We’re also trying to sort out a super-premium tier offering with a lacquer wooden game box – although we haven’t puzzled out economic manufacturing.
Having options, add-ons, and premium upgrades adds value for your customers.
Price Discrimination
Despite the nefarious sounding name, price discrimination is about allowing consumers to pay what they want for the goods that they want.
It is the other side of the coin to offering consumers more options. They will self-discriminate based on their preferences. For instance, consumers who can afford more premium options, and find value in them, will spend more money on those items.
When some portion of backers pledge for higher tier levels, or add-ons, it raises the average revenue and (ideally) profit per backer. This allows for faster funding velocity, but also aids in a number of areas such as making advertising more profitable (and so a campaign can afford higher costs per click).
Discoverability & Momentum
It’s important not to underestimate the power of Kickstarter’s algorithm – we found that 52% of backers discover our Nut Hunt campaign through Kickstarter, versus 43% through organic or direct non-Kickstarter sources.
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