Guide to Web3 Community Management: How to Boost Community Conversion Ratesby@0xkiveiru
123 reads

Guide to Web3 Community Management: How to Boost Community Conversion Rates

by 0xKiveiruApril 17th, 2024
Read on Terminal Reader
Read this story w/o Javascript
tldt arrow

Too Long; Didn't Read

The member count on platforms like Discord and Telegram is increasing daily, yet the number of users actively using the product remains unchanged.
featured image - Guide to Web3 Community Management: How to Boost Community Conversion Rates
0xKiveiru HackerNoon profile picture

In the initial stages of community building, community managers invest significant time, effort, and resources in expanding channels to attract more users. However, even with sufficient traffic from these channels, the community may not become more active, and the number of users actively using the product within the community may not increase.

This situation is akin to using a bamboo basket to fetch water: while the faucet may be turned on high, most of the water is still lost due to the basket's large gaps. To address this issue, community managers need to focus on reducing these gaps to retain as much water (i.e., users) as possible.

Before seeking solutions, it's crucial to understand the root cause of the problem.

Why are community users difficult to convert?

The member count on platforms like Discord and Telegram is increasing daily, yet the number of users actively using the product remains unchanged.

There's a disconnect between SNS and Web3 addresses. Most community member accounts are not linked to Web3 addresses, making it difficult for community managers to match active accounts within the community with active addresses on the blockchain.

Community managers invest time, energy, and resources primarily in SNS activities such as increasing community size, daily activity, and accumulating chat records. However, the growth of active Web3 addresses, which are crucial for product usage, doesn't receive adequate attention or resources.

Furthermore, there's a lack of long-term incentive mechanisms. Community management is a long-term endeavor, requiring a shift from focusing solely on community expansion to nurturing quality members who actively contribute value. Limited team resources and budgets result in most community activities being time-sensitive, posing challenges to converting community members into product users.

Additionally, the lack of systemization and low automation levels exacerbate the issue. Many Web3 teams are still in their startup phase, facing resource and manpower constraints. Community management heavily relies on manual efforts, leaving little room to focus on converting community members into product users.

How can these challenges be overcome? Perhaps we can find answers by looking at the market.

Market Choice: Built-in Community & Long-term Incentives

Built-in community

Users are active in communities using their SNS accounts, while they engage with the ecosystem using Web3 addresses. Currently, most communities are centered around platforms like Discord and Telegram. Users join these communities using their Discord or Telegram accounts and then navigate to the official website through community links. However, they can't immediately experience the product; they still need to link their Web3 wallet address. Every additional step increases the likelihood of user dropout. Why not consolidate customer acquisition and retention efforts onto a single page?

Some major projects have recognized this issue and chosen to build a built-in community on their official website. For instance, Arbitrum has a dedicated "Community" section on their website, allowing users to directly experience the product upon entering the community.

In the operation of such built-in communities, community managers can directly engage with members using their Web3 addresses rather than SNS accounts. They can optimize the community interface and streamline processes to improve conversion rates.

Building a built-in community on the official website requires a significant allocation of team resources, involving page design, development, and considerations about what tasks to include in the community to convert users into product users. For most Web3 teams, especially those in the early stages of startup, it's challenging to dedicate such extensive resources and time solely to community building. Teams need to balance various aspects of their operations and may not prioritize allocating such resources and time to community development.

So, can community managers leverage external help to overcome the current challenges in community building? Are there mature solutions available in the market to assist project managers in quickly establishing a built-in community?

Yes, several products have emerged in the market to address this need, and TaskOn is one of the platforms offering comprehensive functionality:

Multiple task templates help project managers quickly establish the entire process from new users joining the community to experiencing the product.

Custom Domain Management allows community managers to directly customize the domain of their community, seamlessly embedding the community within the official website, creating a community that is truly integrated with the project.

Long-term Incentives: TGE + Points

To further encourage community members to use the product, long-term incentives are essential.

For projects that have not yet issued tokens, Token Generation Events (TGE) are a common approach. TGEs use the anticipation of airdrops to shape the community atmosphere, influence user behavior, and stimulate product usage. While TGE can prolong the community's patience with the project, there is also a risk of user dropout during the wait for the airdrop, which could occur at an unknown time. How can we reduce the dropout rate during this waiting period?

Introducing a points-based rewards system could be a solution. By utilizing a points mechanism to establish a comprehensive user ranking system, rewarding every valid action, community users can receive timely feedback. Simultaneously, community managers can monitor the community's points holdings in real-time, aiding decision-making.

Blast, for example, adopts a TGE + Points approach: Staking assets and inviting others can earn points, and the number of points held by an account is linked to the future airdrop value. There's even a dedicated leaderboard page to stimulate community members' enthusiasm.

Coincidentally, Bitget recently employed a points strategy during the issuance of BWB tokens. Unlike Blast, however, they didn't opt to create a dedicated points page on their official website. Instead, they chose to transplant the project's points system to a third-party community solution platform. By leveraging the platform's native community management features, they were able to seamlessly integrate TGE + points, quickly and efficiently.

For projects that have already issued tokens, implementing a points system can complement the project's design of a dual-token model. The dual-token model consists of equity tokens and utility tokens, with the already issued token serving as the equity token and the points acting as the utility token. Equity tokens relate to holder benefits, while points can be linked to community engagement and loyalty. By defining clear rules for points distribution and implementing an exchange mechanism to bridge points with utility tokens, loyal community participants can be incentivized, thereby injecting new vitality into the community and ecosystem.

Maximizing Efficiency: Harnessing Tools for Success

In a bull market, user attention is a scarce resource. Failing to retain users and encourage them to use the product immediately after joining the community results in extremely low conversion rates, making it less effective to spend more money on user acquisition.

Focusing community operations on users' Web3 addresses rather than SNS accounts is essential for fundamentally improving community user conversion rates. Team resources and community managers' time and energy are limited. Utilizing tools can better assist teams in moving forward on the right path.