Crowdfunding: Financial instrument or marketing tool? by Hakim Zemni, Managing Director InSites Consulting Belgium, presented at STIMA on Thursday September 25, 2014.

1. Ghent IRotterdam ILondon ITimisoara INew York
www.insites-consulting.com
Fromclickbait
tokick-bait
Marketing lessons in the kickstartingera
CROWDFUNDING,

2. 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?”
hakim@insites-consulting.com
@hakimzemni
be.linkedin.com/in/hakimzemni

3. Is ita success?
CROWDFUNDING:

4. Kickstarter success
@HakimZemni
+$1,000,000,000
Since March 2014: 1 billion dollar threshold breached on Kickstarter
(source: Fortune.com)

5. Crowdfunding success
@HakimZemni
+$5,000,000,000
2013: +5 billion dollars in worldwide crowdfunding
(source: Businesslaw.co.uk)

6. Crowdfunding success
@HakimZemni
90-96b
Expected in the year 2025 (World Bank Study)

7. Crowdfunding in the world
@HakimZemni
(source: businesslaw.com)
59%
35%
6%
Rest of the world

8. 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.

9. Whyis ita success
CROWDFUNDING:
6 reasons why consumers love to crowdfund.
forconsumers

10. It’s not new.
#1
@HakimZemni

11. Crowdfunding is not new
@HakimZemni
Nelson’s column was partly funded by public subscription
1843

12. It’s a game.
#2
@HakimZemni

13. Gamification works!
@HakimZemni
People are ‘suckers’ for goals and want to ‘level up’

14. Gamification works!
@HakimZemni
‘Potato salad’. That was the pitch.

15. Gamification works!
@HakimZemni
‘Potato salad’. That was the pitch.
People loved it.

16. Start-ups are cooler
than rockbands.
#3
@HakimZemni

17. Does the economic crisis have an impact on the way you live?
The impact of the crisis
@HakimZemni

18. 2 out of 3 Gen Y’ersexperience the impact of the crisis.
The impact of the crisis
41% still lives at home.
@HakimZemni

19. @HakimZemni
The impact of the crisis

20. @HakimZemni
I want IN!
WHY?
Considersbecomingself-employed.
47%
n= 244

21. It’s the start-up
era, stupid.
@HakimZemni

22. The Unicorn Club-dream
U.S.-based software companies started since 2003 and valued at over $1 billion. (techcrunch)
@HakimZemni

23. The start-up dream
@HakimZemni
People dream of becoming one of these aspirational start-ups.

24. New is the new old
@HakimZemni
89%
Don’tcare about
howolda brand is

25. 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.

26. Co-everything.
#4
@HakimZemni

27. From co-creation to co-everything
Today’s consumers want to be involved in all stages of the innovation process.

28. Collaboration
88% of GenY’erswouldliketohelp brands
@HakimZemni

29. Collaboration
35% alreadydidit
@HakimZemni

30. Collaboration
@HakimZemni
Jibois now in pre-sale.
And you will get to co-create the ‘skills’ you’d like it to be able to perform.

31. It creates jobs.
#5
@HakimZemni

32. @
Jobs!
Every $37,702 (€29250) invested in startups one new job is created.
Source: Economic Value of Crowdfunding (2014).

33. Creating jobs = a good promise
@HakimZemni
Adding ‘domestic manufacturing’ in your pitch buys a sympathy vote.

34. It makes you
feel good.
#6
@HakimZemni

35. Feeling bad.
@HakimZemni
These guys made us feel extremely bad.

36. Feeling good.
@HakimZemni
+$100 million
Thanks to the ice bucket challenge our newsfeeds and summer looked a little less depressing this year.

37. Whyis ita success
CROWDFUNDING:
4 reasons why not only startups love to crowdfund.
forbrands

38. 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

39. They get money.
#1
@HakimZemni

40. They create awareness.
#2
@HakimZemni

41. Shark Tank!
@HakimZemni
Shark-tanking: putting your concept forward to a potential target group and see whether they like it or destroy it.

42. Shark Tank!
@HakimZemni
ReflectaGlow bikes, by the well-established VillyCustom, were first put forward on a CFP before going to market.

43. R&D Crowdfunding
and feedback.
#3
@HakimZemni

44. It builds
a community.
#4
@HakimZemni

45. Howis ita success?
CROWDFUNDING:

46. The crowdfunding reality
Only 44%reaches it’s goal
Source: Kickstarter
@HakimZemni
How tocreatekickbait?

47. Creating kick-bait
@HakimZemni
Step 1:
Createthe ‘perfect’ pitch

48. Creating kick-bait
@HakimZemni
Target:
$10,000

49. Creating kick-bait
@HakimZemni

50. Creating kick-bait
@HakimZemni
A catchy name.
Bunch o Balloons

51. Creating kick-bait
@HakimZemni
A catchy name.
A nice visual/logo.

52. Creating kick-bait
@HakimZemni
A catchy name.
A recognizable consumer insight.
A nice visual/logo. My kidsandI love water balloons. WhileI satthereforhoursfillingandtying, I triedtothinkof waystomake itfasterandeasier.

53. Creating kick-bait
@HakimZemni
A catchy name.
A recognizable consumer insight.
A clear product description.
A nice visual/logo.

54. Creating kick-bait
@HakimZemni
A catchy name.
A recognizable consumer insight.
A clear product description.
A unique product benefit.
A nice visual/logo. Theytie themselves? Yep. Prettycool, huh?

55. Creating kick-bait
@HakimZemni
A catchy name.
A recognizable consumer insight.
A clear product description.
A unique product benefit.
A real reason to believe.
A nice visual/logo.
A direct comparison with competitive products.

56. (source: gogetfunding)
Important! Some things are more kickbaitthan others
@HakimZemni
More crowdfunding
Lesscrowdfunding

57. Creating kick-bait
@HakimZemni
Step 2:
A day-to-daymarketing plan

58. Presocial.
Social.
Evergreen.
Time.
Impact.
Time.
Impact.
Time.
Impact.
The crowdfunding marketing plan
@HakimZemni
In pre-social media times, marketeersused to think in campaign peaks.
In social media times, marketeerskeep the momentum going in between campaign peaks.
In the evergreen crowdfunding era, marketeerswork towards a higher peak.

59. Evergreen.
Time.
Impact.
The crowdfunding marketing plan
Campaigns with day-to- day marketing plans raise 180%more.
Campaigns with teams raise 38%more.
@HakimZemni

60. 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

61. The crowdfunding marketing plan
The 40%tipping point.
With 40% of the funding target raised, people are more likely to start donating.
@HakimZemni

62. Take-aways?
CROWDFUNDING:

63. #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

64. Thanks for having me!
Managing Director @InSites Consulting
Questions, feedback, remarks?
hakim@insites-consulting.com
@hakimzemni
be.linkedin.com/in/hakimzemni