← Back to home

←

Improving user retention for Microsoft 365

Our subscription management experience lets our customers cancel their current Microsoft 365 subscriptions. As part of modernizing our commerce approach, we aimed to build a new cancellation process that boosts customer retention by explaining subscription value, while still keeping the cancellation process simple.

Company

Microsoft Corporation

Role

Design Lead

Year

2023

Overview

Churn rates were highest among the customers with low or no usage of their Microsoft 365 subscriptions, an indicator that customers were struggling to find the value that they were looking for and that caused them to quickly cancel their subscription. Our research indicated that this was due to value discovery issues and product selection issues.

To address the high churn rates, our project focused on resolving critical pain points related to value discovery and product selection within Microsoft 365 subscriptions. Through in-depth research, we delved into customer usage patterns and identified key areas where users struggled to perceive and maximize the value of their subscriptions.

Our findings underscored the significance of streamlining the value discovery process and optimizing product selection to ensure that customers not only recognize the full potential of their subscriptions but also find it seamlessly aligned with their needs. By tackling these issues head-on, our goal is to not only reduce churn rates but also cultivate a more positive and satisfying user experience, fostering long-term customer loyalty.

Research

Research goals

01

01

01

Identify the driving reasons behind subscription cancellations.

Identify the driving reasons behind subscription cancellations.

Identify the driving reasons behind subscription cancellations.

02

02

02

Uncover user pain points within the current cancellation process.

Uncover user pain points within the current cancellation process.

Uncover user pain points within the current cancellation process.

03

03

03

Determine how competitors handle cancellations and retention efforts.

Determine how competitors handle cancellations and retention efforts.

Determine how competitors handle cancellations and retention efforts.

Methods

01

01

01

Quick user chat

Quick user chat

Quick user chat

Conducted informal chats with 20 users who had recently canceled or considered canceling their subscription to understand what motivated to make the cancelation decision.

Conducted informal chats with 20 users who had recently canceled or considered canceling their subscription to understand what motivated to make the cancelation decision.

02

02

02

Behavorial data analysis

Behavorial data analysis

Behavorial data analysis

Analyzed anonymized usage data from canceled and retained accounts to identify patterns. For instance, users with low OneDrive usage showed a higher likelihood of canceling.

Analyzed anonymized usage data from canceled and retained accounts to identify patterns. For instance, users with low OneDrive usage showed a higher likelihood of canceling.

Analyzed anonymized usage data from canceled and retained accounts to identify patterns. For instance, users with low OneDrive usage showed a higher likelihood of canceling.

03

03

03

Competitive analysis

Competitive analysis

Competitive analysis

Evaluated the cancellation flows of major subscription services like Adobe, Netflix, Asana and Slack. Noted patterns in persuasive messaging and retention.

Evaluated the cancellation flows of major subscription services like Adobe, Netflix, Asana and Slack. Noted patterns in persuasive messaging and retention.

Evaluated the cancellation flows of major subscription services like Adobe, Netflix, Asana and Slack. Noted patterns in persuasive messaging and retention.

Key insights

💵

💵

Cost sensitivity

Cost sensitivity

The most cited reason for cancellation was cost, particularly among users who felt they weren’t utilizing enough features to justify the expense.

The most cited reason for cancellation was cost, particularly among users who felt they weren’t utilizing enough features to justify the expense.

👽

👽

👽

Lack of awareness

Lack of awareness

Almost 8 of 20 users were unaware of key benefits like advanced security tools or family sharing. All of these 8 users were SMB customers.

Almost 8 of 20 users were unaware of key benefits like advanced security tools or family sharing. All of these 8 users were SMB customers.

Almost 8 of 20 users were unaware of key benefits like advanced security tools or family sharing. All of these 8 users were SMB customers.

😵

😵

😵

Confusion

Confusion

Users found the previous cancellation flow overwhelming due to unclear cancellation options that caused them to cancel immediately.

Users found the previous cancellation flow overwhelming due to unclear cancellation options that caused them to cancel immediately.

Users found the previous cancellation flow overwhelming due to unclear cancellation options that caused them to cancel immediately.

Guiding principles

🪩

🪩

🪩

Transparency

Transparency

Transparency

Transparency in the subscription cancellation experience for Microsoft 365 builds trust by clearly explaining each step and potential consequences, ensuring users feel respected and valued.

Transparency in the subscription cancellation experience for Microsoft 365 builds trust by clearly explaining each step and potential consequences, ensuring users feel respected and valued.

Transparency in the subscription cancellation experience for Microsoft 365 builds trust by clearly explaining each step and potential consequences, ensuring users feel respected and valued.

*️⃣

*️⃣

*️⃣

Flexibility

Flexibility

Flexibility

Keep the cancellation process flexible by providing users multiple ways to cancel their subscription, or offer a way to downgrade their plan. This will help us retain more users rather than straight cancellation.

Keep the cancellation process flexible by providing users multiple ways to cancel their subscription, or offer a way to downgrade their plan. This will help us retain more users rather than straight cancellation.

Keep the cancellation process flexible by providing users multiple ways to cancel their subscription, or offer a way to downgrade their plan. This will help us retain more users rather than straight cancellation.

ℹ️

ℹ️

ℹ️

Additional support

Additional support

Additional support

Focus on providing support, like offering a way for users to chat with a human representative. This will introduce another layer of decision making, which might convince users to reverse their choice to cancel.

Focus on providing support, like offering a way for users to chat with a human representative. This will introduce another layer of decision making, which might convince users to reverse their choice to cancel.

🪙

🪙

🪙

Providing value

Providing value

Providing value

We want to demonstrate the value that users receive from their subscription. Highlighting key features and personalized benefits reminds users of what they stand to lose, thereby encouraging them to reconsider their decision.

We want to demonstrate the value that users receive from their subscription. Highlighting key features and personalized benefits reminds users of what they stand to lose, thereby encouraging them to reconsider their decision.

We want to demonstrate the value that users receive from their subscription. Highlighting key features and personalized benefits reminds users of what they stand to lose, thereby encouraging them to reconsider their decision.

Flexible cancellation options

Flexible cancellation options

We now provide users with clear cancellation options, straightforward language, and visible exit points. This approach built trust and reduced frustration.

We now provide users with clear cancellation options, straightforward language, and visible exit points. This approach built trust and reduced frustration.

Dynamic value highlights

Dynamic value highlights

We integrated subtle, dynamic reminders of subscription benefits. For instance, users who have utilized their Office apps saw prompts highlighting top features in Word or Excel.

We integrated subtle, dynamic reminders of subscription benefits. For instance, users who have utilized their Office apps saw prompts highlighting top features in Word or Excel.

Support touchpoints

Support touchpoints

Added a live chat option for users hesitant about canceling. Our expert agents have context-aware scripts emphasizing relevant benefits or flexible options.

Added a live chat option for users hesitant about canceling. Our expert agents have context-aware scripts emphasizing relevant benefits or flexible options.

Personalized retention options

Personalized retention options

Made it easier for users to opt for alternate options rather than canceling their subscription. For e.g. downgrade to a cheaper plan, get training on how to use your subscription etc.

Made it easier for users to opt for alternate options rather than canceling their subscription. For e.g. downgrade to a cheaper plan, get training on how to use your subscription etc.

No unnecessary roadblocks

No unnecessary roadblocks

While we presented relevant value propositions, benefits, and alternate actions at every step, we wanted to ensure that users could still cancel their subscription easily.

While we presented relevant value propositions, benefits, and alternate actions at every step, we wanted to ensure that users could still cancel their subscription easily.

Clear confirmation

Clear confirmation

A clear confirmation step ensures that users know their action has been successfully processed. This would reduce repeated attempts, unnecessary support tickets, or dissatisfaction.

A clear confirmation step ensures that users know their action has been successfully processed. This would reduce repeated attempts, unnecessary support tickets, or dissatisfaction.

Testing and iteration

A/B testing

To validate the design at scale, we launched an A/B test involving a flight of 10,000 users over a two-month period:

Group A: Experienced the original cancellation flow.

Group B: Used the redesigned flow with value highlights, flexible options, and a clear confirmation step.

Results

Retention: Group B retained 22% more users compared to Group A.

Engagement: 40% of Group B participants explored the cancel before next renewal option or downgraded instead of canceling.

User Feedback: 92% of Group B described the process as “transparent and user-friendly”.

Business impact

19% resulted retention against an estimate of 15-25% retention rate

19% resulted retention against an estimate of 15-25% retention rate

19% resulted retention against an estimate of 15-25% retention rate

210,000+ users saved against an estimate of 140,000 users within 3 months of launch

Takeaways

⚖️

⚖️

⚖️

Balancing persuasion with user autonomy

Balancing persuasion with user autonomy

Balancing persuasion with user autonomy

Finding the right tone was crucial. We didn't want the new experience to be perceived as too pushy, which led to refining the messaging to focus more on education than persuasion.

Finding the right tone was crucial. We didn't want the new experience to be perceived as too pushy, which led to refining the messaging to focus more on education than persuasion.

Finding the right tone was crucial. We didn't want the new experience to be perceived as too pushy, which led to refining the messaging to focus more on education than persuasion.

👤

👤

👤

Data-driven personalization

Data-driven personalization

Data-driven personalization

We realized that we were working with user data and leverage it responsibly was key. We ensured that all personalized messages respected privacy norms and avoided feeling invasive.

We realized that we were working with user data and leverage it responsibly was key. We ensured that all personalized messages respected privacy norms and avoided feeling invasive.

We realized that we were working with user data and leverage it responsibly was key. We ensured that all personalized messages respected privacy norms and avoided feeling invasive.

Designed and built in Seattle 🌊 🦆

Designed and built in Seattle 🌊 🦆

Designed and built in Seattle 🌊 🦆