How crowdfunding affects new consumers adoption?

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Blog
29 settembre 2017

Recently, Crowdfunding has become very popular, mostly among already operating enterprises.

The capacity of combines social and financial resources configures Crowdfunding as a new strategy to reach a wider audience within different businesses goals as a start-up, to launch a new product or services, to achieve more legitimation and visibility, or to discover new target or new markets.

All these goals are achievable because crowdfunding is founded on the crowd, by the crowd. Approaching crowdfunding as a mere financial channel, means lost since from the beginning the match. The crowd is the core of the mechanism because the real motor in the crowdfunding mechanism are people.

If we consider crowdfunding as a new way to reach a wider audience, we understand quickly why corporates’ managers are going to integrate it into their market strategy. New consumers decide to financially support a campaign to obtain a new product or service or to become a member of a community aggregate on a specific topic. Therefore, the principal benefit coming from a crowdfunding campaign is the possibility to create or enrich a community of early adopter of a new market proposal.

Experiencing a crowdfunding campaign, it possible collects precious information about your community, real and potential. Consumers’ engagement does not finish with the end of the campaign, but it continues along the entire life of your business.

  • Market Opportunity: When a crowdfunding campaign is launched, you can collect precious information about the market. Supporters share comments and feedback with entrepreneurs about a market proposal, allowing enterprises to discover new market opportunity, as new applications or uses of their product or service. Strategy: Crowd direct entrepreneur toward the best strategy to promote and sell the product, interactions and feedback which come from consumers allow to reduce distance and to fit effectively consumers' need.
  • Demand: If a product is appreciated by the crowd, there is a real market's demand. This means that within a crowdfunding campaign is possible to measure the real dimension of the demand because crowd's intervention allows associating a precise value to a product. In addition, enterprises can evaluate the real willingness to pay of their consumers.
  • Funds: Last but not least, if backers appreciate the new market proposal, entrepreneurs can start to create their consumer portfolio, achieving the funding necessary to start production and meet the crowd expectations.

 

All previously mentioned points are the natural development of a marketing and selling strategy. However, in a crowdfunding experience are all concentrated in a small period of time, that normally goes from two and four months. Entrepreneurs have a set of benefits coming from a crowdfunding campaign not achievable in other funding mechanisms. In addition, there is an evident cost and time reduction to launch a new product.

Overall, when an enterprise conquers the crowd approval, it conquers a precious base to engage supporters in the future steps of business growth. Customers’ retention is around the corner.