Today, we will start our conversation about task prioritization by talking about two factors that influence decision-making:
- Reach: How many customers will this influence?
- Value: How much money or savings will this generate?
At first glance, these factors seem very similar – wouldn’t it always be the case that efforts that impact all customers have high value, and vice versa? Nope!
With Reach, measured in the number of customers, the focus is on how many of your customers will the task influence, over some time period. For example, if all of your active customers will see a change of the color of buttons from dark blue to light blue, its reach would be very high. On the other hand, a customer-specific feature request would only apply to a single customer, so its reach would be very low.
The Value, measured in dollars, factor focuses on the expected financial impact of a task, over some period of time. Using the examples above, changing the color of buttons would probably have very little value as it won’t add new customers or prevent customer churn. On the other hand, a customer-specific request only reaches one customer, but it could unlock a substantial amount of revenue.
You can plot the Reach and Value of tasks on a chart to get a sense of how impactful they will be. The ones that are going to be more impactful are in the upper right quadrant; they impact many customers and will generate or save large amounts of money. The least impactful are in the lower left quadrant; they impact a handful of customers and generate or save small amounts of money.
Of course, you want to undertake the most impactful tasks. However, just because they are the most impactful does not necessarily mean that they are the highest priority – you need to consider the Effort and Confidence first, which I’ll discuss tomorrow.