Psychology plays key role in business. Many may say that in its core, the business in general and in all of its forms is a psychology. From marketing through sales to even stock market trades the psychological element has a tremendous impact in every aspect of the business world.
For the purpose of crowdfunding, the understanding of the human behavior and the implementation of psychology-powered strategies can help the campaign owners to influence more people to not only spread the word about the project, but also to fund it themselves.
There are many psychological tactics that you can incorporate in your crowdfunding strategy that will help you to build better relationships with your campaign supporters and enhance the popularity of your campaign and here we will discuss five of them.
The power of choice
The different types of crowdfunding (donation-based, reward-based, equity-based) require the “reward” setting process to be approached differently. As Arikovani is a platform for reward-based crowdfunding campaigns, we will talk about the psychology of setting the right perks.
By including more options you give the opportunity to the supporters to decide which perk to choose, giving them the sense of freedom. And the feeling of freedom is very liberating and inspiring feeling.
Potential campaign backers are more likely to invest in a project if they personally feel that the creators are trustworthy. If they believe in your ability to lead the project to success, to keep your promises and commitment, the chances of securing funding increase.
What can you do? Share with your target audience information about yourself and each one of the team members. Emphasize on your background and your expertise and describe your previous successes.
Attract early participants in your campaign. The practice has shown that projects that raise initial amount of money quickly are more likely to attract more backers. People are more prone to believe in the potential of the product if there is a large following and support from others. In the pre-launch stage of your project, it is important that you get the support of friends and family to raise primary funding for your project. Once you are set with a good start, it is just a matter of time the rest to follow.
Create the sense of urgency
Crowdfunding projects that are set with shorter duration are more likely to achieve better results. The short time frame proves that the founders are confident in the success of their project and helps them keep the momentum of the initial interest for the campaign. The short time frame sends the powerful message: “Don’t miss the chance of being part of this exciting project, so act now!”
The psychological side of recognition is very powerful. People feel good when their efforts are recognized. If you want to encourage the supporters of the campaign, you are able to create a public list with the names of the backers in order to thank them. They will definitely share your Thank you! list, which is a great way to spread the word and reach a broader audience. Praise your supporters and you will not just make them feel good, but also you will be able to share your appreciation. It is a win-win!