
Collaborate across teams and stakeholders
Make sure all teams are involved in the decision-making process. Include product managers, developers, marketers, sales, and customer support. Encourage open communication and ensure everyone shares their insights. Work together to consider both customer needs and business goals. Leverage team expertise to make well-rounded decisions.
Align features with business goals
Ensure every feature supports the company’s long-term goals. Focus on features that will drive growth, such as increasing revenue or improving customer retention. Regularly review the company’s goals to make sure the features you prioritize align with them. Reassess priorities as business goals evolve to stay on track.
Why do feature prioritization processes fail?
Feature prioritization is key to ensuring organizations focus on the most valuable features. However, several challenges can cause prioritization processes to fail:
Lack of clear goals and criteria
When goals aren’t clearly defined, it becomes hard to decide which features to prioritize. Without clear criteria to evaluate features, decisions become subjective and disagreements arise. Prioritizing features that don’t align with the company’s strategy or customer needs can result in wasted effort.
Poor communication and collaboration
Teams need to work together to make sure priorities are aligned. Effective change management is essential when implementing new prioritization processes, as miscommunication between product managers, developers, sales, and marketing can lead to misunderstandings. If all stakeholders aren’t involved, it’s difficult to determine which features are truly important.
Inadequate data and feedback
Decisions need to be based on solid data, such as user feedback or market research. When data is missing or incomplete, organizations may make assumptions instead of informed choices. Prioritizing features that don’t meet customer needs or market demands can waste resources and lead to poor outcomes.
Feature prioritization use cases
Feature prioritization can look very different depending on the organization and business sector.
Here are three simple examples of how prioritizing features works in different industries:
E-commerce
Scenario: An online store has many customers abandoning their shopping carts due to slow checkout.
Method: The company prioritizes adding a one-click checkout option to make the process faster.
Outcome: The faster checkout increases sales and makes customers happier, leading to more repeat purchases.
Software development
Scenario: A software company gets requests for new features but also has ongoing performance issues.
Method: The team decides to fix performance problems first, then add new features later.
Outcome: A faster, more reliable product keeps users happy and improves retention. New features are added afterward, building on the improved base.
Healthcare
Scenario: A healthcare provider is building a mobile app to help patients track medication but has limited time.
Method: The team prioritizes medication reminders and easy access to prescriptions, postponing other features for later.
Outcome: The app helps patients manage their medication, leading to more users. New features are added in later updates
