How On-Chain Data Is Advantageous to Your web3

14 Mar 2024

The rapid advancement and expansion of web3 presents opportunities for forward-looking and user-focused businesses. By deeply understanding users' wants and needs, businesses can build stronger connections, reinforce their competitive position, and secure leadership at the forefront of this quickly growing ecosystem.
One of the main hurdles facing web3 business initiatives today is achieving product-market fit and adapting to the shifting needs of users. This requires understanding the broader context of users' on-chain activities, including visualizing all of their transactions and interactions on the blockchain. Utilizing on-chain data to extract insights into transaction patterns and activities of wallet holders provides businesses with a pivotal strategic advantage. With this approach, businesses can identify new and emerging opportunities and outpace their competitors, priming them for success in web3.
Stay ahead with actionable on-chain data
Leveraging data to enhance user experience and drive competitive growth is a well-established practice in web2, leading to major innovations and fostering deeply personalized connections. This approach has empowered businesses to better support and understand their users. As we transition to web3, marked by the open and transparent nature of blockchain technology, new opportunities unfold to further optimize the user journey.
Blockchain’s transparency provides businesses with new capabilities to segment their user base with better accuracy. Tapping into granular on-chain data points such as transaction activity, smart contract interactions, and engagement patterns unlocks powerful potential when paired with advanced analytics. This provides invaluable visibility into how users engage with existing solutions and offerings, while also revealing promising new directions to inform more tailored marketing strategies and innovative product developments.
Watch: Exceed your web3 business goals through actionable on-chain user insights
User segmentation offers benefits in two key functions: marketing and product development. Better understanding your customers’ on-chain activity provides opportunities to create more thoughtful and focused marketing campaigns for existing offerings, and reach the users who are the most likely to be interested in a new offering. This data also provides intelligence into what areas of potential product development your users are most likely to adopt.
Related: The Chainalysis Guide to On-Chain User Segmentation for Crypto Exchanges
The Playbook For Winning New Users
User segmentation is one of the most powerful tools for business growth, yet extracting meaningful context from on-chain data can be challenging and time-consuming for businesses. Chainalysis addresses this obstacle by offering on-chain insights through its web3 growth solution, equipping businesses with the necessary insights to attract high-value users and outpace their competitors.
Through user segmentation, businesses have the power to meticulously analyze and understand the activity patterns of their most valuable users - identifying VIPs through variables such as transaction frequency. Rain, for example, achieved a remarkable fourfold return on investment by leveraging the on-chain user insights and counterparty filters to reach users who were also engaging with their competitors.
Businesses can now create offerings tailored to high-value users. By segmenting users based on their interactions across different platforms, businesses can pinpoint those users with higher spending potential, who may be choosing competitors. This is exemplified by growth teams at an NFT marketplace, who leverage similar strategies based on insights into NFT holdings to reach users more inclined to respond to or engage with NFT-centric promotional campaigns.
With Chainalysis’s web3 growth solution, success becomes measurable. Monitor the impact of your strategies and initiatives through a unified view of on-platform and off-platform user activities. Leverage the integrated knowledge graph to facilitate a cycle of discovery, engagement, and optimization of your business approach. Whether you’re a crypto-native business or a traditional brand entering web3, Chainalysis provides you the tools to evaluate opportunities, identify overlaps in your user base, and tailor your offerings to achieve the best possible outcomes.
Learn more about how Chainalysis helps web3 businesses exceed business goals and ensure a sustained competitive edge in an ever-evolving ecosystem.

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