The Product Backlog is the master list of all functionality desired in the product in a prioritized order. Backlog prioritization is required to organize the product backlog items (user story/Defects/Spike etc) to make the sequence of its development and deployment. Prioritization leads the team’s work by concentrating the team on the most important items. It also freezes the backlog contents gradually. 

The product backlog items are detailed according to their priority. This constructs FLEXIBILITY into the process and allows deferring decisions about the lower-priority items, BUYING the Scrum team more time to assess options, COLLECT feedback from customers, and obtain more knowledge. This eventually results in BETTER results and a better product. Few of the business benefits of prioritization includes – Faster return of investment, better management of dependencies, minimizing risks and focus on value-driven development. Prioritization not only helps the business but also the teams – They can do EFFECTIVE grooming by saving the time of selection, better visibility to pick up stories within the current scope. The team can pick up the first few items from the prioritized list to discuss and work upon, in this way a lot of confusion is eased out on what needs to be worked upon.