Tracking Web3 Product Metrics enables teams to make data-driven decisions about their product, marketing, and growth strategies. Go beyond basic metrics such as page views and social media impressions to supercharge your growth. Let's explore these key metrics and how you can measure the success of your Web3 project.

Web3 Product Metrics helps brands track adoption, identify product-market fit, and make data-driven decisions

10 Core Web3 Product Metrics for web3 startups

While additional metrics may be important for specific projects, these are 12 core Web3 Product Metrics that every project should care about:

1. New Wallets (Signups)

New Wallets represent users who had their first onchain interaction with your project in a given period. This "first interaction" metric shows the conversion point at which an audience becomes a user.

Examples of the New Wallet and Active Wallet classification process

To analyze the conversion process, consider two aspects before the actual conversion:

1. The number of times your conversion page is viewed

2. The number of times a user connects a wallet

Tracking wallet connections provides insight into your potential web3 conversion rate. For example, if 1,000 views lead to 25 wallet connections (2.5%) and 3 onchain transactions (12% conversion rate), these 3 users are now in your "new wallet" category.

2. Active Wallets

Active wallets are consistently active with your project within a particular time window, typically 30 days (Monthly Active Wallets). A relatively flat active wallet trend line is often positive, meaning you've found a consistent set of users. Analyzing the habits of these consistent users can provide insights for growing your user base.

To uncover deeper insights, segment your active wallets into super users, high-value users, and competitive users. Tools such as Formo make setting up these segments easy and perform deeper analytics on each.

3. At Risk Wallets & Saved Wallets

At-risk wallets are users who have not been active with your project in the last 30-60 days. This Web3 Product Metric can indicate

• Lack of product-market fit

• Lack of features to retain users

• Targeting non-ideal users

Saved wallets are those that were previously at risk but have returned to active status. This can signal:

• New or improved features that meet user needs

• Improved product-market fit

• Effective communications to reach existing users

4. Retention Rate

The retention rate is the percentage of users that are retained over some time. It shows how well a new product resonates and keeps users. A high retention rate displays opportunities for more effective marketing, valuable user feedback, and powerful features. 

Retention rate formula

To calculate it, divide the number of purchasing users at the end of a period by the total at the beginning, then multiply by 100. For example, 750 out of 3,000 is a retention rate of 25%.

Brands typically aim for a retention rate of 90% or higher. Improving retention leads to long-term product success.

5. Customer Lifetime Value

Calculating the lifetime value (LTV) of web3 users depends on the specific project. However, a common Customer Lifetime Value (CLV) formula from the web2 world can serve as a solid baseline:

Customer lifetime value formula

To calculate customer lifetime, divide your total user lifetime by your total number of users. This CLV calculation indicates the health of your product and service. If your CLV is greater than your CAC, you're trending in the right direction.

6. Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost of acquiring a new user. It's an important metric to evaluate when launching a new product because it helps understand the efficiency of acquisition efforts.

In web3, airdrops are effectively a web3 native form of CAC. When evaluating this Web3 Product Metrics, it's useful to analyze it on a per-channel basis. Acquisition channels for new products may include:

• Paid advertising

• Content marketing

• Referral programs

• Community building

• Airdrops

Customer acquisition cost formula

To calculate CAC, divide the total sales and marketing spend by the number of new users acquired in a given period. For example, if $10,000 was spent to acquire 200 new users, the CAC would be $50 per user.

7. Activation Rate

Activation rate is the percentage of users who successfully activate and engage with your product. It measures the effectiveness of go-to-market strategy and the likelihood of reaching the "aha" moment.

Activation rate formula

It is calculated by dividing activated users by sign-ups and multiplying by 100. For example, if 600 out of 1000 signups are activated, the rate is (600/1000) * 100 = 60%.

Brands typically aim for an activation rate of over 40%. Tracking activation helps improve go-to-market strategy and optimize the activation funnel.

8. Customer Engagement Score

The Customer Engagement Score (CES) measures user engagement and interaction with your product. It helps identify high engagement points in the user journey for optimization.

Customer Engagement Score (CES) formula

To calculate the CES, first find the total event value by multiplying the impact and frequency of events in a period. Then add up all the event totals. By tracking CES, you can increase user engagement and identify expansion opportunities to drive revenue growth.

9. Satisfaction Score

The Satisfaction Score measures how satisfied users are with your product. It evaluates whether you're meeting their expectations.

Satisfaction score formula

To calculate it, send out a survey asking users to rate their satisfaction on a scale of 1-10. Divide the number of satisfied (8+) users by the total number of users surveyed.

Brand’s standard for satisfaction is 8 or higher out of 10. Measuring this metric will help you identify areas to improve your product.

10. Net Promoter Score

NPS measures how likely users are to recommend your product. It indicates the potential for word-of-mouth advertising.

Net promoter score formula

Calculate NPS by subtracting the percentage of detractors (6 or less) from promoters (9-10). For example, if 59% are promoters and 17% are detractors, NPS is 59-17 = 42.

Brands typically aim for NPS is around 40. Using NPS with follow-up questions identifies areas to improve user loyalty.

Understand and engage your onchain users with Formo

Formo is a Web3 solution designed for marketing and product teams to track in-app engagement, segment onchain users, create surveys, and measure user satisfaction. Formo helps you monitor the success of product launches, identify areas for improvement, and make data-driven decisions to enhance your Web3 go-to-market strategy.

Engage onchain users and drive growth with Formo

The success of Web3 projects depends on monitoring and improving your product metrics. Measuring key web3 product metrics will help you better engage users at launch and beyond. 

Get started with Formo and engage your onchain users today!