office apps suite
How Microsoft 365 grows
16 tactics and 15 figures from 2 interviews.
Microsoft 365 is Microsoft's consumer subscription that bundles Word, Excel, PowerPoint and other tools into one plan. Its mobile team grew sales mostly through the app stores, combining in-app purchase, keyword work aimed at the jobs people pay for, and steady paywall A/B tests on wording, layout and price display.
- Microsoft 365 sells consumer plans through App Store and Play in-app purchase and treats the store fee as a channel cost; trial-to-paid there is almost 5x higher than on its other direct channels.Microsoft 365
- In paywall A/B tests, Microsoft 365 found that a buy button offering a one-month free trial, benefit cards with GIFs and an annual price shown as about $8 a month all beat the earlier versions; no lift figures were shared.Microsoft 365 (1)Microsoft 365 (2)Microsoft 365 (3)
- Putting the $9.99 Family plan first as the default above the $6.99 Personal plan made both sell more, with the cheaper Personal plan gaining the most.Microsoft 365
- Keyword work targets the jobs people pay for, such as resumes and invoices; keywords ranked top 3 for about a year are rotated out, and search ads test which terms bring real subscribers.Microsoft 365 (1)Microsoft 365 (2)Microsoft 365 (3)
- Adding attribution and engagement tools in 2015-2018, before the mobile apps had product-market fit, led to privacy problems and large bills for barely used software; an MMP returned only in early 2024.Microsoft 365
- Ranking ideas by how many users they affect surfaced a 5-6% purchase failure rate to fix first; Android install cost caps are set up to 50x lower than iOS because few Android users pay.Microsoft 365 (1)Microsoft 365 (2)
Summary written 2026-10-02 from the tactics below. Figures are as founders stated them.
About Microsoft 365
- What it is
- Word, Excel, PowerPoint and the Microsoft 365 app (notes, PDF, signing, scanner) on mobile and Mac, sold as one subscription
- Who it's for
- Consumers (personal and family plans) and enterprise customers, served by the same app
- Business model
- subscription
- Pricing
- $9.99 family (US); $6.99 personal (US); Copilot Pro
- Launched
- 2013-2014 (as mobile companion apps)
As described in the interviews, not independently verified.
Microsoft 365's 16 tactics
Microsoft 365 by the numbers
| Metric | Value | Context | Said in |
|---|---|---|---|
| price | USD 9.99 | Microsoft 365 Family, US | Sub Club by RevenueCat 2024-05-1516:40 |
| price | USD 6.99 | Microsoft 365 Personal, US | Sub Club by RevenueCat 2024-05-1516:40 |
| price | USD 99/year illustrative | Annual plan used as the example; shown on the paywall as about $8/month | Sub Club by RevenueCat 2024-05-1516:40 |
| share | 80% estimate | iOS share of in-app purchase revenue vs Android ('80/20 sort of a thing', not exact), despite Android's larger install base | Sub Club by RevenueCat 2024-05-159:39 |
| cpi | 50 x approximate | How much lower Android CPI limits are than iOS CPI limits for paid ads, in some cases | Sub Club by RevenueCat 2024-05-159:39 |
| ltv | hundreds of dollars, not thousands approximate | Sub Club by RevenueCat 2024-05-159:39 | |
| count | 6 app stores approximate | Android app stores the apps are on ('six-plus'), including several in China; also pre-install deals | Sub Club by RevenueCat 2024-05-159:39 |
| conversion rate | +5 x approximate | Trial-to-paid on mobile (App Store in-app purchase) vs other direct channels; credit card already attached | Sub Club by RevenueCat 2024-05-013:49 |
| count | 10 channels approximate | Consumer sales channels Microsoft 365 is sold on | Sub Club by RevenueCat 2024-05-015:20 |
| price | USD 9.99 | Family plan, US price (period not stated) | Sub Club by RevenueCat 2024-05-017:08 |
| price | USD 6.99 | Personal plan, US price (period not stated) | Sub Club by RevenueCat 2024-05-017:08 |
| price | +-60–-50% estimate | Bundle price vs buying the same scenarios (docs, scanning, PDF, etc.) as separate subscriptions | Sub Club by RevenueCat 2024-05-017:35 |
| share | 30% approximate | Share of product effort on incubation (new bets) now that the app is mature; earlier more went to neutralization and differentiation | Sub Club by RevenueCat 2024-05-0110:06 |
| users | double- or triple-digit million MAU approximate | Sub Club by RevenueCat 2024-05-0125:44 | |
| drop off | 5–6% approximate | Purchase transactions failing at one point, before the fix | Sub Club by RevenueCat 2024-05-0127:22 |
Topics
App Store optimization (ASO)5A/B testing for apps4App paywall strategy4Pricing a subscription app4Attribution and ad signal engineering3Web-to-app funnels and web checkout2App retention and churn2Free trial strategy for subscription apps1Apple Search Ads and paid search1Weekly, annual and lifetime plans1
Interviews
- Optimizing your Keywords and Monetization ― Part 2 with Ramit Arora, Microsoft · Sub Club by RevenueCat · 2024-05-15
- Operating Like a Start-up inside the World’s Biggest Company — Ramit Arora, Microsoft · Sub Club by RevenueCat · 2024-05-01