Feature performance metrics for software as a service offering

Abstract

This paper provides a framework to measure the performance of software as a service (SaaS) product features to prioritize development efforts. Firstly, relative value is measured by the impact of each feature on customer acquisition and retention. Secondly, feature value is compared to feature cost and specifically development investment to determine feature profitability. Thirdly, feature sensitivity is measured. Feature sensitivity is defined as the effect a fixed amount of development investment has on value in a given time. Fourthly, features are segmented according to their location relative to the value to cost trend line into most valuable features, outperforming, underperforming and fledglings. Finally, results are analyzed to determine future action. Maintenance and bug fixes are prioritized according to feature value. Product enhancements are prioritized according to sensitivity with special attention to fledglings. Underperforming features are either put on "life-support," terminated or overhauled. This framework is applicable to SaaS companies for the purpose of prioritizing features, an important consideration for concurrent engineering of software systems. © 2011 Springer-Verlag London Limited.