Crowdfunding Product Launches
Save millions on failed product launches
Traditional product launches are known to be expensive and are often ineffective. TAS recently reported that 78% of the 75 top executives they surveyed from giants such as IBM, HP and 3Com were unsatisfied with their recent product launches.
Another survey completed by Stategate International researched 257 organisations. They found that on an average 47% of their product launches failed, and this figure of 50% is pretty common for most organisations. Product launches are already costly, but this level of waste is staggering.
Crowdfunding, whether you’re a startup or an established brand, can help to validate an idea before the full expense of production. Market research is good in principle, but how many times have you heard of products that looked good on paper, stood up to the research but never truly got off the ground at launch? Virgin Cola, The DeLorean car, Harley Davidson Perfume and the HP TouchPad all come to mind.
I would go a step further and suggest that new brands will have more credibility in the future if they’ve been crowdfunded, as the general public has validated an idea. There is a sense of authenticity when other people have recommended something, and in all walks of life, peer recommendation is becoming the norm. It’s only a matter of time before product launches are also subject to this same level of peer review.
Even established brands can use crowdfunding as a tool to test market appetite before spending a fortune bringing their new ideas to market. TribeFirst can help you plan a crowdfunding campaign that’s authentic and provides the least risk possible for your organisation.