When it comes to raising capital online, knowing your customer means more than KYC/AML— it necessitates a thorough understanding of one's investor demographic characteristics, and the insight to utilize the best methods of communication in the right channels. DealMaker’s analytics suite is making it easier than ever for issuers to have the data they need for a successful capital raise. Our dashboard gives issuers total insight into their transaction, showing what’s working and what isn’t, allowing for real-time data-driven decision making.
When an issuer elects to self-host their capital raise on DealMaker, access to data is often a primary motivator. Unlike raising on a traditional marketplace, an issuer using DealMaker has full insight into who is coming into their funnel through which channels, and what tactics are most likely to maximize conversion. This blog will highlight two new features of the DealMaker Analytics Suite and show how they can help to streamline a more efficient and smarter capital raise.
Tagging is one of the most powerful features in our analytics suite. Our technology allows full insight into an investors’ journey from the moment they enter the investment funnel. Issuers unlock the ability to see where investors are coming from, and where they are within the purchase process right down to the percentage of completion. They can also see how other investors from the same channels have converted. The ability to see which channels are performing at the highest or lowest conversion rate and driving ROI, makes marketing reinvestment decisions simple and more accurate— effecting a more successful offering at a lower overall cost.
With these analytics, an issuer can drill down even further to see the breakdown of their raise and learn more about the differences in investors by channel. In the chart above, we can compare Facebook ads to Wall Street Journal (wsj) ads. In this example, more people are coming into the funnel through Facebook, but on average, the investors coming from wsj are investing a greater amount. An issuer can then decide that for increased ROI from their ad spend, it would be better to put more money into the wsj campaign.
Analytics also have the ability to significantly impact and validate investor relations efforts. In the example above, a small number of investors received a follow up, but those participants are investing the largest amounts of any other group.
DealMaker provides other tools to filter and analyze investor data through the use of tags, including an analysis of conversion rate by source, as well as a monthly analysis for each tag . Conversion rates give an inside look at how many investors from a particular source actually complete a transaction. The benefit of seeing where people are getting stuck in the process of investing is that an issuer knows who to follow up with to get them to complete the process.
Over the course of the raise, marketing efforts can change and new tactics or ads might be used. The relative performance of those ads are now clearly visible month over month. Issuers may also use monthly insights to inform A/B tests or other digital marketing tactics to assess performance.
DealMaker’s tagging integrates seamlessly with third party marketing teams and external technologies. Whether an issuer is executing marketing in-house, or leveraging a third-party— like members of our DealMaker Advantage Program, external tracking IDs can be entered as tags to track full-funnel attribution.
Marketing teams can also use third party pixels on DealMaker, allowing for instant communication of investor behaviour between DealMaker and third-party advertising platforms. Marketing teams can place a pixel in each channel and it will listen to see the conversion rates. As soon as an investor clicks the ‘Accept Invitation’ button, it triggers an event that goes back to the marketing team to know that there has been a conversion from one of the channels. If 1,000 people are coming into the DealMaker platform through Facebook, having a visualization of the conversion rates leads to a more successful raise. This can also show which demographics are converting at the highest rates.
If an issuer wants to have a clearer picture of who their marketing is attracting, looking at the age demographics can show which audiences the marketing tactics are reaching. Our issuer dashboard gives valuable data points such as Investor Count by Age Group and Average Subscriptions based on age group. An issuer can further drill down to see investment amounts or conversion rates by specific age. Like with tagging, this information can influence how an issuer might want to use their marketing budget to target the specific audience that is investing the most.
These analytics tools enhance the marketing capabilities of a raise. Knowing that an investor stalled during the questionnaire or has indicated that they want to invest, but haven’t signed yet, gives the issuer an opportunity to follow up with them and ensure that they convert and complete a purchase.
Our powerful and continuously expanding analytics suite has empowered issuers to raise millions of dollars. Interested in learning more? Get in touch.
Mark Yamashita is an experienced product leader with a track record of bringing great digital customer products to market. As Head of Product at DealMaker he guides product management, design, data analysis, and research.