Data from e-commerce marketplace Gadget Flow has shown that marketing with the help of incentives, not investment pitch, determines crowdfunding success.
A good number of entrepreneurs and startups using Kickstarter and other types of crowdfunding platforms for their campaigns fail in their attempts simply because people were not really that interested in the business pitch.
Bad project ideas die a natural death. But the same goes for the good projects because even with the tedious marketing planning and timing, they never progress due to tough competition, per Entrepreneur.
The availability of timely information is also critical for any startup. Many business opportunities were lost simply because of outdated campaign analytics data. Indeed, being at the right place at the right time plays a crucial role in determining the success of a Kickstarter business. Many entrepreneurs recognize this factor and adjust their pitch to improve their chances.
With crowdfunding, relying on luck alone is not enough. Entrepreneurs and startups should be more proactive in their marketing approach and their audience engagement. The reality is: there’s no guarantee that you will succeed in a Kickstarter campaign. And just like traditional methods, the products being offered should always back Kickstarter marketing campaigns.
One company, on the other hand, claims that there are certain steps that you can take to ensure success.
According to Gadget Flow chief executive officer Evan Varsamis, the company was able to help thousands of entrepreneurs and startups launch their businesses using a time-tested method. Varsamis even boasted that they have the numbers and documents to back up their claims.
Based on Gadget Flow’s data, the success of a Kickstarter campaign depends on three key points:
- Drive your sales using social media influencers
- Campaign video is the best medium to persuade investors
- Incentives motivate buyers and investors
The question now is: How will you incorporate them into your campaign?
1. Pinpoint who are the true social media influencers, their followers and the believers
In the world of social media, the so-called “technology adoption lifecycle” is integral in determining who’s the first to do it and who are the copycats.
First-mover advantage is necessary when it comes to Kickstarters. For Kickstarters, the “true believers” are identified as your family, friends and close associates who are willing to invest their hard earned money in your business. By word of mouth, these believers are the ones that can jumpstart your business to a level acceptable for other people to invest in.
Social media influencers can also help expand the reach of your campaign and attract more supporters. You must ensure, however, that the influencers you choose are appropriate for your product to attract the right audience and therefore improving your campaign’s success rate.
“If social media influencers and true believers sing praise about you and your products, other people follow suit,” Varsamis said, adding that these two are usually seen on Instagram, YouTube, Snapchat and Facebook.
2. Video is an effective tool for any crowdfunding campaign
A recent study conducted by researchers at the University of Buffalo’s School of Management showed that forms of media such as pictures and video greatly increase chances of crowdfunding campaigns to draw interest.
Videos are effective on their own because they can get the message across in a short period of time. The study also suggests that most people prefer video than graphs and complicated mediums since it can communicate the pitch much better.
Video materials can also help your campaign the emotional response you desire from your target audience.
3. Make your crowdfunding campaign an incentive-based marketing
After utilizing the latest trends, the success of the campaign still boils down to the traditional marketing and advertising fundamentals. But you can add something new to it: incentives.
Incentives will motivate your crew to actively promote your Kickstarter campaign. They are a lot cheaper than paying for a TV or radio ad. Remember, the ultimate goal is to increase your capital, not spend more on marketing.
However, there are admittedly some areas wherein a traditional television or radio ad is more effective, especially in remote territories where the internet can be challenging to access.
(Featured image via DepositPhotos)
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