While crowdfunding seems like the answer to all your capital raising problems, here’s a shocking fact: 61% of Kickstarter’s campaigns do not reach their target!
Other websites are not as transparent about their data, but estimates show that 69 to 89% of the campaigns are met with failure.
The report further showed that Kickstarter had the highest campaign success rate among all studies involved in the study. That’s a real eye-opener. If only 39% of the campaigns reach their target on the most successful platform, it’s not hard to deduce that the fail rate is much higher on other sites.
But why do campaigns fail? Why do projects fail to reach their target? Among all other reasons, lack of optimization stands out most prominently. Thus, entrepreneurs must optimize their campaigns, especially crowdfunding rewards.
How to Optimize Rewards Levels?
While content and landing page optimization is pretty much in your hands, reward optimization isn’t as easy. Depending on the size of your campaign, the backers may be too many to handle manually.
That’s’ when the need for a crowdfunding tool arises. JustEarlyBird is a reward optimization tool that helps increase your sales effortlessly. Having worked with hundreds of crowdfunding campaigns, the tool developers realized that projects with regular stock updates are more likely to succeed.
With your campaign growing, it can become practically impossible to update the rewards manually. Luckily, JustEarlyBird takes charge of this task, providing an error-free experience for you and your backers. It lets you set the lowest limit for your stock levels. Plus, you can select the number of rewards to be added once the stocks have reached this threshold. Normally, you’d have to do this manually and that too daily.
The tool integrates seamlessly with Kickstarter and Indiegogo to automate existing or new campaigns. Even if you initially update rewards manually, you can bring in JustEarlyBird at a later stage in your campaign.
Since JustEarlyBird automates every minute, the rewards are automatically updated after 60 seconds. No matter how efficient you are, you can’t reach this speed manually.
In case you hit a bump in the road, the support team is available 24/7 to assist you with queries and complications. Boasting a 99.3% customer satisfaction rate, the support team at JustEarlyBird definitely deserves applause.
Why Should You Automate Rewards?
If this is your first time running a campaign, you might wonder why there’s a need for optimizing crowdfunding rewards. First off, there are hundreds of campaigns on each platform. Why should people back your project?
Sure enough, you have to stand out and be prominent. Optimization helps you do that. Specifically, reward optimization boosts your campaign since most people pledge to get a perk in return.
Secondly, the average length of a project is a month to 45 days. Most popular platforms have a maximum campaign duration of 60 days. That’s two months of updating the crowdfunding rewards everyday.
Soon, the task is bound to get hectic, especially as the project grows. Also, if you forget to update the crowdfunding stock levels, one of the two things can happen:
- Stock levels go too high
- Stocks run out
Both of these are detrimental to your campaign’s success. If the crowdfunding stock levels are too high, the conversions will go down. Naturally, people tend to pay less attention to a thing that’s available in abundance. But, if they see the stock levels going down, they’re likely to take instant action.
On the flip side, if the stocks run out, you’ll have zero conversions. In any case, it’s a disaster. Fortunately, JustEarlyBird optimizes your rewards to show a low stock number to the audience.
Psychologically speaking, people are likely to pledge quickly if they see limited stocks remaining. It’s the basic Scarcity and Social Proof principle. If something is scarce, people want it more.
JustEarlyBird also lets you assign a maximum order limit for each reward. By limiting the reward’s availability, you’re increasing its value. As a result, the audience feels the need to act faster, or they’ll lose the opportunity to get their hands on the reward.
Benefits of Optimizing Rewards
A well-written description and expertly-made campaign video can surely help take you closer to target. However, optimizing crowdfunding rewards is the ultimate way to reach the finish line in time – before 60 days.
A backer can either be interested in your project or the reward you’re giving. If it’s the former, you don’t have to do much because they’ll pledge anyway. But in most cases, it’s the latter.
Thus, there’s a dire need to optimize rewards. Apart from attracting the audience, here are some other benefits of optimizing rewards:
● Frees Up Time
When you let JustEarlyBird take care of reward optimization, it frees up time for you. Now, you can spend this excess time on other things.
Maybe, run and manage ads on social media. Prepare rewards for your backers and make arrangements to ship or email them. The point is, there’s a lot to do. With reward optimization sorted, you can focus on other things.
● Increases Conversion
While attracting the potential audience is the first step, you have to push these people to act.
Make sure you add text-based hyperlinks and buttons throughout your project description campaign. If the reader is interested in pledging at any point during scrolling, they should have a call-to-action button in sight.
People lose their attention very quickly these days. Most people leave a web page in 10 to 20 seconds if it fails to make an impression. Thus, if the reader has to scroll to the top of your project page to find the pledge button, they’ll most probably exit.
JustEarlyBird works with popular crowdfunding sites, including Indiegogo and Kickstarter. Just let the tool know how you want to manage rewards, and it will work its magic. Past campaigns and expert research confirm that reward optimization yields results. Playing with the crowdfunding stock levels allows you to control your audience’s action and thought process.
If you’ve done the homework, there’s no way your project will fail. In this guide, we brushed up on the basics of reward optimization. Keep these in mind, and you’ll end up meeting your target in less than 60 days.