Building a successful Web3 product is difficult without understanding user behavior. Web3 product analytics provides clarity by unifying onchain and offchain data to reveal how users interact with your app.
Web3 analytics faces unique challenges—pseudonymity and fragmented data across onchain and offchain sources make traditional approaches insufficient. This guide covers Web3 user segmentation, defining usage intervals, and identifying different user types (power, core, casual) to help you make data-driven decisions.
What is Web3 User Segmentation?
Web3 user segmentation groups users by shared attributes to better understand their behavior. The key difference from Web2 is the ability to segment based on onchain data alongside traditional metrics.
You can segment users using various attributes:
Offchain data:
Referral source
Device type
Location
Onchain data:
Wallet balance
Transaction history
Tokens held
DeFi positions
Tools like Formo use wallet profiles to turn anonymous addresses into actionable personas, helping you understand who your users really are beyond just wallet addresses.
Identifying Your Power, Core, and Casual Users
Segmenting users by engagement helps you target your product efforts and personalize messaging.
Power Users (top 10%)
Metrics: High transaction volume, frequent wallet activity, short intervals between sessions, multiple high-value actions (trades, mints, staking, in-game purchases)
Typical behaviors: Logging in daily, using advanced features, providing feedback, referring others
Why it matters: Power users fuel growth and bring energy to your community.
Core Users (next 40%)
Metrics: Consistent engagement on a weekly or monthly basis, moderate transaction activity, regular wallet logins, participation in standard product flows
Typical behaviors: Checking in regularly for updates, making routine transactions, joining events or drops, using key product features
Why it matters: Core users make up the backbone of your audience. They drive recurring activity and lend stability to your user base. Retaining and nurturing core users helps maintain healthy DAU/WAU/MAU metrics and supports long-term product growth.
Casual Users (final 50%)
Metrics: Low or infrequent activity, long intervals between sessions, minimal transactions, often only one or two actions before becoming inactive
Typical behaviors: Visiting during specific campaigns or promotions, using the product for a single task, having sporadic engagement driven by external factors
Why it matters: Casual users highlight friction points or missed opportunities in your flow. Understanding their drop-off reasons can help refine onboarding, reduce churn, and convert some casuals into more active cohorts.
Breaking down your audience into these segments gives you actionable insights for targeted messaging, retention efforts, and product development. Analyze wallet activity, usage frequency, and transaction data to regularly update your segments. Use these insights to deliver more relevant experiences—and unlock new growth opportunities.
Understand Your Users with Web3 User Segmentation
Web3 user segmentation is essential for understanding who your users are and how they engage with your product. By defining usage intervals and identifying user types, teams can make data-driven decisions to improve their product and drive growth.
Ready to understand your users better? Learn how Formo simplifies web3 product analytics and user segmentation with unified onchain and offchain data. Get started with Formo to turn wallet addresses into qualified prospects.
FAQs
What is Web3 user segmentation and why is it important?
Web3 user segmentation is the practice of grouping users based on shared traits, such as their on-chain and off-chain data. It's crucial for understanding your audience, enabling you to identify key groups like power users vs core users. This helps you refine your product roadmap and build a better app.
How can I use wallet cohorts for Web3 product analytics?
Wallet cohorts group addresses by when they first interacted with your app, helping you analyze user behavior over time. By tracking metrics like DAU, WAU, and MAU for these cohorts, you can measure retention and understand product engagement. This form of Web3 product analytics reveals how different user groups find value in your dApp.
How do onchain and offchain data contribute to Web3 user segmentation?
Combining onchain data (like wallet activity and transaction volume) with offchain data (such as email signups or referral links) gives a fuller picture of user behavior. This approach helps you identify unique segments and personalize engagement, making your Web3 analytics more actionable and effective.
