Analysis of Web3 User Acquisition Landscape

Web3 industry has been echoing the slogan "Mass Adoption" for quite some time. However, observing the current state of customer acquisition in the market, many projects seem to need help in increasing metrics rather than achieving real user growth.

It involves using all available resources to get more users to use the core product features frequently.

In the current Web3 customer acquisition landscape, several key issues can be observed:

Small Market: Web3's market size is smaller compared to Web2, and the transition from Web2 to Web3 is challenging. This makes it difficult to acquire new users. Moreover, severe product homogenization forces many projects to use competitive strategies to retain existing users.

Limited User Acquisition Methods: Many rely too heavily on a few marketing strategies, ignoring diverse and innovative approaches. While advertising, KOL marketing, growth platforms, and joint campaigns have their benefits, relying on just one makes it hard to stand out in a competitive market.

• Brand advertising increases visibility but comes with high costs and challenges in measuring effectiveness.

• KOL marketing can quickly enhance exposure and trust but is costly and effective depending on the quality of collaborations.

• Growth platforms provide tools to optimize marketing strategies but may overlook brand and community building, leading to low user stickiness and loyalty.

• Joint marketing requires high alignment in goals and execution, otherwise, it can lead to ineffective collaborations.

Difficulty in User Acquisition: Market competition is intense, requiring projects to differentiate themselves to attract user attention. Moreover, user demands are diverse, necessitating personalized and differentiated products and services to meet various needs.

High Cost of User Acquisition: Projects need to invest significant resources and funds to attract new users, including advertising expenses, marketing personnel salaries, and market promotion costs. Binance has disclosed that the cost of acquiring a new trading user is approximately $200-300.

Low Retention Rates: Many projects primarily rely on Token Generation Events (TGEs) to acquire users. However, after TGEs, token incentive measures may become ineffective or even detrimental to user interests, leading to significant user attrition.

Low User Loyalty: The chain reaction from TGEs often results in users driven solely by profit motives, needing a deeper understanding of the project's potential use cases and advantages, thereby contributing to user churn.

Regulatory Challenges: The regulatory environment is complex and constantly changing. Achieving compliant customer acquisition requires substantial time, resources, and a deep understanding of regulatory policies across different countries and regions. This increases operational costs and may affect market expansion and user acquisition efficiency for projects.

Growing under Compliance

For Web3 projects, establishing a compliant legal team and implementing IP blocking in explicitly prohibited regions is standard practice. However, for operations teams within these projects, navigating regulatory risks while maintaining growth can be challenging, especially when technical operations such as IP blocking are involved. In such cases, leveraging the TaskOn platform's region restriction feature allows projects to block user access from non-compliant jurisdictions without compromising growth outcomes. This approach effectively mitigates potential regulatory risks while maximizing the project's growth potential.

While growth platforms can enhance customer acquisition efficiency and address more user needs, new users often have a limited understanding of the project upon initial contact, which can lead to churn. To encourage frequent usage of core product functionalities among these users, it is crucial to implement measures such as enhancing user awareness, optimizing product offerings, and managing community engagement effectively.

User Awareness: Interactive Content

Addressing the issues of entry barriers and insufficient awareness, education and training emerge as effective solutions.

Educational content is crucial, ensuring the public receives timely information and understands the project's positioning. In this regard, a well-crafted help manual plays a pivotal role. A good manual can reduce repetitive tasks significantly and aid members in understanding the project's orientation. The help manual is the first instructional material users encounter when starting to experience the product, underscoring its importance. Platforms like Medium, Gitbook, etc., serve as primary channels for hosting educational content.

However, merely presenting project information to users is just the first step. It's equally important to ensure they truly remember or understand the content after studying it. To achieve this, interactive learning elements such as Q&A and quizzes can be implemented. Engaging users in answering questions or participating in quizzes to test their understanding encourages active learning and enhances user awareness.

This approach can be implemented through the TaskOn platform. For instance, in the TaskOn community, a series of automated validation quizzes can effectively enhance users' memory and understanding of project content, thereby increasing their engagement and commitment.

Product Optimization: Feedback and Improvement Mechanism

Product optimization revolves around deeply understanding and meeting users' actual needs. This is the foundation for providing a seamless user experience and enhancing user engagement. To achieve this, project teams must establish continuous, two-way communication channels with users. This includes setting up an efficient user feedback system to ensure valuable issues and suggestions are taken seriously and responded to actively.

To make it easy for users to provide insights and suggestions, the following methods can be implemented:

• Providing a contact email

• Setting up a dedicated feedback channel on Telegram or Discord

• Building a feedback forum on the official website

For example, Ethereum has an online forum on its website where users can engage in discussions and provide feedback.

Community Management: Frequency & Incentives

Users develop loyalty to applications and product features through frequent use. To encourage this, communities play a crucial role:

• Shared Experiences and Interactions: Community activities promote interaction and connection among users, creating a sense of shared experience. By participating in various community events, users can share their experiences, stories, and insights about using the product, which strengthens their connection and understanding of each other. This shared experience enhances users' sense of belonging and loyalty to the product, making them more likely to continue using its core features.

• User Education and Training: Community members often share tutorials and practical tips to help others better utilize the product, improving their efficiency and satisfaction. This peer-to-peer knowledge sharing and support can accelerate new users' learning process, reducing their entry barriers and promoting their engagement and loyalty.

• Information Dissemination: The community, being a collective group, allows for easier dissemination of product features and benefits through effective community management.

To manage the community effectively and encourage users to use the product, consider the following suggestions:

Define Valuable Behaviors: Identify valuable behaviors within the community, such as the number of assets traded or held over time for different project types. Then, use various methods to encourage members to repeat these behaviors.

Incentivize Valuable Behaviors: Introduce incentive mechanisms to reward users for completing valuable behaviors. A point-based ranking system is a common incentive method, which can be quickly set up using tools like TaskOn. A real-time leaderboard can increase competition among users and boost their enthusiasm.

Increase Behavior Frequency:

Frequency creates habits. Community managers repeating messages daily in the community is inefficient and repetitive. Instead, display these behaviors as tasks for users to see clearly. Users won't sift through messages in the group; they need a platform where tasks for each stage are displayed clearly, allowing them to check task completion daily.

TaskOn provides such a feature, enabling community managers to manage task status updates regularly without manual intervention.

By collaborating with growth platforms, establishing point-based ranking systems, setting up incentive mechanisms, and optimizing user interactions, Web3 projects can effectively attract users, increase engagement, and achieve continuous growth. Through ongoing exploration and practice, Web3 projects can overcome various challenges and achieve true "Mass Adoption".

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