7 reasons why you should be thinking about crowdfundingJun 14, 2017
Numerous business ideas are launched into the market every single day. However, prior to launch, each product or service needs to pass the product-market fit. Crowdfunding became one of the best ways of doing so. In today’s article, we will give you 7 reasons why you should consider running a crowdfunding campaign before your official business launch:
Crowdfunding will help you measure your market readiness
Crowdfunding will help you measure if there is a demand for your product in the market. Numerous start-ups, or even established companies have used crowdfunding to check market readiness, general product appeal, suggested price point and branding concept within their target audience. If your campaign is getting traction, it is a clear indicator that your idea is good and has a strong chance of succeeding.
Crowdfunding will help you involve your audience in the creation process
Crowdfunding will help you attract people who are interested in the success of your business. Involving them in the creation process will not only help you enrich the product in a whole new way but also will allow you to get useful feedback and turn your initial fans into brand advocates. When you launch to the world, your initial cheerleaders will be the ones who will be reaching into their pockets to hand you the money.
Crowdfunding will help with your market research
Normally, companies conduct market research before they officially launch to the market. This process is usually lengthy and rather expensive. It can be done through surveys, focus groups or keyword research. The data collection process, evaluation and analysis of results often require quite a lot of time and funding. During your crowdfunding campaign, whilst communicating with your potential backers, you will receive a lot of useful customer insight that will help you build a better business.
Crowdfunding will help you improve your product
You will most likely also receive a lot of questions, concerns and complaints. You can use those to further develop and improve your product or service. Use your audience to provide you with solutions. Imagine having an unlimited pool of brains that offer you ready-made solutions to your problems. It’s a win-win!
Crowdfunding will help you raise awareness about your brand
There is usually a lot of PR associated with successful crowdfunding campaigns. Make good use of free marketing opportunities as a crowdfunding platform promotes your project and increases the visibility of your business within the online circles. A 45-day-long campaign means 45 days of free advertising as those platforms usually come with an inbuilt audience of investors and fans!
Crowdfunding will help you build your social media following
Everyone who saw and liked your business idea will most probably give you a like or a follow on your social media accounts so they can stay informed about your progress. Imagine how much time and money it would cost you to have to build all this following yourself?
Crowdfunding will help you hone your marketing skills
Crowdfunding will help you become a marketing superstar as for the duration of your campaign all you will be doing is marketing it. You will challenge your creative brain and come up with amazing ways to market your campaign. All those new gained skills will come in handy later on when your business is launched properly and you will have to be marketing your actual products or services to your potential customers. Practice makes perfect!