Crowdfunding: Financial instrument or marketing tool?

Ghent I Rotterdam I London I Timisoara I New York

www.insites-consulting.comFrom clickbait

to kick-baitMarketing lessons in the kickstarting era

CROWDFUNDING,

Thanks for having me! Managing Director @InSites Consulting

I have a passion for media, politics, music &

movies. I am happily married, a proud dad

of 2, and a mediocre soccerplayer I am

often described as ‘an opinion on 2 legs’

I love my job because I’m fascinated by the

question “why do people do what they do?”

[email protected]

@hakimzemni

be.linkedin.com/in/hakimzemni

http://www.twitter.com/


http://www.linkedin.com/


Is it a success?

CROWDFUNDING:

Kickstarter success

@HakimZemni

+$1,000,000,000

Since March 2014: 1 billion dollar threshold breached on Kickstarter

(source: Fortune.com)

Crowdfunding success

@HakimZemni

+$5,000,000,000

2013: +5 billion dollars in worldwide crowdfunding

(source: Businesslaw.co.uk)

Crowdfunding success

@HakimZemni

90-96bExpected in the year 2025 (World Bank Study)

Crowdfunding in the world

@HakimZemni

(source: businesslaw.com)

59% 35%6%

Rest of the world

Reward Donation

Equity Lending

4 types

I pay, I get something. I pay, that’s it.

I pay, you share. I pay, you repay.

@HakimZemni

Crowdfunding platforms have totally

different promises in Europe & The States.

Why is it a success

CROWDFUNDING:

6 reasons why consumers love to

crowdfund.

for consumers

It’s not new.

#1

@HakimZemni

Crowdfunding is not new

@HakimZemni

Nelson’s column was partly funded by

public subscription

1843

It’s a game.

#2

@HakimZemni

Gamification works!

@HakimZemni

People are ‘suckers’ for goals and want to ‘level up’

Gamification works!

@HakimZemni

‘Potato salad’. That was the pitch.

Gamification works!

@HakimZemni

‘Potato salad’. That was the pitch.

People loved it.

Start-ups are cooler

than rockbands.

#3

@HakimZemni

Does the economic crisis have an impact on the way you live?

The impact of the crisis

@HakimZemni

2 out of 3 Gen Y’ers experience the impact of the crisis.


41% still lives at home.

@HakimZemni

@HakimZemni


@HakimZemni

I want IN!

WHY?

Considers becoming

self-employed.

47%

n= 244

It’s the start-up

era, stupid.

@HakimZemni

The Unicorn Club-dream

U.S.-based software companies started since

2003 and valued at over $1 billion. (techcrunch)

@HakimZemni

The start-up dream

@HakimZemni

People dream of becoming one of

these aspirational start-ups.

New is the new old

@HakimZemni

89%Don’t care about

how old a brand is

Start ups are the new rock ‘n roll

@HakimZemni

Most young students lack an online

bank account, or credit card of their

own. Few have experience using email

lists, Web analytics or CRM tools.

But a lot of them want a startup.

Co-everything.

#4

@HakimZemni

From co-creation to co-everything

Today’s consumers want to be

involved in all stages of the innovation

process.

Collaboration

88% of

GenY’ers

would like to

help brands

@HakimZemni

Collaboration

35% already

did it

@HakimZemni

Collaboration

@HakimZemni

Jibo is now in pre-sale.

And you will get to co-create the

‘skills’ you’d like it to be able to

perform.

It creates jobs.

#5

@HakimZemni

@

Jobs!

Every $37,702 (€29250)

invested in startups one

new job is created.

Source: Economic Value of Crowdfunding (2014).

Creating jobs = a good promise

@HakimZemni

Adding ‘domestic manufacturing’ in

your pitch buys a sympathy vote.

It makes you

feel good.

#6

@HakimZemni

Feeling bad.

@HakimZemni

These guys made us feel extremely

bad.

Feeling good.

@HakimZemni

+$100 million

Thanks to the ice bucket

challenge our newsfeeds and

summer looked a little less

depressing this year.

Why is it a success

CROWDFUNDING:

4 reasons why not only startups love to

crowdfund.

for brands

It’s not just for startups!

@HakimZemni

Chapel Down, “the market leader in English wines”, has announced an

equity crowdfunding initiative to raise £1 million

http://www.chapeldown.com/

They get money.

#1

@HakimZemni

They create awareness.

#2

@HakimZemni

Shark Tank!

@HakimZemni

Shark-tanking: putting your concept forward to a potential target group

and see whether they like it or destroy it.

Shark Tank!

@HakimZemni

Reflecta Glow bikes, by the well-established Villy Custom, were first

put forward on a CFP before going to market.

R&D Crowdfunding

and feedback.

#3

@HakimZemni

It builds

a community.

#4

@HakimZemni

How is it a success?

CROWDFUNDING:

The crowdfunding reality

Only 44% reaches it’s goal

Source: Kickstarter

@HakimZemni

How to create kickbait?

Creating kick-bait

@HakimZemni

Step 1:

Create the ‘perfect’ pitch

Creating kick-bait

@HakimZemni

Target:

$10,000

Creating kick-bait

@HakimZemni

Creating kick-bait

@HakimZemni

A catchy name. Bunch o Balloons

Creating kick-bait

@HakimZemni

A catchy name.

A nice visual/logo.

Creating kick-bait

@HakimZemni

A catchy name.

A recognizable consumer insight.

A nice visual/logo.

My kids and I love water balloons. While I sat there for hours fillingand tying, I tried to think of waysto make it faster and easier.

Creating kick-bait

@HakimZemni

A catchy name.


A clear product description.

A nice visual/logo.

Creating kick-bait

@HakimZemni

A catchy name.



A unique product benefit.

A nice visual/logo.

They tie themselves?

Yep. Prettycool, huh?

Creating kick-bait

@HakimZemni

A catchy name.



A unique product benefit.

A real reason to believe.

A nice visual/logo.

A direct comparison with

competitive products.

(source: gogetfunding)

Important! Some things are more kickbait than others

@HakimZemni

More crowdfunding

Less crowdfunding

Creating kick-bait

@HakimZemni

Step 2:

A day-to-day marketing plan

Presocial.

Social.

Evergreen.

Time.

Impact.

Time.

Impact.

Time.

Impact.

The crowdfunding marketing plan

@HakimZemni

In pre-social media times, marketeers used to think in campaign peaks.

In social media times, marketeers keep the momentum going in between campaign

peaks.

In the evergreen crowdfunding era, marketeers work towards a higher peak.

Evergreen.

Time.

Impact.


Campaigns with day-to-

day marketing plans raise

180% more.

Campaigns with teams

raise 38% more.

@HakimZemni

Evergreen.

Time.

Impact.

Idea.

Pitch on platform.

Constant updates.Involve friends&family.

Community is born.Congratulations you now

have a brand.

Community starts sharing.

Gamification kicks in.

Goal is reached.

Celebrate. Thank.

Keep updating.

Prepare Go to

market.

The (perfect) crowdfunding marketing plan

20 to 40 days.

Keep funding.

@HakimZemni


The 40% tipping point.

With 40% of the funding target

raised, people are more likely to

start donating.

@HakimZemni

Take-aways?

CROWDFUNDING:

#3 take-aways

It’s fun and it makes us

feel good.

Big insight, big

funding, big branding.

You’re not asking for money,

you’re building a community.

@HakimZemni

Thanks for having me! Managing Director @InSites Consulting

Questions, feedback, remarks?

[email protected]

@hakimzemni

be.linkedin.com/in/hakimzemni



