tw3c #6: Utilities in the Creator Economy, a behavioral design technique & tokenproof

Welcome and GM to The Web3 CRM Brief - or short, tw3c. 

tw3c is the number one web3 CRM newsletter for marketers, growth and project managers who scale web3 communities. In this newsletter, I'll share the most interesting stories about

👋 community engagement📇 CRM tactics for web3📊 on-chain wallet data collection & analytics⛓ tool tipsand actionable best practices to make the most of your web3 communities!

👋 One Best Practice: These Are The Utilities Creators And Artists Use To Drive Loyalty And Engagement

Social media has enabled creators and artists to be seen, build a following, and make their mark on popular culture. But despite a huge community, reach, and visibility, most have struggled to make a living from it, never fully owning their communities or relying on intermediaries like galleries, music labels, and the like to distribute their work.

With the tools of the web3 and blockchain in hand, creatives and artists such as Jack Butcher (VV Checks) and photographer André Wagner show how the creative industries can use the web3 and blockchain technology to take ownership of their communities and become more autonomous by being able to both create and capture value through their work.

How?

By adding utility tokens to their community engagement strategy.

As the trend toward collectibles for the sake of collecting has cooled in the bear market, many are looking to add real value by using tokens as a medium to store and transfer value, rather than viewing them as the "end medium" themselves.

Not sure what kind of utility to attach to tokens? Here are a few ideas that support loyalty and engagement goals for creators, artists and IP owners in general:

• Physical utility: merchandise, product-based digital twins of NFTs

• Social utility: exclusive access, status, loyalty rewards, participation*

• Digital utility: yield, digital products like avatar fashion items for metaverse use

*stay tuned - next week's newsletter will focus on the golden grail of participation.

📇 One Tactic For Your Project: The Goal-Gradient Effect

Let's talk about progress. When we first start a new task or habit, we are likely to feel overwhelmed and discouraged because the goal seems unattainable. But the closer we get to our goal, the harder we work to achieve it.

In behavioral science, this is called the goal-gradient effect. You can also use this phenomenon to your advantage when designing your user experience:

"The illusion of progress toward the goal induces [...] acceleration" (Kivetz, Urminsky & Zheng, 2016)

For example, many mobile apps use this behavioral design technique to encourage and motivate users to listen to another podcast episode, complete another workout session, and ultimately open the app again and again.

Adding the goal-gradient effect into the design of your gamification elements, quests, and challenges to move up on the leaderboard can encourage users to return to your project more often.

📊 One Metric To Consider This Week: Gini Coefficient

If your goal is to create a vibrant and diverse community, which is essential for every artist and creative, it is important to evaluate from time to time how your tokens are distributed in the community, as this is an indicator of the health of the community.

A metric to consider for this could be the Gini Coefficient.

The Gini coefficient is a commonly used measure of income inequality and concentration. It was developed by the Italian statistician Corrado Gini in 1912 and is widely used in economics, sociology, and other social sciences to quantify the distribution of a particular variable, such as income, wealth - or in our case, tokens - within a social group.

It ranges from 0 to 1, with 0 representing perfect equality (everyone has the same amount of tokens) and 1 representing perfect inequality (one person has all the tokens).

In other words, a lower Gini coefficient indicates a more equal distribution, which should be our goal for a diverse community.

⛓ One Tool To Look At This Week: tokenproof

If you want to find new ways to keep your community engaged by offering a real-world token benefit, access to events is a great way to reward users for their engagement.

This week's tool recommendation, which you might already know from NFT.NYC 2022, helps create safe and smooth token-gated experiences like NFT ticketing enabling users to prove ownership of NFTs without connecting or even carrying their wallet:

tokenproof.xyz

Kudos to Diana Solares & team for building this :)

Thanks for reading! How did you like this edition? If you have any questions or feedback, don't hesitate to reach out by responding to this email.

Until next week,Lea