User engagement is critical for the success of decentralized applications (dApps). Unlike Web2, where engagement metrics focus on clicks, time spent, and interactions, Web3 engagement extends to wallet activity, token holdings, governance participation, and more. Web3 User Segment Analytics leverages onchain and offchain data to group users based on their behavior, enabling highly targeted engagement strategies.

This article explores Web3 User Segment Analytics, key metrics, common user segments, and practical steps for implementation.

What is Web3 User Segment Analytics?

Web3 User Segment Analytics categorizes users based on their onchain behavior, interactions with dApps, token transactions, and other activities. Unlike traditional segmentation methods focusing on demographics or past purchasing behavior, Web3 segmentation uncovers real-time user engagement trends through onchain and offchain data.

By leveraging Web3 analytics, projects can:

• Personalize user experiences with data-driven insights

• Optimize marketing campaigns through precise audience segmentation

• Improve user retention with tailored engagement strategies

• Identify high-value users and enhance their platform experience

Use Cases & Benefits of Web3 User Segmentation

1. Personalized Experiences

Segmenting users into groups such as first-time users, repeat users, institutions, degens, or collectors — enables more relevant engagement. For example:

• Onboarding New Users: A DeFi platform can enhance user onboarding by displaying in-app dialog messages that guide first-time wallet users through the setup process and provide helpful tips.

• Loyalty Programs: Reward active users with exclusive benefits, such as boosted APRs, access to new features, or gas subsidies for those engaged for more than six months.

• Community Access: Grant token holders exclusive access to gated communities, strengthening engagement and retention.

2. Identifying High-Value Users

Customer Lifetime Value = Average Customer Lifespan x Customer Value

High-value users—those holding significant assets or frequently interacting with a platform—should be prioritized for engagement campaigns. Web3 analytics tools help track wallet activity, token usage, and staking behaviors. Use cases include:

• Targeting High-Value Users: A crypto exchange leverages Engage’s "Target Whales" template to offer special promotions to users holding large amounts of a specific token.

• Early Product Access: Provide VIP users with priority invitations to beta tests, governance proposals, or premium staking pools.

3. Optimizing Content and Campaigns

Understanding user preferences allows teams to tailor content and promotions. Examples:

• NFT Launch Promotion: An NFT platform can notify collectors who have interacted with similar content about a new collection, encouraging engagement.

• DeFi Strategy Insights: Provide guides, real-time market trends, and yield-farming strategies for DeFi power users.

• DAO Participation: Engage governance users with proposal updates, voting reminders, and rewards for active participation.

4. Reducing Friction & Improving User Experience

Proactive engagement helps address pain points and improve retention. Examples include:

• Reducing Transaction Failures: A lending protocol can detect multiple failed transactions and display troubleshooting tips or gas refund offers in real-time.

• Re-engagement Campaigns: Identify inactive users and provide incentives to bring them back, such as exclusive offers or content tailored to their past activity.

5. Enhanced Community Building

Segmented analytics enables stronger community engagement and support:

• Exclusive Channels: Token holders access private discussion groups to discuss upcoming features or governance decisions.

• Developer Support: Technical users can receive updates on SDKs, smart contract changes, and protocol improvements.

• Live Event Engagement: During a DAO governance vote, Engage can send real-time reminders to increase participation before the deadline.

6. Collecting User Feedback

Post-launch updates and feature releases require user insights to effectively iterate. Engage can facilitate:

• Feedback Collection: After a major update, dApps can display quick surveys to users who have tested the new features, gathering valuable input for improvements.

How to Implement Web3 User Segmentation

Collect Data

Capture real-time data on user behavior across both onchain and offchain touchpoints using Web3 analytics tools such as Formo. Track wallet activity, transactions, user traits, and behavioral patterns to build a unified user profile for a comprehensive user understanding.

Segment Your Audience

Segment users based on the following properties:

• Wallet net worth (high-value vs. casual users)

• Crypto interests (NFTs, DeFi, DAOs)

• Transaction frequency (daily vs. occasional users)

• Device (desktop vs mobile)

• Wallet type

• Referrers and UTM parameters

• Demographics (country and language)

Leverage real-time data and user behavior insights to refine targeting. Use wallet profiles to find users who resemble your existing audience, improving conversion and retention. Automate campaigns based on actions such as failed/rejected transactions to enhance engagement.

For example, high-value users can receive exclusive offers, while casual users get onboarding support. Monitor segment growth and engagement to optimize campaigns.

Analyze and Visualize Data

Use platforms such as Formo to visualize engagement trends, monitor key metrics, and refine strategies in real-time. 

Example: A chart displaying DeFi users who also participate in governance could highlight cross-promotional opportunities.

Apply Personalization Techniques

Tailor your marketing efforts based on the specific behaviors and preferences of each segment. 

• Onboarding: Guide first-time users with educational content.

• Retention: Reward high-value users with exclusive incentives.

• Re-engagement: Offer personalized incentives to inactive wallets.

For instance, re-engage passive users with personalized rewards or educational content.

Monitor and Optimize Campaigns

Continuously monitor engagement trends, campaign performance, and audience insights using Formo to refine segmentation and improve targeting. A/B test messaging and offers to maximize conversion rates.

Example: If a segment shows low engagement with a campaign, test different messaging or offers to refine your approach.

Example User Segments in Web3

Active vs. Passive Users

• Active Users: Regularly engage with your platform, such as daily traders, active liquidity providers in DeFi, or regular dApp users. Example: A user who frequently trades tokens on decentralized exchanges (DEXs) like Uniswap.

Engagement Tip: Keep users engaged with personalized offers, loyalty rewards, VIP access, exclusive features, subscription incentives, and a seamless payment experience.

• Passive Users: Have wallets but rarely engage with the platform. Example: A user who created a wallet but hasn’t interacted in months.

Engagement Tip: Re-engage passive users with targeted campaigns—tutorials, contextual messages, new feature highlights, surveys, and self-serve support. Boost upsells with timely prompts and A/B testing.

Token Holders

Users who hold your project’s native token but may not engage deeply in other activities. Example: A user who holds Ethereum (ETH) primarily for staking.

Engagement Tip: Offer token holders exclusive benefits, such as governance privileges (voting on key project decisions), staking rewards, or early access to new features or products.

NFT Collectors

Users who actively collect, trade, or engage with NFTs within your platform. Example: A user who collects limited-edition digital art.

Engagement Tip: Launch exclusive NFT drops or provide early access to new NFT collections. Host virtual events or community meetups where collectors can interact with creators or other collectors, creating a sense of belonging.

Governance Participants

Users are involved in the decision-making process of DAOs, voting on proposals or submitting ideas. Example: A user voting on protocol changes in MakerDAO.

Engagement Tip: Recognize their contributions with badges, unique tokens, or enhanced voting rights. Offering additional rewards for active participation encourages further engagement in governance.

Web3 User Segment Analytics unlocks deeper user engagement, personalized marketing, and sustainable growth. Whether you're running a dApp, DAO, or NFT project, segment analytics helps accelerate growth and drive meaningful interactions.

Formo’s Web3 Analytics empowers you to analyze onchain interactions, delivering actionable insights into user behavior. Gain a deeper understanding of wallet activity to refine user segments, optimize engagement strategies, and build dynamic dashboards for real-time monitoring. With powerful analytics, Formo helps you uncover user patterns, capture key insights, and make data-driven decisions with confidence.

Follow us on LinkedIn and Twitter, and join our community to learn how Formo turbocharges growth for leading teams across web3!