Reward your backers: 5 Tips to create awesome incentives
Knowing your tribe is essential in crowdfunding. The most successful crowdfunded campaigns of recent years have put in a lot of work in getting to know their audience, their potential backers and their customers. But why put in the effort? Targeting the right audience is critical to the success of your campaign. How do you know what they want and what they need if you don’t try to get to know them first?
When you pitch your idea to the world you are presenting your product, your story and yourself. People will want to back you because they believe in you and your idea. But the truth is, there are lots of great ideas in the world. So, how do you get them to take action and fund YOUR project, YOUR passion?
Simple - reward them for their action! Rewards are a way of enforcing the positive feeling you want people to associate with your project and also a great way of motivating them! Think about it like this. A backer decides to spend £50 on helping new projects get funded. After a bit of research, he finds two similar projects with the lowest tier requiring a backing of £50 each. The backer has a choice to make – which project will he fund?
The one with the most enticing reward, of course! But how can you make sure your rewards stand out? Well, we’re here to help you get it right. Read on and you’ll find 5 tips that will help your crowdfunding campaign achieve its target:
1. Consider your budget
Plan how much you are willing to spend on rewards in the pre-launch phase of your crowdfunding campaign. Estimate the total cost of packaging and delivery (if you are offering a product as a reward) and add this to your total spend. Keep in mind the cost of time – offering signed collectables might be a good idea for a £20 contribution. However, you will be dreaming of hand massages after the first 50. Also, consider your funding target. As the amounts get higher so should the rewards. Offering low-value rewards for high contributions doesn’t work out well – plan your tiers realistically.
The optimal solution? Estimate what percentage of your funding target you are willing to spend on rewards. That way if your funding target changes over time, you can adjust accordingly.
2. Get to know your audience
Targeting the right audience is essential for your crowdfunding campaign – so make sure you choose rewards that will entice them. Let’s break it down.
First of all, identify your audience. Who would be interested in your idea? Who would buy it and who could benefit from it? Break it down into demographics – age, gender, location – but try to put down as many characteristics as possible about their lifestyle, income, and consumer behaviour as well.
Second, divide your audience into segments. Break them down into different groups based on your previous analysis.
Third, allocate a reward to each segment of your audience.
Let’s take a card based strategy board game for example. The target audience would be men between 18-35 who are game enthusiasts and enjoy spending time with their group of friends, discussing new technology and games with good food on the side. This group generally has a higher income than the average and spends a valuable amount of money on new games and special edition purchases. Seeing as strategy board games are generally complex games and do not fall in the ‘gateway games’ category, we will not target new or potential gamers.
£20 – Thank you note. This is for people who are interested in the idea and want to support it.
£50 – Get the game. This is your core reward for people who like your idea and want to play your game.
£80 – Get the game + an additional card pack. This is for the enthusiastic gamers who are always looking to improve their gaming experience.
£100 – Get the game + an additional card pack with a signed card by the creators. This is for the people who want to get their hands on your game but in addition, want something special and don’t mind paying a bit extra for it.
£250 – Get the game + an additional card pack + a special edition box. This is for the enthusiastic gamers who love limited edition packages and enjoy sharing it with their friends.
Conclusion? Get to know your audience as best as possible!
3. Keep it relevant
Keep your rewards simple and connected to your idea. Is the reward something backers could find while shopping elsewhere or on other crowdfunding projects? Then scratch that!
Don’t give too many options either. People tend to get overwhelmed by too many choices and might decide not to take any action at all. Keep the number of your rewards between 5 and 7.
One of the most backed crowdfunding projects of recent years, Exploding Kittens, offered only 4 reward tiers – making it an easy choice to back an interesting project with the option of backing it with more money later on.
4. Limit your reward tiers
A great tactic in offering your backers great value for their support. Implement early-bird options and limit the number of certain offers.
This is a method often used by event organisers to sell out their tickets before the event itself. Think about it – there is an annual conference you are looking forward to attending so you register your interest. As soon as tickets go on sale, you get an email from the event organisers: ‘Get an early bird ticket for just £50! Tickets are limited to the first 50 replies so don’t miss out on this great offer.’ Compelling, right? You still decide that it’s not the right time to buy a ticket. In a few weeks you get another email informing you of a new offer: ‘Tickets are £100 for the first 50 people to reply! The full price is £200, so make sure you buy your ticket today.’
The lesson? Limiting the number of your rewards gives a sense of urgency and creates an immediate call to action.
5. Get creative. Get personal
The most valuable rewards are the intangible ones. When backers decide to support your project, they want to feel part of the venture and the adventure. Make them feel valued by creating personalised gifts.
Coolest Cooler, a crowdfunding project that raised $13 million past their initial $50k, offered a highly personalised reward for their uppermost tier: the creator of the project offered to fly over to the backer’s house with the only Coolest prototype and be the bartender at their party. 8 people backed the project with $2k or more to experience this distinction.
So, get creative with your ideas! What is unique to you and your project? Create rewards that tie into your story and don’t be shy about broadcasting your passion for your project!
What are the most interesting rewards you’ve seen in crowdfunding projects? What are some fun rewards that you’ve come up with? What rewards are most or even least likely to grab your attention? Connect with us on Facebook, Twitter and Instagram and share your thoughts, experiences and ideas with us today!
Maybe you are struggling to come up with great rewards for your own campaign? Or have an idea for a crowdfunding project and don’t know where to start? Why not start a crowdfunding project with LEOcrowd today and by using these tips to help plan your campaign, you will be taking the first steps on the road to success!