Prioritization is the process of deciding what needs to be done first when there are multiple tasks or projects competing for limited resources. It’s important for product managers because it helps them decide which features or improvements to put the most effort into. This makes sure that the product meets the needs of its users.

Prioritization can be challenging because there are often many factors to consider, such as customer needs, business goals, technical feasibility, and available resources. Also, different stakeholders may have different ideas and priorities, making it hard to come to a decision.

To illustrate the importance of prioritization, let’s consider the example of planning a family vacation. As the parent, you have limited time and money to spend, and you need to decide which activities and destinations will provide the most enjoyable experience for everyone. You might need to think about what each family member wants, how much money you have, and how to get there and where to stay.

Now, let’s add a funny twist to this example. Imagine you’re planning a birthday party for your pet hamster. You want to make it a special event, but you’re not sure what to prioritize. Do you focus on creating a fun activity for your hamster, like a hamster wheel obstacle course? Or do you prioritize making cute decorations and serving fancy hamster treats? It’s a silly example, but it demonstrates how even seemingly trivial tasks can require prioritization when resources are limited.

As a product manager, you have to balance multiple factors when prioritizing features or projects. Let me break down some of the key factors that you need to consider:

• Customer needs: Your product should address the needs of your target customers. It’s important to understand their pain points, preferences, and behaviors. You can gather customer feedback through surveys, interviews, and usage data. Prioritize features or projects that address the most critical customer needs or provide the most value to your customers.

• Business objectives: Your product should align with your company’s business objectives. For example, if your company wants to increase revenue, you may prioritize features or projects that drive more sales or upsells. If your company wants to increase customer retention, you may prioritize features or projects that improve customer satisfaction or reduce churn.

• Technical feasibility: Your product should be feasible from a technical perspective. You need to consider the complexity, cost, and time required to implement a feature or project. Prioritize features or projects that are feasible within your team’s resources and timeline.

• Market trends and competition: You need to keep an eye on market trends and competition. If your competitors are launching new features, you may need to prioritize similar features to stay competitive. If there is a new technology or trend that is gaining traction, you may need to prioritize features or projects that leverage it.

• Risks and dependencies: Some features or projects may carry more risks or dependencies than others. You need to consider the impact on your product roadmap and timeline. Prioritize features or projects that have lower risks or dependencies first or that are critical to reducing risks or dependencies.

Prioritization is not a one-time activity. You should always look at your priorities and change them based on new information and how things are going.
There are several techniques that you can use to prioritize product features or initiatives. Here are some of the most common methods:

• MoSCoW prioritization: This technique categorizes features into four groups: must-haves, should-haves, could-haves, and won’t-haves. Must-haves are critical features that must be included in the product; should-haves are important but not critical; could-haves are desirable but not essential; and won’t-haves are features that won’t be included in the current release.

• The Kano model helps you figure out which features will have the most effect on customer satisfaction. It categorizes features into three groups: must-haves, performance attributes, and delighters. Must-haves are features that customers expect as a basic requirement; performance attributes are features that increase satisfaction as they improve; and delighters are unexpected features that create delight and surprise.

• Weighted scoring: This method gives each feature or project a score based on a number of factors, such as the value to the customer, the technical feasibility, and the business impact. You can then calculate a total score for each feature and prioritize them based on their scores.

• Cost of delay: This method helps you put features in order of importance based on how much it will cost to put them in place later. Features that have a higher cost of delay, like lost revenue opportunities or more customers leaving, should be given higher priority.

• RICE scoring: This technique combines the factors of Reach, Impact, Confidence, and Effort to prioritize features. Reach refers to the number of customers who will be affected by the feature; Impact refers to the degree of impact the feature will have on customers; Confidence refers to how confident you are in your estimates; and Effort refers to the level of effort required to implement the feature.

Each of these techniques has its strengths and weaknesses, and the choice of technique will depend on your specific product and business needs. Combining multiple techniques to get a more comprehensive view of feature prioritization may also be necessary.

To make good prioritization decisions, you need to use user feedback, analytics, and other data sources. Here are some ways you can use data to inform your prioritization process:

• User feedback: Gathering feedback from users through surveys, interviews, and user testing can help you understand their needs and pain points. You can use this feedback to prioritize features or initiatives that address the most critical customer needs or provide the most value to your customers.

• Analytics: Analyzing usage data, such as user behavior, conversion rates, and retention rates, can help you figure out which features are most used and which aren’t. You can use this data to prioritize features that are driving the most value and deprioritize features that are not being used as much.

• A/B testing: Conducting A/B tests on different variations of a feature can help you determine which version performs better. You can use this data to prioritize the version that performs better.

• Market research: Conducting market research, such as competitive analysis and market trends, can help you identify opportunities and threats in the market. You can use this data to prioritize features or initiatives that help you stay competitive or capitalize on emerging trends.

• Data-driven decision-making: You can also use data to make more informed overall prioritization decisions. By setting up key performance indicators (KPIs) for your product and keeping track of them regularly, you can see how your decisions affect things and change your priorities as needed.

Data should be used to inform your prioritization decisions, but it shouldn’t be the only factor. You still need to consider other factors, such as technical feasibility and business objectives. By balancing data-driven decision-making with other factors, you can make informed and strategic prioritization decisions