Qualitative Prioritization Techniques

In today's fast-paced business environment, product managers play a critical role in ensuring the success of a company's products. As a Product Manager you are responsible for managing resources, meeting deadlines, and achieving business objectives. To accomplish these tasks effectively, prioritization techniques are very important for you as a product manager.

One of the key reasons why prioritization techniques are essential is resource management. In all my time being a Product manager I have always had limited resources (such as time, budget, and manpower) at my disposal and I can say this is the same for almost every industry. 

Prioritization techniques help product managers meet deadlines. Most of the time as a product manager you will be working on multiple projects and tasks simultaneously and it is easy to get overwhelmed and miss important deadlines. This is why as a product manager you must prioritize your workload effectively and ensure timely completion of critical deliverables.

There are two categories of prioritization in Product Management and we will be talking about them shortly;

1. Qualitative prioritization involves the strategic evaluation of product initiatives and ideas before considering external feedback or feature requests. This internal prioritization process occurs prior to any in-depth consideration by the product team. In qualitative prioritization, proposed ideas, updates, and feature requests are systematically assessed based on their alignment with the product vision, goals, and performance metrics. Three primary qualitative components are employed to score each initiative and feature idea i.e. Strategic Value, Competitive Landscape Analysis, Customer Demand.

A. Strategic Value: Strategic value prioritization is all about pinpointing and choosing initiatives that closely align with our organization's big-picture goals, vision, and what our customers really need. To nail this down, we've got to have a deep grasp of our market, what our competitors are up to, and what our customers are telling us. This helps us figure out which features or improvements will pack the most punch.

Importance of Strategic Value Prioritization

• Maximizing ROI: We want to get the most bang for our buck, right? By zeroing in on initiatives that really move the needle strategically, we're making sure we're getting the best return on our investments.

• Customer-Centric Approach: Our customers are at the heart of everything we do. Prioritizing features that offer strategic value lets us tackle their most urgent needs head-on, building stronger relationships and keeping them coming back for more.

• Resource Optimization: We all know resources are finite – time, money, people – you name it. By putting our efforts into initiatives that promise the most growth and innovation, we're making sure we're using our resources wisely.

Examples of Strategic Value Prioritization

• Feature Prioritization for a Mobile Banking App:

Imagine we're working on a mobile banking app. We're all about beefing up security and making sure our users have a seamless experience. So, we're focusing on features like biometric authentication and making navigation a breeze. Sure, we'd love to add all sorts of bells and whistles, but sticking to the essentials ensures our app stays safe and user-friendly, keeping our customers happy and loyal.

• Product Roadmap for an E-Commerce Platform:

Now, let's talk about e-commerce. We want to reach more people, right? So, we're honing in on stuff that makes our website lightning-fast, improves how folks search for things, and makes checking out a breeze. Sure, we could add cool stuff like personalized recommendations and social integration, but first, we're shoring up our foundation for some serious growth.

• Software Development Project:

In the world of software development, sometimes it's all about the nitty-gritty. We've got bugs to squash and performance to amp up. While adding new features sounds enticing, fixing what's broken ensures our product stays rock-solid and reliable, making our users happy and keeping them around.

In the end, strategic value prioritization is our compass. It guides us, helping us make smart decisions and get real results. By staying true to our goals and keeping our customers in mind, we're setting ourselves up for success in a competitive world.

B. Competitive Market Analysis: Understanding the competitive landscape is vital for maintaining a strong market position. Conducting a feature competitive analysis allows us to gauge where we stand compared to our competitors and identify opportunities for differentiation. 

A competitive market analysis delves deeper than simply identifying which features our competitors offer. It involves quantifying the value of these features and understanding how they contribute to setting our product apart from the competition. By analyzing the features our competitors are implementing and assessing their effectiveness, we gain insights into what features resonate most with users. This insight helps us prioritize features that are highly relevant and desirable to our target audience.

The Importance of Differentiation

When we fail to differentiate our product features, we risk losing our competitive edge. Without unique features that address our customers' specific needs, we provide little incentive for them to choose our product over competitors'. Moreover, we lose sight of the distinct problems our product aims to solve, leading to customer dissatisfaction and potential loss of loyalty.

In essence, conducting a comprehensive competitive analysis empowers us to stay attuned to market trends, identify areas for innovation, and maintain our focus on solving our customers' unique challenges. This approach not only strengthens our product's position in the market but also enhances customer satisfaction and loyalty over the long term.

Steps to Conduct a Competitive Market Analysis for Product Features

Example Analysis: Mobile Banking App Feature Enhancement

Consider utilizing a spreadsheet or a dedicated competitor analysis tool like PeerSpot, GetApp or G2 to centralize your findings. If you're in the early stages, focus on evaluating three to five direct competitors – those companies offering a product similar to yours, targeting a comparable user base. This streamlined approach ensures a more manageable and insightful analysis as you delve into the competitive landscape.

Let's consider a mobile banking app seeking to enhance its bill payment feature:

Identify Competitors: Begin by identifying direct and indirect competitors in your product space. Direct competitors offer similar products or features, while indirect competitors address the same user needs through different means. 

For example competitors include traditional banks with mobile apps (e.g., Bank of America, Wells Fargo) and fintech startups (e.g., Chime, Revolut).

Gather Information: Collect data on competitors' product features, functionality, pricing strategies, target market segments, and user experience. This information can be gleaned from competitor websites, product demos, user reviews, and industry reports. 

Review competitor apps to assess bill payment features, transaction processing times, user interfaces, and security measures.

Feature Comparison: Conduct a detailed comparison of your product's features with those of competitors. Evaluate the uniqueness, effectiveness, and user appeal of each feature. 

Compare the bill payment features offered by competitors, such as bill scheduling, recurring payments, payment reminders, and integration with external accounts.

SWOT Analysis: Perform a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for each competitor, focusing on how their product features align with market demands and user preferences. 

Conduct a SWOT analysis to identify competitors' strengths (e.g., seamless integration with banking services), weaknesses (e.g., limited payment options), opportunities (e.g., expanding payment partnerships), and threats (e.g., security breaches).

User Feedback Analysis: Analyze user feedback and reviews for competitors' products to identify recurring themes, pain points, and areas for improvement. Pay attention to features that receive praise or criticism.

Analyze user reviews to identify common pain points and user preferences related to bill payment functionality, such as ease of use, reliability, and transaction speed.

• Bank of America: Users appreciate the ease of scheduling bill payments but criticize the lack of mobile check deposit functionality.

• Wells Fargo: Positive reviews highlight the effectiveness of bill payment reminders but express dissatisfaction with the absence of instant fund transfers.

• Chime: Users praise the convenience of instant fund transfers but desire the addition of bill payment scheduling.

• Revolut: Customers value the global money transfer feature but express a need for expanded functionality in expense tracking.

Trend Analysis: Stay abreast of emerging trends, technological advancements, and shifts in consumer behavior that could impact the competitive landscape and influence feature prioritization. 

Stay informed about emerging trends in mobile banking, such as digital wallet integration, voice-activated payments, and biometric authentication, to anticipate future feature requirements.

• Emerging trends in mobile banking include enhanced security features (biometric authentication, multi-factor authentication), integration with digital wallets (Apple Pay, Google Pay), and expansion into cryptocurrency services.

From a competitive market analysis, valuable insights can be gleaned to inform strategic decisions and enhance business operations. These insights include understanding competitor product features, identifying market positioning strategies, discerning customer preferences and behaviors, refining sales and marketing approaches, exploring expansion opportunities, and mitigating potential risks. Insights for the Product Team:

As a team, it's essential to sift through the insights gleaned from our competitive market analysis to make decisions about our feature components. We must prioritize features that directly align with the needs and use cases of our target users, even if it means leaving out functionalities that might attract a different demographic. Our focus should be on building features that not only enhance the user experience but also provide unique value to our core audience.

When we identify a feature that stands out as a key selling point and differentiator for our product, we should continue investing in its development. It's crucial to ensure that this feature remains a standout area within our product, delivering the best possible user experience to maintain our competitive edge.

Insights for Sales and Marketing:

Understanding the power of product messaging and positioning is critical for our sales and marketing efforts. We need to equip our sales team with concise, sales-ready documents containing key insights about our competitors. This will enable them to effectively communicate the top three aspects to highlight when discussing a competitor's product, such as a clunky user experience, high pricing, or a lack of essential features.

Our marketing team should be informed about how competitors present their products and features. They should have the autonomy to craft messaging that underscores our unique value proposition. It's not just about a single feature; it's about how our entire product stands out against the competition. Our competitive analysis should guide marketing in showcasing the overall strengths of our product, positioning it as a comprehensive solution.

Repurposing the competitive analysis into a buyer's guide can be a valuable lead generation tool for our marketing team. This guide will help highlight our key differentiators by showcasing baseline functionalities and emphasizing the unique benefits our product offers. Through this approach, our marketing team can effectively communicate the overall value proposition of our product to potential customers.

C. Customer Demand: This method ensures that prioritization decisions are grounded in the product's strategic direction, competitiveness, and responsiveness to user demands, setting the stage for effective and purposeful product development. Customer demand in product management refers to the level of interest, desire, or need expressed by customers for specific products, features, or services offered by a company. It encompasses understanding what customers want, why they want it, and how much they are willing to invest in obtaining it. Customer demand analysis is crucial for product managers to prioritize initiatives, allocate resources effectively, and tailor products to meet customer needs effectively.

Examples of how customer demand can be assessed using the competitive market analysis provided earlier:

Feature Prioritization for a Mobile Banking App:

• Assess customer demand by analyzing user feedback and reviews for competing mobile banking apps.

• Identify common pain points and desired features expressed by customers.

• Prioritize feature development based on the frequency and severity of customer needs and preferences.

Customer Demand Analysis Template

Product Roadmap for an E-Commerce Platform:

• Analyze customer engagement metrics, such as click-through rates, bounce rates, and conversion rates, for competing e-commerce platforms.

• Conduct surveys or interviews with target customers to gather insights into their shopping preferences, challenges, and expectations.

• Use data analytics tools to track trends in customer behavior and identify emerging demands in the e-commerce market.

Customer Demand Analysis Template

Software Development Project:

• Monitor customer support tickets and inquiries related to software issues or feature requests.

• Utilize social listening tools to monitor online conversations and sentiment surrounding competing software products.

• Conduct market research to understand customer pain points and unmet needs within the software development industry.

Customer Demand Analysis Template

By leveraging insights from competitive market analysis and employing various research methods, product managers can gain a deeper understanding of customer demand. This enables them to make informed decisions about feature prioritization, product development, and resource allocation to meet customer needs effectively and drive business success.

Curious to learn more? Click here to delve into the second part of this article!

References

• https://roadmunk.com/guides/competitive-market-analysis-product-prioritization/

• Roadmunk - Ultimate Guide to Prioritization.pdf. Download here

• https://www.productboard.com/glossary/product-prioritization-frameworks/

• https://www.hotjar.com/product-prioritization/