CrowdSourcing-What is it?

When it comes to crowdsourcing what are your thoughts and are they in line with your business objectives? Is is still a good idea for a small business?

By Dana Newell

When I first heard the term crowdsourcing with all the education I’ve obtained through all my social media training, it was a new term for me but its a concept that’s been around. Crowdsourcing is defined as the collection of information, opinions, or work from a group of people, usually sourced via the Internet or Social Media. Crowdsourcing allows companies to save time and money by tapping into the skills and thoughts of others from across the country and even all over the world. Large companies have been using some form of crowd sourcing for years.  Think Nabisco’s Oreo or Pepsi Co’s Lay’s-“Do Me a Flavor”.

“Large companies have been using some form of crowd sourcing for years.”

When Oreo was looking to add new flavor for “cream in between the middle” of the famous chocolate cookie, who did they turn to the “crowd.”  Consumers were encouraged to submit different thoughts and ideas to hashtag #MyOreoCreation for a new cookie recipe center.  The successful campaign used social media with the hashtag and asked consumers to post on their respective platforms with the submissions.  What a way to engage your audience.  The winner received a $500,000 check, a trip to New York City, and their winning flavor in the market Summer rotation.  What was the winning flavor?  Firework! Pepsi Co did the same thing with its brand of asking consumers to submit different thoughts on flavors for a new Lay’s chip.  The “Do Me a Flavor” campaign was born.  Some interesting flavors were submitted, but we now see new flavors in our grocery like, Philly Cheesesteak and Nashville Hot Chicken flavors. 

What about the small business owner who’s not Nabisco or Pepsi Co., can crowdsourcing be used? The short answer is, yes! There are pros and cons to using crowdsourcing. The pros include–a less expensive way to research your target market, tap into experts, gain brand ambassadors, saves time and money, build customer contacts, and collect data. Some of the cons include data manipulation, loss of your image/idea, not enough publicity or engagement, no follow-up with your already engaged community. Crowdsourcing needs publicity to generate the kind of traction a brand needs for an effective addition to your marketing strategy. Done well crowdsourcing can create an incredibly engaging brand message, and a compelling story about your business services or products, increase inquiries, and brand awareness. This can lead to the ultimate goal of increasing your revenue stream. Should crowdsourcing be the only strategy your business can use to replace come tried-and-true marketing research methodology, no, but it can offer you a window into the thoughts and ideas of the audience you are trying to reach. If you are a small business, this may be an inexpensive way to “hear from your audience” without the high cost of protracted marketing research methodologies. Use social media such as Facebook, Instagram, and other sources to “ask” what your audience is looking for and use follower behavior and feedback to help. The crowdsourcing method can be an innovative way to engage your audience while making an important product or service decisions.