feature-investment-advisor

Purpose

Guide product managers through evaluating whether to build a feature based on financial impact analysis. Use this to make data-driven prioritization decisions by assessing revenue connection (direct or indirect), cost structure (dev + COGS + OpEx), ROI calculation, and strategic value—then deliver actionable build/don't build recommendations with supporting math.

This is not a generic prioritization framework—it's a financial lens for feature decisions that complements other prioritization methods (RICE, value vs. effort, user research). Use when financial impact is a key decision factor.

Key Concepts

The Feature Investment Framework

A systematic approach to evaluate features financially:

1. Revenue Connection — How does this feature impact revenue?
2. Direct monetization (new tier, add-on, usage charges)
3. Indirect monetization (retention, conversion, expansion enablement)

1. Cost Structure — What does it cost to build and run?
2. Development cost (one-time investment)
3. COGS impact (ongoing infrastructure, processing)
4. OpEx impact (ongoing support, maintenance)

1. ROI Calculation — Is the return worth the investment?
2. Direct monetization: Revenue impact / Development cost
3. Retention features: LTV impact across customer base / Development cost
4. Factor in gross margin, not just revenue

1. Strategic Value — Non-financial value that might override pure ROI
2. Competitive moat (prevents churn to competitor)
3. Platform enabler (unlocks future features)
4. Market positioning (needed for enterprise deals)
5. Risk reduction (compliance, security)

Anti-Patterns (What This Is NOT)

• Not feature scoring alone: Combines financial analysis with strategic judgment
• Not revenue-only thinking: Considers margins, costs, and ROI, not just top-line revenue
• Not ignoring retention: Indirect revenue impact (churn reduction) is equally valid
• Not building without validation: Assumes you've done discovery; this is the financial lens

When to Use This Framework

Use this when:

• Prioritizing between features with quantifiable revenue/retention impact
• Evaluating expensive features (>1 engineer-month of work)
• Making build/buy/partner decisions
• Defending feature prioritization to stakeholders or leadership
• Choosing between direct monetization (add-on) vs. indirect (retention)

Don't use this when:

• Feature is table stakes (must-have for competitive parity)
• Impact is purely qualitative (brand, UX delight without measurable retention effect)
• You haven't validated the problem (do discovery first)
• Feature is < 1 week of work (just build it)

Facilitation Source of Truth

Use [workshop-facilitation](../workshop-facilitation/SKILL.md) as the default interaction protocol for this skill.

It defines:

• session heads-up + entry mode (Guided, Context dump, Best guess)
• one-question turns with plain-language prompts
• progress labels (for example, Context Qx/8 and Scoring Qx/5)
• interruption handling and pause/resume behavior
• numbered recommendations at decision points
• quick-select numbered response options for regular questions (include Other (specify) when useful)

This file defines the domain-specific assessment content. If there is a conflict, follow this file's domain logic.

Application

This interactive skill asks up to 4 adaptive questions, offering 3-5 enumerated options at decision points.

Step 0: Gather Context

Agent asks:

"Let's evaluate the financial impact of this feature investment. Please provide:

Feature description:

• What's the feature? (1-2 sentences)
• Target customer segment (SMB, mid-market, enterprise, all)

Current business context:

• Current MRR/ARR (or customer count if pre-revenue)
• Current ARPU/ARPA
• Current monthly churn rate
• Gross margin %

Constraints:

• Development cost estimate (team size × time)
• Any ongoing COGS or OpEx implications?

You can provide estimates if you don't have exact numbers."

Step 1: Identify Revenue Connection

Agent asks:

"How does this feature impact revenue? Choose the option that best describes the revenue connection:

1. Direct monetization (new revenue stream) — We'll charge for this (new pricing tier, paid add-on, usage-based fee)
2. Retention improvement (reduce churn) — Addresses key churn reason; keeps customers from leaving
3. Conversion improvement (trial-to-paid) — Helps convert free/trial users to paid customers
4. Expansion enabler (upsell/cross-sell) — Creates upsell path or drives usage-based expansion
5. No direct revenue impact — Table stakes, platform improvement, or strategic value only

Choose a number, or describe a custom revenue connection."

Based on selection, agent adapts:

If 1 (Direct monetization):

• "What pricing are you considering?"
• "What % of customers do you expect to adopt this?" (conservative, base, optimistic)
• Calculate: Potential Monthly Revenue = Customer Base × Adoption Rate × Price

If 2 (Retention improvement):

• "What % of churn does this feature address?" (e.g., "30% of churned customers cited this gap")
• "What churn reduction do you expect?" (e.g., "5% → 4% monthly churn")
• Calculate: LTV Impact = Increase in Customer Lifetime × Customer Base × ARPU × Margin

If 3 (Conversion improvement):

• "Current trial-to-paid conversion rate?"
• "Expected conversion lift?" (e.g., "20% → 25% conversion")
• Calculate: Additional MRR = Trial Users × Conversion Lift × ARPU

If 4 (Expansion enabler):

• "What expansion opportunity does this create?" (upsell tier, usage growth, add-on)
• "What % of customers will expand?"
• Calculate: Expansion MRR = Customer Base × Expansion Rate × ARPU Increase

If 5 (No direct revenue impact):

• Skip to strategic value assessment

Step 2: Assess Cost Structure

Agent asks:

"What's the cost structure for this feature?

Development cost (one-time):

• Team size: ___ engineers
• Time estimate: ___ weeks/months
• Estimated dev cost: $___

Ongoing costs (if any):

• COGS impact: $___ /month (hosting, infrastructure, processing)
• OpEx impact: $___ /month (support, maintenance)

If no ongoing costs, enter $0."

Agent calculates:

• One-time investment: Development cost
• Ongoing monthly cost: COGS + OpEx
• Contribution margin impact: (Revenue - COGS) / Revenue

Agent flags:

• If COGS is >20% of projected revenue: "⚠️ This feature significantly dilutes margins"
• If ongoing costs are high relative to revenue: "⚠️ Consider if this is sustainable"

Step 3: Evaluate Constraints and Timing

Agent asks:

"What constraints or timing considerations apply?

1. Time-sensitive competitive threat — Competitor launched this; we're losing deals
2. Limited budget/team capacity — We can only build one major feature this quarter
3. Dependencies on other work — Requires platform improvements or other features first
4. No major constraints — We have capacity and flexibility

Choose a number, or describe your constraints."

Based on selection:

If 1 (Competitive threat):

• Strategic value increases (churn prevention)
• Urgency factor in recommendation

If 2 (Limited capacity):

• Compare ROI against other features in backlog
• Recommend stack ranking

If 3 (Dependencies):

• Flag dependency risk
• Suggest sequencing

If 4 (No constraints):

• Proceed to recommendations

Step 4: Deliver Recommendations

Agent synthesizes:

• Revenue impact (from Step 1)
• Cost structure (from Step 2)
• Constraints (from Step 3)
• ROI calculation
• Strategic value assessment

Agent offers 3-4 recommendations:

Recommendation Pattern 1: Strong Financial Case

When:

• ROI >3:1 (direct monetization) or LTV impact >10:1 (retention/expansion)
• Positive contribution margin
• No major red flags

Recommendation:

"Build now — Strong financial ca