Apr 17, 2020

The correlation between digital marketing strategy and steady cash flow.

The impacts of bad cash flow.

It is more than likely that at some point your business has struggled with cash flow and you’re definitely not alone in that boat. What a lot of us don’t tend to realise though is how digital marketing connects to that issue, so why don’t we look a little deeper at what you potentially could be doing wrong. Poor cash flow doesn’t just affect the financial performance of your business, it also leads to restricted growth for your business as opportunities are missed. It’s important especially for small businesses to be aware of the simple marketing mistakes that result in poor cash flow. This is where a strong digital marketing strategy comes in to play as cash flow issues demand more marketing, not less. 

How a digital strategy can improve cash flow issues.

A digital strategy can create frequent leads and deliver greater conversion for people requiring your services or products. This firstly requires an understanding of your business’s external stakeholders behaviours, needs, goals and perceptions. With a fuller understanding of your digital marketing strategy, a consistent brand message can increase conversions online and offline. 

  1. Make customer retention a priority in your digital marketing strategy.
    So many business’s struggle to expand because they don’t invest in retention. Even if your company offers a great service or product, that is not enough to retain customers. We believe that creating ways to keep in touch whilst rewarding customers, is crucial when it comes to increasing their lifespan and chances of referral.

    The bottomline is you must have a retention budget!

  2. Investing enough money into digital marketing.
    The old saying is true, “to make money you must spend money”. Business growth doesn’t happen if you aren’t investing a realistic amount per new customer. When I say this, what I mean is if you have a target number of clients you wish to bring in each month, and you know that to bring in one customer costs a certain amount of money. Businesses should expect the same for all customers and reevaluate the cost of acquisition at least every quarter. By having this mindset you’ll be able to set goals that are in reach and capable of achieving.

    Being aware of how much you spend on customers and make from customers over time v.s upfront helps to evaluate if you can afford the cash flow constraint that comes with gradual payments. When applying this idea to digital marketing, it is much easier to understand the relevance of having a strong website design, appropriate social media and use of ads for your business as well as plans for customer retention. As these sorts of plans promote customers to keep coming back. 

  3. Digital marketing during dry months.
    Cash flow is always going to fluctuate resulting in peaks and troughs throughout the year. During times where conversion rates decrease it becomes more important to have a digital marketing strategy in place that can keep business steady. Slower months require more marketing... you must spend money where you make money. 

  4. Clear & Consistent Branding.
    In order to get the most from your marketing, we always recommend businesses have a consistent brand story across all platforms. This provides a consistent message to website visitors who may not have converted or are not ready to purchase yet. 

    This means that your digital story must connect with your offline campaigns on radio, tv, print or even classic mail.

Plan or plan to fail!

When we make plans, it becomes easier for us to envision our desired outcomes and make better informed decisions towards those goals. This is true for personal decisions just as much as it is for business decisions. By creating detailed plans we are developing strategies and questions that work around obstacles. This ensures you can provide a fuller brief to your marketers such as web designers, social media experts and content creators.

What you give you can expect to receive back!

How websites can integrate with business.

By spending money and allowing professionals to complete their roles, it ensures you get the results you are looking for and can therefore spend time on the things which will generate revenue in your business. 

Having a custom made website made by a professional rather than doing it in-house, means that there is room for your website to grow alongside your business. Systems such as Xero and MYOB not only have a wider variety of functions and template possibilities, they also save time and staff which means you’re saving money. Systems like this increase cash flow because they cover a lot of jobs that you would usually have to pay someone else to do. 

With custom website integrations, it provides businesses to store data, connect sales and can be used to keep on top of all of your business tasks. Businesses are always searching for ways to create new leads and there is no better way to do that than to adapt to this ever changing digital world. This means ensuring your website content and marketing is relevant. By investing in digital growth you create more pathways for customers to reach you.