One of the most important aspects of technology’s impact on people’s lives is its capacity to bring people closer together: TI tools facilitate communication between multiple service users. Nowadays, it’s common to see many people working together to solve a problem, for instance through crowdsourcing. As a consequence, it’s easy to keep conversations about multiple subjects, namely to research new products.

The name came from the junction of two words: crowd and source. Crowdsourcing means many people getting together to create new products, test websites, produce content, find solutions and a lot more. It’s not a recent phenomenon in society.

The concept can be adapted to many areas, generating great advantages to businesses that want to have a comprehensive view of their customers’ needs. Besides, through crowdsourcing you can better understand your audience and what aspects of your business need improvement.

In the long term, crowdsourcing helps your business be more competitive and more aligned with the market segment in which it operates. Do you want to know more? Keep reading and find out everything you need to know about crowdsourcing!

What’s crowdsoursing?

The best way to explain it is: it’s a collaborative troubleshooting technique in which people unite to join their capacities and reach a common goal.  In other words, crowdsourcing, especially when applied in corporate environments can be viewed as a “collective outsourcing”.

People join knowledge to create content, develop new products and new approaches to implement on a company’s day-to-day.

The name appeared in 2006, when Jeff Howe and Mark Robinson, editors in Wired magazine, joined the words crowd and outsourcing to identify processes in which many people get together to create solutions that will benefit the entire community.

A well known example of crowdfunding is the app Waze. This social platform brings drivers together in order tom share information about traffic, dangerous roads or accidents. Real time sharing of this information allows the app to tell drivers the fastest way to reach destinations, thus eliminating a huge amount of time spent on traffic jams.

Companies can develop platforms in which their clients constantly give feedback about their products and services. These comments contribute to new solutions, that will certainly be more aligned with the market and, therefore, generate more value.

How can crowdsourcing affect the performance of your company?

In a corporate environment crowdsourcing can have a positive impact in processes, defining market strategies, and in the way errors and operational flaws are handled.

In some cases, this technique can eliminate the need to hire a consultancy service, drastically reducing costs.

Thus, the main advantages of crowdsourcing are:

  • Possibility to use new knowledge on the decision-making processes and defining company strategies;
  • Less time required for troubleshooting;
  • More engagement from clients and business partners;
  • Becomes easier to find professionals and business partners that are able to help on medium and long-term projects;
  • It’s possible to create a constant flow of innovation and routines optimization.

Crowdsourcing can also have a huge impact on the relationship with your consumer. External feedback makes screening problems and project flaws related to new products a much more accurate process. This way, testing new solutions becomes more efficient and your portfolio of products and services is able to generate more profit.

On the long term, getting collaboration from consumers and business partners during the definition of market policies, sales strategies and developing projects will make your company a lot more competitive.  More brand engagement from clients will translate into a more agile and cheap expansion. Innovation levels will also be growing continuously.

How does crowdsourcing relate to purchase departments?

The purchasing and sales segment of services and products in the B2B segment is highly competitive, so businesses must adopt innovative strategies in order to succeed. They must focus on the consumer’s needs, in order to create products and services that are competitive and generate profit.

Companies who work with online sales, for instance, can use feedback from clients to solve flaws on the platform. Besides improving user experience, these changes can have a positive impact on the engagement levels and improve commercial transactions.

As previously stated, opinion from your business’ target audience and business partners is the best way to identify market needs. If you incorporate those opinions, your business is more likely to increase profits.

At last, crowdfunding can also be very useful to create platforms and services. Business partners can be invited to evaluate the system from a user’s point of view instead of relying solely on software specialists tests.

As a consequence, the website (or service) will be a lot more connected to goals and expectations from users.

Crowdfunding is reshaping the way companies handle their business relationships. By welcoming feedback and constructive criticism, they decrease investment on detecting service or website flaws, or any other errors.

Did you enjoy this subject? Leave a comment on how you’re planning to use crowdfunding on your company.