How to Trigger Product Usage that Sticks and Drive Growth Through Tokenization

How to Trigger Product Usage that Sticks and Drive Growth Through Tokenization

In today's competitive market, it's not enough for products to simply attract users. The real challenge lies in making those users stick around and continue to use the product on a regular basis. This is where triggers come into play. Triggers are what motivate users to build new habits and form a lasting connection with a product.

External triggers, such as reminders or notifications, can be effective in prompting users to take action. For example, the meditation app Calm saw a 3x increase in daily retention when they proactively prompted new users to set a daily reminder after completing their first meditation session. However, external triggers alone are not enough. There must also be an internal trigger, an intrinsic motivation within the user, that compels them to take action.

To truly engage users and create a habit-forming product, it's important to deliver value in the message itself. Users should immediately see the benefits and value that the product offers. This not only captures their attention but also creates anticipation and excitement for what's to come. By sparking this anticipation, you can increase the likelihood of users returning to your product for more meaningful engagement.

Another crucial aspect of driving product usage that sticks is understanding that users are often switching from their "old way" of doing things. Whether they are coming from a direct competitor or not, it's your onboarding process's job to show them the good life that your product offers. By guiding users to experience the value and benefits your product provides, you pave the way for repeat engagement.

Now, let's shift our focus to tokenization and its role in driving growth. Tokenization refers to the use of tokens, often on a blockchain, to represent ownership, value, or access to a product or service. Here are seven lessons we can learn from successful companies that have leveraged tokenization to their advantage:

1. Get clear on what business you are really in. A business is not just what it sells on the surface. It's important to understand the key process that drives profitability. For example, Marriott is in the real estate business, and Costco is in the inventory management business. Tokenization can be combined with tried-and-true business models to create innovation and improve the chances of success.

2. Use tokenization to solve the cold-start problem, not the product-market-fit problem. Tokens can act as a "bridge loan" from users to get a project off the ground. However, the project itself must be viable and able to solve a real user problem, with or without the token. Tokenization should enhance the project, not be the sole driving force behind it.

3. Focus token incentives on key performance indicators (KPIs) that actually matter. It's crucial to identify the KPIs that are truly relevant to your growth and profitability. For example, app engagement is a KPI that matters. By aligning token incentives with the actions that drive growth, you can maximize their impact and avoid wasting resources on irrelevant metrics.

4. Bring demand from outside the metaverse. Purely digital projects often struggle to create a vibrant economic ecosystem within the metaverse. To overcome this, think about how you can bridge the real economy with the metaverse in creative ways. By tapping into the existing demand and bringing it into the digital sphere, you can power product demand and ensure sustainable growth.

5. Token utility is more important than limiting token supply. While limiting token supply may create scarcity and increase token value, it's important to focus on token utility. Give users a reason to keep stacking tokens, even without the opportunity to sell them. By providing ongoing utility and benefits, you can foster user loyalty and engagement.

6. Protect your project from crypto market cycles in the early stages. Token liquidity in the secondary market can be valuable, but it's important to consider how market volatility may affect your core business. Think about strategies to mitigate risk and ensure your project's stability. Additionally, consider whether making your token tradable on exchanges from day one is the best approach for your business.

7. Use staking to distribute value-added, not to solve token demand problems. Staking can be a powerful tool to increase user engagement and loyalty. However, for staking yields to be sustainable, they should come from business profits rather than token emission. By sharing the benefits of project growth with users, you align with the ethos of Web3 and create a mutually beneficial ecosystem.

In conclusion, to trigger product usage that sticks and drive growth through tokenization, it's essential to understand the motivations and triggers that compel users to take action. By delivering value, creating anticipation, and guiding users to experience the benefits of your product, you can foster habit formation and repeat engagement. When it comes to tokenization, focus on utility, bridge the real economy with the metaverse, and protect your project from market volatility. By leveraging these insights and taking actionable steps, you can maximize the potential of your product and drive sustainable growth.