Web3 User Rise Strategy: Community-Driven Go To Market

In the Web3 space, the rapid rise of products and user churn are common phenomena. Compared to traditional fields, the cryptocurrency market has a more direct and significant impact on projects. Many projects struggle during bear markets due to the failure of incentives caused by the decline in token prices.

User rise is a long-term goal of the product, and the core lies in building an ecosystem between the product and users, gaining market share through continuous iteration. In 2022, with the exception of social media applications, the number of active users for most Web3 applications declined.

Basic Ideas for Web3 User Growth

Despite the significant impact of market cycles, entrepreneurs should not be bound by macro factors. The primary task for user growth is to find a niche market that matches the product, namely the "Market" in Product Market Fit(PMF). Focus should be on niche markets that align with their own characteristics and resources, rather than pursuing the entire large market. For Chinese entrepreneurs, abandoning the Chinese-speaking community is an unwise choice.

At the product development level, the Minimum Viable Product ( MVP ) is a great concept. It emphasizes launching core features first to meet the minimum business loop, and then iterating and optimizing based on market feedback. Developers should focus on solving the most pressing problem for users, rather than trying to create a perfect overall product.

Launching a PMF-compliant MVP into the market is referred to as Go To Market(GTM) strategy. The purpose of GTM is to acquire and retain users, typically following the "funnel model". Compared to traditional Web2 projects, Web3's GTM places more emphasis on community building, often accompanied by token incentives and referral programs.

Product-Market Fit ( PMF ): Identify the market, meet the real demand

PMF focuses on the following key issues:

• Why create this product/function?
• Do the products/features meet market demand?
• Why do it now instead of later?

Finding PMF is a cyclical iterative process that requires continuous feedback collection and validation. The main steps include:

1. Lock in target user groups, discover unmet needs
2. Develop product strategy, define value proposition, highlight differentiation and competitive advantage
3. Design MVP feature set and conduct user requirement testing

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

The core of MVP is to develop a usable product that can showcase the highlights of the project with the least cost and in the shortest time. Key considerations include:

• Composition of products/functions
• Problems solved
• Future Iteration Plan
• The value of the product/function

MVP is not a perfect product, but a tool for quickly validating ideas. By continuously adjusting direction through market validation, a product with market potential is ultimately developed. MVP can even be a testnet product to avoid excessive investment in products that are not accepted by the market.

Go To Market(GTM): Attract new users and retain old ones, manage the community

The GTM strategy of Web3 places more emphasis on community building. A strong community includes not only users but also developers, investors, and partners. Token rewards provide new ideas for addressing the cold start problem.

The main components of GTM include:

1. Acquire new users

   • Utilize task interactive airdrop
   • Publish tasks on the Web3 task platform

2. Increase activity and retention rate

   • Optimize product experience
   • Hold community events ( such as AMA )

3. Recommendation and Self-Propagation

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

Acquiring new users is the entry point, improving retention relies on product value, and referral dissemination amplifies the community effect. These aspects collectively serve to create revenue and achieve scalable profitability. According to 2022 data, there are significant differences in the profitability of different types of dApps.