DAO Customer Churn Analysis

⚠️ Private Beta Pipeline – 188 churned projects

45 projects were chosen for the analysis by these criteria:

  • active in a chat with the Superdao team
  • attended calls with DAO Success / DAO Design
  • started using the product / have a DAO Workspace on the platform

    Statistics

    • 40% left on the initial stage – only chat/calls, nothing has been done on the Platform
    • 40% left on DAO Creation stage – DAO Workspace is set up and designed by customer, but no airdrop done
    • only 10% leave after Airdrop is done (not public)
    • about left 20% due to lack of product features – a certain feature(s) were needed to proceed
    • 17% did not get the utility of building a DAO

    We defined 3 main reasons for churn:

      1. Poor communication
      2. Product flows (bugs and lack of features)
      3. Not our fit (wrong audience)

      1. Communication

      Reasons:

      βž– Failed to convey product value, what it should be used for, use cases

      βž– Poor customer onboarding

      βž– Chat communication instead of a call

      βž– Poor customer needs understanding

      βž– Non-compliance with SLA and ping system

      βž– Did not provide access to DAO Workspace straight away (long DAO setup form)

      βž– Failed to give customer proper next steps

      βž– Too many educational events

      βž– No recurrent communication and checkups

      βž– No follow-ups after the calls

      βž– Lack of written docs

      Improvements:

      βž• More personalized communication via recurrent calls, explanation of next steps, setting agenda for the week, clear follow-ups

      βž• Deep CustDev to understand customer needs and suggest proper use cases

      βž• Granting access to the platform ASAP

      βž• Strong onboarding with focusing on the features that customers will need most

      βž• Commitment to follow SLAs and answer customers on time

      βž• Request clear targets and success metrics

      βž• Request a clear timeline

      2. Product

      Reasons:

      βž– Not a fit in terms of chain (Solana, Etherium)

      βž– Not a fit in terms of membership base (token needed)

      βž–Β Too many feature requests from unpromising projects (customer level is low and development cost high)

      βž– Multiple bugs and slow work of the platform

      βž– No clear product roadmap (could not give customers estimates when a certain feature will be released)

      βž– Unclear interface (not user-friendly writing and wording)

      βž– Limited amount of actions that customer is able to do by himself without support

      βž– No walletless experience available (blocker for web2 projects)

      Improvements:

      βž• Give a proper explanation to customers on the benefits of the Polygon chain as well as NFT based-membership approach

      βž• Now that the product roadmap is out – give customers an estimated time for new features and inform them in advance if it will take longer

      βž• Improve the screening process in order to skip unfitting requests

      βž• Explain to customers that releasing new features is a long and costly procedure, so it will take time

      βž• Enhance user experience via user research and feedback

      3. Wrong Audience

      Main reasons for churn:

      βž– Lack of time and human resources

      βž– Focus on another project

      βž– Low/no budgeting

      βž– No understanding of targets

      βž– No time limits and timelines

      βž– Prejudice (Russian team, web3 scams, crypto winter)

      βž– No clear idea, hype motivation

      βž– Do not need a DAO

      βž– Slow development

      βž– Misunderstanding of DAO purposes

      Improvements:

      βž• Tougher selection of leads in order to cut off weak projects at the beginning

      βž• Deeper CustDev in initial stages to find out if a project is a fit

      βž• Requesting definite targets in terms of revenue and users, success metrics

      βž• Request a strict timeline or set one yourself

      βž• Work deeper with prejudice (identify an early stage and explain why our product is worth a shot)

      Regrettable vs Unregrettable Churn

      Most customers from our pipeline can be defined as unregrettable as they don’t match our target customer profile.

      Regrettable Churn – customer fits our target profile, voluntary uses the product, there is an appropriate use case, product features fulfill customers’ needs

      Unregrettable Churn – product not optimized for these projects, a customer does not fit in audience, no proper use case

      To Regrettable Churn we can refer these projects as regrettable churn:

      • Happy Peach Club – influencer changed direction & prejudice about crypto market conditions
      • Muse – applied for bootcamp but did not join the chat
      • Foodriders – focused on fundraising, not enough time for DAO initiative
      • Candy – applied for bootcamp but did not join the chat
      • Sneaker Friend – requested a feature that could not be released on time
      • Capsula – had to focus on other projects due to business issues
      ⚠️ Regrettable Churn is about 13% of all analyzed churn and 3% of all Churn.

      Insights

      The core reason for high churn rates can be described as follows:

      • Wrong target audience (in terms of product request, business goals, and available resources) to which we failed to provide the utility of using a product (proper use cases).

      Most common mistakes have already been corrected:

      • We switched to a more personalized approach through calls, moved away from group sessions and multiple asynchronous communication in chats
      • Defined our target audience as mid-size businesses which have defined business goals, and possess available resources in terms of community, money, and human
      • Started stricter selection of projects on the basis of the target audience
      • Created in-depth Use Cases Playbooks for each vertical so that we can explain the utility of the product on a higher level