Model ROI of Any New Feature

Three main categories — desirability (why does the target user want/need this?), feasibility (can our organization make this happen?) and viability (will this help the business and is it sustainable?)

The ROI calculation

(reach of users * new or incremental usage * value to business) — development cost = expected ROI

Reach of users is an estimate of the number of users who will see, use or be impacted by the feature.

New/incremental usage is an estimate of the change in behavior or primary action being driven as a result of the project.

Value to the business is the ultimate outcome you want to measure. This is often measured in averages or percentages and could be anything from LTV, conversion rate, renewal rate, etc.

• Customer pain -> product vision -> objective -> key result.

Reference — https://uxdesign.cc/a-simple-way-to-model-roi-of-any-new-feature-a9828fbba27e