Traditional audience segmentation methods are falling short for onchain apps. Web2 data is often private and expensive, making it difficult to gain deep user insights. Web3, however, introduces a new way of targeting by leveraging public onchain activity and dApp usage. This guide explains Web3 segmentation and provides actionable steps to implement it using onchain analytics.
By combining onchain data with in-app behavior, teams can build powerful, identity-resolved customer profiles. This allows for personalized experiences that drive engagement and retention, moving beyond the limitations of old-school marketing.
What is Web3 User Segmentation?
Web3 user segmentation is the process of identifying and targeting specific user groups based on onchain data. It marks a shift away from traditional demographics toward new, more insightful data points:
Onchain activity: Transaction history, token balances, and wallet age.
In-app behavior: How users interact with your dApp, from their first visit to specific actions.
Community participation: Social profiles like Farcaster and Lens, along with DAO participation.
Tools like Formo's Wallet Intelligence and Product Analytics provide a unified view of these activities, helping you understand your audience without needing SQL expertise.
Why Does Web3 Segmentation Matter?
Many Web3 apps struggle with low retention, often because incentives drive short-term interest without building lasting loyalty. Effective Web3 targeting and segmentation can change that. By understanding what motivates different user groups, you can:
Create personalized marketing strategies that resonate with specific user needs.
Align your product with user preferences to improve usability and satisfaction.
Use open onchain data to uncover valuable behavioral insights.
Improve community engagement and build a loyal user base.
Ultimately, Web3 segmentation helps build stronger relationships with users, which is key to long-term growth and achieving product-market fit.
Key Web3 Segmentation Methods
Understanding wallet behavior is central to optimizing campaigns and driving growth. Here are some key segmentation methods:
Onchain Holdings: Segment users by their transaction history and token balances. This can differentiate active traders from passive HODLers, or identify holders of specific governance tokens.
Onchain Behavior: Analyze how users interact with dApps. Are they daily active users or occasional participants? Do they use advanced features or just the basics? This helps tailor product experiences.
Community & Social Signals: Use data from DAO participation or social platforms like Farcaster and Lens to segment users. This can identify influential community members or users with specific interests.
Wallet Labels: Predefined labels like "DeFi Degen" or "NFT Whale" offer quick insights into a user's motivations and risk tolerance, allowing for highly targeted campaigns.
Tools for Web3 Segmentation
To effectively segment your audience, you need the right tools to monitor metrics like conversion, retention, and revenue.
Formo: Provides unified analytics and Wallet Intelligence, allowing you to build dynamic audiences and funnels to drive growth.
Dune Analytics: A powerful tool for visualizing and querying onchain data to create custom dashboards.
Etherscan: A blockchain explorer that lets you track individual transactions and wallet activities.
Grow Your App with Smarter Targeting
Web3 segmentation allows you to create personalized experiences that boost engagement and retention. By moving beyond generic marketing, you can build a stronger, more loyal community around your product.
Tools like Formo make onchain analytics accessible, enabling your team to launch data-driven campaigns without heavy engineering resources.
Ready to see how wallet intelligence can drive growth for your app? Try Formo today.
FAQs
What is the most effective way to approach Web3 segmentation?
The most effective Web3 segmentation strategy involves categorizing users based on their onchain behavior. Go beyond simple token holdings and analyze factors like dApp usage frequency, transaction patterns, and community participation in DAOs or governance proposals. This allows you to create distinct user personas, such as "Active Traders," "NFT Collectors," or "Yield Farmers." By grouping wallets based on these actions, you can tailor your product features and marketing efforts to specific user needs and interests for better engagement.
How can our team use onchain analytics to identify high-value user segments?
Use onchain analytics to pinpoint wallets exhibiting high-value behaviors. Track metrics like total transaction volume, interaction with specific smart contracts, and the types of assets they hold. For example, you can identify "power users" by filtering for wallets that frequently use your dApp's core features or contribute significant liquidity. These insights help you focus retention efforts and understand what makes your most valuable users stick around, enabling you to attract similar profiles.
What is wallet intelligence and how does it improve audience targeting?
Wallet intelligence is the practice of analyzing a crypto wallet's history to build a rich user profile based on its activities. It reveals past transactions, token holdings, dApp interactions, and NFT ownership. This data provides a clear picture of a user's interests and experience level within the ecosystem. By applying wallet intelligence, you can move beyond broad messaging and deliver highly targeted campaigns and content that resonate with specific behaviors, improving acquisition and conversion rates.
