What's the Secret to Feature Prioritization?

In today's fast-paced digital landscape, Direct-to-Consumer (D2C) companies must continuously innovate to stay ahead of the competition. Feature prioritization plays a crucial role in ensuring that resources are allocated effectively to develop features that deliver the most significant value to customers and the business. This is StartupStoic, a newsletter that assists you in learning better and strategizing your startup ideas. If you find it helpful, feel free to share it with others.

Feature prioritization ranks potential features based on their value and impact on your business. It involves considering customer demand, market potential, technical feasibility, and resource requirements. By prioritizing features effectively, you can ensure that your development efforts are focused on what matters most to your customers and your bottom line.

Popular Feature Prioritization Frameworks

Several effective feature prioritization frameworks have been adopted by D2C companies across the globe. Let's explore some of the most commonly used ones:

1. Kano Model

The Kano Model categorizes customer needs into three types:

• Must-haves: These are basic features that customers expect and take for granted. If a product lacks these features, it will be unacceptable.

• Performance attributes: These features directly satisfy customer needs and are actively valued. The higher the performance of these features, the greater the customer satisfaction.

• Exciters (delighters): These are unexpected features that go beyond customer expectations and create delight. They can significantly differentiate a product from competitors.

Example:  Warby Parker used the Kano Model to enhance its digital experience, which was a crucial part of its business as a D2C eyewear company. The “Basic Needs” were straightforward—clear product displays, easy navigation, and secure payment options. However, to differentiate itself from traditional eyewear companies, Warby Parker focused on adding “Performance Needs” like virtual try-ons and personalized product recommendations, which improved overall customer satisfaction.

2. Weighted Sum Model

The Weighted Sum Model assigns weights to different criteria (e.g., customer value, technical feasibility, market potential) and then calculates a weighted score for each feature. Features with higher scores are prioritized.

Example: Away applied a weighted scoring approach to its product development strategy. When deciding which new luggage features to roll out—such as the addition of USB chargers or new organizational tools—Away’s product team used data to score these features based on customer demand, ease of implementation, and potential to increase average order value.

3. MoSCoW Method

The MoSCoW Method categorizes features into four groups:

• Must-haves: These are essential features that must be included in the product.

• Should-haves: These are highly desirable features that should be included if possible.

• Could-haves: These are features that are nice to have but not strictly necessary.

• Won't-haves: These are features that are not currently considered for development.

Example: Blue Tokai leveraged a MoSCoW-inspired approach when expanding its product offerings. Initially, the company focused on perfecting its core products—freshly roasted coffee beans and equipment. These were the “Must-haves” in its value proposition. Other items like subscriptions and accessories were categorized as “Should-haves” and “Could-haves,” enabling Blue Tokai to focus on its primary business model while gradually adding features that enhanced customer experience.

4. RICE Framework

The RICE Framework evaluates features based on Reach (number of people impacted), Impact (expected positive or negative effect), Confidence (likelihood of success), and Effort (estimated time and resources required).

Example: Glossier employed a RICE scoring framework when deciding how to prioritize features for its international expansion. The brand needed to decide which regions to target first, along with which products and features to localize for each market. Glossier’s product team scored each opportunity based on the number of potential customers it would reach (Reach), the potential positive impact on the brand (Impact), their confidence in achieving this (Confidence), and the effort involved in rolling out the feature (Effort).

5. Opportunity Scoring

Opportunity Scoring involves assigning scores to features based on their potential impact on revenue, customer satisfaction, market share, and other key metrics. Features with higher scores are prioritized.

Example: A D2C electronics company might prioritize features that have a high potential to increase sales, improve customer loyalty, and differentiate its products from competitors.

Prioritizing for Sustainable D2C Growth

Feature prioritization is critical for D2C brands that aim to stay competitive while delivering exceptional customer experiences. As the examples from Blue Tokai, Glossier, Warby Parker, Allbirds, Away, and Casper demonstrate, applying the right framework can help balance customer needs, market trends, and business objectives effectively.

Recommended Reads:

• Peloton's Path to Fitness Industry Domination: A Strategy Breakdown for D2C Leaders

• Everlane's Unconventional Blueprint for Dominating the Women's Fashion Industry

• How Bombas Transcended Expectations in the D2C Industry?