Stop Building Features Nobody Uses: The 90-Day Rule for SaaS Success

gandhinath0
May 5
3 min read

Unused features in SaaS comes with a cost shadow that is worth investigating.

When I researched into impact of unused features and costs, I didn't expect to see the costs ranging between $15,000-$50,000 annually. In simple words, features that are not used are like costly rent we pay for space that we don't occupy and utilize. According to Pendo research, top-performing products succeed by focusing on the 15% of features that generate majority user engagement.

This analysis explores how leading products identify and optimize their core features for maximum value.

Team members having their hands on their heads or covering faces in frustration that their feature is not being used. — Photo by Yan Krukau: https://www.pexels.com/photo/stressed-businesspeople-at-an-office-7698818/

The 90-Day Rule: What Gets Measured Gets Used

Definition:

% of unused features over 90 days measures features with less than 5% user adoption within a 90-day window.

A feature qualifies as "unused" when it meets either condition:
- No interactions from active users
- User adoption falls below predefined threshold, typically 5%

Formula:

% of unused features over 90 days = 
             [ Number of Features with < 5% Adoption
             ÷ 
             Total Number Of Features ] X 100

Example Calculation

A B2C fitness app with 50 features tracks 10,000 monthly active users (MAU). Over 90 days:

40 features have < 500 users (5% of MAU) interacting with them
10 features exceed 5% adoption

% of unused features over 90 days = [ 40 ÷ 50 ] X 100 
                                = 80%

This example aligns with industry benchmarks showing 80% of features in average SaaS products are rarely/never used. For B2B2C startups, unused rates often exceed 85% due to features built for partner compliance rather than user value.

Real-World Example: How IHS Markit and Pendo Use the 90-Day Rule to Optimize Features

A standout real-world example comes from IHS Markit, whose iLEVEL team used Pendo’s analytics to systematically identify and sunset underused features, reducing technical debt and sharpening product focus. By tracking feature adoption and leveraging in-app messaging, the team flagged features with minimal engagement over a 90-day window, then communicated upcoming removals directly to affected users while collecting feedback and offering alternatives.

This disciplined approach-mirroring Pendo’s recommended framework of using usage analytics to prioritize high-value features and retire “zombie” ones-helped IHS Markit reallocate resources to the features customers valued most, streamline the user experience, and ensure their product evolution was guided by real user behavior, not assumptions.

The Cost of Unused Features

80% of features have less than 5% user adoption
Only 6.4% of features generate 80% of user engagement
SaaS companies waste $29.5 billion annually on rarely-used features (Pendo)

Impact on Different Business Models:

B2C Applications: Complex interfaces with unused features lead to increased user churn
B2B2C Products: Partner-requested features that users ignore cost $15,000-$50,000 per feature annually
Scale-Stage Companies: Millions spent maintaining unused code bases

Fix: Focus on measurement and user priorities rather than feature quantity.

Five Critical Mistakes When Calculating This Metric

Ignoring Feature Purpose: Features required for compliance or legal requirements shouldn't be classified as "unused," even with low engagement.
Using Inadequate Tracking Windows: Short measurement periods (like 30 days) can misrepresent seasonal features such as annual tax tools.
Overlooking B2B2C Segmentation: Combined usage metrics for business partners and end-users can hide important adoption gaps.
Counting Views as Engagement: Feature views alone don't indicate meaningful user interaction or value.
Missing the Dual-Stakeholder Reality: B2B2C features may serve different purposes for intermediary businesses versus end consumers.

Benchmark Matrix: How Your SaaS Stacks Up Against the Competition

Source: Industry data, Pendo feature adoption benchmarks and adjusted for growth-stage ARR ranges

Growth Stage	B2C Target	B2B2C Target
Validation Seekers ($1M-$2M ARR)	≤85% unused	≤90% unused
Traction Builders ($2M-$4M ARR)	75-80% unused	80-85% unused
Scale Preparers ($4M-$7M ARR)	65-70% unused	70-75% unused
Growth Accelerators ($7M-$10M ARR)	55-60% unused	60-65% unused

NOTE: Don't panic about high unused percentages - Even optimized products see 50-60% unused features. Focus on the critical 6-12% driving most engagement.

Three Steps For Winning Outcomes

Remove Bottom Performers: Eliminate the least-used 5-10% of features immediately.
Prioritize Top Features: Redirect engineering resources to your top 10% most engaging features.
Boost Feature Discovery: Launch multi-channel discovery campaigns for key features. Industry studies show up to 30% adoption lift in B2B2C models.