The Full Guide to Strategic Fundraising with KOLs in the Crypto Space

4 Marketing Funnel Metrics Every Web3 Project Should Measure

7 min read
Nov 24, 2022

Metrics are a fundamental part of a successful marketing campaign. As the world of Web3 continues to grow and evolve, so does our need to analyze key performance metrics related to marketing funnels. Despite the fundamental benefits of measuring your funnel metrics, the technique is still overlooked by many. This is why we decided to write about the 4 funnel metrics Web3 projects should measure.

By understanding the metrics relevant to your campaign, you can better understand how you are reaching your target audience and what actions you should take in order to optimize your strategy.

In this article, I will discuss four key metrics every Web3 project should measure.

What Are Marketing Funnel Metrics

The marketing funnel is a series of steps that help prospects move through the customer journey and helps marketing teams measure their efforts to convert prospects into customers with content and marketing material. Marketing funnels are usually based on the ‘AIDA’ model.

AIDA Model - Lunar Strategy
AIDA Model

Marketing funnel metrics measure the performance of various stages of the customer’s journey, from awareness to conversion. By tracking these metrics, you can gain valuable insights into the effectiveness of your marketing efforts and identify areas for improvement.

If you have heard of CPA and LTV but thought these abbreviations are only used by marketing experts, think again! There are many benefits to measuring your metrics to optimize your funneling strategy, which I will discuss below.

The Benefits Of Measuring Your Marketing Funnel Metrics

Measuring your marketing funnel metrics allows you to track the progress of your campaigns and identify which are working best. This information can help you make more informed decisions on where to allocate resources, optimize your marketing strategy and maximize return on investment (ROI).

If you had the insights to analyze and optimize your efforts, would you grab the opportunity with both hands?

With that said, let’s look at the 4 Marketing Funnel Metrics Every Web3 Project Should Measure:

Marketing Funnel Metrics Every Web3 Project Should Know - Lunar Strategy
Marketing Funnel Metrics Every Web3 Project Should Know

Cost per acquisition (CPA)

CPA measures how much you spend on marketing to acquire each new customer. To get this number, divide the entire cost of your marketing campaign by the number of conversions.

From there, the idea is pretty simple: If the cost exceeds what you are making, it is your cue to test alternatives of starting a campaign from scratch.

The cost per acquisition is an important metric as it measures the amount of money spent before getting the ‘return’ of acquiring a new customer or subscriber. CPA analysis can help you determine which marketing tactics are the most cost-effective and strategize how to lower the cost, for example.

Customer lifetime value (LTV)

LTV measures the continuous value a customer brings to a company. This metric is about retention, which carries particular weight for SaaS businesses because subscribers pay regularly.

However, LTV also has a significant impact on Web3 companies. Web3 is about community, keeping users on your platform, holding your token, or engaging with your smart contract for a period beyond just a momentary sale. Despite the importance, there are few projects truly measuring the LTV.

Making someone invest in your project is only half the task. Keeping that person invested will be more difficult (and equally important). The customer lifetime value is a terrific metric as it can help you identify which customers will likely be more valuable in the long run.

Customer Lifetime Value Calculation - Lunar Strategy
Customer Lifetime Value Calculation

Conversion Rates

Conversions don’t mean anything if we don’t define them.

Let’s define them per funnel stage:

Awareness Stage:

What amount of website visitors converted to marketing qualified leads (MQLs)?

Research & Consideration Stage:

How many MQLs engage with your content?

Action Stage:

How many sign-ups or subscribers convert to longer-term holders or community members?

Ideally, we want a conversion rate per stage.

  • Let’s say 35% of website visitors qualify as an MQL.
  • We retarget ads toward them, and 15% are funneled into the Action stage.
  • From there, 5% decide to take action and invest in the project.

This data is like your personalized manual for optimization. Seeing where your leads fall off reveals where there are opportunities.

The conversion rate measures how many visitors or leads become customers or subscribers after taking the desired action, which you can outline in your call to action (CTA). This metric can help you identify which campaigns are performing well and which ones may need to be adjusted to boost your conversion rate.

Conversion Rate Per Channel

After defining your conversions, consider that each marketing channel has different goals, so it’s essential to analyze the success of each one independently. Teams that know what they want from each channel will have an easier time measuring success.

Ask yourself:

- Is clicking on a paid ad a conversion?

-  Does joining a community equal a conversion?

- Is spending time on the website a conversion?

Answering questions like these will help you identify what you want from each channel, so you can measure whether it’s working or not.

Final Word

Measuring your marketing funnel metrics is essential for any Web3 marketing project. By understanding these key metrics, you can gain valuable insights into how your campaigns perform, optimize your marketing strategy, and make more targeted decisions on where to allocate your time and resources.

Using the right data and tools to analyze your marketing efforts, you can optimize your strategies and maximize your return on investment. Hopefully, these 4 funnel metrics Web3 projects should measure will be able to help you along the way.

Tim Haldorsson
CEO
CEO of crypto and Web3 marketing agency Lunar Strategy, involved in the crypto scene since 2017. Provides forward-thinking Web3 marketing insight as a contributor to Cointelegraph, Rolling Stone, Daily Coin, NFT Plazas, and Finance Magnates.
Jack Haldorsson
CMO
CMO at Lunar Strategy. Been in the crypto space since 2017. Jack leverages his know-how of the blockchain ecosystems and strong KOL relationships to execute result-focused strategies that amplify brand storytelling, drive awareness and grow the project sustainably with the help of Influencer relations.
Adam Westerén
Head of Sales
Adam's passion is to create self-sustainable communities in the Web3 world. He enjoys when you create a Web3 community that can grow by itself. This is what he does in his current role as Head of sales.
William Rejström
COO
As a Community Manager at Lunar Strategy, I'm passionate about finding new ways to connect people, add value and build strong community relationships.
Shann Holmberg
COO
As head of growth at Lunar Strategy, I understand the significant shift away from traditional marketing strategies that Web3 projects require.
Nick Ballanutsa
Crypto Content Creator
Crypto Content Creator, Nick is creating engaging Twitter threads & posts for leading crypto & NFT companies.
Vide Haldorsson
Influencer Manager
Influencer Manager at Lunar Strategy.
Johnny Pedro
Head of Partnerships
Head of Partnerships at Lunar Strategy, creating win-win solutions for Web3 companies. You might have heard his music on Tomorrowland from his previous ventures in the music industry.
Jarrod Frankel
Head of Community
Jarrod is responsible for the teams that provide both engaging social media content and enticing and informative articles for our clients.
Tayler McCracken
Editor at Coin Bureau
Tayler McCracken is the Editor-in-Chief of the Coin Bureau, a leading publication that provides cryptocurrency education.
Vineet Nair
Writer
As a web3 storyteller, Vineet brings a wealth of experience in content, journalism, and management, with hands-on knowledge of metaverses, NFTs, AI, and finance.
Hassan Shafiq
Lunar Strategy
Lunar Strategy.
Mairead Finlay
Writer
British writer specialising in NFTs, luxury lifestyle & travel based in Portugal. Previous publications include Business Insider, LoveEXPLORING, The Guardian and My French Country Home Magazine. Previously the SEO Editor of tech & startup website TechRound.
Sandra Vukovic
Content & Marketing Specialist
Content & Marketing Specialist at Lunar Strategy.
David Kevin Jeppesen
Lunar Strategy
Raised in the spring of technology, solving problems and finding simple digital solutions is part of my nature. I’m a teachable individual who is always eager to learn and develop as a person.
Julieta Ose
Crypto Content Creator
Crypto Content Creator at Lunar Strategy.
Gino De Graaf
Google Ads Specialist
Google Ads Specialist at Lunar Strategy.
Sam Runge
Media Manager
Lunar Strategy.
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