Feature Performance Metrics for Software as a Service Offering: The Case of HubSpot
Name
esd-wp-2011-04.pdf
Size
625.58 KB
Format
Adobe PDF
Checksum (MD5)
46db294e3f6e6e7fd82ded4d87aacfe2
Author(s)
Latner, Avi
Valerdi, Ricardo
Date Issued
March 2011
Publisher
Massachusetts Institute of Technology. Engineering Systems Division
Series/Report no.
ESD Working Papers;ESD-WP-2011-04
Abstract
This paper provides an industry case study for measuring the performance of software as a service (SaaS) product features in order to prioritize development efforts. The case is based on empirical data from HubSpot and it is generalized to provide a framework applicable to other companies with large scale software offerings and distributed development. Firstly, relative value is measured by the impact that each feature has 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 “lifesupport”, terminated or overhauled.
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