Slack PM case: diagnosing and countering customer losses to Microsoft Teams

You are a product manager at Slack. Since Microsoft launched Teams, Slack has been losing a large number of customers. What would you do? Walk through how you would understand the losses, what you would change, and how you would know whether it is working. ```hint Find who makes the call In the accounts Slack is losing, work out who actually decides to switch and what that person compares when choosing between the two products. ``` ### Clarifying Questions - Does "losing customers" mean paying workspaces leaving entirely, existing customers cutting seats, or fewer new customers choosing Slack? - Which customers are leaving: large enterprises, small and mid-sized businesses, or teams on the free plan? - How do we know Teams is the cause: lost-deal notes and cancellation reasons, or only that the losses began after its launch? - Which levers are in scope: product changes only, or also pricing, packaging and partnerships? ### What a Strong Answer Covers - Sizing and segmenting the losses before acting, including a check that Teams is really the cause - Why the hardest-hit customers choose Teams, seen from both the end user's and the buyer's side - A focused, prioritized set of responses with a clear view of where Slack should and should not compete - Success metrics with guardrails and a realistic time frame for reading them - The risks of the chosen responses and how to contain them ### Follow-up Questions - If the losses were concentrated in companies that already license Microsoft 365, how would your plan change? - Should Slack invest in working smoothly alongside Microsoft's tools, or would that only strengthen the competitor? Defend your view. - Which customers would you be willing to lose, and how would you explain that choice to leadership?