Keeping track of your cash flow and profit is a must for any business. Not discounting that profits are an important KPI to measure financial health, but your cash flow is important too. Cash flow helps businesses stay operational for enhancing productivity and efficiency by improving your chances of not running out of money. Without adequate cash flow, your company could easily miss vendor payments or even fail or go bankrupt. To keep your cash flow afloat and to drive growth, it’s vital to have a recurring income. Here are some ways businesses should look at to increase recurring income.
Get More Leads
Generating business leads is important to keep cash flow afloat because it expands your audience reach. Think of the channel you want to generate leads through. For example, if you are an e-commerce platform with a small social media following on one platform, you can consider partnering with an influencer. The influencer can demonstrate your product or discuss your service on their YouTube Channel or during an Instagram Stories session. You can also generate leads using digital marketing, such as search engine optimization, landing pages and paid search advertising.
Offer a Loyalty Program
Improve customer retention by offering a loyalty program. One study reveals that repeat customers can spend 67 percent more on purchases than new customers spend. Starting a loyalty program cost less than getting new customers, which can cost five times more than keeping your current ones. There are multiple approaches you can take to rewarding your existing customers, too. For instance, you can create a loyalty program that provides existing clients with points that they can later use to redeem a gift or discounted service. Your loyalty program can also provide customers with a dedicated customer care number for priority service. Loyalty programs can also lead to more sales and even extend to prospective clients, such as offering them rewards for completing quests that are incentivized.
Reinvent Your Business and Pricing Models
Consider how you are approaching pricing your products or services. Consider offering payment terms that break up the amount into smaller portions. Changing the price model to include monthly payments will help generate recurring cash flow while offering your customers choices in how they pay and entice prospects with an economical initial rate.
Offer Seamless Payments
Making sure recurring income also means making it convenient for your clients or customers to pay. The proliferation of smartphones makes it key that you offer payment solutions that adapt to how your customers access your site to purchase your products or services. Opt for convenient payment solutions with seamless payments that make it effortless to pay for your products or services monthly. For example, you can use in-video payments that IntegraPay offers to enable your customers to pay from within the video they watch. Also, you can offer your clients a variety of ways to pay, including with direct deposit or credit card.
Offer Subscription Services
Subscription services enhance customer retention and also ensures you receive recurring income on a consistent basis. Look for a payment solution that facilitates subscription services. For example, at IntegraPay we offer a subscription payment service that makes it easy for businesses to manage their customer subscriptions. Also, you can provide recurring billing that’s automated so your customers won’t have to remember when their bill is due.
Profit margins are vital to sustaining the business. But recurring cash flow is needed to fuel growth. By applying best practices for cash flow improvement, you can create the stability that supports your bottom-line profits.