For over a decade, start-ups have used reward crowdfunding to raise billions of dollars of early-stage financing. These companies pre-sell products to consumers while the products are still under development, and customers receive the product as a “reward” for their support when development is finished. Now established companies such as P&G, Coca-Cola, and Lego are starting to get in on the game. Only they don’t come for the money, but for crowdfunding’s hidden value: the voice of the customer.
Crowdfunding Can Deliver More Than Just Money
It’s an unparalleled opportunity to solicit input from your customers.
March 23, 2021
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Summary.
Crowdfunding is not only a source of financing for start-up companies, it’s also a potentially powerful tool for big companies looking for customer input during product development because customers willing to put money into developing a product are going to be more engaged than people in a focus group. Companies that use crowdfunding in this way should pay particular attention to the input of atypical customers.