Are you working with an enterprise organization that wants to release a new product, and don’t know what is the best way to do so? This article will describe how many companies are utilizing Crowdfunding for new enterprise product validation.
Learning from the past
What is product validation? Many companies in the past would introduce new products with various different strategies, but now product validation using Crowdfunding has become the new norm. Many companies are using enterprise Crowdfunding in their product validation process as part to of the product validation plan. Past product and process validation would be a lengthy process including product validation testing using various forms of focus groups, and product validation surveys. These techniques consume both time and money, and may not provide the same results when presented the opportunity to purchase the product in front of a an actual potential buyer.
Not only would it cost money to validate a new potential product, it is also not a guarantee that the product will break even into the new market. This is a risk that is no longer necessary when using Crowdfunding for product validation. This way you can guarantee that the product is going to break even before manufacturing the product, creating product validation reports, and hiring product validation engineers (if necessary).
Why you should use Crowdfunding
Crowdfunding is becoming the new product validation definition. There is no better way to validate a product than using Crowdfunding. It serves as a litmus test for your product in a real world environment by asking for real money from real potential clients. Ask for simple donations, or offering your product as a reward for donating to the campaign are the two ways that you can raise funds. Instead of researching to see if your product will work, you can put it to the test, and focus on the marketing. Crowdfunding is especially beneficial for enterprise organisations if you utilize the right technology which will be described later in the article.
Crowdfunding has different modes that you can use to run the campaign, for example, you can keep all of the funding, or run an all or nothing campaign. This is the most beneficial way to run the campaign, as it benefits the potential customers in case you cannot reach the funding goal, they receive their money back, and if you do not receive enough funding, then the product will never be introduced, and you do not have to waste more money on marketing. In the past, companies would introduce the product, and spend more money on marketing to break even on the product. This can be very risky, as you are spending more money without guaranteed results. You can dig yourself a deep hole of debt by doing this.
Many new inventions can be introduced using Crowdfunding, but this can be even more beneficial for existing organizations, as they already have a customer base that they can market to. One major mistake that many companies make is not using white label technology for the campaign. Some companies are using existing Crowdfunding platforms, or trying to build their own Crowdfunding capabilities. If your company decides to use an existing platform, the user is directed to another website which does not include your branding, and you cannot manipulate the customer experience. Worst of all, the user may be distracted by another campaign on the platform, and ignore your campaign all together. In addition, companies try to avoid this by creating their own Crowdfunding capabilities on their existing site. This unfortunately costs a lot of money, and will take time to build from scratch witch will hold back on the production of the actual campaign. If this is true, then what are the alternative options?
Using white label technology
Instead of spending money on creating Crowdfunding capabilities on your website, you can use white label technology such as Atlas to do the work for you. This is pre build technology that you can label your own, and use on your existing website using the Sedra widget. Using such technology will allow you to manipulate the entire campaign from the look and feel, to the functionality. Such technology can be very affordable thanks to Thrinacia. You can see the pricing for details. Or try the 14-day free trial to test the product before purchasing. You can watch the following video to learn more about how to validate a new product for enterprise businesses.