Skip to main content

ComplyAI Platform Transformation - Executive Summary

Start here - 2 minutes to understand everything

Date: November 4, 2025 For: Francis (CFO) and Maria (CEO) Consultant: SkaFld Studio (Charles & Mike) Engagement: 120-Day Platform Transformation (Stage 1 Complete, Stage 2 In Progress)

🎯 The Bottom Line​

Your #1 Challenge: 60% annual churn rate with 17 paying customers generating $71.5K MRR

Root Causes Identified:

  1. Product Reality Gap: Current product is post-rejection appeal support only (NO pre-checker exists)
  2. Data Trust Issues: Customers don't trust AI feedback accuracy for decision-making
  3. Value Delivery Gap: Post-rejection support provides limited preventative value

The Solution: 3-Stage Transformation

  • Stage 1 (Complete): Discovery & Strategic Roadmap
  • Stage 2 (In Progress): Data Accuracy + Customer Value Dashboard
  • Stage 3 (Planned): Platform Modernization + Growth Engine

Impact: Reduce churn from 60% → <10%, unlock sustainable growth, Series A-ready foundation

🚨 Critical Discoveries​

  1. High Churn Reality ❌

    • 60% annual churn rate (25 of 42 lifetime customers have churned)
    • Most customers churn after 3-18 months (not rapid early churn)
    • Current retention challenge is #1 business priority

  2. Product Model Clarity ⚠️

    • Current Product: Post-rejection appeal support and AI analysis
    • What Doesn't Exist: Pre-checker/prevention tool (planned for future)
    • Customer Expectation Gap: Many expect prevention, receive reaction
    • Value Proposition: Reactive support vs proactive prevention

  3. Revenue Foundation ✅

    • 17 active paying customers
    • $71,500 MRR (~$858K ARR)
    • $4,206 average ARPU
    • Proven product-market fit with existing customers

  4. Technical Quality Issues ❌

    • 47 security vulnerabilities requiring remediation
    • 8.5% test coverage (target: 80%)
    • No code review process (0 PRs in 60 days)
    • 53.5% of work is bug fixes (should be 20-30%)

  5. Operational Efficiency Gaps ❌

    • 73 Slack channels (communication overhead)
    • Manual processes throughout
    • Limited automation and self-service

  6. Strategic Burn Context ⚠️

    • Current: -$30-35K/month (Month 2 of 4-month transformation)
    • Includes: $20K SkaFld + $10-15K accelerated development
    • Target: -$16-20K/month sustainable post-engagement
    • Runway: 8-10 months with founder deferral flexibility

💰 Business Impact​

Current State (Month 2 of Transformation):

  • 60% annual churn eroding customer base
  • Post-rejection product model limits preventative value
  • -$30-35K strategic burn (transformation investment)
  • 17 customers, $71.5K MRR with proven foundation

Post-Transformation (Month 4, January 2026):

  • <10% annual churn through improved value delivery
  • Customer value dashboard demonstrating ROI
  • -$16-20K sustainable burn (cost optimized)
  • Growth-ready platform with retention foundation
  • Series A-ready with proven unit economics

⏱️ 120-Day Transformation Timeline​

Stage 1 - COMPLETE (Days 1-30):

  • ✅ Comprehensive technical and business audit
  • ✅ Strategic roadmap and prioritization
  • ✅ Integration architecture (Hub-and-Spoke, 1157% ROI)
  • ✅ Root cause analysis (churn, product model, data trust)

Stage 2 - IN PROGRESS (Days 31-90):

  • 🔄 Data accuracy improvements (60-day churn correlation)
  • 🔄 Customer value dashboard (demonstrate ROI)
  • ⏳ Critical security fixes (47 vulnerabilities)
  • ⏳ Quality processes (testing, code review)

Stage 3 - PLANNED (Days 91-120):

  • ⏳ Platform modernization foundation
  • ⏳ Growth engine activation
  • ⏳ Cost optimization (-$30-35K → -$16-20K burn)
  • ⏳ Series A readiness validation

Investment: $80K over 4 months (SkaFld transformation engagement)

📊 How We Know (Data-Driven Analysis)​

Real Data Sources:

  • Production database analysis (126M+ records)
  • 17 active customer accounts validated (as of Oct 31, 2025)
  • $71.5K MRR confirmed through financial analysis
  • 60% churn rate from customer lifecycle data (25 of 42 lifetime customers)
  • 47 security vulnerabilities from code scanning
  • 73 Slack channels and 425 pain points analyzed

Key Insights Validated:

  • 60% churn is #1 business risk ✅
  • No pre-checker exists (post-rejection support only) ✅
  • Data trust issues preventing customer value realization ✅
  • Strategic burn investment (-$30-35K) temporary and justified ✅

🎯 What to Do Next​

This Month (Stage 2 Priorities):

  1. Review Stage 2 deliverables and timelines
  2. Validate data accuracy improvements roadmap
  3. Approve customer value dashboard design
  4. Prioritize security vulnerability remediation

Next 60 Days: 4. Launch customer value dashboard (demonstrate ROI) 5. Complete critical security fixes 6. Implement quality processes and automation 7. Prepare for Stage 3 platform modernization

📁 Documentation Navigation​

Executive Overview (Start Here):

  1. ✅ This Document - 5-minute executive summary
  2. 01-B: Navigation Guide - How to navigate this documentation
  3. 01-C: Reading Paths - Role-based reading sequences

Business & Strategy (For Francis & Maria): 4. 04-A: Integration Architecture - PRIMARY DELIVERABLE (Hub-and-Spoke, 1157% ROI) 5. 05-A: Strategic Overview - Comprehensive strategic recommendations 6. 06-E: Financial Projections - 3-year financial model and unit economics

Discovery & Analysis (Complete Assessment): 7. 02-A: Audit Findings - Complete technical and business audit 8. 02-B: Root Cause Analysis - Why 60% churn is happening 9. 02-D: Operational Intelligence - 425 pain points from Slack analysis

Implementation (Roadmap): 10. 05-B: Implementation Roadmap - 90/180/360-day execution plan 11. 05-C: Critical Fixes - Security and quality priorities

✅ Stage 1 Complete - High Confidence​

What We Validated:

  • 17 paying customers generating $71.5K MRR ✅
  • 60% annual churn rate (25 of 42 lifetime customers, primary business risk) ✅
  • No pre-checker exists (product model clarity) ✅
  • 47 security vulnerabilities identified ✅
  • Strategic burn -$30-35K justified for transformation ✅

Delivery Quality:

  • 22 comprehensive documents with role-based navigation
  • Production-validated metrics (126M+ database records)
  • Integration architecture with 1157% ROI projection
  • 3-stage transformation roadmap with clear milestones
  • Financial projections with conservative and optimistic scenarios

🎊 Stage 1 Deliverables Complete​

For Francis (CFO) and Maria (CEO):

Delivered:

  • ✅ 6 SOW Deliverables - All Stage 1 deliverables completed
  • ✅ Integration Architecture - Hub-and-Spoke model, $11,630/month benefit, 320+ integration points
  • ✅ Strategic Roadmap - 120-day transformation plan with 3 stages
  • ✅ Root Cause Analysis - 60% churn drivers identified and prioritized
  • ✅ Financial Model - Conservative and optimistic 3-year projections
  • ✅ Quality Assessment - 47 vulnerabilities with remediation roadmap
  • ✅ Operational Intelligence - 425 pain points analyzed from 1,510 Slack messages
  • ✅ Product Clarity - Defined current state (post-rejection) vs future state (prevention)

Bottom Line: We identified why 60% churn is happening and provided a 120-day roadmap to reduce it to <10% while building Series A-ready foundation.

Next Steps: Review Stage 2 deliverables with your team and validate the customer value dashboard design.

🚀 Stage 1 Complete - Ready for Stage 2 Implementation!

Last updated on