Financial institutions and crowdfunding organizations have a ripe opportunity when they support their apps with a mobile engagement solution.
If you haven’t heard by now, the SEC’s recent loosening of equity investment rules now allows non-accredited investors to invest in projects and startups they see having the potential to thrive. The Jumpstart Our Business Startups (JOBS) Act expands the number of potential equity investors from 10 million to over 130 million, and just as in crowdfunding’s first incarnation, mobile will play a central role in connecting potential investors to opportunities, and driving sustained engagement.
Getting Into the Game
There are two crowdfunding models. The first is what’s called donation-based funding, which gave birth to crowdfunding. Funders donate to projects based on a collaborative goal and in return receive products, perks or rewards. Kickstarter has practically become a household name, given the ubiquity and popularity of this model.
The second and mostly untapped model is investment crowdfunding, where businesses seeking capital sell ownership stakes online in the form of equity or debt. In this model, individuals who invest become owners or shareholders and, unlike the donation model, have the potential for financial return.
Mobile will connect the investor masses to new opportunities
So how can a smart marketer, app developer or mobile-savvy business person get a lead in the game? Like we saw with donation-based crowdfunding, mobile will prove to be the great connector. New marketplaces and clearinghouses will spring up, enabling investors to learn about and choose equity investments, in addition to staying up to date on their progress. All types of financial organizations are realizing the benefits of mobile engagement, offering unparalleled immediacy and relevancy to their audiences.
With a mobile engagement solution, investors can opt in to personalized investment updates, with additional content and new investment opportunities targeted to both their explicit and implicit preferences, including projects they’ve browsed, businesses they’ve invested, markets of interest and their location.
Businesses can also create their own apps or leverage existing ones to promote investment rounds. Existing apps, such as those designed to sell their goods or streamline business operations, can take advantage of in-app messaging solutions to alert their audiences to investment opportunities. Apps specifically created for investors can leverage push notifications to engage people on their device home screens and solicit simple button taps that can fuel additional automated messaging tailored to their interests.
You Don’t Even Need An App!
Many crowdfunding platforms are finding that an easy way to earn valuable space on their customers’ mobile screen is with mobile wallet. Both Apple Wallet and Google Wallet provide a very easy way for a potential investor to download a virtual “baseball card” about an investment and track its progress, and sometimes consumers don’t want your app. These cards can be updated dynamically to include up-to-the-minute metrics on these investment to keep investors engaged and informed.
Mobile wallets are a great way to keep FAQs, links, phone numbers, and all other information you want your investor to know. And you can dynamically update all the fields, so it’s almost a “mini app” on your customer’s mobile device. A great way to get your brand’s introduction onto mobile devices.
There’s a whole new world of mobile engagement possibilities, and as these changes in investment regulations clear the way for an absolutely huge potential investor audience, you’ll want some inspiration for how to better connect and serve them. Check out the following mobile engagement resources and give us a call if you’d like strategic consulting or technical implementation help in conquering this new opportunity.
Mobile Engagement in Action: A Crowdfunding App that Saw 5x CTRs
Group payments app Tilt is an example of the power that a sound mobile engagement strategy can put behind financial and crowdfunding apps.
Tilt’s app allows users to contribute to projects, making it easy for groups and communities to collect, fundraise or pool money securely and effectively online. When a project that a user has contributed to hits the target amount, or “tilts,” the user is notified with a push notification. Tilt also encourages users to re-engage with the app via push notifications that prompt them to contribute, create a campaign or post a comment.
The Tilt team tried several different methods to communicate with users, and found the most success with push notifications. The click-through rate for push notifications was more than 5x greater than the click-through rate for emails. To see more impressive results and relevant use cases for mobile engagement by a finance app, click here to download the Tilt case study.