Product growth framework: from web2 to Web3

This is a series of discussions Web3 The founders and builders of how to use some Web2 Growth framework to extend successful products .

1. Web3 The growth model of

2. by Web3 Create a sustainable growth strategy

3. Build your Web3 Growth team

2021 The year is a year for cryptocurrency and blockchain companies , We have witnessed record breaking trading volume in this field and a large influx of funds . Venture capital firms around the world are 2021 In the fourth quarter of, the total investment exceeded 105 Billion dollars , More than any other quarter of the year , Also higher than 2020 The total investment of the whole year . First, let's look at the relationship between Web3 Related to the development of cryptocurrency .

encryption / Blockchain venture capital transactions ： Investment amount & Trading volume

I expect 2022 The pace will not slow down in , Because we have seen a lot of capital ready to deploy to this field . The most important messages this year include ：Paradigm Of 25 Billion dollar fund ,Andreessen Horowitz Of 22 Billion dollar fund ,FTX Of 20 Billion dollar investment fund , as well as [Crypto.com] Recently announced 5 Billion dollars .

As investors invest a lot of money behind the ecosystem , People's expectations have risen ,Web3   The company will have to go all out to grow . And ten years ago Web2 The situation in the field is similar , We should see a large number of Companies in the cryptocurrency sector eager to recruit for growth roles （ In progress ）, And strive to form teams that can expand the successful growth model .

It's exciting to see these changes taking place , Because I believe Web3 Be able to achieve completely different growth modes at all levels -- Get channels and tactics from 、 User experience and guidance , Leverage to retain and participate （ There will be more introduction in future articles ）. however , In a decentralized 、 anonymous 、 Agreement ownership and user owned data become the basis of the new specification Web3 In space , Growth faces a range of different challenges .

When we “ talk about ” At the same time , new Web3 Growth framework frameworks And the rules of the game playbooks Being rewritten .

however , What principles and systems can we learn from Web2 Brought into this emerging ecosystem ？

sketch Web2 growth

Before we delve into the impact of growth on Web3 Before what it means , Let's talk about ten years around Web2 Give a high-level overview of the content of the company's growth framework .

Andy Johns Well explains the meaning of growth at its most basic level ：

“ If finance has the cash flow in and out of the company , So grow the flow of customers in and out of products .”

As you know , Growth cannot be controlled by a specific set of tactics 、 A panacea or the exact role within the company . That's right Web2 and Web3 All products are suitable for .

Growth is a company mission 、 The system between values and business model , It helps define ：

1. How our products grow ？

Brian Balfour and Reforge The team did an excellent job , Break it down into four problems , Help us answer these questions .

1. How do we get ？

2. How do we keep ？

3. How do we monetize ？

4. How do we defend ？

Look at these issues through specific growth cycles in the business , It will help the company establish an overall growth model .

2. Four basic fit

A well structured growth model is not just about matching products with the market , We also need to find four basic matching points ：  market - Product matching , product - Channel matching , channel - Pattern matching , Pattern - Market matching .

3. Growth strategy

Once we understand how products grow and interact with the community / market 、 Channel and business model are compatible , We can define a sustainable and scalable GTM （go-to-market, Going to the market ） Or growth strategy .

4. Build a growth team

As more and more companies integrate their teams to promote unique GTM And growth strategies , To win in growth, there is not only the best way , Also have the best team structure to deploy the strategy as soon as possible .

Casey Winters （ front Pinterest/ Grubhub Director of growth ） In his definition of growth, these topics are divided into different areas ：

“ The purpose of growth is to expand products with - The market matches the scope of use of the product . This is achieved by establishing a game manual on how to expand the use of the product . This game manual can also be called growth model or cycle .”

He went on to add ：

“ Most product teams are built to create or improve the core values provided to customers . Growth is connecting more people to existing values .”

We can spend hours trying to narrow down the exact meaning of growth , And how to apply it to various types of products 、 Business and team , And there are already good materials to discuss this topic .

therefore , Now we have a basic understanding of growth as a system , What problems are you trying to solve for your product , Let's focus on Web3 Break down the company .

Web3 The growth of the company
—— How to expand your Web3 product ？

We can break down this question statement into four core questions to be answered , So we can lay the foundation for our growth model .

How do we pull new people ？

Lattice capital has made a great subdivision , Introduced the present Web3 The company usually adopts the strategy of attracting new people - Partnership 、 User ownership and token driven growth pools are Web3 The pillar of growth strategy .

Web3 Growth game manual

however , The above tactics are based on the fact that their target users are already familiar with or enter Web3 Ecosystem assumptions , It doesn't necessarily apply to how or who to help become the next 10 Billion users .

At present, the new player playing method of cryptocurrency company is still very unstable , Full of unknowns , Especially considering that a newcomer is starting to enter Web3 The inherent friction that must be experienced , Join from Discord, To create Metamask, Buy NFT, Looking for a public bounty , wait . about " Ordinary people " Come on , The system is still full of friction and obstacles , Can't easily join and participate in this space , We see competition between companies rapidly intensifying , To win over consumers who are currently educated in encryption .

Web3 The winners will be those who can be clearly defined .

1. Where is this product in the centralized and decentralized spectrum ？

2. Is this a network effect driven business ？

3. What is success ？( User growth ,TLV, Developer activities , Trading volume , Connected wallet , wait ）.

How to keep it ？

Retention is the foundation of any growth strategy . about Web2 The company is , Retention is the basis for measuring the matching degree between products and markets , Generally, a positive retention rate helps promote the company to obtain more new users and revenue .

I can see Web2 and Web3 One of the biggest challenges between growth is user retention and how we view it . Why? ？ stay Web2 in , The retention of users or customers is by us via email 、 push 、 In process repurchase , It's basically life cycle marketing , To attract and " resurrection " Driven by the capabilities of specific users . But in Web3 in , No, " user " This concept as an identifiable individual , We can't lock them in through traditional life cycle strategies .

for example , You can only rely on the wallet address as the only " user " identification , Not email . The problem is , A single user can access your... With multiple wallets DApp, This may reduce the accuracy of your data .

Definition " identity " stay Web3 Is one of the most challenging and interesting things in this field in the next few years . User ownership and governance 、 Activities on the chain 、 Community participation has proved to be shaping Web3 Company loyalty / Some basic mechanisms for the future of retention plans .

My guess is , Many questions will be answered at the beginning of this year . Affected by the negative impact of macroeconomic conditions on the current bullish sentiment in the cryptocurrency market , The field of vertical take-off in the past two years , Such as NFTs、DeFi and DAO, Will have to face rapid iteration and innovation to solve the problem of user churn and user retention , So as to maintain its current " Optimistic growth " Track of .

How to monetize ？

about Web2 and Web3 The company of ," Monetization is much more than price ", just as Reforge The experiment of + test plan As mentioned , They have a good framework to solve this problem .

When we consider all the elements of a monetization strategy , We need to be aware of that , The decisions we make around these specific elements create more or less resistance for someone to become a paying customer or user of our products , No matter what Web2 still Web3 Companies are like this .

“ If what we charge is really well known to users , And it's very easy to understand , That's low resistance , But if what we charge for is quite new in the market , And not understood , It's an unknown number , That will produce high resistance .”- Reforge

up to now , image Opensea or Coinbase Such a large centralized Web3 The company has taken advantage of " Well known and very easy to understand " Monetization strategy , Such as transaction fee or listing / Sales fee , This reduces the resistance of new users to join and use their platform .

But in terms of new sources of income ,Web3 It provides a broader possibility for decentralized organization . for example , have a look " Get something for free " Of DAO、 game 、Web3 How will social networks, etc. pass DeFi The strategy is to monetize their treasury , And break " If you don't pay for the product , You are the product " The general idea of , This will be a very interesting thing .

How do we defend ？

come from Statista This picture shows the new in the past few years Web3 And how fast cryptocurrency companies are emerging , And there is no sign that this trend will slow down soon .

2013 Year to 2022 year 2 The number of cryptocurrencies in the world

Even though Web3 And cryptocurrency are still very emerging industries , But competition has proved fearless . for example ,LooksRare On the day of Launch 1 $ NFT sales , At present, it is Opensea An important competitor of .

“ growth = Speed , Speed is the competitive advantage in today's market .”- Matt Bivons

As more competition enters the field , The current distribution channels will become less effective . at present , Who's not dealing with Discord Fatigue or distrust most airdrops ？

We see some very interesting things happening in user ownership 、 Network participation 、 Token economy, etc . however ,Web3 The defense wall within the ecosystem will have a similar drive to some of the most successful Web2 The foundation of the company's growth ; Network effect 、 Strong communities and organic growth cycles or flywheels .

Build our growth model

In short , Your growth model is a system or cycle , Represents a qualitative or quantitative lever that provides information for your product growth .

Answer the questions we encounter in this article , Will set a path for your company , Clearly define and communicate strategies 、 The goal is 、 indicators 、 Priorities and teams , So as to achieve sustainable and rapid expansion .

“ One of the most common mistakes of founders is ： When I ask " How is your product growing ？". The answer is usually a long string of linear tactics . Usually this is because there is no assumption about what the growth engine is , They try to make up for it by piecing together a lot of small things .”- Brian Balfour（Reforge The founder of /CEO,HubSpot Former vice president of growth ）

Conventional Web2 At first, the growth framework can be used as a practical guide , Provide an agent for how successful products grow . Mission and purpose of the product 、 The consistency of incentives and prosperous communities seem to be the current Web3 The pillar of the growth model , But as more and more mainstream users join this field , There is still a lot to discover 、 Testing and learning .

stay Web3 Growth Expert community Safary, We are defining web3 Growth of .

In the next article , We will use four " fit " Framework to decompose these current patterns , And define the principles of a sustainable and scalable growth strategy .

author ：mati.h 

translate ：Jeanne