Traditional web analytics tools such as Google Analytics are a standard for tracking website performance. However, most web analytics tools fail to meet the needs of on-chain apps in Web3, where users are identified by wallets rather than emails or social accounts. This guide explores what web analytics looks like in Web3, how it works, key metrics to track, real-world use cases, and the best web analytics tools for your onchain app.

Key Takeaways: 

• Web analytics helps you understand and improve user behavior on the browser, websites, and web apps.

• Web analytics offers essential insights for both marketing and product development.

• Key metrics like page visits, bounce rate, sessions, retention, churn, and conversion funnels distinguish engaged users from casual visitors.

• Tracking metrics such as Customer Acquisition Cost (CAC), Revenue Per Wallet (RPW), ROI, and campaign attribution helps you grow smarter.

• Formo combines offchain behavior (visits, clicks) with onchain data (wallet activity, token interactions), providing a complete view of web3 user behavior for onchain apps.

Web analytics in Web3 helps teams collect, analyze, and unify onchain and offchain user data from website interactions

What is Web Analytics?

Teams collect, measure, analyze, and report web data through web analytics. Web analytics helps teams track user behavior, traffic sources, conversions, and more, driving better decision-making. By leveraging insights from page views, clicks, conversions, marketing attribution, and user journeys, web analytics helps optimize marketing strategies, improve user experience, and accelerate growth. 

Activity Dashboard I Formo’s Analytics

​​What is web analytics in digital marketing?

In digital marketing, web analytics is the process of collecting, measuring, and analyzing data from websites and apps to understand user behavior, track performance, and optimize marketing strategies for better results. Web analytics helps marketers answer questions like:

• Where are my users coming from?

• What actions are they taking?

• Where are they dropping off?

• What’s converting and what’s not?

How Web Analytics Works in Web3

Web3 introduces new dimensions to analytics, where users are anonymous visitors and wallet addresses interacting onchain. Traditional analytics often fall short due to:

• Lack of user identifiers (no emails/logins)

• Onchain behaviors beyond your site (e.g., mints, swaps)

Web3 introduces two main types of analytics: onchain and offchain:

Overview Page I Formo’s Analytics

Offchain Analytics

Captures common activity in the website, including:

• Website visits and page engagement

• Clicks and form submissions

• Session duration and bounce rates

• Referring sources and campaign tracking

• User journeys through funnels and flows

Onchain Analytics

Focuses on user behaviors recorded directly on the blockchain, such as:

• Wallet activity

• Token interactions (mints, swaps, transfers)

• Smart contract usage and event tracking

• Transaction volume and frequency

• NFT purchases, staking events, DAO voting

Wallet Attribution I Formo’s Analytics

Onchain data, while transparent, immutable, and wallet-native, often comes in raw and noisy form. You need context to make it actionable — that’s where tools like Formo bridge this gap, enriching onchain data with behavioral insights to identify top users and opportunities.

Benefits of Website Analytics

Website analytics helps you decode what’s happening on your site so you can make impact decisions and optimize what matters: performance, conversions, and user experience.

Here’s the importance of web analytics:

Understand How People Use Your Site

Analytics answers questions such as:

• Which pages attract the most attention?

• Where do users drop off?

• Who are new vs. returning visitors, and how do they behave differently?

• Are people engaging with your content or bouncing immediately?

Understanding user behavior helps improve content, simplify navigation, and guide visitors toward action.

Identify and Optimize Key Conversion Points

Teams define conversions as wallet connections, form submissions, downloads, or signups. Web analytics lets them:

• Track how often users complete these actions

• Identify where users drop off

• Benchmark conversion rates and test improvements

Traffic Page I Formo’s Analytics

Even small enhancements, like clearer calls-to-action or faster load times, can yield significant results.

Make Better Budget Decisions

Whether running paid campaigns, organic content, or partnerships, Web analytics helps teams see how each traffic source drives real outcomes like signups or onchain actions. This enables you to:

• Double down on effective channels

• Eliminate ineffective ones

• Allocate budget and time for maximum return

Improve User Experience

Slow pages, broken links, and dead-end flows hurt conversions and damage reputation. Web analytics reveals these issues in real-time, allowing you to fix them before they frustrate users. A clean UX benefits both your audience and your SEO.

Drive More Organic Traffic with Better SEO

Not just about rankings — good SEO is about visibility and intent. Web analytics helps you:

• Identify which pages and keywords drive organic traffic

• Detect drops in traffic or rankings

• Optimize high-intent pages for improved results

Your web analytics stack reveals the full picture of visitor and clarity for fast action. With Formo’s Analytics, you get actionable insights about user web interaction that move the needle. 

Key Web Analytics Metrics for Web3

Some classic metrics still apply, but Web3 introduces new wallet-native KPIs:

Traditional Engagement Metrics:

• Page Views

• Bounce Rate

• Time on Site

• Conversion Rate

Web3-native Metrics:

• Connected Wallets: How many users connected their wallet

• Token Holdings: What assets or NFTs do they own?

• Wallet Cohorts: Power users, whales, airdrop hunters

• Onchain Activity: Number of transactions, NFT buys, staking actions.

• Churn & Retention: Track wallet activity over time

• Onchain Attribution: Which channels or campaigns result in wallet connections or onchain actions?

• Revenue Per Wallet (RPW): Average revenue generated per unique wallet.

Overview Page I Formo’s Analytics

Top Web Analytics Tools

Web Analytics Use Cases for Web3

1. Campaign Attribution

Track which X/Twitter post, Farcaster cast, or creator drove the most wallet connects or conversions (e.g., NFT mints).

Example:
An NFT project uses UTM links to track campaign A and B. Campaign A leads to 100 wallet connects and 60 mints. Campaign B gets 200 connects but only 10 minutes. You now know Campaign A has better conversion quality.

2. Funnel Analysis

Visualize user drop-off from:

1. Website visit

2. Wallet connect

3. Action (e.g., mint, stake, vote)

Use this to optimize UX or reduce friction (e.g., add wallet login early).

3. User Segmentation

Group users by:

• First-time wallets vs repeat visitors

• NFT holders vs non-holders

• Whales vs new wallets

Teams can run personalized campaigns (like airdrops for active DAO voters or LPs).

4. Web3 Growth

Analyze how wallets interact with DAO proposals, token votes, or governance portals after visiting your site or connecting their wallet.

5. Web3 CRM & Retargeting

Build wallet-based profiles that let you retarget users in a privacy-respecting way via Farcaster, email (if collected), or wallet-native channels (e.g., XMTP).

How to Implement Web Analytics in Web3

Step 1: Define What to Track

Decide your goals:

• Payment completion rate?

• Who came from which community?

• How many wallets held your NFT and staked it?

Step 2: Set Up Frontend Tracking

Teams can use SDKs or no-code tools like

• PostHog, Google Analytics, Mixpanel, etc. (for website event tracking)

• Formo (to track website event and connect onchain behavior)

Step 3: Connect Wallet Data

Use a tool that links wallet addresses to session data. Connecting wallet data unlocks insights such as revenue per wallet, cross-platform wallet behavior, and real-time user segmentation.

Step 4: Visualize Insights

Create dashboards or charts to monitor:

• Funnels

• Campaign performance

• Onchain + offchain user journeys

Funnel Chart I Formo’s Analytics

Step 5: Take Action

Use analytics data to:

• Improve onboarding

• Launch better campaigns

• Increase engagement or LTV

Web analytics in Web3 goes beyond vanity metrics, helping teams understand wallet behavior, onchain activity, and how users engage across decentralized apps. By combining offchain signals (like page views and clicks) with onchain data (like transactions and wallet actions), teams can make data-driven decisions that optimize user journeys, improve product performance, and grow communities. 

Further sources: 

• What is Web3 User Analytics? Benefits, Metrics, and Tools

• Top 5 Web3 Growth Analytics Tools to Unlock Marketing Insights

• Web3 Behavioral Analytics: How to Track and Analyze

Formo makes it easy. Designed to be an alternative to Google Analytics, it combines the best features from web, product, and onchain analytics into one versatile platform.

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

FAQs

1. What is Web Analytics?
Web Analytics is the process of collecting and analyzing data about website or app users to understand behavior, engagement, and conversion. Web analytics tools help you track key metrics on the web, such as the number of visitors, page views, session duration, and page referrers.

2. Why is Web Analytics important?
The web is a key channel for many users and apps onchain, and data about where users come from and what they do on the web is important. Web analytics enables more efficient marketing, fraud detection, targeted product improvements, and better user retention.

3. How does Web Analytics improve user acquisition and growth?
Web analytics plays a critical role in improving user acquisition and growth by providing actionable insights based on user behavior, marketing effectiveness, and site performance. By segmenting users and identifying high-performing acquisition channels, you can lower your customer acquisition costs for higher ROI. 

4. Can Web Analytics detect fraudulent traffic?
Yes, it helps identify bots and suspicious behavior to maintain data accuracy and platform security.

5. How does Formo support Web Analytics?
Formo integrates data collection, user profiling, and analytics in one platform for deeper insights and growth.