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The Feature Trap: Why Your SaaS Users Only Use 20% of What You Build

  • gandhinath0
  • Apr 11
  • 3 min read

Updated: May 11

If you're running a SaaS company making between $1M-$10M, you might be building a lot of features that majority of users do not want. 

Here's what I learned the hard way.


Back when I was working at my last startup, our team couldn't stop coming up with new features. Our whiteboards were full. JIRA was bursting. We spent hours arguing about tech stacks. (You know the drill - Kafka or SNS? Spring Boot or Node?)


Two months and $60,000 later, we hit publish.

Nobody cared. Not a single user.

Turns out we built stuff nobody asked for.


The lesson? Stop Building More Features! There’s a better way to build - one where you learn first from your customers, then invest.


One Metric That Tells You if You're Building Right Features

Count how many features your customers actually use. Not the "I clicked it once" kind of use. I mean the features they'd be mad about if you took them away.


Formula: 

% of Features Used by >50% of Users = 
      (Features Used By >50% of Users) 
      ÷ 
      (Total Features Shipped) 
      × 
      100

It’s simple yet powerful. When this number is low, your team’s effort isn’t translating into user value.


Here's how to check:

What to Collect

Example

Total number of features you've shipped

20 features

Count how many are used by >50% of active users (in a 30-day window)

6 features

Divide used features by total features

6 ÷ 20 = 0.30

Convert to %

30%

Your score: 30% of features are used by more than half your users.


This number score tells you if your roadmap works or it doesn't.


Here's a surprising fact: Pendo's 2022 Product Report found that users ignore 80% of SaaS features.That's not just wasted code - it's wasted time, money, and opportunity.


Pro Tip: Pick your favorite tool - Mixpanel, Amplitude, Pendo, Heap, or PostHog. Set up a 30-day tracking window and see what happens.


What This Score Really Means For Your Product?

Answer depends on popularity of feature usage


When features get used, think "Gain"

  • Your roadmap becomes obvious - users show you what matters

  • Your product becomes a must-have tool (because it actually helps people)

  • Users stay because they need what you've built

  • New users catch on quick (no complex onboarding needed)

Bonus: When multiple features are used by most of your users, you're building staying power. You're solving problems users care about - every day.


When features don't get used, think "Risk"

  • You waste development time building features that were not a priority

  • Your product gets messy and hard to use

  • Users leave because they're confused

  • You depend too much on that one popular feature


What Numbers Looks Like (at different growth stages)


Power Users

Regular Users

Casual Users

New Users

Validation Seekers ($1M-$2M ARR)

25-35%

15-25%

5-10%

2-5%

Traction Builders ($2M-$4M ARR)

35-45%

25-35%

10-15%

5-10%

Scale Preparers ($4M-$7M ARR)

45-55%

35-45%

15-20%

10-15%

Growth Accelerators ($7M-$10M ARR)

55-65%

45-55%

20-25%

15-20%

Source: Compiled from Pendo, Appcues, and real SaaS startup case studies.


Build Features That Actually Matter 

So, you've got product-market fit. Now comes the real work - staying on track.

Here's what works:

  • Listen to real user problems (not what your team thinks users want)

  • Use Opportunity Solution Trees (Credit to Teresa Torres):

    • What outcome are you after?

    • What's actually bugging users?

    • Where can you spot real opportunities?

    • How can you design targeted solutions?

  • Tackle one problem at a time

  • Test it cheap and fast (mockups, concierge, no-code tools)

  • Watch that 50% usage number like a hawk

  • Only build what passes the usage test

  • Update your capability map as you go.


Key Takeaways

  • Build Less, Build Better

  • Most SaaS teams build more than users actually use

  • Measuring % of features used by >50% of users shows what truly delivers value revealing market-product fit from the inside


🚀 Want help uncovering which features your users actually care about?

I work with SaaS teams between $1M–$10M ARR to cut wasted dev time.




Use our free diagnostic tool to gain insights and identify areas for improvement.


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