As a product or service provider, losing users can be disturbing. Especially in the web3 sector, where a single error can result in exiting in droves, this can become a major problem for projects and organizations looking to maintain relevance based on their product or services, according to the demand in their sector. However, valuable insights can be obtained from those customers who eventually leave, to be used to improve the quality of service to be rendered to other new and existing users and community members.
Therefore, in today's article, we shall be discussing the problem of existing customers for service providers in their web3 space, how insights can be obtained from the leaving customers, and the roles professional support groups can play in the process of obtaining and implementing these insights, without resulting in service interruption or user disturbances.
The problem of exiting customers in the Web3 space presents unique challenges due to the unique nature of its ecosystem. While customer attrition and churn are common challenges in traditional industries, Web3's decentralized nature introduces distinct complexities that can increase churn rate, especially at the stage of user onboarding and familiarization. Factors such as decentralized ownership, the interoperability of platforms, and high user expectations contribute to the problem of retaining customers, as new users would particularly find these elements difficult to grasp. Additional factors like volatility, regulatory concerns, etc, further expounds the problem, making it a critical issue for Web3 providers to address.
Web3 products and service providers often lose customers due to poor user experience (UX) and a lack of trust. Many platforms have interfaces that are overly complex and difficult for non-technical users, making it hard for newcomers to navigate tasks like setting up wallets or managing private keys. High platform tax or fees and other costs further discourage continued use. Additionally, trust issues such as scams, rug pulls, and security breaches cause users to lose confidence in platforms. Without strong transparency and security measures, customers are quick to leave at the first sign of instability.
Other common reasons include limited practical use cases and poor community engagement. Many Web3 projects fail to provide real-world value, focusing instead on speculative investments or niche applications that don’t attract a broader audience. A lack of meaningful community interaction or governance opportunities can also make users feel disconnected. Regulatory uncertainty adds another layer of hesitation, pushing users toward platforms that appear more stable and compliant. Lastly, an over-reliance on token rewards often attracts short-term users, but once incentives diminish, customer loyalty often fades. Addressing these challenges is crucial for long-term success in the Web3 space.
In order to address the challenges that users may have faced that resulted in them leaving, it is crucial to seek the opinion of those who have been around, but are now leaving. Take this scenario for instance.
Consider a decentralized finance (DeFi) platform facing a decline in user activity due to high gas fees on its underlying blockchain. Many users may find the costs unsustainable, and begin migrating to competitors offering lower fees. In such a scenario, the platform begins to lose users daily, creating a churn problem for the organization. And at this stage, the project begins to look into the cause for their departure, gathering insights from these users for key pointers on how to address their concerns effectively.
The first step is identifying exit triggers. The platform’s team can monitor metrics like wallet inactivity, reduced staking volume, or unclaimed rewards to detect users showing signs of disengagement. Once identified, the platform can reach out to these users through personalized emails or in-app notifications. These messages can contain requests for feedback from these leaving customers, while emphasizing the platform's commitment to improving user experience. To make this feedback collection seamless, the platform could make these messages a short survey with specific questions like “What is the primary reason you’re leaving?” “How can we improve your experience?” “Would you consider returning if changes are made?”, etc. This makes the communication direct and easy for users who prefer swift communication purposes, reminding them that your commitment to their satisfaction remains. By analyzing the feedback, the platform might discover that users are not only frustrated by one factor, rather, shedding light to the issues they have to improve for their product functionality to sustain.
After implementing changes, the platform should close the feedback loop by informing users about the improvements. For example, they could send a follow-up message like, "We heard you! We've integrated a layer-2 solution to reduce gas fees by 50%. Come back and experience a more affordable DeFi platform!". This approach not only shows users that their opinions matter but also increases the likelihood of re-engagement and strengthens trust. By treating exiting customers as valuable sources of insight, the platform can drive meaningful improvements while retaining and potentially regaining its user base.
Support representatives play a vital role in obtaining and utilizing insights from exiting customers. Acting as the first point of contact for users, support reps are uniquely positioned to gather feedback, address concerns, and relay valuable information to decision-makers within the organization. Their responsibilities in this process can be divided into the following key areas:
Support reps serve as the bridge between customers and the platform, making them critical for gathering feedback. When users express dissatisfaction or show signs of leaving, support reps can engage in meaningful conversations to uncover the underlying reasons. This can be achieved through surveys, direct chats, or email follow-ups. These interactions allow reps to document recurring issues, such as poor user experience, high fees, or lack of features, which may not be captured through analytics alone.
Beyond collecting feedback, support reps can play a proactive role in retaining users by addressing issues in real-time. For instance, if a customer is frustrated with high transaction fees, a support rep might educate them about optimizing transactions during low-fee periods or explain upcoming platform updates aimed at reducing costs. By resolving concerns or offering temporary solutions, support reps can prevent some users from leaving altogether. Their ability to empathize and provide personalized assistance can also help rebuild trust with dissatisfied customers.
By acting as both problem-solvers and communicators, support reps ensure that exiting customers’ feedback is not only heard but also acted upon. Their role is essential in identifying pain points, retaining users when possible, and contributing to long-term improvements that enhance customer satisfaction and loyalty.
Seeking feedback from exiting customers is essential for the continuous improvement of user experience quality in any product or service, especially in the dynamic Web3 space. Exiting users provide invaluable insights into what aspects of the platform failed to meet their expectations, offering a direct lens into areas that need improvement. By understanding their pain points—whether related to usability, cost, trust, or functionality, projects can address core issues that may also affect existing and future users of their platform.
Summarily, engaging with dissatisfied customers not only helps identify and rectify weaknesses but also demonstrates a commitment to listening and adapting. This fosters trust and leaves the door open for re-engagement. More importantly, feedback from exiting customers informs the development of user-centric solutions that enhance the overall experience, helping to retain and attract users in a competitive market. Ultimately, leveraging these insights is not just a response to problems but a fundamental strategy for driving innovation, building loyalty, and achieving long-term success.
