The Web3 era has simplified the way people use apps and websites. Instead of looking only at ad impressions, digital platforms are focusing on getting users actively involved in the brand community. With this evolution, user acquisition strategies have changed completely.
The decentralised and participative nature of digital environments is the key influencer in the evolution of user acquisition tactics. Conventional techniques, such as centralised advertising, have been replaced with community-driven strategies in which people participate and actively contribute (and build a brand community). The focus on decentralised technology, like blockchain and smart contracts, is one significant development. These technologies facilitate interactions that are transparent and ‘trustless’, fostering genuine connections between users and platforms.
Daniel Pal, Founder and CEO of Chappyz, a Web3 platform that connects communities and projects together, shares insights into how leveraging decentralised technologies such as blockchain is transforming user acquisition and engagement.
The rise of decentralised applications (dApps) and blockchain-based incentives has introduced new opportunities for users to be rewarded for their contributions, transforming acquisition into a community-driven endeavour, according to Pal. He further notes that opportunities lie in the creation of inclusive ecosystems where users feel a sense of ownership and are incentivised to participate actively.
“Smart contracts allow for transparent reward mechanisms, enhancing user loyalty. Strategic partnerships within the Web3 ecosystem offer expanded reach and collaborative potential. The shift towards decentralised finance (DeFi) also opens up new avenues for user acquisition, with the integration of financial services within blockchain networks,” he explains.
Role of AI and Web3
Advanced technologies such as artificial intelligence (AI) and Web3 are the key drivers revolutionising user acquisition strategies. In data analysis, AI is a superpower that helps companies better comprehend consumer behaviour, interests, and involvement. AI significantly increases the effectiveness of efforts to draw in particular consumers by leveraging this data to personalise interactions and communications. Users also have opportunities to fully participate and take ownership of their experience with decentralised technology.
“When we blend AI and Web3, we’re not just making things smoother for users, we’re also keeping up with the spirit of a decentralised and participatory digital world. It’s not just about attracting users—it’s about making sure they stick around, engaged and happy for the long haul,” says Pal.
Challenges
Like any emerging technology, this also has certain unique challenges. The decentralised nature of the digital landscape brings about complexities in the task of monitoring and understanding how users behave across different platforms. Tracking and analysing user behaviour becomes more intricate as there isn’t an authority governing everything.
Ensuring interoperability, or in simpler terms, making sure different systems can work together smoothly, is now a critical concern. In the Web3 world, where various blockchain networks coexist, it’s essential for user experiences to seamlessly flow across these different platforms.
Moreover, the decentralised setup heightens the stakes when it comes to trust and security. Users need to feel confident that their information is safe and their interactions are private. Addressing these concerns requires inventive solutions that go beyond traditional security measures.
Adding to the complexity is the dynamic and changing nature of the Web3 environment. “User acquisition strategies need to not only be well-planned but also agile and adaptable. It’s like navigating through a rapidly changing maze—strategies that work today might need adjustments tomorrow,” explains Pal.
Key considerations
When developing and putting into practice user acquisition strategies, Pal recommends that Web3 businesses give priority to a number of important factors. He points out that being involved in the community is the most important thing. Since Web3 is all about user interaction and decentralisation, tactics should centre on fostering genuine relationships inside communities. “In Web3, connecting with our community is like the heartbeat of bringing in new users, and I’ve seen firsthand how powerful it can be. It’s not just about selling a product; it’s about creating a sense of togetherness and collaboration.”
This close-knit group turns into the main engine for user acquisition. Content and involved users are the greatest promoters by default, drawing in new members with their enthusiasm and ideals. This makes community participation in the Web3 world a genuine process of establishing relationships that transform people into enthusiastic supporters.
Pal also suggests that it is imperative to utilise decentralised technologies like as blockchain to offer transparency and user incentives. It is important to give users a sense of ownership and to reward them for their contributions.
