Tag Archives: crowdfunding

Is big data* changing the need for focus groups?

Recent articles suggest that there is so much information being gathered about customers and spending and everything else you can think of, that the need to do traditional market research is starting to fall by the wayside.  Data will give you all the information you need to predict consumer actions.  As I noted in my recent post about consumers using Amazon and other sources to comparative shop for price and quality, features and benefits, big data still reports historically on what consumers have done, therefore, you are looking backwards to predict the future. Yes, I know, history repeats itself but when you’re selling next seasons’ clothing line, you might want to reconsider consulting the past.  And I agree that focus groups and other agency/consultant and client pre-conceived ideas put in front of customers should fall by the wayside (after all, a focus group puts these ideas in front of the customer and asks the customer what they think about your ideas, not what the customer wants).

I’m sure if you are a huge corporation, having access to all this data must be comforting. But it’s still all seen from the perspective of the market and not the customer.  I believe that nothing is better than asking your customers what they want and how they want it.  That’s a predictive, not historical, approach. I’ve done it for big corporations (one had a return-on-investment of 1,000%) and I’ve don’t it for solopreneurs (one had a return-on-investment of 60%).   I suggest you do it for yourself.  Get out there and poll your customers directly.  Mimoona, which is a new crowdfunding tool (http://www.mimoona.com/?reffID=4299), allows your customers to have a vote on your next seasons line – and it’s not an idle vote – they vote with their credit cards.

*Big data is a term coined for the collection of data that comes in such large volume and in groupings, that it can’t be handled by traditional methods. The value of mining big data, is that enables one to see connections on a larger scale than ever before, as well as see connections between things that were never before available.

 

Sandra Holtzman teaches CEO 035: Licensing.
She is the author of Lies Startups Tell Themselves to Avoid Marketing.

When technology intersects with fashion – you benefit.

There’s a new tech idea/website that’s been specifically developed for fashion designers (although other businesses can certainly use it).  It seems to be a cross between crowdfunding/sourcing and market testing.  Here’s how it works: A designer posts several new items from their upcoming collection – or variations on one item – for instance the designer could post one item in multiple colors to see which color is the most appealing. The customer, if interested in the item, makes a commitment to purchase it.  When orders reach a minimum number designated by the designer, then the customer is charged and the designer starts production.  If the orders don’t reach that minimum, then the customer is refunded their money and the designer doesn’t produce it.  It’s a fashion variation on the crowdfunding theme.  But this idea goes one step further.

In crowdfunding, you go to a designated crowdfunding website and put up your idea.  Then there’s a huge hurdle which people rarely discuss – marketing. You have to market like hell to get people to go to the crowdfunding site. So you are essentially doing double marketing – first for your own website (assuming you have one) and second to the crowdfunding site.  With this product, you actually overlay the crowdfunding program onto your own website, thus driving people to your website only, which I think is a much more organic way to market yourself (although you will lose the crowdfunding site surfers who might be a source of revenue).

The concept sounds like a total win-win for the customer and for the designer.  It’s a great way for the customer to be not only ahead of the trend but to actually influence the trend – and to be the first wearing a new style.   Customers order their clothes in advance, and designers don’t risk wasting materials and manufacture for a product that isn’t going to sell well, thus avoiding excess inventory and cash flow difficulties among other issues.

So far, Voy-voy, a NY based clothing company, Feit, a shoe and accessories company, and Gustin, a jeans company are all using this new concept.

It’s called Mimoona – to learn more and hear testimonials, visit the site and see if it’s something that will work for you.  http://www.we.mimoona.com/Projects/1443?share=true&reffID=4299.

 

Sandra Holtzman teaches CEO 035: Licensing.
She is the author of Lies Startups Tell Themselves to Avoid Marketing.