Public blockchains provide unmatched access to user behavior, indicating holdings and activity without direct interaction. In Web2, such data is private and costly to obtain. Web3 introduces a new approach to targeting: leveraging onchain activity and dApp usage. This process involves indexing activities between public wallet addresses and smart contract interactions and mapping them to social profiles from various sources. Let’s explore what Web3 user segmentation is and how to implement it effectively.

Web3 user segmentation is a strategic method for identifying and targeting specific Web3 user groups.

What Is Web3 User Segmentation?

Web3 user segmentation is a strategic method for identifying and targeting specific user groups in Web3. Unlike traditional approaches that focus on demographics or general behavior, Web3 segmentation examines:

• Onchain activity: Transaction history and token balances.

• dApp engagement: Frequency and depth of dApp usage.

• Community presence: Participation in DAOs, NFT projects, and crypto communities.

Web3 users range from first-time wallet owners to experienced DeFi degens. Effective segmentation takes into account user goals, challenges, and activity patterns. While surveys and interviews provide valuable qualitative insights, onchain data analytics tools like Formo offer a comprehensive view of user engagement based on real live data.

Formo Web3 product analytics provides a comprehensive view of onchain activity and user engagement

Targeting Web3 users involves identifying and engaging the most relevant segments, while positioning ensures the brand stands out with a clear and compelling value proposition in a competitive market. By understanding the needs, preferences, and behaviors of their web3 users, you can deliver personalized experiences, foster community engagement, and cultivate long-term loyalty.

Why Does Web3 User Segmentation Matter?

Segmenting Web3 users is critical for you to effectively address different user needs. Web3 user segmentation enables personalized, targeted marketing strategies that resonate with specific audience groups, fostering product engagement and satisfaction.

Understand your Web3 users to deliver personalized experiences, boost engagement, and build lasting loyalty.

Web3 segmentation allows you to align your products and services with user preferences. Many Web3 apps experience low retention and engagement. Leveraging open onchain data and analytics provides valuable insights into user behavior, helping to build stronger relationships with the community, drive loyalty, and boost retention.

Types of Web3 User Segmentation Methods

Here are 5 types to segment your Web3 users:

5 Types of Web3 User Segmentation Methods

1. Onchain Activity

• Transaction History: Analyze the volume, frequency, and type of onchain transactions. This helps identify power users, casual participants, or dormant users. Example: Active traders on decentralized exchanges such as Uniswap vs. passive holders of tokens.

• Token Holdings: Segment users based on the tokens they hold. This could include governance token holders, stablecoin users, or collectors of specific NFTs. Example: Users holding governance tokens such as $UNI or $AAVE for voting.

2. dApp Engagement

Understanding how users interact with decentralized applications (dApps) helps projects refine their user experience and feature offerings.

• Frequency of Use: Group users based on their interaction levels with a dApp. Example: Perpetual exchange users of GMX or Hyperliquid and NFT traders on Blur or OpenSea.

• Feature Usage: Identify which features are most utilized by different user segments. Example: Aave users who only deposit funds vs. those leveraging flash loans or borrowing options.

• Cross-dApp Interaction: Look at users who engage with multiple dApps in an ecosystem or across chains. Example: Users bridging assets between Ethereum and Polygon.

3. Community Interaction

Users’ social activities and involvement in DAOs or NFT communities provide a rich segmentation opportunity.

• DAO Membership: Segment users based on their level of participation in decentralized governance. Example: Active proposal creators and voters in Snapshot vs. passive token holders.

Snapshot is a voting platform that allows Web3 communities to vote easily and without gas fees

• NFT Project Engagement: Segment users by their involvement in NFT ecosystems, such as collectors, traders, or creators. Example: Pudgy Penguions, Bored Ape Yacht Club holders.

• Social Engagement: Measure user presence in Web3 governance forums, Discord communities, and Twitter spaces. Example: Developers contributing to Farcaster’s open discussions or participating in hackathons.

4. Behavioral Segmentation

Track user behavior both onchain and offchain to understand their motivations and preferences.

• Activity-Based Behavior: Identify users based on their actions, such as staking, trading, or voting. Example: Users staking $ETH vs. liquidity providers in DeFi pools.

• Engagement Levels: Segment users as newcomers, retained users, or churned participants.

• Retention Stage: Track user lifecycle stages to offer tailored incentives or rewards. Example: Rewarding early adopters or power users with NFT badges or airdrop tokens.

5. Psychographic Segmentation

• Risk Tolerance: Group users by their appetite for risk in crypto investments. Example: DeFi yield farmers seeking high APR vs. conservative stablecoin holders.

• Interests and Values: Understand whether users are profit-driven, technology-focused, or community-oriented. Example: Builders contributing to open-source projects vs. NFT collectors focused on aesthetic value.

5 Steps to Segment Web3 Users

Here are 5 steps to effectively target and segment your Web3 audience:

Identify Your Target Audience

Defining your core user groups based on attributes such as onchain activities  (e.g., wallet transactions, dApp usage), community involvement (e.g., DAO memberships), motivations, and pain points. Understand their motivations for engaging with Web3 and craft targeted messages that address specific needs and desires.

Segment Your Web3 Audience

Analyze wallet metadata (age, token balances, transaction patterns), social media interactions (profiles on X and LinkedIn), and engagement history (session frequency and in-app behavior) to create granular user segments. This helps identify key user groups for better targeting and personalization. 

Leverage Targeted Outreach

Maximize your boost by utilizing wallet messaging to reach your target audience. This ensures that your message reaches the right audience at the right time, boosting the effectiveness of your campaigns.

Personalize User Experiences

Provide tailored experiences for each audience segment. Personalize messaging, product recommendations, and engagement strategies to resonate with different user groups. This level of customization enhances user engagement and increases conversion rates.

Measure and Optimize

Constantly monitor the performance of your Web3 campaigns. Use data-driven insights to refine your strategies, test new approaches, and optimize your messaging. Continuously improving your targeting and segmentation efforts will lead to better results over time.

Web3 Marketing Platform 

Monitor key metrics such as conversion, retention, churn, and revenue to optimize dApp performance and gain deeper Web3 user insights. Formo Analytics, Etherscan, and Dune allow you to analyze onchain transactions, events, contracts, and social media interactions. Regularly tracking these KPIs helps identify strengths, weaknesses, and opportunities for improving functionality, usability, and overall user experience.

Formo empowers Web3 teams with Wallet Intelligence and dApp Analytics for deeper community engagement.

Effective Web3 user segmentation depends on understanding your users. Craft marketing campaigns that resonate with their unique needs and interests to drive engagement, conversions, and growth. Formo empowers Web3 product and marketing teams with access to Wallet Intelligence and dApp Analytics, enabling more targeted campaigns and stronger community engagement. Web3 marketers who embrace data-driven strategies and user-centric approaches will accelerate their growth onchain.

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