Improving user retention for
Microsoft 365

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

Problem

The existing Microsoft 365 subscription management experience allowed users to cancel their subscriptions but did little to discourage them from doing so. The flow lacked persuasive messaging, failing to remind users of the platform's full value. This resulted in higher churn rates and missed opportunities to retain users who might benefit from staying subscribed.

Solution

We redesigned the cancellation experience to effectively communicate Microsoft 365's value, enhance user understanding, and ultimately improve retention. More importantly, we kept the new experience user-centered, avoiding coercive tactics that could undermine user trust.

Problem

Solution

Problem

Solution

↓ Skip to final design

Research

Research goals

1

Identify the driving reasons behind subscription cancellations.

2

Uncover user pain points within the current cancellation process.

3

Determine how competitors handle cancellations and retention efforts.

Research methods

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.

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.

Competitive analysis

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

What we learned from the research

Confusion

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

Lack of awareness

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

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.

Consistency builds trust

Across services like Netflix, Adobe, Slack, and Asana, transparency, flexibility, and confirmation were a consistent theme in their cancellation flows.

Lack of personalization

Our cancellation process lacked personalization, offering generic messaging, leading to missed opportunities for retention.

Core elements of customer retention

Competitive pricing

This is a core element of customer retention as it directly addresses cost concerns, offering value that aligns with user expectations and market standards.

User awareness

Raising user awareness of features is crucial for retention, as it helps users recognize the full value of their subscription and reduces the likelihood of cancellations

Offer personalization

Offering personalization enhances customer retention by delivering tailored experiences that address individual needs, making users feel valued and understood.

Improved support

Improved support boosts customer retention by resolving user issues effectively and fostering trust, ensuring a positive and reliable experience.

Design principles

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.

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.

Increased 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.

Value based

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

Flexible cancellation options

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

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.

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.

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.

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.

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.

Testing

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”.

Final impact

19%

resulted retention against an estimate of 15-25% retention rate within 3 months of launch.

210k+

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

Key takeaways

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.

Integrating 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.