Marketing, Sales, Ecom, B2B, Cust Service Implications
Crowdfunding is a game changer. Most think about crowdfunding as an early stage helper, but what are crowdfunding implications for marketing, sales, ecommerce, B2B and customer service? This deck explores the "game changing" implications of the SEC's late October ruling on crowdfunding (now in a 90 day comment period) for enterprise crowdfunding.
Crowdfunding has more implications than its being given credit for. Most pigeonhole crowdfunding into small startups for early stage funding. Crowdfunding will change startups, incubators and the process of angel investing. Crowdfunding will also bring profound change to every functional department in a small to medium sized business and to Fortune 1000 firms.
SEC October Ruling = Crowdfunding Game Changer.
"The law changes the landscape," said Shmerling, InCrowd's chief executive.
The law creates a class below "qualified investors" capable of investing for "stock" in a startup. Enterprise crowdfunding may create new ways to invest in beloved brands whose stock isn't available. I worked for M&M/Mars, a family owned company. What if M&M's did a crowdfunding round to create a new candy. M&M's doesn't need the investment, but they do need the community, social shares and advocacy investors bring. In other words, M&M's would be advised to look at "enterprise crowdfunding" as a marketing channel.
New Law Creates "Proof of Concept" Crowdfunding.
Family, such as Jeff Bezos family who famously invested in Amazon, won't be the only source of early stage funding. While family may continue to be the most important source, we may see the rise of "crowdfunding labs" or professional product development labs cranking products through early stage development faster and faster, better and better (since that is what the web does the best i.e. create efficiency of reach and scale).
More products faster from all over.
P&G discovered more than a million researchers "at least as good as us" when they realized they had to outsource much of their fabled R&D. Crowdfunding means more products are coming to marketing faster from all over, so a marketer's view can't be USA only or their business vertical only. Having a worldview and working knowledge of related categories is the new crowdsourced marketing.
Investor social nets help build community.
Investors can be evaluated in a variety of ways. Some large following "social marketers" may earn stock by climbing on a soap box. Family and friends can write checks knowing their potential loss is hedged against other similar investors. Many investors risking a little means no investor will take over the product development process until proof of concept is earned (and then a hijack is much harder). A community of potential advocates and buyers begins to form almost immediately and before any product is fully presented. The value of this early stage feedback will be a CSF (Critical Success Factor).
Process is product, share more faster so Quirky-like.
Everything is more valuable when shared. Any meeting, brainstorm or drawing can become a source of feedback and investment in a crowdfunding world so process is truly product. He who shares the best the fastest wins.
Crowdfunding = new UGC, social marketing channel.
Enterprise crowdfunding will find new ways to have great ideas COME TO THEM. The amount of enterprise cost savings and profit increases thanks to "testing before testing" is huge. See http://www.crowdfunde.com for more on the idea of "testing before testing" and its value to ecommerce.
Platforms & Networks CRUSH websites.
Crowdfunding means B2B relationship and content marketers must look to their network. Care and feeding of investor ladden networks is different. Crowdfunding becomes an advanced loyalty program, a way to identify Gladwell's famous "mavens", "sales people" and "connectors".
Alone & Unloved = DEAD
Can't do anything alone anymore. Your content must generate LIKES, links and shares or it is a tree falling in a vast forest with no one there to hear it or care.
Everyone is a potential investor!
Crowdfunding becomes a very advanced loyalty program with highly vested partners willing to help build "proof of concept" products faster and with a larger community of acceptance waiting and willing to provide feedback and another round of investment (if needed). Crowdfunding also changes customer service since anyone can be an investor so everyone should be treated as if they ARE an investor or will become one.
Crowdfunding = advanced loyalty program.
Investors provide cash, feedback and community to help launch new concepts into the world.
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