In this article we look at key strategies for launching Crowdfunding Marketing Campaigns.
The right message, at the right time, to the right person.
If you are reading this article you probably typed one of these keywords into Google:
- crowdfund marketing
- crowdfunding digital marketing
- crowdfunding marketing campaign
- equity crowdfunding marketing
Regardless of the research you have done, you have come to the right place.
You have finally made the decision to create a Crowdfunding campaign to enable your Company to reach new business goals and objectives:
- Launch of a new product or service
- Implementation of the production line
- Acquisition of new facilities, buildings, personnel
- Implementation of Marketing and Communication Strategies to gain new market share
- Finding new customers
- Increase sales
You have already realized your entrepreneurial project, and you already know the actions you will have to take to realize it. What you lack, however, is funds.
You have decided to launch your Equity Crowdfunding campaign in order to obtain the financial resources you need for the realization of your project.
But how to make your campaign a success? The answer is: a proper Crowdfunding marketing strategy!
In this article we look together at why it is important to implement a marketing strategy for a crowdfunding campaign, and how to create an effective marketing campaign.
What is a Crowdfunding Campaign?
Crowdfunding is, as the word implies, crowd funding, or a new methodology for raising capital from the market.
“The term crowdfunding refers to the process by which several people (“crowd” or crowd) contribute sums of money (funding), even small amounts, to finance a business project, or initiatives of different kinds, using Internet sites (“platforms” or “portals”) and sometimes receiving a reward in return. A larger or smaller group of people, attracted by a new business idea, decide to invest their own money to launch a new project.”
Christian Bellucci – CEO CrowdInvest Italy
Whether your company is a startup or an SME, crowdfunding allows you to create interest in your project, showing it to many people and making whole communities participate.
You must be thinking that it’s done now, that all you have to do is create your Internet campaign and you’ll get the money you need.
You need to know that it is not really that easy.
To spark an effective Equity Crowdfunding campaign that will enable you to raise the capital you need to get your project off the ground, you need to put a lot of effort and use some strategic marketing techniques.
Nothing impossible, don’t worry.
Continue reading to understand the importance of Marketing for an effective and efficient crowdfunding campaign.
A Crowdfunding Campaign is, first and foremost, a Marketing and Communication Strategy
In the collective imagination, Marketing and Communications activities support the development and success of Campaigns.
Our approach is diametrically opposed.
A proper Marketing and Communication Strategy, applied to an Equity Crowdfunding Campaign, first of all achieves important Business objectives consisting of increasing:
- Of Brand awareness and recognition
- Of the number of new customers and potential customers
- Of sales of products and services
- Of positioning and market share
- Of the Company’s turnover and marginality
We consider capital raising as the secondary direct benefit.
This particular view on developing an Equity Crowdfunding Campaign, may seem absurd or anachronistic.
However, it is the right strategy to generate the maximum return from all points of view: Business, Engagement, Brand Awareness, Sales and Fundraising.
If we implement a Strategy aimed only at the Campaign, it will be perceived as a cost element = Total capital raised minus Campaign costs.
If we carry out a strategy that also has a Business purpose, it will not only enable us to raise the desired capital, but also allow us to increase sales and customers.
Why marketing is important for Crowdfunding campaigns
In order to carry out the right marketing and communication strategy to present your Crowdfunding project, it is crucial to consider a few key elements.
Unfortunately, more and more often, Crowdfunding is seen as a platform, or an innovative solution, to go to the market to raise capital passively.
That is, thinking it is enough to submit one’s project in the appropriate crowdfunding platforms to acquire capital.
Unfortunately, as already anticipated, this is not the case.
An effective and efficient Crowdfunding campaign requires implementing an ad hoc strategy that follows a few key points.
In short, launching a Crowdfunding campaign is anything but a simple beginner’s chore.
Are you an entrepreneur and want to set up a Crowdfunding Campaign to raise funds to launch a new product and/or service, expand your company, or grow your business?
We advise you to always keep in mind some indispensable communication elements and tools that will enable you to achieve important business goals.
Such as raising the funds needed to finance your project.
However with a good marketing strategy accompanying your Crowdfunding Campaign, you can additionally:
- Attracting new customers
- Increase sales of your products and services
- Launch a new product or service
In fact, what prevents an investor from becoming, at the same time, a Customer of your Company?
And why wouldn’t the increased visibility of your Campaign, result in increased visibility of your products or services?
No limits for an effective marketing plan!
With a well-designed marketing strategy, you can achieve your goals, and succeed in finally financing your project. Also achieving many other goals!
Why should Crowdfunding Campaigns focus on Business and not on raising capital?
The answer is as simple as it is concrete.
Currently, the Marketing and Communication Strategies for launching an Equity Crowdfunding Campaign are focused on raising funds. Theoretically this is correct.
However, in this way, the company can avail itself of only a small portion of the benefits it could gain from all the activities put in place.
Let’s take a practical example
For your Campaign, you have planned to make ADV Campaigns, DEM (Direct Email Marketing), Newsletters, Press Releases, etc.
Thecall to action (Call To Action) is “Join our Equity Crowdfunding Campaign.” Or “Learn more about our Equity Crowdfunding Campaign.”
All users will be directed to the relevant equity crowdfunding platform, where they can decide to subscribe for shares or not.
Let’s imagine that you have intercepted as many as 50,000 people, and of these, 500 decide to subscribe to your Campaign, enabling you to reach your business goal = raising capital.
It is definitely an important goal, however, you have not “converted” the other 49,500 users.
If we imagine the Campaign as a Lead Generation strategy, we first need to bring users to a specific page on the company website.
In this way the user, not only can analyze the many reasons for subscribing to our Campaign, but can decide to purchase a product or service directly, or request more information.
In this way a user can become: Client, Investor or both.
Not only that. All the contacts collected (leads), become a crazy asset for the Company, and can be managed and converted over time:
- Have you asked about a product or service? > Learn about our Equity Crowdfunding Campaign.
- Have you inquired about the Equity Crowdfunding Campaign? > Learn about our products and services
This formula becomes even more successful if you have provided a Reward formula, that is, a real reward.
For example, “If you subscribe to our Campaign, you can benefit from 20% discount on our products.”
How are we communicating our Crowdfunding project?
Before analyzing the different activities and strategies that we can or, rather, must implement to create a successful Equity Crowdfunding campaign, it is crucial to have the right knowledge of the Market.
For this reason, it is essential to carry out an analysis of the web, seo and social positioning of our Competitors.
It is essential to know:
- What channels do they preside over
- How their website is structured
- What SEO strategy have they implemented
- Where, how and when they communicate
- What is their communication style
- What are their strengths and weaknesses
- What is their business offering. How it differs from ours.
Basically where and how we can beat them in our target market because, as we saw earlier, a “user” could be both customer and investor.
We’ll take care of the launch of your Crowdfunding Campaign.
Trust the Factory Communication Team. We are an Agency that has structured a complete PR, Marketing, Communication and Advertising service focused on launching Equity Crowdfunding Campaigns.
We implement your integrated, multi-channel Communication and Marketing Strategy! Don’t wait contact us.
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