4 Reasons NFT Creators Should Be Using Blockchain Analytics
As the web3 creator economy grows, data analytics is becoming increasingly crucial for creators looking to understand their on-chain audience.
NFT creators are no exception – by understanding their community's data, and how their collectors interact, they can gain valuable insights into what works and doesn't.
The endgame with your data is to track metrics that let you know how your strategies perform against your strategic objectives.
Here are four reasons why NFT creators should be using blockchain analytics:
Reason #1: Discover Community Insights
The blockchain can tell you a lot about your community – who they are, what they love, and how they interact.
This information is essential for understanding your audience and tailoring your content accordingly, or what we like to call ‘Know Your Collector.’
Know Your Collector
The strength of your community lies within its numbers, so tracking your community’s growth is the key to your success.
The better informed you are on who’s in your community, you’ll be better positioned to create more favorable experiences that will keep them coming back.
To attract more collectors and retain existing ones, you need to understand how your collectors function, what other assets they hold, which DAOs they are voting in, how affluent they are, and more.
By knowing these data points, you’ll position yourself to make the right decisions to attract new collectors that fit similar profiles to your existing collectors.
Understanding Your Collector’s On-Chain Journey
When growing a crypto-based community, understanding each collector’s journey across web3 can help you make better-informed decisions on how you should structure your future roadmap.
For example, you may realize that 70% of your collectors have a wallet age of three and a half years, indicating they’ve been around the block. As a result, they may have had frequent exposure to market cycles, experienced a couple of rug pulls, and know their way around streets of web3, thus empowering you with the opportunity to get more experimental with how you present your next drop.
Reason #2: Engagement Analysis
It's not enough to have an engaged community – you need to understand why they're engaged and what you can do to keep them coming back.
Blockchain analytics can help you identify on-chain engagement patterns and determine what content and strategies resonate with your audience.
But how do you measure engagement on-chain?
Some metrics entail:
- On-chain governance votes
- Time held before selling
- Time staked before withdrawing
- Growth across multiple collections
These are just some examples, but the list continues and varies per community.
One of our favorite opportunities for creators is understanding how their collectors overlap with other artist communities.
For example, as a web3-native musician, you may see an overlap between your NFT collectors and another web3-native artist’s collectors with whom you’ve never collaborated.
Now, that’s an opportunity worth exploring!
The merge of your collector communities could lead to mutually-aligned favorable outcomes, rising all boats with the tide.
Reason #3: Growth Strategies
The use of on-chain is becoming essential for communities to outperform their peers or potentially work together in even more favorable instances.
It's not enough to have a successful NFT project launch – to create longevity, you need to be able to grow it over time. Blockchain analytics can help you identify growth opportunities and determine the most effective strategies for reaching new audiences.
For example, these insights may come in handy when preparing for your next drop. You may be wondering which communities you should cross-promote alongside and potentially allowlist specific addresses to get priority access.
Clarifying which other on-chain communities they collect from can give you an edge in understanding how to grow and cross-collaborate accordingly.
Let Data Serve as Your Community’s Voice
You may be preparing for your next drop and may want to figure out how you can tap into communities beyond your existing collector base.
By looking into the on-chain activity of other collections, you can strategically decipher what other assets they are collecting and which DAOs they participate in and tailor your marketing and communication strategies accordingly.
For example, let’s look at the web3-native Podcast Mint’ and how creator
Adam Levy used the data aggregated across his seasonal Pins to grow his listenership.
With the blockchain's open and transparent design, he can tap into exciting data.
For example, you’ll notice that 27.23% of Season 4 NFT collectors also collect Zora-related assets.
As a result, he invited a team member from Zora to join the podcast. Their session ended up being one of his most listened-to episodes of the season, garnering 41% more downloads than a typical podcast episode in Season 5.
Reason #4: Competitive Analysis
Gathering audience data and leveraging it to improve content, grow your audience, secure key sponsorship deals, and more is a tried-and-true tactic. Still, it used to be slow, limited in scope, and challenging to scale.
With the blockchain being so open by design, we have a plethora of data at our fingertips; we need to know what to look for and how to crunch all that information so it makes sense.
With the correct information, you’ll stay ahead of the competition by understanding what your collectors are doing and where they spend their digital dough.
Using On-Chain Data to Build Your Moat
In web3, your community is your moat since it’s challenging to fork people who align with an established subset of values.
The correct data points can reveal secret insights into your community’s everyday purchases and on-chain contributions, allowing you to devise more effective and productive operating methods, content strategies, pricing plans, and forecast market patterns for future initiatives.
Data is Almost Always Your Answer to Any Question
After this brief post, we hope you’ve realized that there’s more to a wallet than 42 characters.
These four reasons why crypto-native creators should treat data analytics as their best friend are just the tip of the iceberg.
Of course, this is just the tip of the iceberg. There's a wealth of information gleaned from on-chain data, so don't be afraid to dive in and start exploring.
So, what’s in your community’s wallets?
Find out by joining Bello’s waitlist 👇