Leveraging social proof in your promotions

Social proof is an effective marketing tool for any business. Think about the last time you ordered something online, did you read the reviews first? And did that influence your decision? Or what about a time when you were exploring a new city and looking for a restaurant to have lunch. Did you pick the restaurant that was empty, or did you choose a restaurant that had people inside?

As consumers, we look to the experiences of other people to inform our decision making. Sometimes we are aware of this and seek it out, like reading reviews online. Sometimes it's more subconscious, like assuming that if a restaurant is empty then it must not be that good. These same principles can be applied to crowdfunding.

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Types of Social Proof 🤳🏻

1. Expert social proof involves having an expert in your industry recommend your products or services or be associated with your brand.
2. Celebrity social proof is when a celebrity or influencer endorses your products or services through a post on Instagram or a tweet to their followers.
3. User social proof involves your current customers recommending your products or services with praises on social media or positive ratings on review sites.
4. Wisdom of the crowd is when a large group of people are seen endorsing your brand - think having thousands of customers or followers on your social networks.
5. Wisdom of your friends involves people seeing their friends and family approve your product through product use or follows/likes on social media.
6. Certification social proof is when you receive a stamp of approval by an authoritative figure in your industry.

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Social Proof for Crowdfunding 🌍

Every marketing plan can benefit from social proof for both online and offline marketing. 

According to SproutSocial, social proof is the concept that people will follow the actions of the masses. The idea is that since so many other people behave in a certain way, it must be the correct behavior.

This guide covers seven different forms of online social proof with social media examples from past campaigns.

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1. Investor Testimonials

While your campaign is ongoing, ask people why they chose to invest in your company. These testimonials are a great resource for addressing questions or concerns from other potential investors.

Example: Consider sharing the quotes on social media, like Hardbacon did, during their crowdfunding campaign. This gives other potential investors the ability to see people similar to themselves who made the decision to invest. These testimonials can also be shared on your website during and post campaign to support further marketing efforts.

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2. Campaign Milestones

Your crowdfunding campaign can be a great opportunity to grow your network and gain new brand ambassadors. Have you increased your online following since the campaign started? Show it. Have you brought on new investors? Celebrate it. Have you reached your target raise? Showcase it.

Example: Red Mountain Resort showed their campaign progress by sharing that over 500 people had already invested in their company. This shows great traction and can help provide confidence to unsure investors. Red Mountain also used this as an opportunity to create a sense of urgency with the investment by highlighting that there were only 9 days left in the campaign. This is an effective way to help close those final investors.

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3. User Created Content

Encourage users to post pictures of your product or brand using a branded hashtag. Your customers are your strongest brand advocates and potential investors want to hear from them. Create a hashtag for your brand and a distinct hashtag for your campaign. Then encourage your network to share their experiences about your product using these tags.

Example: Bucha Brew, encourages their customers to share pictures of their adventures with their Kombucha. This is a great way to catch candid photos of customers who genuinely appreciate the product. These photo scan then be reshared across your social networks and website.

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4. Company Numbers

Potential investors want to know that your company has traction. Let them know how many markets your company serves, be it nationally or internationally. Showcase how many stores your product is distributed to. Highlight the number of goods sold every day, week, month or year. Reference how many 5-star ratings you’ve been given online.

Example: VeloGuide uses social proof to let their network know how many tours have been booked in the last 30 days. These tours were also booked on Airbnb Discover which adds another layer of credibility to their business. Anytime your product or service is validated by an industry leading platform, there’s an opportunity to share that social proof with your network.

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5. Awards & Features

Having industry experts feature your company or product instantly brings credibility to your brand. This could include a feature in an industry magazine, an appearance on television, a mention from an influencer or even an award.

Example: Take this opportunity to highlight your accomplishments while also providing your supporters with the ability to share in your success. Take this example of Macaloney Island Distillery showing that they make the finest Canadian Whisky by winning Gold. This adds credibility to your business during your raise and is also great to share post-raise to keep investors engaged and apprised as to how the company is doing.

6. Endorsements

Consumers often look to the opinions of industry experts as well as friends and family when making decisions. The same process can apply to investments. On Facebook Ads set the target to friends of people who like your page and on when posting encourage your audience to share your posts.

Example: The Very Good Butchers, found a way to receive both industry expert endorsement as well as encourage friends and family sharing. During their appearance on Dragon’s Den they accepted an offer from two Dragon’s which is a strong endorsement of the company’s business model. They also effectively utilized call-to-actions to create a sense of urgency.

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7. Product Reviews

Sharing positive product reviews are great for your business at any time but can also support your crowdfunding efforts. This also investors to see that customers support your products and your business.

Example: Product reviews are a great way to show proof of concept, not only does your business model work but customers love your product. ecologyst shared this product review from one of their happy customers. This review can be shared on your website, your marketing materials and, of course, social media.