The tax preparation software industry relied on brand familiarity and long-standing features to retain customers for years. But a combination of shifting user expectations, new competitors offering free services, and economic headwinds has challenged even the most established players to rethink their approach. In a category where complexity can drive customers away, simplicity has become the new frontier of innovation.
At the forefront of this transformation is Vidhan Shah, a senior IEEE member, product expert and engineer who played a pivotal role in reimagining how TurboTax delivers value to its users. Over a 16-month period from 2023 to 2024, Shah helped lead an ambitious redesign of TurboTax’s product structure and pricing model—an initiative that resulted in a 7% increase in revenue share, pushing the brand’s total earnings to $4.4 billion.
Shah’s work exemplifies how the principles of modern product engineering—experimentation, user-centricity, and data-driven design—can directly translate into large-scale business impact.
Simplifying Without Dumbing Down
TurboTax had long offered a wide range of products to meet the needs of diverse filers, but with 12 different SKUs and a complex upgrade path, customers often struggled to find the right fit. Shah’s team recognized this as a barrier to growth. The solution? Shrink the product lineup from 12 to 7, eliminate redundant feature overlaps, and introduce usage-based pricing that better aligns with customer needs.
“We weren’t just removing options—we were creating clarity,” Shah explains. “The average user doesn’t know which tax form they’ll need until they’re deep into the filing process. That’s a terrible experience. Our goal was to make product selection feel intuitive and accurate from the very first click.”
The overhaul included a new onboarding experience where users answered a few guided questions to identify the right product. This move drastically reduced mid-flow upgrades, built trust, and improved conversion.
Pricing That Matches Value
One of the most groundbreaking shifts came with the introduction of usage-based pricing for TurboTax Full Service. Rather than charge a flat fee, users paid based on the forms and support they actually used.
This was a first-of-its-kind model in the tax software industry and required careful engineering to ensure that value mapping, eligibility rules, and price logic worked seamlessly in real time. But the result was powerful: customers felt like they were getting what they paid for—no more, no less.
The team also built in pricing transparency throughout the product journey. “If you start with one price and end with another, people drop off. We fixed that,” says Shah.
Turning Simplicity Into Retention
While the primary goal was to improve acquisition, retention quickly became one of the biggest wins. By placing users in the right product from the start and removing surprise charges, TurboTax saw a noticeable increase in returning customers during the next tax cycle.
“Customer trust is earned through the details,” Shah explains. “We found that the more seamless the experience, the more likely users were to come back next year. It wasn’t just about technology—it was about respect.”
Shah’s perspective is shaped not only by hands-on product work, but also by his academic grounding. His paper, “The Role of Gamification Principles in Enhancing Customer Engagement in AI-Powered Product Management” published in Nanotechnology Perceptions—offers insights into how design psychology and behavioral economics can be integrated into product flow to enhance engagement and reduce friction.
Recognized for Innovation
Vidhan Shah’s contributions haven’t gone unnoticed. He was recently named a judge for the Globee awards for Disruptors, where he now evaluates breakthrough innovations in technology and product leadership.
By helping redefine product-market fit in a highly regulated, high-stakes industry, Shah’s work stands as a blueprint for what happens when thoughtful software engineering and strategic product thinking intersect.
As tax tech continues to evolve—facing pressures from government-led free filing initiatives and growing user skepticism—leaders like Shah prove that user-centricity isn’t just a design principle. It’s a growth strategy.
