Global عربي
KSA عربي
Global عربي
SMEs worldwide face staggering credit gaps. In the GCC, the gap is estimated at $250 billion, with SMEs getting just 3 percent of total loans. That’s why the emergence of crowdfunding in recent years is so powerful, acting as a bridge for companies that normally struggle to tap financing from banks.
But simply deciding to run a crowdfunding campaign is not enough. As crowdfunding gets more sophisticated and integrates better technology onto their platforms, you now have an opportunity to engage in campaigns like never before, making adjustments and strategies to maximize your campaign’s efficacy. That means giving yourself a better chance to get the funds you need.
In this post, we’re going to run through the key crowdfunding analytics you need to master in order to run a successful campaign and close it with the funding you need to grow your business.
In standard finance, ROI means Return on Investment, and it’s meant to measure the profitability or efficiency of an investment. In simple terms it’s measuring how much profit and investment generates relative to its cost.
You’ve probably seen the formula, which looks like this:
ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment
And the basic premise is that, if the ROI is positive it’s potentially a worthwhile investment. And you can compare the ROIs on different investments in order to decide which is best.
That said, crowdfunding requires looking at ROI in a more nuanced way, since the benefits of running a campaign include less tangible metrics, like validating business ideas, developing networks that can lead to long-term partnerships and growth opportunities, and testing the market and gaining credibility among both consumers and future investors. So let’s talk quickly about how to think about ROI in a more expansive, and useful way.
First, let’s consider how you might calculate ROI in a traditional way that captures the literal campaign costs and benefits.
First, calculate the campaign costs
E.g. platform fees, marketing costs, any overhead of running a campaign
Then calculate the total revenue raised
Again, as a formula you might write this as:
ROI = (Total Funds Raised - Fundraising Costs)/ Fundraising costs
Now multiply that by 100.
If your ROI exceeds 100%, your campaign covered its costs
Pro Tip: Make sure you include all costs. Many SMEs, for example, forget to include the cost of time spent by staff on the campaign.
Now let’s go one step further. Because when it comes to crowdfunding, you can’t simply compare the immediate capital raised versus the cost of running the campaign to capture ROI, as you’ll miss much of the benefits that can flow to an SME that runs a good campaign.
So first, what do you think about the actual cost? That depends on the type of crowdfunding model.
With a debt-based crowdfunding model, like Funding Souq, you should think about the cost of raising debt (what are the returns you must pay investors?) versus the growth it enables in your company.
With an equity-based model, the costs are a bit trickier, as you must think about how the raise will impact the valuation of your company and investor dilution.
Now we get to the even more nuanced part, the actual return on investment. Here you should also consider the value you add to your company over the long-run. This includes things like:
Attracting new investors who remain engaged for years
Enhanced reputation and a larger support base
New customers and markets
To run a successful campaign, you also have to decide what a measure of success looks like. In other words, you should define, before the campaign begins, key performance indicators. Common ones include:
Funding amount
Number of investors to conversion rate
Average pledge size
Referral sources
Keep in mind that no single figure tells the whole story. You’ll want a blend of indicators that help capture the strength of the campaign and match your goals.
The Funding Goal Achievement Percentage (sometimes called the percentage funded) is a headline number that tells you whether a campaign succeeded in meeting its funding goal. It’s simply the ratio of money collected over the target amount set by the SME, expressed as a percentage.
For example, an SME raises $60,000 after calling for $50,000
The percentage funded is 120%
If you want to go deeper on this metric, some studies have found:
Campaigns that reach 30% of their goal in the first week are more likely to succeed, and 42% of all funds raised tend to come in the first and last three days
Most successful campaigns secure 30% of their funding goals through pre-launch marketing efforts
Only 23.9% of crowdfunding projects reach their initial funding goals, another reason to monitor and adjust campaigns actively
Investor Satisfaction Rate is one of the most overlooked, yet crucially important indicators.
Typically it’s measured via the Customer Satisfaction Score (CSAT).
A CSAT of 80% or more means investors are strongly satisfied
A high CSAT is important because it helps retain investors. So how do you achieve a high score? The research seems to suggest it's all about clear and active communication. That means regularly updating posts about the project on the platform, sending emails with updated information that explains investment decisions, and even publishing a blog to showcase developments.
However you do it, the wisdom is simple: keep your investors informed and they’re more likely to keep investing.
The average contribution per investors is extremely important in understanding the type and quality of investors your campaign is attracting.
It’s calculated as:
Total Amount Raised/ Number of Investors
For example, a campaign that raises $100,000 from 100 investors has an average contribution of $1,000.
This number is a helpful clue. Think about it this way: is your campaign attracting a smaller number of highly committed investors, or a broad base of small investors?
Knowing the nature of your investors can help with more targeted outreach when you’re running your campaign.
The repeat backer rate is a critical indicator of investor trust. It simply tells you the percentage of investors in the current campaign who have also backed you in a previous one.
As crowdfunding has integrated AI to help with recommendations, platforms are seeing higher repeat backer rates. One study found that in 2024 repeat backers on equity platforms had jumped to 39% from 31% in 2022.
Having a high repeat backer rate is a measure of your SME’s reputation, and signals that you are a strong partner to do business with.
Social media engagement shouldn’t be an afterthought. Metrics that show you’re getting backers referred through social media are an indicator of success, as SMEs with strong social media followings tend to find it easier to attract investment.
In places like the UAE and Saudi Arabia, where the population is active on Instagram, LinkedIn, and X, using these platforms for business discovery is essential. Social media can help attract not just investors, but influencers that hold sway in the industry.
The type of social media metrics you should look for:
Reach
Engagement rate (likes, shares, comments relative to impressions)
Click through rate to the campaign page
If you’re going to properly track how your campaign is doing, you’ll need to be well-versed on what tools are available to do so. There’s a few different options depending on how deep you want to go, so let’s break down the different tools on offer.
Every crowdfunding platform has, like Funding Souq, a native analytics dashboard. This will give you real-time data on things like funds raised, investor counts, and where traffic is coming from.
Beyond that you have Google Analytics, which is seen by many SMEs running campaigns as vital. Through Google Analytics you can spot where backers are coming from on the Internet or which specific ad they may have been drawn in by. This gives you a direct clue about which parts of your marketing is or isn’t working, and where best to put your marketing money going forward. Similarly, on social media you’ll want to use Facebook Insights and Twitter Analytics.
Finally, with AI-powered tools, many platforms track things like email opens and pitch deck views, giving you an additional layer of granular analysis.
Now that you’ve gathered all your data, you’ll want to organize it, so you don’t miss the signal within the noise. That’s where dashboard reporting tools come in, as they help you compile the most relevant data so you can analyze it as the campaign is happening in real-time.
Sometimes third-party options can be a help here. DonorPerfect, while geared toward the nonprofit world, is software that allows campaign managers to more easily monitor KPIs.
Other popular tools include:
Tableau, a visual analytics platform
Power BI, a Microsoft-based tool that can create interactive reports based on hundreds of sources
It’s not enough to simply monitor the metrics. To run a successful campaign, you need to act on them. Here’s five tips for using your data:
Define the gaps early: which metrics are lacking and what does that tell you? If a pitch video gets high views but low conversions, maybe the call-to-action is weak.
A/B test different elements: Test different variable combinations to see what draws backers. Things to test include reward tiers, campaign descriptions, social media platforms, etc.
Look at behavioral data: If the data shows you that users who completed your video were 50% more likely to invest, perhaps you need to focus on achieving higher video completion rates.
Double down on successful data points: Research shows that campaigns that optimize mid-campaign based on successful data points get higher levels of funding.
Act swiftly, in real-time: Campaigns that accelerate don’t wait until the end of campaigns to act on incoming data.
When a campaign is not going as expected, a common culprit is the marketing. This is why it’s so critical to monitor closely, in real-time, because marketing is an area you can rapidly adjust.
Some marketing tips:
Analyze backer demographics and tailor the messaging to the biggest investor demographic
Look at what channels are bringing in the most traffic and direct marketing money accordingly
Look at click-through rate on emails, and adjust messaging or make more personal if rates are low
Pro tip: The first 48 hours of fundraising are critical, and if not much funding is coming in during this early window, it’s time to quickly review the data and pivot to a different strategy.
Communication is, as noted, what keeps investors at ease (other than strong returns). Investor perceptions are shaped by the relatability of the campaign’s narrative, and the clarity and style it’s told in.
You’ll want to produce two types of posts:
Informative, content performance: campaign updates and facts
Persuasive posts: which try to influence decision-making by investors by referencing things like previous campaign successes.
Despite all these tools, SMEs running campaigns often mis-read the data. In the fog of data flying in, they often mis-read the health of their campaign, and this can lead to bad decisionmaking.
Some common traps to avoid:
Set specific, measurable, time-bound goals
Select the correct metrics to track these goals
Revenue attribution: if you combine all revenue into one bucket without analyzing where each dollar is coming from, you’re missing out on extremely valuable data
Don’t underestimate campaign costs: things like staff time, legal compliance, content production all cost money
The opportunities in crowdfunding have never been bigger. And as the platforms become more intelligently designed, particularly as new applications of AI come online, you have a better than ever ability to reach global investors.
The metrics reviewed in this post can give you a powerful snapshot of your campaign, what types of investors it's attracting, and where they are coming from, so you can optimize your campaign and ultimately, get the funding you need.
The most overlooked crowdfunding KPI is Repeat Backer Rate, even though it’s critically important, indicating that an investor trusts the company and sees the project as viable.
During an active fundraising period, particularly during the first 48 hours, campaign metrics should be reviewed daily.
Yes, the standard formula for crowdfunding ROI is: ROI = (Total Funds Raised - Fundraising Costs)/ Fundraising Costs x 100, though you should keep in mind that a proper ROI will include a comprehensive accounting of costs that include items like marketing spending and staff time.
The best indicators of investor satisfaction are repeat backer rate, average contribution size, email click-through rates, and post-campaign survey scores, with a CSAT of 80% or more typically considered a mark of success.
Disclaimer:
This post is for educational purposes only, and does not constitute investment advice or a solicitation to take any financial action. It should not be relied upon when making investment or financing decisions.
