How to visualize and calculate: Impact of a feature
How do you visualize the impact of a feature? Here's the mental model that I use most of the time for a SaaS driven model B2C / B2B
There are usually 3 main channels to be considered (of course exceptions apply but I don't know how to simplify it better)
A feature has an effect on:
- Retention (Churn reduction)
- Top of Funnel
I described the individual channels more in detail but the secret sauce is to make assumptions based on all 3 channels. (There might be more, for instance, monetization changes etc.)
If you struggle to come up with assumptions, most of it is based on experience and sometimes hard to translate even if you would have worked at a competitor in the same space.
In general, though we have the lowest absolute % numbers in down market segments (B2C). The more you go up the more this number increases. 0.1% (B2C) - 10% (B2B) - 25% (Enterprise)
While these numbers are purely hypothetical you can orient yourself to what that means for an improvement. Improving your current B2C conversion from 0.1% to 0.2% is huge due to the relative change.
Another approach is to look for other parts of your product where you already have proven a specific conversion rate. Our other feature is having a 0.5% conversion rate, so we think the new feature will in time reach the same. Together with the assumption of how many users are affected, you can now calculate your impact.
I'm planning to run a workshop at some point in the future when things calm down as the topic is much more expansive (especially for acquisition teams) than this.
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