Why should I use Data Driven Targeting for donor influence?
I was reading a post about the rapid growth of crowdfunding from the Crowd Data Center and one of the data points that really stuck out to me was the average Kickstarter campaign raises $19,000 from 253 people, whereas the average Crowdcube campaign raises $311,000 from 117 people. Both of the average number of donors were small and I know the Competition for crowdfunding dollars is already high, and destined to become even more competitive as time passes. According to Kickstarter less than half of the projects on there site reach their funding goal, and around 12% don’t receive a single pledge, therefore no matter how great and disruptive your product is you’re going to need to generate traffic to your funding page or you are going to struggle to raise the necessary capital to get your project off the ground.
We briefly touched on the importance of raising that initial 30% of funding from your Inner Circle, so I thought how important it is to target your crowdfunding outreach. You want to start this phase at least 3 months before you plan to launch your funding campaign. It’s important to write down who your ideal customer is and who your ideal funder will be. I like to create personas based on real data about customer demographics and online behavior, along with educated guesses about their personal histories, motivations, and potential concerns.
Decide Who To Target
Yes, this is going to require some market research, but putting in the work in advance of your campaign launch will pay dividends later in the form a smoother road to crowdfunding success. This is the list of questions I go through to discover who my target audience of funders/customers are going to be.
- What problem does my project solve
- Who has the largest need for my project to solve their problem
- What information are they searching for
- Where are they searching for this information
- What current trends are influencing their need for my project
Research Online Habits
Now develop a profile of each persona’s typical online activities. You know who they are and what their needs are, now think about all the ways they research a potential information before the donate/invest in a crowdfunding project. Here are some questions to ask:
- What do they do online?
- Do they read blogs?
- Are they active on social media?
- What kind of search terms do they use?
- What kind of information do they tend to consume online?
Once I have develop these donor/investor personas I must create an integrated digital marketing plan that meets these vital personas where they are gathering their information. If they like to watch video instead of read blog post then my marketing has to be responsive to the desires of the target market. Today the choice of engagement is in the hands of the consumer through selective consumption, so I must know my customer and be willing to engage them where and when the choose to be engaged.