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Why is Crowdfunding a powerful Marketing tool ?

Crowdfunding is a revolutionary way to get your creative or innovative projects funded,

and it is consider a way to democratize investments but..It is only this?


 

Crowdfunding is considered a way to fund and make a reality creative or innovative projects, this is the prior idea of the concept itself.

Especially in the actuality when start ups find lots of obstacles to access the credit via financial institutions, Crowdfunding is helping as a powerful tool to connect with the crowd and ask them to support projects in order to make them happen.

 

But Crowdfunding is really much more than this...

 

 


 

As we can appreciate from the graphic Crowdfunding can be considered as a great tool in marketing, especially for Research, Promotion and Engagement.

These processes are essential for any business, so beyond the concept that Crowdfunding is useful to raise money, it is really useful also to Market with customers, users or consumers.

Any company (new or old, known or unknown) should use Crowdfunding, to link to their actual customers or to get new ones, to launch new products and ask the crowd to test them.

Crowdfunding means really much more than only get your projects funded, means that you are linking to users and customers before than your products are ready to sell, means that you are engaging with the crowd, you are discovering if they are going to like your products or not.

That will allow companies to save a lot of money in market research before projecting new products giving them an earlier value directly from the crowd.

In case of a successful crowdfunding campaign this will also help companies as a promotional boost for their product selling, really much more effective than any famous actor testing it, is a message of effectiveness.