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You might have expected Microsoft’s marketing team to have learned from last year’s messy rollout of the Recall feature. Maybe they could have consulted with customers, conducted focus groups, or sought advice from the press and analysts before attempting another rollout. But no.
Shortly after the New Year, someone in Redmond decided to increase the price of their popular Microsoft 365 product, which boasts 84 million paid subscribers worldwide. Formerly known as Microsoft Office, it is now called Microsoft 365 Copilot, and customers will now be paying at least 30% more for their subscription starting with the next bill. Along with the new name, Microsoft 365 also gets a new logo and a higher price.
The response from customers has been overwhelmingly negative. Online forums dedicated to Microsoft have been flooded with complaints, with very few compliments in sight. The reaction to this rollout can be likened to an Excel #DIV/0 error.
What went wrong with this rollout? Let’s break it down:
1. The price increase was mishandled. Microsoft had not raised the price of Microsoft 365 (formerly Office 365) in over a decade, leaving room for a gradual increase. However, they opted for a significant 30% price hike, attributing it to artificial intelligence, which did not sit well with customers.
2. The implementation of AI features in Microsoft 365 Copilot left much to be desired. While AI has potential, its current applications within the product are still rough around the edges, leading to subpar results in tasks like writing and creating presentations.
3. The announcement of the price increase was poorly executed. Many customers, like myself, only learned about the price hike through a pop-up message on their devices, rather than receiving an official email notification.
4. The rollout of Copilot features was forced on users, with limited options to disable them. This lack of control frustrated customers who were not given the choice to opt-in to the new features.
Overall, the decision to rebrand and increase the price of Microsoft 365 has been met with significant backlash from customers. The company’s strategy to boost revenue seems to prioritize short-term gains over customer satisfaction, leaving many questioning the motives behind these changes.