What is an opportunity score?
Definition: Opportunity score measures the potential value or likelihood of success of a new product or product feature. It prioritizes product development efforts and allocates resources to the most promising opportunities.
The opportunity score can be calculated using a variety of factors, such as market demand, competitive landscape, the potential return on investment, and the resources required to pursue the opportunity.
How is an opportunity score calculated?
To get the opportunity score, the team asks their customers 2 questions for every product feature:
1. How important is this feature to you? (1-5)
2. How satisfied are you with the feature's performance? ( 1-5)
After conducting a survey, you can calculate the opportunity score in 4 ways:
1. Equal importance of ratings
The highest importance score and the lowest satisfaction score of a feature is the "opportunity."
2. ODI formula – a double value of "importance" ratings
Importance + ( importance - satisfaction) = opportunity
The highest score of a feature is the " opportunity."
3. Decision matrix
This is a method in which a set of criteria or factors that are relevant to the opportunity are identified, and the opportunity is evaluated against each factor on a scale (e.g., high, medium, low).
The scores for each factor are then added together to produce an overall opportunity score.
4. Expert judgment
The opportunity score is determined based on the input and judgment of experts or key stakeholders who have knowledge and experience related to the opportunity.
If you are interested in scoring frameworks read more about RICE scoring.
