The Feature Value Matrix is a four-bucket method, developed at Potio, for deciding where each feature goes in a pricing structure. It sorts a product’s features into core features, value drivers, add-ons and forgettables, and each bucket gets a different treatment on the pricing page.
| Bucket | What it is | Where it goes |
|---|---|---|
| Core features | Table stakes everyone expects | Every plan |
| Value drivers | Features that solve a new problem | Define the tiers |
| Add-ons | Niche power, wanted by a few who will pay | Sold separately |
| Forgettables | Bloat | Never on the pricing page |
Take a project management tool. Task lists and comments are core, because nobody would buy without them. Resource planning across a team solves a new problem and justifies a higher tier. A native invoicing module matters to agencies and almost nobody else, so it sells as an add-on. A choice of colour themes is a forgettable.
Potio’s take: Customers do not pay for volume. They pay for specific value drivers, and everything else is noise. Shoving more features into the Pro plan does not make it worth more. Gating a feature everyone expects does not produce upgrades, it loses business.
Bad packaging usually starts in the analytics. A team sees high usage of a feature and assumes that justifies a price tag. Usage tells you a feature matters, not whether anyone will pay extra for it.
The sorting question is the same every time: would a customer pay more for this, or do they just expect it to be there? If they expect it, it is core. If they would pay more, it is a value driver.
Value drivers then map onto tiers. In a good-better-best structure, each step up should be earned by a value driver that solves the next problem the customer runs into. Add-ons keep the tiers clean, because niche features that only one segment wants do not inflate every plan’s price. Forgettables stay off the pricing page entirely, where they only add length.
Features exist to solve specific jobs to be done, so the matrix works best after the customer’s jobs are clear. The same feature can be core for one segment and a value driver for another.
A core feature is one customers expect in any version of the product. A value driver is one they would pay more to get. Ask whether a missing feature would stop the purchase or just stop the upgrade.
Not because of usage alone. A heavily used feature is often core, and gating it pushes customers away rather than up. Put it where the willingness to pay is.
Leave them in the product if they cost nothing, and leave them off the pricing page.
More on this: Good Better Best Pricing for SaaS: A Strategic Guide
I'm a 3x founder and former CEO of Toggl. I work hands-on with SaaS & AI teams to fix pricing, packaging and monetization.
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