Sunsetting a Product
Sunsetting a product should be handled with as much care as launching a new one. Psychologically, the pain of losing something users already have can be more acute than the excitement of gaining something new. Changing user habits is challenging. Getting users to adopt a new behavior is hard, but asking them to undo an established habit is equally difficult.
The strategy for sunsetting a product will vary depending on the scope of the discontinuation — whether you are retiring a single feature or an entire product. For this discussion, let’s assume that we are sunsetting a product that is a smaller part of a broader ecosystem.
Key Considerations When Sunsetting a Product
1. Understand user impact
Identify how the product contributes to users’ daily lives and analyze the implications of its discontinuation. Assess the segment size and usage patterns to understand the overall impact. Use both quantitative data and direct customer feedback to gain a comprehensive perspective. Map out all channels and touchpoints where users interact with the feature to ensure nothing is overlooked.
2. Identify risks and mitigations
Consider potential risks and how to address them:
Reputational risk: Understand the potential negative impact on customer perception, loyalty, and trust. Establish principles for making things right with customers, such as honoring existing contracts, offering transition support, or providing refunds. Do no penalize users for choosing your product in the first place
Legal risk: Ensure compliance with all contractual obligations and determine if there are mandatory notification periods for discontinuation. Address data retention and ownership concerns proactively.
Internal risk: Acknowledge potential impacts on internal teams, including job security concerns. Clearly communicate the reasons behind the decision and the steps the company will take to address these concerns.
3. Plan meticulously
Develop a phase approach for sunsetting the feature:
Decide whether to transition gradually or implement a global shutdown.
Address new sign-ups by disabling access to the feature.
For existing users, phase out access starting with low-risk segments and use lessons learned to guide subsequent phases.
If migration to a new solution is required, provide clear and manageable steps for users to transition.
4. Communicate Thoughtfully
A strong communication plan is essential:
What to communicate: Clearly explain why the feature is being discontinued, its implications for users, and any available alternatives or workarounds. Provide guidance on any required actions, outline the benefits of new platforms or solutions, and offer FAQs to address common concerns.
Who to communicate with: Segment your audience to ensure targeted messaging.
How to communicate: Use appropriate channels (e.g., in-app notifications, emails) and provide updates in a timely manner.
Feedback loop: Create opportunities for users to share their concerns and address them promptly.
Sunsetting a feature is often an unpopular decision. Rarely are users excited about the announcement of a feature’s retirement. However, if it must be done, execute the process with care and precision to meet objectives while minimizing negative consequences.