Discussion on Web3 User Growth Strategies

In the Web3 space, many projects often experience a good rise in a short period but quickly lose users. This is closely related to the bull and bear cycles of the cryptocurrency market: during a bull market, projects thrive, while in a bear market, many projects vanish. However, entrepreneurs should not be constrained by the macro environment but should focus on developing effective user growth strategies.

The core of user growth lies in building a positive interaction system between the product and users, obtaining market share through continuous iteration, and achieving stable rise in user scale and value. In 2022, with the exception of social media applications, the number of active addresses for other mainstream Web3 applications saw varying degrees of decline. This article will discuss strategies for Web3 user growth.

User Rise Basic Ideas

The primary task is to identify the matching point between the product and the market ( PMF ), which means determining the niche market that suits the characteristics and resources of one's own product. Subsequently, one should focus on a single market, and only consider horizontal expansion after achieving a leading position. For Chinese entrepreneurs, it is particularly important to make good use of the resources in the Chinese-speaking community.

In product development, the concept of a Minimum Viable Product ( MVP ) is worth adopting. By launching basic functions that meet core scenario needs, continuously optimizing and iterating based on market feedback, the ultimate goal is to create a product that best fits user needs. Developers should focus on solving the most pressing problems for users and simplifying the use process, rather than blindly pursuing a "perfect" all-in-one product.

Launching an MVP that meets PMF is called "go-to-market" ( GTM ) strategy. GTM aims to acquire and retain users, typically following a "funnel model": from the top of customer acquisition to the bottom of user conversion and retention is a decreasing process. The Web3 GTM strategy also includes unique "community" elements, often accompanied by token-based community incentives.

Product-Market Fit ( PMF ): Identify the market and meet real needs

PMF is a continuous iterative process that requires constant feedback collection and validation to gradually achieve the best fit between the product and the market. The main steps include:

1. Lock in the target user group and identify unmet needs.
2. Formulate product strategy, clarify value proposition, and highlight differentiated competitiveness.
3. Design the MVP feature set and conduct thorough user requirement testing.

Minimum Viable Product ( MVP ): Rapid iteration, avoiding resource waste

MVP emphasizes developing a usable product that showcases the project's highlights with minimal cost and in the shortest time. This approach allows for quick validation of ideas and avoids excessive resource expenditure on non-core features. The purpose of MVP is to test the product's feasibility in the market rather than pursuing perfection.

When developing an MVP, the following key points should be considered:

• Focus on core functions, abandon secondary features
• Rapidly launch to the market, collect user feedback
• Continuous optimization and iteration to adapt to market demand

Going to Market(GTM): Attracting New Users and Retaining Old Ones, Managing the Community

The GTM strategy for Web3 not only includes traditional marketing but also emphasizes community management. A strong community consists of various stakeholders, including users, developers, and investors. An effective GTM strategy should include:

1. Acquire new users:

   • Design attractive task interactive airdrop activities
   • Publish interactive tasks on the Web3 task platform

2. Increase activity and retention rate:

   • Continuously optimize product experience
   • Organize community events, such as AMAs, etc.

3. Recommendation and Self-Propagation:

   • Design incentive mechanisms to encourage users to share
   • Analyze user behavior data, optimize operational strategies

By implementing the above strategies, the project can build an active and loyal user base, laying the foundation for long-term development. As the user base expands, the project can achieve sustainable profitability. According to data from 2022, there are significant differences in the profitability of various Web3 applications, which also reflects the performance of different projects in user rise and value creation.