Crowdfunding Is A Balance Between Human Emotions And Modern Day Analytics

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Technology remains one of the biggest reasons why people enjoy the benefits of crowdfunding today. From the ability to reach far and wide with social networking up to advancements in financial technology, social funding would still be in the dark ages if not for modern day advancements. People would still be setting up meetings with one person to the next just to pitch their projects.

However, as technology seems to put the platform on break-neck speeds in terms of growth, project initiators might start to overlook one important factor in the industry. With all the gadgets, computers, latest software and applications available, some people might define social funding as to who has the latest or hottest products in the market.

Human emotions still play a considerable role in the development of the industry. Having the latest application to launch a campaign would be of no use if the receiver is not moved by the project into action. The latest analytics can give you a glimpse of how a campaign has been performing but you need to factor in how an investor would feel and behave to improve on aspects of the project.

Technology and emotions in crowdfunding

The two are inseparable when you are trying to run and manage a social funding project. Here are a few things to understand between the two in order to help you increase your chances of crowdfunding success.

  • Technology is a great enabler. There is no doubt that without advancements in technology, crowdfunding would be hard pressed to gain any momentum in the financial industry. It has given project initiators the chance to set up and pitch their projects to a wide audience of investors and backers. However, relying only on technology and believing that it will make a project successful could prove to be challenging.

  • People are decision makers. At the end of the day, people and not computers will be the ones to make the final decision. A case can be made with how artificial intelligence has been progressing over time but you need to remember that human emotions are quite hard to replicate. This is one of the reasons that makes people unique and one important factor to consider when you are trying to woo investors into your camp.

  • Data and metrics help increase chances of success. Technology can help you improve your chances by giving you data that you need when you need it to be able to make informed decisions. There is no way to know how each person feels or how they would react to specific parts of the project. However, there are metrics that can help you assess past performances which can guide you in your campaign. It can tell you which of the components your backers are most excited about or which of your messages were received more warmly than others. Then you can fine tune your project based on what most of your investors prefer.

Managing a crowdfunding project is no walk in the park especially when you have to work with a lot of people. Human beings base their decisions are on unique sets of learnings and experiences that technology might not be able to comprehend but technology can assist in trying to understand patterns in behavior.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

 

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