Email marketing is incredibly important when it comes to crowdfunding. It’s not social media that will drive your project to success (social media is not a sales channel) change but rather the emails of raving fans that will get you there.
As one of the most crucial components of the Launch Success Formula, your email marketing plan will drive people from subscribers to backers right on the first day of your campaign.
How Many Emails Do You Need?
The great thing about having a full-time job working with entrepreneurs to launch products on crowdfunding is that I get to see what works and what doesn’t work. When it comes to email marketing, I’ve tested everything there is to test and narrowed it down to the most crucial factors that will convert a lead into a paying backer.
The blueprint for success? You need three emails during the pre-launch phase (here are the pre-launch email templates) to convert the maximum number of leads into paying backers on Launch Day. That’s the magic number, the holy trinity some might say.
The Welcome Email
This is the email that is automatically sent to people immediately after they subscribe to your email list. It should welcome people to your audience, re-introduce your vision for the project, and provide a strong call-to-action (CTA) at the end.
The Launch Reminder Email
This is the email sent out to people one day before you actually launch. If you’ve been preparing for launch for the last two months, some people would have gotten on your list at the beginning of those two months and some people would have gotten on your list just a few days before. This email will put everyone back on the same page: ready and prepared to back your project.
The Launch Day Email
This is the email sent out on the morning of Launch Day. This is the email that opens the floodgates of interested leads and pushes them to become backers in your campaign. It should be concise with a clear CTA to pre-order on the crowdfunding page.
What To Look For On Your Crowdfunding Email Marketing Strategy?
As with everything else in life, success leaves clues. After reverse-engineering the successful campaigns I’ve worked on, a very clear pattern emerges.
Email Open Rates Pre-Launch
Average data across all industries signify that email open rates are around 20% for an engaged list. But crowdfunding isn’t typical.
With crowdfunding, there’s a huge frenzy of activity in the 30-60 day launch period so we’re looking for something quite atypical. For crowdfunding, you’ll want to see at least a 40-50% open rate right off the bat for the welcome email.
What If I Don’t See A 40-50% Open Rate?
Move up the funnel to see what’s happening there. You might need to tweak your advertising, find a more appropriate audience for your project, or both.
Email Click Rates Pre-Launch
When it comes to emails, open rates aren’t the end-all-be-all. The key way to get someone from your list to your crowdfunding page is through the click they make in that email.
As such, you should look for 8-10% of your openers to click on your main call-to-action. If these numbers are low or nonexistent, it’s your job to make sure that there are enticing, succinct and attractive call-to-action buttons available.
How Many People Will Convert Into Backers?
For a typical crowdfunding campaign, you’ll see anywhere from 3-5% of your email list actually convert into backers.
As many agencies and consultants will tell you, the true challenge with building a pre-launch email list is measuring how qualified it is. Basically, it’s always been difficult to determine how likely email subscribers are to actually convert into a backer; you want to build a list of people who actually want to pre-order the product, rather than people who are just interested in learning about new ideas.
How To Convert Email Subscribers Into Backers: The Reservation Funnel
3-5% conversion rate is minuscule compared to the gargantuan effort it takes for you to actually build up a list.
That’s why this next step (I call it the Reservation Funnel) is so incredibly important when it comes to email marketing in crowdfunding.
Previously, those who leave an email address on your landing page are signifying interest intent. They’re thinking “wow, this looks like a pretty cool thing. I’ll leave my email for it so I can keep tabs on it.”
With the Reservation Funnel, we go beyond capturing someone’s interest intent and capture their buying intent. In short, we’re making sure they’re not just interested in the thing, but actually interested in purchasing the thing. As you can imagine, someone’s buying intent puts them closer to the actual purchase action.
And guess what? Those who go through the Reservation Funnel are actually 12x more likely to convert into a backer.
What You Can Do Now
This has probably been pretty overwhelming to say the least. I get it; when I first started in crowdfunding, I also had never even written an official project email before either.
That’s why I’ve created a video course that is a step-by-step guide to setting up your landing page and email marketing for launch success.
Inside the Crowdfunding Starter Kit, you’ll find an in-depth look into each step, the pitfalls to look for, and secret tips to success from my years of experience.
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