Why collaborative features will define your product’s success

Picture this: A product leader at a fast-growing SaaS startup faces a familiar challenge. Their product is functional, well-received, and excels at its core features—yet, growth has plateaued, and user engagement has stagnated.

In a strategy session, the question arises: What’s next? Ideas start flowing—new features, UI tweaks, maybe even a rebrand. But something feels off. The product works, but does it truly engage users?

Now, think about the tools you love most. The ones you and your team rely on every day. They’re not just functional—they’re collaborative, designed to enhance both human teamwork and AI assistance.

Collaboration isn’t just about teamwork—it’s about creating a space where people and AI thrive. Where ideas flow freely, feedback is organic, and progress feels shared. This shift transforms a functional product into one that drives engagement and growth in the AI era.

How collaboration fuels success

Thoughtful collaboration transforms a product beyond simple user connections. It boosts engagement, streamlines workflows, and unlocks innovative ways of working. Let's explore how it can enhance every aspect of your product.

Keeping users engaged and coming back

People don’t return to products simply because they work well—they return because they’re the live source of knowledge. These are the places that connect users to their projects, their team, and the progress they’re making together.

“The reason employees stay is the same reason they come back: connection. Realtime feedback, real collaboration, and a sense of contribution make people want to keep showing up.”

David HassellCEO at 15Five

Collaborative products like Notion create reasons to come back—whether it’s a shared document updating in realtime or a project board showcasing everyone’s contributions. These meaningful interactions foster engagement, naturally leading to stronger user retention.

Turning users into advocates

There’s power in a product that spreads through word of mouth; when someone you trust recommends a tool, it resonates far more than any marketing message. One user invites another, and before you know it, the entire team’s on board—not because the product has been sold to anyone, but because they saw the value firsthand.

“As a product manager for one of the first tools to take off through product-led growth (PLG), I saw first-hand how powerful those in-product growth loops could be.”

Diana BerlinPartner at Matrix

When it’s easy to invite collaborators to your product—like with the share menu in Google Docs—existing users naturally bring in new ones. Collaboration drives organic growth.

Keeping teams in sync

Every team juggles multiple tools to get things done. But when collaboration is built into a product, work happens where it naturally belongs. Discussions stay in context, decisions are made faster, and teams can focus without jumping between apps.

“Teams see scattered collaboration as unavoidable, but the friction it causes undermines product quality. Linear embeds collaboration within the product itself — send updates to Slack, review GitHub PRs, and comment on Projects. Restoring focus to what matters most – crafting legendary products.”

Yann-Edern GilletDesigner at Linear

When teams can plan, share updates, and track progress inside a single product, like in Linear, there’s no need to search for fragmented information. Everything you need is in one place, keeping momentum high and distractions low.

Speeding up iteration

Traditional feedback cycles slow teams down—spread across different tools, delayed by context switching. But when feedback happens directly in the product, ideas move from discussion to execution quicker. Comments, edits, and approvals happen in realtime, keeping flow uninterrupted.

“When Figma launched, it wasn’t just another design tool—it revolutionized how we approach design work. Watching cursors dance across the screen, seeing ideas take shape instantly, and collaborating through rapid back-and-forth discussions creates an energy that words can barely capture. It’s the difference between a monologue and a vibrant conversation.”

Pierre Le VaillantDesign Engineer at Liveblocks

Figma transformed the design industry by making collaboration a core part of the experience. This shift didn’t just improve teamwork—it redefined how modern products are built.

Enabling human-AI collaboration

AI is reshaping how we work, but its true potential will be unlocked when it becomes part of the workflow—just like any great collaborator.

“You have to think about AIs as collaborating with existing human-made infrastructure and platforms—much like how self-driving cars must interoperate with the real world.”

Guillermo RauchCEO at Vercel

When AI can navigate your product like a human, it will work like an additional teammate, offering instant feedback, highlighting action items, and generating new ideas. AI like this isn’t years away—external AI agents such as OpenAI Operator, along with product-embedded copilots, are already transforming how teams create, iterate, and innovate.

What makes collaboration work

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A collaborative application is like a living, breathing ecosystem, and without a crucial set of features, it will never thrive.

• Presence: Digital presence creates instant connection. Live cursors and avatar stacks transform static interfaces into vibrant workspaces that feel fluid and engaging. Presence also extends beyond humans—AI agents can also display their activity through cursors, selections, and more.
• Realtime interaction: Whether you’re crafting a document or brainstorming on a shared canvas, realtime collaboration eliminates tedious file-sharing. Ideas flow and evolve naturally, much like in a conversation. Humans and AI can work together seamlessly, maintaining an uninterrupted collaborative flow.
• Asynchronous communication: Not everyone will be online simultaneously—and that’s okay. Comments, notifications, and mentions create persistent threads that keep projects moving across time zones. Like leaving thoughtful notes for your team to discover and build upon, this ensures smooth, continuous collaboration.

When each of these elements comes together, they create something greater than the sum of their parts: a truly collaborative environment where work feels like a shared journey, fueled by both human creativity and artificial intelligence.

The future is collaborative

Collaboration has become the cornerstone of modern software success. It connects users, drives engagement, and improves workflows—transforming simple tools into dynamic spaces where progress flourishes.

Additionally, in this new era, AI evolves beyond a mere feature into an essential collaborator. To reach its full potential, AI must seamlessly integrate into collaborative processes, moving past basic automation.

With a robust collaborative foundation, your product can embrace next-generation features and capabilities, unlocking unprecedented value for both users and your business.

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Looking to get started?

It’s easy to underestimate the complexity of building collaboration into a product. Each feature—presence, realtime updates, comments, notifications, AI copilots—presents its own unique challenges.

Whether building a text editor like Google Docs or a design tool like Figma, it’s not just about displaying changes as they happen. It’s about ensuring a natural feel—handling cursor positions, resolving conflicting edits, and smoothing over poor Wi-Fi. Add AI into the mix, and you have to ensure its contributions blend seamlessly with human edits. Building these experiences in-house is a difficult, time-consuming task.

Liveblocks provides developers with the building blocks required to create these collaborative experiences—without starting from scratch. Our infrastructure can manage the complexities of realtime collaboration, allowing your team to focus on delivering the features your users love.

Get started for free