Google Analytics 4 Implementation for the DEX platform: How Our Team Helped to grow the crypto exchange business
- Initial input from our crypto clients
- First of all – what is DeFi itself?
- And second of all – what is a Dex?
- What metrics should be tracked on Dex
- Breaking down our approach to crypto projects
- Google Analytics implementation
- Dex analytics implementation – as simple, as a regular website with business metrics?
- Key insights we found out during the process
- What to take into account when you setup analytics for crypto project, especially in DeFi
Initial input from our crypto clients
Our client developed a DEX (decentralized crypto exchange) platform on which different products and services are offered. Metrics need to be tracked right, but the problem was that once we dived into their Google Analytics, it was a complete mess. There were too many tags, and none of them were helping to understand any metrics. The whole setup of analytics on the website was meaningless and it needed to be fixed asap, especially when we understood that proper analytics implementation could give our partners millions of new transactions and a ton of growth options.
We found out that the main reason for such an analytics implementation was that our client’s team had no time for it, as they were busy developing new features and they really needed to upgrade their analytics setup. That is when they decided to rely on our expertise and get their Google Analytics in order.
Example of what a “mess” looks like in Google Analytics using a console on the website:
First of all – what is DeFi itself?
According to Wikipedia, Decentralized finance (DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like account. DeFi uses a layered architecture and highly composable building blocks. Some applications promote high interest rates but are subject to high risk.
And second of all – what is a Dex?
A decentralized exchange (DEX) is a peer-to-peer marketplace where customers can trade cryptocurrencies in a non-custodial manner without the need for intermediary parties to facilitate the transfer and custody of funds. DEXs substitute intermediaries—traditionally, banks, brokers, payment processors, or other institutions—with blockchain-based smart contracts that facilitate the exchange of assets.
What metrics should be tracked on Dex
It was important for us to track certain metrics of this project, and we did that by focusing on different commissions on the Dex, which can be meaningful for any analytics setup of the crypto platform. We had a lot more information than just revenue numbers, in other words – what actions lead up until these transactions are made? What about behavior patterns when someone uses your platform: how do they interact with it overall?
Understanding user behavior on the DEX is one of those things that can’t be overlooked. There are many tools and services, but they are all quite different from each other: some people might use swap, farm, stake, or pool options(DeFi), while others start with diving into the Community section once they visit the website and want to learn something new. As mentioned before, one of the goals of this project was also to track all interactions in the community section, which are very important for any crypto project, where the website has such a section. The idea was to find out what kind of interactions are made in the community section. We used different tools to see which content was being created, how long people stayed on the page, what links they clicked on, how these events connect with the increase or decrease in transactions, and so forth.
Once we had this information, we could start understanding what people were actually doing on the platform using google analytics. This was vital to know so that we could create a whole new analytics setup accordingly and ensure that people were using the platform in the most efficient way possible on each page. We also looked at other metrics such as time on site, pages per session, and bounce rate to get a better idea of how people are using the platform.
Breaking down our approach to crypto projects
Our approach was kind of different from regular projects with standard metrics for eCommerce websites like “session”, “purchase”, etc. We decided not to use any of these out-of-the-box eCommerce GA settings and rather go with something custom-tailored specifically for our crypto partners. Gathering all the requirements from our client and with an in-depth analysis of the market, we’ve started building something from scratch that would track all interactions on the platform in a way that is both meaningful and useful for our client.
The end result was a highly customized tracking solution that allowed us to see not only commission-based transactions but also all other interactions on the platform, such as community engagement while they learn something new about crypto assets.
Google Analytics implementation
Discover different sections of the DeFi platform
The first thing we did was to create a detailed tracking plan, which is the summary of the whole analytics structure and right there we had to link different sections and items of the platform (Exchange, Community, wallet connect, account logins, and others) for future Google Analytics setup. After that, we had to prepare technical specifications for pushing all the important events to the dataLayer to feed Google Tag Manager variables. This way we were able to pull all the information we needed without any fuss.
After that, we needed to configure the tags in such a way that they would match and follow our dataLayer structure. We did this by setting up different triggers for each tag. The development team of our crypto client assists us with the dataLayer tasks.
And finally, we created custom dimensions and metrics in Google Analytics according to our needs. This allowed us to get all the information we required in an easily digestible format.
Identify and create main conversions
The second thing we did was to focus on tracking important metrics like commissions and conversion rates (typical for any crypto exchange). This allowed us to understand how users interact with different products on the platform and what’s their behavior while using different functions.
Leveraging this data, we were able to identify the main conversions on the platform, which are commissions for such instruments as swap, stake, farm, pool, and so on. We also had explore how to create and connect crypto wallet to the platform and also transferred different coins using various crypto services.
By understanding these key metrics, our client can make sure that users have a great experience using them in any form.
Link secondary data with the main metrics
And last but not least, we were able to catch all the interactions in the community when users visit this section. This was very important for us as it helped us understand how users interact with different parts of the product and which events are essential for future transactions on the website. By having all this data we were able to form a clearer picture of how our client’s platform is used and what are the most important areas need improvement, so we were able to unlock the full tracking potential of the site.
Dex analytics implementation – as simple, as a regular website with business metrics?
The process went quite smooth, but not as straightforward as we run it with the usual google analytics implementation, as it requires understanding details of the crypto sector. Our team had to stop, learn and reevaluate a few times, and prepare some new ideas, because we could not apply our best practices in analytics without considering, that crypto market is rather different from our regular customers, even in the different business sectors.
Even though it was a challenge, we were able to successfully implement all the tracking that our client needed and more. The process taught us a lot about the inner workings of the crypto world and how it all fits together.
Namely, it’s not as important to get users registered as it is to track how many transactions were sent, but it is mostly about wallet connects to the platform. Additionally, segmenting users according to their behavior on community or Dex proved quite insightful.
Key insights we found out during the process
Looking at the data, it’s clear that certain coins are more popular for Exchange and other actions in the Community.
There also seems to be a correlation between actions on Community and increased transactions on the Dex. For now, we can see which page brings the most revenue and compare it with other metrics such as avg. duration on-page or unique user scrolls.
We also used explorer to analyze users’ paths to convert into customers of the DEX. This data is very useful for our client, as it helps them understand what are people doing on the website. Additionally, it helps them identify which areas need improvement in order to increase conversion rates.
Cohort analysis allows to figure out users, who make farm after swapping. So it could provide with understanding of platform familiarization and other tools usage.
These are just a few of the key insights we gleaned from this process of analytics implementation and found that our customers could benefit from understanding those metrics. Overall, it was a successful crypto exercise and we’re looking forward to putting these insights to good use. Thanks for following along!
What to take into account when you set up analytics for the crypto projects, especially in Defi
- It is not the same as the usual eCommerce project. Dex`s, for example, look more like a marketplace full of different items and sections, combined with some trading tools.
- Understand what is the starting point of customers on the page (as the example: wallet connect is more important than login event) and what is the main conversion rate for your client
- Then analyze micro-conversions, what action is user taking before he makes his first swap, farm, or whatever function he uses. As we see, it takes a lot of time learning and exploring the platform before visitors of the Dex turn into customers.
I hope this article was helpful and full of insights for you, if there are any questions regarding the analytics implementation or even conversion rate optimization, please feel free to schedule a call with us: https://calendly.com/inw/insight-whale
Have a blessed day!