How to calculate “Confidence” in the RICE score?
RICE score is the most commonly used prioritization framework. It stands for Reach, Impact, Confidence, and Effort. It is most appropriately suited for the product or features in the iteration phase.
Reach
Count of users who will be exposed to this feature.
Impact
Quantum of business outcome expected from the impacted set of users.
Confidence
The extent of confidence in the expected outcome.
Effort
The number of resources or development efforts needed to build the respective feature.
The most tricky part is predicting confidence. It’s not always clear what 50% vs 60% confidence implies. Let’s understand in detail.
In order to estimate confidence, PMs can fetch the information from the below channels :
1. Product Analytics
It can include user journey funnels and a deep understanding of the overall AARRR metrics.
2. Customer Empathy
A thorough understanding of the customers using usability testing or attending customer care/ sales calls can help to build reasonable customer empathy.
3. Competition Benchmarking
It’s the most important & crucial tool in your arsenal in order to build a high degree of confidence. If users are loving and talking about a feature in your competitor, it’s a no-brainer to have that in your app based on the specific use case.
For instance, in your account opening journey, the user needs to go through 7 steps. You started analysing the funnel and realized that there is a major drop-off happening at the final step.
You started reaching out to the focus groups & conducted user interviews. You ingested the feedback & conducting A/B testing with multiple variations to arrive at a conclusion based on the data.
You further studied your direct competitor and their account opening journey. You realize that better communication & UX is ensuring that users are completing the journey.
Throughout this process, you were able to successfully apply competitive benchmarking, product analytics & customer empathy to increase your level of confidence while calculating the RICE score.
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