Strategies to Improve Community User Conversion Rate

In the early stages of community building, managers often invest a lot of resources to expand the user base. However, even if they successfully attract a large amount of traffic, community activity and product usage rates may not necessarily improve correspondingly. This phenomenon is akin to using a basket to hold water; even if the water source is ample, most of the water will leak through the gaps. So, how can we effectively retain more users?

To solve this problem, it is necessary to first clarify the root of the dilemma.

Reasons for the Difficulty in Community User Conversion

Despite the continuous growth in the number of members on social platforms, the actual number of users utilizing the products has not seen significant change, mainly due to the following reasons:

The disconnection between social accounts and blockchain addresses

Currently, most community members lack a connection between their social media accounts and their blockchain addresses. This makes it difficult for managers to match active accounts within the community with active addresses on the chain. Managers primarily focus on social platforms, while the truly critical blockchain address activity has not received the attention it deserves.

lacks a continuous incentive mechanism

Community operation is a long-term endeavor. In the early stages, managers need to focus on expanding the size of the community. As the community develops, in addition to quantity, attention must also be paid to the quality of members, including participation, activity, and value contribution. However, due to resource constraints, many community activities tend to be short-term, which is not conducive to converting community members into product users.

lacks systematization and automation

Many blockchain project teams are in the startup phase and face the problem of insufficient resources. Community operations mainly rely on human input, leading to a large amount of repetitive work piling up. Managers spend most of their time on attracting users and answering their questions, leaving little time to consider how to convert community members into actual product users.

Market Trends: Built-in Community and Long-term Incentives

Built-in Community

Currently, users are using social accounts in the community, while they are using blockchain addresses in the ecosystem. Most communities are still centered around traditional social platforms, and users need additional steps to experience the products, which increases the risk of user churn.

Some large projects have realized this issue and started to establish built-in communities on their official websites. This approach allows users to directly experience the product, reducing the intermediary steps. Managers can directly act on the users' blockchain addresses to improve conversion rates by optimizing the interface and processes.

However, building an integrated community requires a lot of resources, which is a challenge for most teams in the startup phase. Fortunately, some mature solutions have emerged in the market, such as the TaskOn platform, which provides various task templates and custom domain management to help project managers quickly build integrated communities.

Long-term Incentive: Token Issuance and Points System

A long-term effective incentive mechanism is also needed to encourage community members to use the product.

For projects with unissued tokens, the Token Generation Event (TGE) is a common strategy. Utilizing airdrop expectations can guide community sentiment and influence user behavior. To reduce user attrition during the waiting period, a points tier system can be introduced to promptly reward effective behaviors.

Projects that have issued tokens may consider designing a dual-token model, using the existing token as a utility token and points as a functional token. This approach can link points with community engagement and loyalty, incentivizing loyal users through a redemption mechanism, injecting new vitality into the community and ecosystem.

Conclusion

In the current market environment, user attention is a scarce resource. If you cannot retain users immediately after they join the community and guide them to use the product, then the investment in user acquisition will yield little return.

Shifting the focus of community operations to users' blockchain addresses, rather than just social media accounts, is key to improving community user conversion rates. Given the limited resources of the team and individual energy, utilizing appropriate tools can help the project move forward more effectively on the right path.