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Feature Packaging Template for Product Strategy

A structured template for packaging features into pricing tiers. Covers feature value analysis, tier design, packaging principles, migration planning,...

Updated 2026-03-05
Feature Packaging
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Frequently Asked Questions

How many features should be in each tier?+
There is no magic number, but a useful rule of thumb is that each tier should add 3-5 meaningful features (not settings or limits) over the tier below. If the feature delta between tiers is too small, customers will not see the value of upgrading. If it is too large, the lower tier feels empty.
Should we put new features in the highest tier first?+
Not always. If the new feature is a table-stakes improvement (e.g., mobile app, better search), it belongs in the tier where most of your users are. If it is a differentiating premium feature (e.g., AI, advanced analytics), it can launch in a higher tier and potentially move down later as it matures. The [RICE framework](/frameworks/rice-framework) can help you assess which tier makes sense based on reach and impact.
How do we handle customers who lose features in a packaging change?+
Grandfather them. Give existing customers continued access to any feature they currently use for a defined period (6-12 months is standard). Communicate early, explain the rationale, and offer an upgrade path that feels fair. Never silently remove access to a feature a customer is actively using.
When should we add a new tier versus adding an add-on?+
Add a new tier when you have a distinct persona with a distinct set of needs that does not map to existing tiers. Add an add-on when the feature is relevant across multiple tiers and appeals to a subset of users within each tier. If only 15% of your Pro customers want AI features, an AI add-on makes more sense than an AI tier. If 40% want it, a new tier may be warranted. ---

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