Crowdfunding campaigns show great business results, which require minimal costs but show great results. To introduce such a business approach, companies must find users interested in crowdfunding, develop market research strategies, and constantly review their ‘crowd’ of people who will donate.
Keep on reading to find out more about the benefits of crowdfunding, market strategies, and steps to develop such a campaign.
What is a Crowdfunding Campaign?
A crowdfunding approach is a relatively new marketing replacement that will raise your business funding off the ground. Crowdfunding is the process of raising money for a project by collecting donations from a vast array of people.
This new marketing approach became extremely successful due to social media and online platforms, since they are the ideal sources to reach a large number of potential donors.
With a glance at statistics, you can see that The influence of social media on crowdfunding campaigns is substantial. Recent studies show that every Facebook share of a crowdfunding campaign generates $37 in donations on average.
For the crowdfunding campaigns to show results, the project idea must be interesting enough or rewarding for the donor to donate. That’s why this approach requires tedious research, strategy development, and convincing.
Reasons to Choose a Crowdfunding Approach
Crowdfunding might need a tedious approach, but the benefits are significant, let’s take a look at a few of them:
- Attract new viewers. With all the marketing efforts you will see a rise in new viewers, which might not be donors but will drive success rates and more traffic to your site.
- Validates new products. Research conducted by Crowd Expert found that the crowdfunding avenue is projected to flourish to $300 billion by 2025. It’s a low-cost and low-risk strategy that validates products and increases revenue.
- Upsells products. During order finalization, a popular practice in crowdfunding consists of offering customers add-ons and other relevant propositions, which upsells many products.
- Great branding position. Successful crowding campaigns aren’t just great for the funding, they also shine a good light on your brand, showing that the products you create are in demand.
Market Research Strategies You Should Use for Your Crowdfunding Campaigns
Here are a few strategies and tips you should use when creating your crowdfunding campaign:
Consider social media as your main marketing tool
Some of the most reachable audience nowadays spends most of their time on social media platforms. It’s important that you post and market your campaigns on all social channels and encourage users to share the campaign with their followers.
To increase campaign reach potential, use social media ads and targeting, which will reach people and possible investors who show interest in your campaign’s niche.
Find influencers relevant to your campaigns
Aside from posting crowdfunding campaigns on all of your social platforms, you can also reach out to influencers who have larger audiences and can reach out to more donors. You must choose influencers who work with products related to your niche and will be able to portray it in a nice light.
Offer rewards for participation
Aside from an interesting campaign, the audience usually wants something in return for their donations. That can vary from anything small to anything big, for example, even praise for making a valuable donation is enough for many.
Other rewards can include access to products, mention in the credits of the project, secret footage of the behind-the-scenes, etc. Reward-based crowdfunding, where donors receive a reward related to the project or cause they support, recorded a commendable $5.5 billion in volume.
Run faffles to generate competition
Many people really love to compete, especially when that includes winning a discount or free product. Run raffles that will simulate the competition between donors, for example, prizes for the largest donations or discounts for people who donate regularly, there are many rewards and competitions you can think of to increase donations.
Steps to Develop The Ideal Campaign
One of the most important factors in a successful crowding campaign is how you develop the marketing strategy and what steps you take. We recommend that you follow and don’t skip through any of the following steps:
- Start marketing early. Even if you still need to finish small edits to the campaign, start marketing it and make edits along the way. As you are developing it, you can share it with your personnel network, and when it starts to grow turn to bloggers, influencers, and ads.
- Provide all details. The only way to receive donations is to be truthful to the donors, you need to be transparent about what you are raising the money for, how is it going to be used, and your exact plan.
- Create a sense of urgency. With any possible donations, you must always create a sense of urgency. Make the audience feel as if they need to act fast or else the result won’t progress. Without a deadline, these donors will have more time to consider the positives and negatives, which most of the time negatively affects a decision.
- Keep it positive. Keep your campaign positive, and mention how positively the money will affect the project, rather than talking about how lack of money is ruining the project.
Conclusion
Crowdfunding is a beneficial funding strategy that can help many start-ups and businesses develop. While there are many aspects to consider in creating the ideal market research strategies for crowding campaigns, this approach is very low cost considering the results it can deliver.
