The upcoming recession is leading to some hard decisions. Layoffs are a visible and early sign that companies are retrenching. Focusing. Focus is about fewer things done better.
Focus requires saying no to new things, stopping what's currently in motion, and in some cases, discontinuing what's already launched (i.e., sunsetting).
Most leaders underestimate the very painful, expensive process of sunsetting a product. It doesn't matter whether it's 10 users or 10,000, whether it's beloved or seen as a "necessary evil", or whether it's used daily or monthly. Their reaction will be the same: Anger.
Why? Human nature. We're wired to collect things. Once we're given something, it's ours. And if it's taken away from us, that makes us angry. (This is likely obvious to fellow parents. When you want to give away an old toy, the kids scream. It's theirs. How dare you?)
If we use a product or service, we feel it's *ours*. Even if we don't pay for it. Even if we don't like it that much. Even if there are reasonable alternatives out there. If you sunset *our* product, we're going to be upset.
You might think, well who cares? We can't please everyone, we have to focus. The problem is, if you plan on sticking around, you have to care about your brand. What other people think of you.
In a way, a company's brand is analogous to people's trust. Trust is earned slowly over time and lost in instants. Brand is built slowly over time and damaged in instants. And both are hard to recoup.
So back to the question - how do you sunset a product or service (with grace)?
Here are five steps we've learned the hard way (and hope you won't have to):
1. Before deciding to sunset a product, explore strategic alternatives.
Will a competitor acquire it? Can you negotiate a transition to a partner (even at cost to you)? Is there a comparable replacement on the market that you could enable users to easily transition to?
We did this at LinkedIn with Slideshare, which was beloved by millions. Our product team was ready to 100% sunset the service in 2020. We knew how painful that would be, and instead challenged the team to find a graceful home for it.
It was the perfect fit for Scribd, which welcomed Slideshare, its users, and documents. Win-win solution. Do everything you can to find a good home for your users and customers.
2. Talk to customers BEFORE you sunset.
Meet with the most active users and give them a preview of what may be coming. Get their feedback and ideas, ask what they love the most and how you might be able to solve for that, and figure out compromises if possible.
At a minimum, they will help you predict what the damage is going to be. In some cases, they may help you realize it's actually a terrible decision and you need to change your mind to avoid disaster.
3. Communicate very clearly what is changing, why, and what folks can do about it.
Help customers clearly understand why this change is happening. Help them understand their choices going forward, and what, if anything, they need to do about their data.
Keep in mind: The minute the announcement goes out, competitors are going to fill the vacuum and amplify ambiguity. Set the record straight with your own proactive narrative, that your employees can point people to as needed.
Make sure the entire leadership team reviews the comms plan and understands the gravity here. Even a minor sunset of a product feature can cause significant brand damage if not handled well. Don't expect mid-level PMs to grok the possible downside. This is leadership's job.
4. Test messaging with key stakeholders.
Share your draft comms with a select group of users beforehand. Ask what may be confusing or missing. Make them feel a part of the process to the extent you can.
Ideally you have a trusted customer advisory board you can consult for this. If the risk of leaking is too high, then share with the right customer advocates inside the company for their feedback. The more you can anticipate the voice of the customer, the better prepared you'll be.
5. Give people ample time to act.
The worst thing to do is an immediate sunset, that leaves users and customers in the lurch. Aim to give at least one month for folks to figure out an alternative, and make sure to send a few reminders to avoid any surprises.
In summary: sunsetting a product is often the right strategic decision.
Every single successful company has had to shut down a product due to focus, business results, or market dynamics. But it's always hard for the team involved in building and shutting it down.
With some compassion in the short-run, it doesn't have to be so hard on your customers.
And in the long-run, that compassion will strengthen your brand (and company), and build enduring trust through some challenging times.