Mastering Prioritization - Comparing MoSCoW, Kano, and RICE Techniques for Optimal Results - Part III

In our previous articles, we discussed the MoSCoW and Kano Model prioritization techniques. Today, we are going to learn about the RICE (Reach, Impact, Confidence, Effort) scoring method to prioritize an MVP (Minimum Viable Product). We will also delve into a real-world example of a startup using the RICE scoring method to prioritize their MVP features. To close our prioritization series, we will compare the different methods and summarize the best use cases for each.

  

RICE Method Overview

 

While MosCoW and Kano Models are somewhat more subjective, the RICE scoring method uses a quantitative analysis that can be very useful to justify the product decisions with data. The acronym RICE stands for:

• Reach: How many users will be affected by this feature within a given time frame.
• Impact: How much this feature will impact users or the business if delivered.
• Confidence: How confident the team is in the estimations of reach and impact.
• Effort: The amount of work required to deliver the feature, typically measured in “person-months.”

 

Startup Intercom’s Application of the RICE Scoring Method

 

1. Background

 

Intercom provides a suite of messaging-first products that help businesses chat with potential and existing customers within their app, on their website, through social media, or via email. As a rapidly growing startup, Intercom needed a systematic way to prioritize features for their MVP to ensure they delivered maximum value to their users efficiently.

 

2. Steps Intercom Took Using RICE

 

1. Identifying Potential Features

 

Intercom compiled a list of potential features for their MVP based on user feedback, market research, and internal brainstorming sessions. Some of these features included:

• In-app messaging
• User segmentation
• Real-time chat support
• Email follow-ups
• Integration with CRM tools

 

1. Scoring Each Feature 

For each potential feature, Intercom assigned scores for Reach, Impact, Confidence, and Effort.

Example Feature: Real-time Chat Support

• Reach: 8,000 (number of users expected to use this feature in a quarter)
• Impact: 4 (on a scale of 1-5, where 5 is “massive impact”)
• Confidence: 80% (confidence in the reach and impact estimates)
• Effort: 2 person-months

 

1. Calculating the RICE Score

The RICE score for each feature is calculated using the formula:

RICE Score = Reach x Impact x Confidence

                                          Effort 

For the real-time chat support feature:

RICE Score = 8,000 x 4 x 0.8 = 12,800

                                   2 

1. Prioritizing Features Based on RICE Scores 

Intercom calculated the RICE scores for all identified features and then prioritized them based on these scores. Features with the highest RICE scores were prioritized for development in their MVP.

 

Top Prioritized Features Based on RICE Scores: 

1. Real-time chat support
2. User segmentation
3. In-app messaging
4. Email follow-ups
5. Integration with CRM tools

Iterative Review and Adjustment

 

 Intercom regularly reviewed and adjusted the RICE scores based on new data, feedback, and market conditions. This iterative process ensured that their prioritization remained aligned with user needs and business goals.

 

Key Benefits for Intercom

 

• Focus on High-Impact Features: By using the RICE method, Intercom ensured they focused on features that would have the greatest positive impact on their user base.
• Efficient Use of Resources: The method helped allocate resources effectively, ensuring that development efforts were concentrated on features with the highest return on investment.
• Data-Driven Decision Making: RICE provided a structured, quantitative approach to feature prioritization, reducing bias and improving decision-making transparency.

 

Conclusion

 

Using the RICE scoring method allowed Intercom to systematically and effectively prioritize MVP features, ensuring they delivered a high-value product that met user needs and drove business growth. This approach can be applied by other startups to streamline their feature prioritization process and enhance the success of their MVP launches.

 

Choosing the Right Prioritization Method

 

Choosing between the MoSCoW prioritization technique, the Kano Model, and the RICE scoring method depends on the specific context and goals of your project or task. Here’s a breakdown to help you decide when to use each method:

 

Use MoSCoW when:

 

1. Clear Stakeholder Communication is Needed: MoSCoW (Must have, Should have, Could have, Won’t do) is great for communicating priorities to stakeholders in a clear and understandable way, especially in workshops or meetings.
2. Defining Scope for a Release: When you need to clearly define what is essential for a project or release (Must have) versus what can be deprioritized if necessary (Should have, Could have, Won’t do).
3. Agile and Iterative Projects: Commonly used in Agile methodologies, MoSCoW helps in iteratively determining priorities for sprints or releases.
4. Focus on Necessity and Feasibility: When you need to focus on what is absolutely necessary for a project to succeed and what can be deferred without impacting the project’s success.
5. Simpler, High-Level Prioritization: When a high-level, less data-intensive prioritization method is sufficient, MoSCoW provides a straightforward approach.

 

Use the Kano Model when:

 

1. Understanding Customer Satisfaction: When the goal is to understand how different features or attributes of a product affect customer satisfaction, the Kano model is highly effective. It categorizes features into Basic, Performance, Excitement, Indifferent, and Reverse needs.
2. Product Development and Innovation: When you want to innovate and create features that will delight users, the Kano model helps identify which features have the potential to exceed customer expectations.
3. User-Centered Design: When you have the time and resources to conduct user surveys and gather data on customer preferences to inform your prioritization.
4. Complex Products with Varied Features: When dealing with a product that has a wide range of features, understanding their impact on customer satisfaction can help prioritize which features to develop or enhance.
5. Long-Term Strategic Planning: When you need to balance immediate needs (basic and performance features) with long-term innovation (excitement features) to stay competitive and meet evolving customer expectations.

 

Use RICE when:

 

1. Quantitative Analysis is Needed: RICE (Reach, Impact, Confidence, Effort) allows for a more numerical and data-driven approach to prioritization, which is beneficial when you need to make decisions based on measurable factors.
2. Comparing Multiple Projects or Features: When you have numerous projects or features and need to compare them objectively based on their potential impact and effort required.
3. Need to Justify Decisions: When you need to justify your prioritization decisions to stakeholders with clear, quantitative data.
4. Focus on User Impact: If your main goal is to understand how a feature or project will impact your users and the overall reach, RICE helps in evaluating this effectively.
5. Effort Estimation is Key: When it’s crucial to understand and compare the amount of work required for each task or feature to ensure resource allocation is efficient.

 

In summary:

 

• MoSCoW is ideal for clear communication with stakeholders and defining project scope in an Agile context.

• Kano is ideal for understanding the impact of features on customer satisfaction and for long-term product development strategies that aim to delight users and innovate.

• RICE is best for detailed, data-driven prioritization with a focus on user impact and effort estimation.

 

In conclusion, choosing the right prioritization method is crucial for achieving the best results in any project or product development endeavor. The key is to align your prioritization strategy with your specific goals and resources. Effective prioritization not only ensures that you are focusing on what truly matters but also maximizes resource efficiency, enhances customer satisfaction, and drives sustainable success. Embrace these prioritization techniques to navigate complexities, make informed decisions, and propel your projects towards their full potential.

 

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