What makes a product successful? Or, to be more specific, what makes a Web3 product successful? You may find yourself becoming overwhelmed by many articles, videos, tutorials, and other kinds of content all over the internet that highlight 100s of ways to help establish and grow your Web3 product. But how do you know what actually works and what doesn’t? And what’s right for your product?
Here is something that is bound to work for you regardless of the nature of your product. On-chain and Off-chain data analytics. Be it a dApp, wallet, DAO, decentralized exchange (DEX), or any other product, once you master using analytics for growth, your product will only go up, my friend.
But how and why? Stay tuned to find out!
Product Growth Challenges in Web3
Web3 product owners face various challenges regarding product growth, including attracting and retaining users, differentiating their products from competitors, and navigating an ever-changing market.
Unlike its predecessors, Web3 was built on blockchain technology, allowing for decentralized, trustless transactions and interactions. However, as with any new technology, there were challenges to overcome.
One of the biggest challenges in Web3 is data gathering. In the traditional internet, data was collected and analyzed by centralized companies like Google and Facebook. However, in Web3, data was scattered across multiple blockchains and decentralized applications (dApps), making it difficult to gather and analyze.
One of the core pillars of blockchain technology is pseudonymity and anonymity. On one hand, this feature stands as the essence of this revolutionary tech; on the other hand, privacy concerns make it more challenging for product owners to gain access to information without compromising anonymity.
Without access to data and insights, product owners are unable to make data-driven decisions and optimize their products and services. Therefore, they need a way to gain access to data in Web3.
So how are you taking care of these aspects? How are you attracting and retaining customers? Have you identified relevant metrics or data that you need to track? Are you aware of what features your users love the most about your product? Or who your most loyal users are? Or even who’s interested in knowing more about your product, potentially leading to becoming a user?
The question remains: How are you making your decisions?
Data Analytics for Growth
Analytics can help product owners address this challenge by providing insights into user behavior and preferences.
When scaling a product, it is important to make data-driven decisions. By collecting and analyzing data subjected to their dApps, product owners can identify which features and functionalities are most popular among their users and what factors drive user retention and engagement.
For example, suppose analytics reveals that users spend plenty of time on a particular feature. In that case, the product owner can focus on improving and expanding that feature to meet user needs better. Or they might offer rewards or incentives for their most loyal users to create a stronger bond with the product brand.
You can easily track and predict user behavior using analytics, such as how your user navigates your dApp and where they bounce off.
Moreover, you can make certain deductions based on the information you gather through analytics. For example, if your user completes a certain action in your dApp, they are likely interested in your product and will continue using it. And as a follow-up, you can reach out to them or remind them of your product with a notification.
Detecting user patterns is another side that many product owners ignore. Even though it can make or break the traction of your product. For example, what set of actions does your user take most frequently on your dApp? Or what other platforms do they often use? How about you offer integration or support for that platform? That would not only make the user experience better, but you will also give your users something extra that could be just what they are looking for!
Web3 Analytics Tools
Lucky for you, despite the challenges stated above, there are some tools and platforms that can extract accurate data in Web3 while maintaining user privacy.
One example is Dune — a platform that lets you build custom dashboards and use SQL queries to extract blockchain and crypto data.
Another noteworthy example is Spock Analytics — a Web3 analytics platform that provides on-chain and off-chain data insights. It also provides data to help you identify user preferences and patterns for your dApp to make informed decisions and help your product grow.
Data analytics is an essential tool for product growth in Web3. Analytics can help you stay ahead of the curve by providing insights into emerging Web3 trends. Furthermore, collecting and analyzing data on user behavior allows you to make decisions based on facts and figures instead of personal preferences and hunches.
Therefore, using data analytics, you can optimize your Web3 products and services, attract and retain more users, and ultimately achieve your product vision.